More than 8 million people file tax returns each year who don’t need to do so, imposing heavy costs on the Internal Revenue Service, according to a new report from a Treasury Department watchdog.
The Treasury Inspector General for Tax Administration looked at the steps the IRS has been taking to reduce the number of tax returns filed by individuals whose wages are too low to meet the filing threshold. TIGTA found that taxpayers collectively spent an average of $390 million and 75 million hours per year preparing and filing unnecessary tax returns. The IRS, for its part, spent an average of $11 million each year to process the unnecessary returns.
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