Get used to if folks.
Is the IRS preparing to get the monies back, probably NOT. Having prepared tax returns, By the way I can tell you the EIC is plagued by fraud. Here’s how they do it. That’s just what they call, redistribution of wealth.
People claim 2 kids. They claim a gross income that maximizes the earned income credit. They claim 2 that aren’t there’s as foster kids, if they don’t have two. It doesn’t matter. Usually, they pay self employment tax. They simply claim selfemployment income, like babysitting/daycare, So if they didn’t work.
The combination of the above-mentioned steps gets someone who ain’t working really, a EIC refund right after the SE tax they paid of 10000+. It’s easy for you to figure out the amount using the EIC chart provided by the IRS, therefore this number is a guesstimate.
This is nothing more therefore income redistribution.
IRS crack down on the general number of suspect returns. That said, schedule C’s for family child care and maid services and they’ve been not interested. Now they talk about doubling the percentage of EITC available for the majority of cheaters! IRS with documents to give them some evidence to perform a store audit and they just blew me off I must assume for not being of a dollar amount making a bust worthwhile.
Abolish unearned tax credit. We have too many different tax payer funded programs for the poor.