Processing of Recovery Rebate Credit Claims During the 2022 Filing Season (2023-08-24)

Summary

The Treasury Inspector General for Tax Administration (TIGTA) Final Audit Report, Report Number 2023-47-056, issued on August 24, 2023, assesses the IRS's processing of Recovery Rebate Credit claims during the 2022 Filing Season. As of May 5, 2022, the IRS processed 17.8 million tax returns with Recovery Rebate Credit claims totaling $33 billion. TIGTA found the IRS correctly calculated the credit for 99.7 percent of the Tax Year 2021 returns, but 316,425 (1.7 percent) received an incorrect credit, and TIGTA identified nearly 3 million individuals potentially eligible for $4.7 billion in credits who have not claimed them. TIGTA made four recommendations; the IRS agreed with one of the four.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

1

Processing of Recovery Rebate Credit
Claims During the 2022 Filing Season

August 24, 2023

Report Number:  2023-47-056

TIGTACommunications@tigta.treas.gov   |   www.tigta.gov

TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION

HIGHLIGHTS:  Processing of Recovery Rebate Credit Claims During the 2022 Filing Season
Final Audit Report issued on August 24, 2023
Report Number 2023-47-056

Why TIGTA Did This Audit
This audit was initiated to assess
the IRS’s processing of Recovery
Rebate Credit claims during the
2022 Filing Season.
The American Rescue Plan Act of
2021 created a third Recovery
Rebate Credit of up to $1,400 per
eligible individual for Tax
Year 2021.  The legislation also
directed the IRS to make advance
payments of the credit (referred to
as advance Recovery Rebate Credit
payments or Economic Impact
Payments).  Taxpayers who claim
the Recovery Rebate Credit on their
Tax Year 2021 returns must reduce
the credit by any advance payment
they received.
Impact on Tax Administration
As of May 5, 2022, the IRS
processed 17.8 million tax returns
with Recovery Rebate Credit claims
totaling $33 billion.
Prior reviews of the IRS’s
implementation of the Recovery
Rebate Credit found that the IRS’s
calculation of the amount
individuals are entitled to receive is
highly accurate.  However, these
reviews also identified significant
payments to potentially ineligible
individuals and a large number of
potentially eligible individuals who
had not received an advance
payment or Recovery Rebate
Credit.

What TIGTA Found
The IRS correctly calculated the allowable Recovery Rebate Credit for
99.7 percent of the Tax Year 2021 tax returns that claimed a credit as
of May 5, 2022.  In addition, the IRS’s tax return validation processes
ensured that taxpayers received the Recovery Rebate Credit they
were entitled on 98.3 percent of the returns.

However, erroneous payments continue to be significant.  Of the
17.8 million returns reviewed, 316,425 (1.7 percent) returns received
an incorrect Recovery Rebate Credit.  These include:
•
52,297 returns with payments totaling $99.4 million in which
the IRS’s calculation of the Recovery Rebate Credit amount
was incorrect.
•
264,128 returns with payments totaling $369.3 million that
were issued to potentially ineligible dependents,
nonresidents, and residents of a U.S. Territory.
In addition, some eligible individuals still have not claimed a
Recovery Rebate Credit despite extensive efforts by the IRS to
educate taxpayers on their eligibility for the credit and assist them in
filing a return to obtain these credits.  TIGTA’s review of Tax
Year 2021 tax returns identified nearly 3 million individuals who are
potentially eligible for $4.7 billion in Recovery Rebate Credits but
have not claimed them.
Finally, the use of advance payment debit cards delayed access to
Recovery Rebate Credit funds for 25,146 taxpayers as of
October 27, 2022.  These taxpayers had $44 million in Recovery
Rebate Credit claims denied because IRS records show the individual
received a debit card.  However, none of these individuals had
activated their card.
What TIGTA Recommended
TIGTA made four recommendations to the IRS that included
reviewing payments issued to potentially ineligible individuals and
sending a letter to the potentially eligible individuals associated with
the nearly 3 million individuals TIGTA identified encouraging them to
amend their Tax Year 2021 return and claim the credit if eligible.
The IRS agreed with one of the four recommendations.  The IRS did
not agree to revise the Tax Tip and related Frequently Asked
Questions or to review the 274,865 individuals who received a
potentially erroneous Recovery Rebate Credit.

U.S. DEPARTMENT OF THE TREASURY
WASHINGTON, D.C.  20024
TREASURY INSPECTOR GENERAL
FOR TAX ADMINISTRATION

August 24, 2023

MEMORANDUM FOR: COMMISSIONER OF INTERNAL REVENUE

FROM:
Heather M. Hill

Deputy Inspector General for Audit

SUBJECT:
Final Audit Report – Processing of Recovery Rebate Credit Claims
During the 2022 Filing Season (Audit # 202240702)

This report represents the results of our review to assess the processing of Recovery Rebate
Credit (RRC) claims during the 2022 Filing Season, including ensuring that taxpayers properly
reconciled advanced RRC payments received during Calendar Year 2021.  This review is part of
our Fiscal Year 2023 Annual Audit Plan and addresses the major management and performance
challenge of Administering Tax Law Changes.
Management’s complete response to the draft audit report is included as Appendix V.  If you
have any questions, please contact me or Diana M. Tengesdal, Assistant Inspector General for
Audit (Returns Processing and Account Services).

