Taxpayers who misreported their income to snare unjustified Earned Income Tax Credits are draining $2 billion a year from the U.S. Treasury, auditors at the Government Accountability Office told Congress.

Another $2 billion a year is being improperly paid out to taxpayers who misrepresent their marital status in order to score EITC payments, and an even bigger drain -- $3 billion annually - is being paid to families that collect earned income credits by falsely claiming that they meet federal residency or relationship requirements, the GAO said.

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access