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Home/Briefs/taxation
BriefApril 11, 2026 · 02:27 PM

The IRS flags the Earned Income Tax Credit as a high-scrutiny area for improper payments

Taxpayers claiming the Earned Income Tax Credit (EITC) face high scrutiny from the IRS. The IRS approximates that 25% of the claimed EITC credits offered in 2018 were improper payments. Because the EITC is a refundable credit that puts money into taxpayers’ pockets, it is one of the most closely reviewed credits by the agency. When the IRS flags a refund error, it can delay, reduce, or penalize the refund.

Orion Godfrey
taxationfederal taxestax credits

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