Processing of Recovery Rebate Credit Claims During the 2022 Filing Season
Table of Contents
Background .....................................................................................................................................Page  1
Results of Review .......................................................................................................................Page  4
Recovery Rebate Credit Claims Were Processed Accurately;
However, Erroneous Payments Continue to Be Significant .................................Page  4
Recommendation 1: ...................................................................Page  7
Recommendation 2: ...................................................................Page  9
Some Eligible Individuals Still Have Not Claimed a
Recovery Rebate Credit .....................................................................................................Page 10
Recommendations 3 and 4: .....................................................Page 12
Appendices
Appendix I – Detailed Objective, Scope, and Methodology ................................Page 14
Appendix II – Outcome Measures .................................................................................Page 16
Appendix III – Comparison of Recovery Rebate Credit Eligibility
Requirements .........................................................................................................................Page 19
Appendix IV – Issuance of Recovery Rebate Credits for Calendar
Years 2020 to 2022 ..............................................................................................................Page 20
Appendix V – Management’s Response to the Draft Report ..............................Page 21
Appendix VI – Glossary of Terms ...................................................................................Page 26
Appendix VII – Abbreviations ..........................................................................................Page 27

Page  1
Processing of Recovery Rebate Credit Claims During the 2022 Filing Season
Background
The American Rescue Plan Act of 2021 (ARPA), signed into law on March 11, 2021, created a
third Recovery Rebate Credit (RRC) of up to $1,400 per eligible individual for Tax Year 2021.1
While several of the eligibility requirements for the ARPA RRC are the same as previously
enacted credits, there are some notable
differences.  The credit amount was
increased to $1,400 for each eligible
taxpayer and $1,400 for each qualifying
dependent.  In addition, the ARPA
significantly lowered the income phase out
limits and expanded eligibility to include all
dependents regardless of age.  The ARPA
also allowed taxpayers with an Individual Taxpayer Identification Number to claim the RRC for
their dependents who have a valid Social Security Number.  In addition to the income
requirements, individuals:
•
Must be a U.S. citizen or resident alien.
•
Cannot be claimed as a dependent on someone else’s Federal income tax return.
A comparison of the major provisions in the previously enacted RRCs and the ARPA RRC is
presented in Appendix III.
Advance payment of the RRC
The legislation also directed the Internal Revenue Service (IRS) to make advance payments of
the RRC (referred to as advance RRC payments or Economic Impact Payments) as soon as
possible but not later than December 31, 2021.  The IRS was authorized to use an individual’s
Tax Year 2020 return to determine eligibility for the purpose of issuing an advance RRC
payment.  The IRS could also use the taxpayer’s Tax Year 2019 return if the Tax Year 2020 return
had not been filed yet.  However, the IRS was directed to reevaluate the taxpayer’s eligibility
once their Tax Year 2020 return was filed and issue the taxpayer any additional advance
payment they may be eligible to receive.  The IRS refers to these additional payments as plus-up
payments.  The IRS began issuing advance RRC payments on March 11, 2021, the same day the
ARPA was enacted.  Figure 1 provides the number of ARPA RRCs issued as an advance payment
and claimed on a Tax Year 2021 tax return.

1 Pub. L. No. 117-2, 135 Stat. 4 (codified in scattered sections of 7, 12, 15, 19, 20, 26, 29, 42 and 45 U.S.C.).

Page  2
Processing of Recovery Rebate Credit Claims During the 2022 Filing Season
Figure 1:  ARPA RRCs Issued

Source:  Treasury Inspector General for Tax Administration (TIGTA) analyses of
IRS data.  ARPA advance RRC payments issued as of September 16, 2021, and
Tax Year 2021 RRCs issued as of October 27, 2022.
Claiming the RRC
The RRC is a refundable tax credit claimed on Line 30 of Form 1040, U.S. Individual Income Tax
Return.  Individuals must reduce the RRC they are eligible to receive by the amount of any
advance payments received.  The IRS refers to this process as reconciling the advance payments.
Taxpayers use a worksheet included in the Form 1040 instructions to reconcile their advance
payments and determine the RRC they can claim on their tax return.  Individuals who are eligible
for an RRC that is more than the individual’s advance payment can claim the difference as an
RRC on their tax return.  Those whose advance payment was more than the RRC they are eligible
for do not have to repay the difference.  The RRC will be included in the taxpayer’s refund or
used to offset any tax owed.  Similar to Filing Season 2021, the IRS exercised its discretion to not
offset the RRC to unpaid Federal prior year tax debt.  However, the RRC will still be offset to
other unpaid Federal debt, such as child support.  Figure 2 shows where taxpayers claim the RRC
on the Form 1040.
Figure 2:  Tax Year 2021 Form 1040, Page 2

Source:  IRS.gov, Tax Year 2021 Form 1040.

