The IRS is failed to purse millions in potentially improper deduction claims for qualified retirement savings contributions, an audit by the Treasury Inspector General for Tax Administration has found.
The federal government since 2002 has allowed for a "savers credit" for certain low- to middle-income workers who contribute to a qualified retirement plan. Approximately $1.1 billion in saver's credits were claimed in 2011.
The objective of the TIGTA's audit was to assess how well IRS "controls" over saver credit claims are working. In processing claims, the IRS generally looks at age limits, income levels and credit limits. For tax-year 2011, the audit found $53 million in false or overstated claims.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
