House Ways and Means Committee members question IRS efforts to stop improper earned income tax credit payments

Republican members of the House Ways and Means Committee requested answers on Thursday about IRS efforts to stop improper earned income tax credit (EITC) payments.

U.S. Rep. Kevin Brady (R-TX), the chairman of the committee, led a letter from Republican committee members to IRS Commissioner John Koskinen about the agency’s use of the Do Not Pay (DNP) portal to stop improper EITC payments.

U.S. Reps. Pat Tiberi (R-OH), Charles Boustany (R-LA), Peter Roskam (R-IL), Vern Buchanan (R-FL), Lynn Jenkins (R-KS), Erik Paulsen (R-MN), Diane Black (R-TN), Tom Reed (R-NY), Todd Young (R-IN), Mike Kelly (R-PA), Jim Renacci (R-OH), Pat Meehan (R-PA), Kristi Noem (R-SD), Bob Dold (R-IL) and Tom Rice (R-SC) were among the committee members who signed the letter.

“The Internal Revenue Service’s current process of relying on an applicant’s self-attested income and paying out the EITC before that income is confirmed is not working,” the lawmakers wrote. “Reducing improper payments is critical to safeguarding federal funds, helping to achieve cost savings, improve the government’s fiscal position, and ensure we are meeting the needs of those who are eligible.”

Members raised questions about the DNP portal not being fully used to prevent improper EITC payments, which totaled $17.7 billion in 2014.

“Despite this tool being housed at the U.S. Department of Treasury, and being available to all federal agencies, it is our understanding that this tool is not being fully utilized by the IRS,” the lawmakers wrote. “We are writing (Koskinen) today to confirm (the IRS’s) current use of DNP, and specifically what steps the IRS is taking to encourage and increase the utilization of tools, including use of income and employment data from payroll data providers, that would decrease the rate of EITC improper payments.”