Page  3
Processing of Recovery Rebate Credit Claims During the 2022 Filing Season
Verification of RRC claims
IRS computer programming uses the advance RRC payment information recorded in the
taxpayer’s tax account and information on the tax return to calculate the taxpayer’s allowable
Tax Year 2021 RRC.  Tax returns with a discrepancy between the RRC claimed on the tax return
and the RRC computed by the IRS are sent to the Error Resolution System (ERS) for verification.
In response to our previous recommendation, the IRS implemented an automated Error
Resolution correction tool, called FixERS, for the 2022 Filing Season that shortens the time
needed to resolve certain taxpayer errors and reduces the risk of IRS employee error.2  This tool
systemically replaces the steps an IRS Error Resolution employee would take to resolve the
identified tax return errors.
While the FixERS tool has enabled the IRS to reduce the time needed to resolve tax return errors
considerably, the use of the tool is currently limited to electronically filed tax returns.  In
addition, not all RRC errors on electronically filed returns can be resolved by the FixERS tool.
Electronically filed returns that cannot be resolved by FixERS and paper-filed tax returns
continue to be worked manually.  Once a return is identified for manual review, an ERS tax
examiner verifies the allowable RRC and compares that amount to the RRC claimed on the tax
return.  If there is still a discrepancy between the IRS’s calculation and the amount claimed, the
ERS tax examiner will disallow the amount of RRC in question, and the taxpayer will be sent a
notice explaining why their claim was denied.
Overview of the implementation of the RRC – Calendar Years 2020 through 2022
The IRS began issuing the first advance RRC payments on April 10, 2020, two weeks after the
Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted.3  Advance payments
authorized under the Consolidated Appropriations Act, 2021 (CAA) began two days after the
legislation was enacted,4 and advance ARPA payments began on March 11, 2021, the same day
the ARPA was enacted.  Appendix IV provides a detailed timeline of the IRS’s issuance of the
RRC under the CARES Act, the CAA, and the ARPA, including the issuance of advance payments.
TIGTA has issued three prior reports regarding the IRS’s implementation of the RRC.
•
Report No. 2021-46-034, Implementation of Economic Impact Payments (May 2021).
•
Report No. 2022-47-030, American Rescue Plan Act:  Implementation of Advance
Recovery Rebate Credit Payments (March 2022).
•
Report No. 2022-46-032, Processing of Recovery Rebate Credit Claims During the
2021 Filing Season (May 2022).
Figure 3 shows the total RRC, including advance payments, issued by the IRS at the time we
conducted our reviews.

2 TIGTA, Report No. 2022-46-032, Processing of Recovery Rebate Credit Claims During the 2021 Filing Season
(May 2022) and TIGTA, Report No. 2023-40-021, Results of the 2022 Filing Season (Mar. 2023).
3 Pub. L. No. 116-136, 134 Stat. 281 (codified as amended in scattered sections of 2, 5, 12, 15, 20, 21, 29, 42, and 45
U.S.C.).
4 Pub. L. No 116-260, 134 Stat. 1182.

Page  4
Processing of Recovery Rebate Credit Claims During the 2022 Filing Season
Figure 3:  RRCs Issued (Includes Advance Payments)
Type of Payment
Number
Dollars
TIGTA Report No.
CARES Act Advance RRC Payments
168 million
$280 billion
2021-46-034
CAA Advance RRC Payments
147 million
$142 billion
2021-46-034
ARPA Advance RRC Payments
175 million
$408 billion
2022-47-030
Tax Year 2020 RRC (CARES Act and CAA)
26 million
$39 billion
2022-46-032
Totals
516 million
$869 billion

Source:  TIGTA analyses of IRS data.  CARES Act advance RRCs issued as of December 31, 2020;
CAA advance RRCs issued as of December 29, 2020; ARPA advance RRCs issued as of
September 16, 2021; and Tax Year 2020 RRCs issued as of May 27, 2021.
Results of Review
Recovery Rebate Credit Claims Were Processed Accurately; However,
Erroneous Payments Continue to Be Significant
We previously reported that the IRS’s calculation of the amount of RRC individuals are entitled
to receive is highly accurate.  The same is true of the IRS’s issuance of RRCs on Tax Year 2021 tax
returns.  As of May 5, 2022, the IRS processed 17.8 million tax returns with RRC claims totaling
$33 billion.5  Our review found the IRS
calculated the correct allowable RRC
amount for use in verifying taxpayer claims
for 17.7 million (99.7 percent) of these
returns.6  In addition, the IRS’s tax return
validation processes ensured that
taxpayers received the RRC they were
entitled on 17.5 million (98.3 percent)
returns.
The remaining 316,425 (1.7 percent) of the 17.8 million tax returns processed as of May 5, 2022,
that received an incorrect RRC include:
•
52,297 returns in which the IRS’s calculation of the RRC amount was incorrect.  These
include 17,800 returns in which the calculated RRCs were $38.8 million more than the
taxpayers were entitled to receive, and 34,497 returns in which the calculated RRCs were
$60.6 million less than the taxpayers were entitled to receive.

