The Internal Revenue Service is unable to verify taxpayer eligibility for the majority of the tax benefits and credits provided by the Recovery Act, according to a new report.

The Treasury Department’s Inspector General for Tax Administration found that the IRS cannot verify taxpayer eligibility for 13 of the 20 benefits and credits for individual taxpayers and 26 of the 36 tax provisions benefiting businesses at the time a tax return is processed. In October, an earlier report by TIGTA identified $636 million in fraudulent or erroneous First-Time Homebuyer Tax Credits, many of which were tied to difficulties in verifying the credits (see Audit Finds $636M in Bogus Homebuyer Credits).

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