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.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.