5 Numbers are rounded.
6 Number and percentage are rounded.

Page  5
Processing of Recovery Rebate Credit Claims During the 2022 Filing Season
•
264,128 returns with RRCs totaling $369.3 million that were issued to potentially
ineligible individuals.  These include ineligible dependents, nonresidents, and residents
of a U.S. Territory.  Each tax return may have more than one ineligible condition.
The 52,297 RRC calculation errors occurred because the IRS processed tax returns and advance
RRC reversals simultaneously, e.g., an advance RRC payment was reversed at the same time or
after the tax return was processed.  According to the IRS, a programming error also incorrectly
showed some taxpayers as receiving no advance RRC payments.  Figure 4 shows the number of
ARPA RRCs we identified that were issued to a potentially ineligible individual.  A tax return can
be included in more than one ineligible category.
Figure 4:  ARPA RRC Payments Issued to Potentially Ineligible Individuals

Individuals
Dollars
Dependents
214,976
$296.2 million
Nonresidents
59,889
$88 million
Duplicate U.S. Territory Payments
343
$819,846
Source:  TIGTA analysis of Tax Year 2021 tax returns processed as of
May 5, 2022.
Our prior reviews of the IRS’s implementation of the RRC also identified significant payments to
potentially ineligible individuals, including deceased individuals, dependents, nonresidents, and
individuals residing in the U.S. Territories.  Figure 5 shows the number of payments TIGTA
reported previously as being issued to potentially ineligible individuals.
Figure 5:  Payments Issued to Potentially Ineligible
Individuals for Calendar Years 2020 to 2022

Payments
Dollars
CARES Act Advance RRC Payments7
2.2 million
$1.9 billion
ARPA Advance RRC Payments8
1.1 million
$1.7 billion
Tax Year 2020 RRC (CARES Act and CAA)9
434,079
$733 million
Totals
3.7 million
$4.3 billion
Source:  TIGTA analysis of payments issued as of July 16, 2020, May 27, 2021, and
September 16, 2021.
As shown in Figure 5, most payments that were issued to ineligible individuals were issued as
advance payments.  The IRS is not authorized to recover advance ARPA payments that were
issued in error.

7 TIGTA, Report. No. 2021-46-034, Implementation of Economic Impact Payments (May 2021).
8 TIGTA, Report. No. 2022-47-030, American Rescue Plan Act: Implementation of Advance Recovery Rebate Credit
Payments (Mar. 2022).
9 TIGTA, Report No. 2022-46-032, Processing of Recovery Rebate Credit Claims During the 2021 Filing Season
(May 2022).

Page  6
Processing of Recovery Rebate Credit Claims During the 2022 Filing Season
Payments to ineligible dependents or for the same dependent
The ARPA states that an individual is not eligible for the RRC if they can be claimed as a
dependent by someone else.  Our review of Tax Year 2021 tax returns processed as of
May 5, 2022, identified 135,117 individuals who filed tax returns with potentially erroneous RRCs
totaling $182.1 million associated with ineligible dependents.  These include individuals who
filed their own tax return and were also claimed on someone else’s return, changed their tax
return filing status, or claimed a qualifying dependent who was claimed on more than one tax
return.
In addition, we identified 79,859 individuals under the age of 25 with RRCs totaling
$114.1 million in which the IRS’s data indicate they are potentially someone’s dependent, but
they were not claimed as a dependent on a Tax Year 2021 tax return.  The address on the
79,859 individuals’ Tax Year 2021 tax return is the same as the address on the Tax Year 2020 tax
return on which they were claimed as a dependent.  Most of these individuals also reported less
than $5,000 in income on their Tax Year 2021 tax return, making us question who provided their
financial support.  In addition, more than one-half (52,679) of the 79,859 individuals attended a
college or other post-secondary education program during Tax Year 2021 or are under the age
of 17.  Based on our analysis, we question whether these individuals could be a dependent as
defined by the IRS.10
Individuals who file their own tax return and can be claimed as a dependent are required to
check a box on the Form 1040 notifying the IRS of their dependent status.  The IRS relies on this
box when processing RRC claims.  However, not all individuals who can be claimed as a
dependent check the box as required.
IRS management also stated that it is not administratively possible to capture advance RRC
payments at the dependent level.  Instead, the IRS records half of the total advance payment
issued for a Married Filing Joint tax return on each spouse’s tax account, i.e., payment for one
spouse and half the dependents.  As a result, changes in a taxpayer’s filing status or how
dependents are claimed from year to year can result in erroneous RRC payments.  The following
hypothetical example illustrates how a change in filing status from year to year can result in the
issuance of the RRC for an ineligible dependent.
Taxpayer A received an advance RRC payment for their self, their spouse, and two
children based on their Tax Year 2020 Married Filing Joint return.  The IRS recorded half
of the total advance RRC payment issued on Taxpayer A’s tax account and half on the
spouse’s tax account, i.e., taxpayer and one child.  Taxpayer A files as Head of Household
in Tax Year 2021 with the same two children and claims an RRC for one of the children.
Because Taxpayer A’s tax account shows the taxpayer only received an advance RRC
payment for one child, the IRS allowed the RRC for the second child incorrectly.
Finally, COVID Tax Tip 2022-29, Tips for Parents who Share Custody or Alternate Tax Benefits,
issued on February 23, 2022, incorrectly informed taxpayers who share qualifying dependents

10 Dependent means qualifying child or qualifying relative.  To be considered a qualifying relative, an individual must
bear a relationship to the taxpayer or live with the taxpayer all year as a household member, have gross income below
a threshold amount ($4,300 for Tax Year 2021), and provide no more than half of their own support; be a U.S. citizen,
national, resident alien, or reside in Canada or Mexico; and generally cannot file a joint tax return.  In addition, an
individual cannot be claimed as a qualifying child by any other taxpayer.  Additional residency and age requirements
must be met to be considered a qualifying child.

