Phoenix-based CPA Randall Sorensen would love the IRS to take notice of his new software designed to cure what he deems to be the gross overpayment of the Earned Income Tax Credit as a result of fraud.
Sorensen developed the EICCA (Earned Income Credit Compliance Audit) software, which was built to identify EITC tax frauds. He boasts that preliminary test results on 500,000 tax returns were completed in 30 minutes and anticipates being able to test all 27 million EIC tax filers in five hours.
The Internal Revenue Service estimates that 23 to 28 percent of EITC payments are issued improperly each year, which equates to between $11 billion and $13 billion.
“We estimate that EICCA could identify $2.1 billion in earned income credit tax fraud and reduce the Tax Gap by another $800 million for a total savings of $2.9 billion in 2012,” said Sorensen. He went so far as to send his proposal to the recently disbanded supercommittee and the commissioner of the IRS, but has not received a response.