Page  7
Processing of Recovery Rebate Credit Claims During the 2022 Filing Season
that they can claim the Tax Year 2021 RRC for their shared dependent regardless of any advance
payment the other parent received.  Internal Revenue Code § 6428B(f) requires taxpayers to
reduce the allowable RRC by any advance payments “made or allowed to the taxpayer” for
themselves and their qualifying dependents.  There is no exception for shared dependents
whose advance payment may have been issued to someone else.  In addition, Internal Revenue
Code § 6428B(h) states the Secretary of the Treasury shall prescribe regulations or other
guidance to ensure to the maximum extent administratively practicable that an individual is not
taken into account more than once, including by different taxpayers, or changing filing status or
dependent status when determining the amount of the allowable credit.  Interestingly, the
number of times a particular dependent’s Taxpayer Identification Number was used on the
979 returns we identified with a multiple use dependent Taxpayer Identification Number ranged
from two to three tax returns.
Recommendation 1 (E-Mail Alert):  On March 14, 2022, we notified the Director, Submission
Processing, Wage and Investment Division, of our concerns regarding the accuracy of COVID Tax
Tip 2022-29 regarding Internal Revenue Code §§ 6428B(f) and 6428B(h).  Specifically, the
guidance states incorrectly that taxpayers can claim the RRC for a shared dependent even if the
IRS has already made an advance payment for the dependent.  We recommended that the IRS
revise the Tax Tip and related Frequently Asked Questions, etc., to state that taxpayers who
share qualifying dependents are required to reduce the amount of the RRC claimed by the
advance payment issued to either parent on behalf of the dependent.

Management’s Response to Alert:  IRS management disagreed with our
recommendation.  IRS management stated that they have no plans to change the text of
COVID Tax Tip 2022-29 because it accurately reflects the IRS’s implementation of and
programming for the Tax Year 2021 RRC.  In addition, management stated that
according to the IRS Office of Chief Counsel, the implementation of this programming is
consistent with the ARPA.  Both the IRS and Chief Counsel acknowledge that, when the
Tax Year 2021 RRC was authorized by the ARPA, Congress provided more definitive
language about duplicate payments by reason of a change in joint return status or
dependent status.  However, when granting regulatory authority in Internal Revenue
Code § 6428B(h)(2) to prevent duplicate payments, Congress included the caveat of rules
being prescribed “to the maximum extent administratively practicable.”  IRS
management stated that it was not administratively possible to capture dependent-level
detail when issuing the advance RRC payments and when processing RRC claims.

Office of Audit Comment:  The IRS’s ability to capture dependent-level detail
does not exempt the IRS from its responsibility to ensure guidance provided to
taxpayers accurately reflects the requirements contained in the ARPA to reduce
the amount of RRC claimed by the advance payments issued for themselves and
their dependents, to the extent possible.
Payments to nonresidents
We identified 59,889 tax returns with RRC claims totaling $88 million that were issued to
individuals who are potentially a nonresident alien.  The citizenship code associated with these
individuals’ Social Security Numbers indicates they are a legal alien authorized to work in the
United States.  However, these individuals had no Federal Insurance Contributions Act tax

Page  8
Processing of Recovery Rebate Credit Claims During the 2022 Filing Season
withheld from their wages in Calendar Year 2021, which indicates they are likely not considered
a U.S. resident.  Certain nonresident aliens are exempt from Federal Insurance Contributions Act
taxes based on their visa type, such as nonresident alien students and professors temporarily
present in the United States.
The ARPA states that to be eligible for an advance RRC payment, an individual must be a U.S.
citizen or resident alien.  The IRS has processes in place to prevent the issuance of the RRC to
nonresident aliens who file a Form 1040-NR, U.S. Nonresident Alien Income Tax Return.
However, as we reported previously, the IRS has no processes to identify nonresident aliens who
incorrectly file a Form 1040.11  In addition, our review of IRS processes to identify and prevent
individual international taxpayer fraud found that foreign individuals are potentially filing the
incorrect tax form to claim tax benefits to which they are not entitled.12
IRS management continues to disagree with the method we used to determine whether an
individual is potentially a nonresident alien.  However, they have yet to offer an alternative
methodology to ensure that nonresident aliens are not receiving payments.
Duplicate payments to Territory residents
The number of duplicate RRCs issued to Territory residents for Tax Year 2021 has decreased
significantly when compared to payments issued for Tax Year 2020.  Our review of Tax Year 2021
returns identified 343 individuals with RRC claims totaling $819,846 who incorrectly received
two RRCs – one from a U.S. Territory and one from the IRS as of June 30, 2022.13  By comparison,
in May 2022, we reported that
3,470 individuals who appeared on a U.S.
Territory report as receiving an RRC from
the Territory also filed a Tax Year 2020
return and claimed RRCs totaling more than
$5.3 million as of May 27, 2021.
Individuals who filed these returns also
appeared on a U.S. Territory report
associated with an RRC issued by a U.S.
Territory.  Some of these individuals listed a
U.S. domestic address on their U.S. tax return used to calculate the RRC, while others listed a U.S.
Territory address on their U.S. tax return.  The IRS previously established processes to identify
IRS advance payments made to individuals with a U.S. Territory address and share such data
with the Territories to identify duplicate erroneous payments.  In response to our May 2022
recommendation, the IRS agreed to share information that will enable the Territories to recover
erroneous RRC issued by the Territories to the extent permitted under the relevant Territory’s
domestic law.

11 TIGTA, Report No. 2021-46-034, Implementation of Economic Impact Payments (May 2021).
12 TIGTA, Report No. 2021-40-057, Improvements Are Needed to Identify Potentially Fraudulent Individual
International Tax Returns During Processing (Sept. 2021).
13 American Samoa did not provide any reports to the IRS during Calendar Year 2022.

Page  9
Processing of Recovery Rebate Credit Claims During the 2022 Filing Season
TIGTA previously made recommendations to address RRC payments to ineligible
individuals
TIGTA first made recommendations to address advance RRC payments to ineligible individuals
in May 2021, in an attempt to prevent future erroneous payments.  For example, we
recommended that the IRS develop processes to identify ineligible dependents prior to issuing
payments.  However, IRS management disagreed with our recommendations.  IRS management
stated that implementing a process to cross-check tax return filings would not guarantee a
payment to an unentitled person would be stopped and could harm the rightful individuals by
denying the payment to them.  In March 2022, and again in May 2022, we reported that these
same unaddressed deficiencies continued to result in the issuance of erroneous advance RRC
payments and RRCs to ineligible individuals.14
While the IRS cannot recover erroneously issued advance RRC payments, it can recover
erroneous RRCs.  In May 2022, we recommended that the IRS recover the erroneous Tax
Year 2020 RRCs we identified and conduct analysis to identify and recover additional erroneous
credits that were issued after the date our analysis was completed.  IRS management again
disagreed with our recommendations.  Management stated that eligibility for the RRC and the
amount allowable is determined from the information individuals provide on their tax return.  In
addition, management stated that the IRS’s post-processing compliance checks analyze all
returns and determine who is entitled to claim the dependent, and any associated tax benefits
are a question of fact that is addressed under deficiency procedures by its compliance functions.
According to IRS management, only 40 of the 238,680 potentially ineligible individuals with an
erroneous Tax Year 2020 RRC payment we recommended that the IRS review were selected for
examination as of October 31, 2022.
Recommendation 2:  The Commissioner, Wage and Investment Division, should review the
274,865 individuals identified where the IRS issued an RRC to potentially ineligible dependents
and nonresidents and take the actions needed to recover payments that are determined to be
erroneous.

Management’s Response:  IRS management disagreed with the recommendation and
stated that their post-processing compliance checks are analyzing those returns for
potential noncompliance.  Returns are being selected for further review based on an
assessment of risk, materiality, and prioritization of available resources.

Office of Audit Comment:  As noted in the report, according to IRS
management, only 40 of the 238,680 potentially ineligible individuals with an
erroneous Tax Year 2020 RRC payment we recommended that the IRS review
were selected for examination as of October 31, 2022.  As such, we continue to
believe that other actions are needed to recover potentially erroneous payments.

14 TIGTA, Report No. 2022-47-030, American Rescue Plan Act: Implementation of Advance Recovery Rebate Credit
Payments (Mar. 2022) and TIGTA, Report No. 2022-46-032, Processing of Recovery Rebate Credit Claims During the
2021 Filing Season (May 2022).

Page  10
Processing of Recovery Rebate Credit Claims During the 2022 Filing Season
Some Eligible Individuals Still Have Not Claimed a Recovery Rebate Credit
The IRS has taken extensive steps since the enactment of the CARES Act to educate taxpayers on
their eligibility for the RRC and assist them in filing a tax return to obtain these credits.
However, our review of processed Tax Year 2021 tax returns identified nearly 3 million
individuals who have not claimed $4.7 billion in RRCs they are potentially eligible to receive.
Figure 6 shows the number of potentially eligible individuals we identified who had not received
an ARPA RRC.
Figure 6:  Individuals Who Are Potentially Eligible for ARPA RRC

Individuals
Dollars
Filed a tax return but did not claim the RRC
2.9 million
$4.6 billion
Eligible deceased individuals15
75,321
$105.4 million
Totals
3 million
$4.7 billion
Source:  TIGTA analysis of Tax Year 2021 tax returns.  Taxpayers who did not claim the credit are
as of May 5, 2022.  Deceased individuals are as of December 29, 2022.
Our prior reviews of the IRS’s implementation of the RRC also identified many potentially
eligible individuals who had not received an advance RRC payment or the RRC.  Figure 7 shows
the number of potentially eligible individuals TIGTA reported previously.
Figure 7:  Individuals Who Are Potentially Eligible
for the RRC for Calendar Years 2020 to 2022

Individuals
Tax Year 2020 RRC (CARES Act and the CAA)16
10 million
ARPA Advance RRC Payments17
644,705
Total 10.6 million
Source:  TIGTA analysis of payments issued as of May 27, 2021, and
September 16, 2021.
We updated our analysis of the 10.6 million potentially eligible individuals we previously
identified to determine how many individuals subsequently received their RRC.  Our updated
analysis found that 6.1 million individuals still have not filed a Tax Year 2020 or Tax Year 2021
return to claim their RRC, and 3 million individuals filed a Tax Year 2020 return and did not claim
their RRC credit.  We estimate these individuals are entitled to RRCs totaling $14 billion.  The

15 The ARPA states that individuals who died in Calendar Year 2021 are eligible to receive the RRC.  Includes
22,924 deceased individuals for whom a Tax Year 2021 return was filed but did not claim the RRC, and
52,397 deceased individuals for whom a Tax Year 2021 return was not filed.
16 TIGTA, Report No. 2022-46-032, Processing of Recovery Rebate Credit Claims During the 2021 Filing Season
(May 2022).
17 TIGTA Report. No. 2022-47-030, American Rescue Plan Act: Implementation of Advance Recovery Rebate Credit
Payments (Mar. 2022).

Page  11
Processing of Recovery Rebate Credit Claims During the 2022 Filing Season
amount of RRC these individuals are actually entitled to receive cannot be determined until they
file a Tax Year 2020 or Tax Year 2021 tax return.
In May 2022, we recommended that the IRS send a letter to the potentially eligible individuals
we identified who had not filed a Tax Year 2020 tax return as of May 27, 2021, and encourage
them to file a return and claim the RRC if eligible.18  We also recommended that the IRS
proactively give taxpayers the credit who had filed a Tax Year 2020 return and did not claim their
RRC credit.  IRS management disagreed with our recommendations citing the IRS’s widespread
communication of the availability of the RRC.
The IRS has taken extensive steps since the enactment of the CARES Act to educate individuals
on their eligibility for the RRC and assist them in filing a tax return to obtain their payment.
Efforts include establishing a dedicated web page on IRS.gov to provide updated information
related to the issuance of advance RRC payments, including a continually evolving list of
Frequently Asked Questions; developing an online tool that provides taxpayers with the ability
to check the status of their advance RRC payment and submit bank information for taxpayer
accounts that do not already contain this information; and coordinating with the Free File
Alliance to develop the NonFilers:  Enter Payment Info Here tool.19
The IRS also coordinated with the Bureau of the Fiscal Service, the Social Security
Administration, and the Department of Veterans Affairs to identify beneficiary recipients along
with their direct deposit account numbers, if available, for use in systemically issuing an
advance RRC payment without the beneficiary having to file a tax return.20  The IRS coordinated
with local community organizations, food banks, and homeless shelters to reach unsheltered
individuals and worked with partner groups to reach low-income and underserved communities.
In addition, in October 2022, the IRS began sending letters to more than 9 million individuals
and families who appear to qualify for a variety of key tax benefits, including the RRC, but did
not claim them by filing a Tax Year 2021 tax return.
The use of advance payment debit cards delayed access to RRC funds for some
individuals
In May 2022, we reported that the Bureau of the Fiscal Service had issued advance ARPA RRC
payments to more than 4.7 million individuals as of September 5, 2021.  Individuals must
activate their debit card to access their payment.  At that time, we raised concerns that the use
of debit cards caused unnecessary burden and delayed receipt of RRCs for some taxpayers.
Specifically, individuals who have not activated their debit card and claimed the RRC on their tax
return.  We reported that 75,395 individuals who filed a Tax Year 2020 return as of May 27, 2021,
had RRC claims totaling $77.8 million denied because of an unactivated debit card.
In response to our concerns, IRS management informed us that the Department of the Treasury
was continuing to send letters to individuals who were issued a debit card reminding them to
contact the third-party debit card issuer activate their card.  There are indications that these

18 TIGTA, Report No. 2022-46-032, Processing of Recovery Rebate Credit Claims During the 2021 Filing Season
(May 2022).
19 This tool assists individuals who are eligible to receive an advance RRC payment but do not have a Federal tax
return filing requirement.
20 The Bureau of the Fiscal Service is an agency of the U.S. Department of the Treasury that issues payments on behalf
of the IRS.

Page  12
Processing of Recovery Rebate Credit Claims During the 2022 Filing Season
efforts were successful in ensuring that individuals could access their advance RRC payment.  For
example, the Department of the Treasury sent letters reminding individuals to activate their
debit card on March 4, 2021, and 505,697 unactivated CAA advance payment debit cards were
subsequently activated.21  Finally, in response to our recommendation, the IRS worked with the
Bureau of the Fiscal Service to obtain recurring data during Processing Year 2022 to reverse any
debit card that had been returned or canceled by the recipient.22
However, we found that the use of debit cards continued to delay some individuals’ access to
their Tax Year 2021 RRC.  Our review of Tax Year 2021 tax returns processed as of
October 27, 2022, identified 25,146 taxpayers who had $44 million in RRC claims denied because
IRS records show the individual received an advance payment debit card.  However, none of
these individuals had activated their card.
The IRS’s recently released Inflation Reduction Act Strategic Operating Plan includes initiatives
to better assist individuals who may be eligible for additional tax benefits.  These initiatives
include notifying taxpayers of additional credits and deductions they may be eligible to receive
in addition to those claimed on their tax return.  As discussed previously, the IRS has already
taken extensive steps to educate and encourage eligible individuals to file a tax return to claim
their RRC.  Given the estimated $14 billion in Tax Year 2020 RRCs and $4.7 billion in Tax
Year 2021 RRCs that have not been claimed by eligible individuals, we suggest the IRS continue
its efforts to encourage potentially eligible individuals to file a tax return or file an amended
return and claim the RRC.
The Commissioner, Wage and Investment Division, should:
Recommendation 3:  Continue to periodically issue information on the availability of the RRC
and how to claim it through Frequently Asked Questions on IRS.gov, communications with tax
return preparers, annual unclaimed refund announcements, etc. until the statutory period for
taxpayers to file a Tax Year 2020 and 2021 tax return to claim the RRC has expired.

Management’s Response:  IRS management agreed with the recommendation and will
periodically include general information, coinciding with reminders encouraging
non-filers to file, about the RRC for those who may be eligible to claim it on their Tax
Year 2020 and 2021 returns.
Recommendation 4:  Send a letter to the nearly 3 million individuals we identified where the
tax return data show the individual is potentially eligible for the RRC encouraging the individuals
to amend their Tax Year 2021 return and claim the credit if eligible.  The letter should clearly
state the eligibility requirements for claiming the RRC in simple terms and direct the individuals
to additional resources if needed to assist them in determining whether they are eligible.

Management’s Response:  IRS management disagreed with the recommendation
stating that several initiatives were undertaken as part of their outreach efforts to
educate and inform individuals of their eligibility for Economic Impact Payments and
subsequently the RRCs.  The IRS identified more than 9.3 million potentially eligible
families who did not claim benefits such as the Child Tax Credit, Earned Income Tax

21 As of March 29, 2021.
22 TIGTA, Report No. 2022-46-032, Processing of Recovery Rebate Credit Claims During the 2021 Filing Season
(May 2022).

Page  13
Processing of Recovery Rebate Credit Claims During the 2022 Filing Season
Credit, or RRC.  The IRS issued Letter 6550, End of Season Outreach, in English and
Spanish to these families advising that they may be eligible for other Federal benefits
and that claiming the credits had no effect on their immigration status.  To help
taxpayers claim these benefits, the IRS kept the IRS Free File Program open for an
additional month, until November 17, 2022, for eligible taxpayers to file a tax return
electronically.  The IRS also widely communicated the need to file tax returns for Tax
Year 2021 to claim the RRC and, if it was not claimed on an original filing, that taxpayers
may still claim it by filing an amended return.

Office of Audit Comment:  Although IRS management did not agree to mail a
letter to the potentially eligible individuals we identified, they did agree, in
response to Recommendation 3, to include general information about the RRC in
periodic reminders for those who may be eligible to claim the RRC on their Tax
Year 2020 and 2021 tax returns.  We believe this action is sufficient considering
the IRS’s prior efforts to notify eligible individuals about the credit and how to
claim it.

Page  14
Processing of Recovery Rebate Credit Claims During the 2022 Filing Season
Appendix I
Detailed Objective, Scope, and Methodology
The overall objective of this review was to assess the processing of RRC claims during the
2022 Filing Season, including ensuring that taxpayers properly reconciled advanced RRC
payments received during Calendar Year 2021.  To accomplish our objective, we:
•
Assessed the IRS’s outreach and assistance to individuals regarding the RRC.
•
Ensured that Tax Year 2021 tax returns with an RRC claim were processed correctly.
•
Ensured that the RRC amount computed by the IRS was accurate.
•
Ensured that eligible individuals who did not receive their advance ARPA RRC payment
received the correct RRC amount.
•
Determined whether IRS processes prevented the issuance of RRCs to ineligible
individuals.
Performance of This Review
This review was performed with information obtained from the Large Business and
International Division in Washington D.C.; Return Integrity and Compliance Services function in
Atlanta, Georgia; and the Wage and Investment Division Submission Processing function office
in Covington, Kentucky, during the period March 2022 through May 2023.  We conducted this
performance audit in accordance with generally accepted government auditing standards.
Those standards require that we plan and perform the audit to obtain sufficient, appropriate
evidence to provide a reasonable basis for our findings and conclusions based on our audit
objective.  We believe that the evidence obtained provides a reasonable basis for our findings
and conclusions based on our audit objective.
Major contributors to the report were Russell P. Martin, Deputy Inspector General for
Inspections and Evaluations; Diana M. Tengesdal, Assistant Inspector General for Audit (Returns
Processing and Account Services); Deann L. Baiza, Director; Jane G. Lee, Audit Manager; Brieane
K. Hamaoka, Senior Auditor; and Tracy L. Winfield, Auditor.
Validity and Reliability of Data From Computer-Based Systems
During this review, we obtained extracts from the Individual Master File; Generalized Mainline
Framework, Error Resolution files for Tax Year 2021; Individual Master File for Tax Years 2020 and
2021; Individual Return Transaction File for Processing Years 2021 and 2022; Information Returns
Master File for Tax Year 2021; Individual Master File Refund Files; and the National Account
Profile for Processing Year 2022 that were available on the TIGTA Data Center Warehouse.  We
also obtained data from the IRS, which detailed the specific individuals who were issued an
advance RRC payment by a U.S. Territory from January 1, 2022, through June 30, 2022.  Before
relying on the data, we ensured that each file contained the specific data elements we
requested.  In addition, we selected random samples of each extract and verified that the data in

Page  15
Processing of Recovery Rebate Credit Claims During the 2022 Filing Season
the extracts were the same as the data captured in the Integrated Data Retrieval System.1  We
also performed analysis to ensure the validity and reasonableness of our data, such as ranges of
dollar values and obvious invalid values.  Based on the results of our tests, we believe that the
data used in our review were reliable.
Internal Controls Methodology
Internal controls relate to management’s plans, methods, and procedures used to meet their
mission, goals, and objectives.  Internal controls include the processes and procedures for
planning, organizing, directing, and controlling program operations.  They also include the
systems for measuring, reporting, and monitoring program performance.  We determined that
the following internal controls were relevant to our audit objective:  the process for planning
and controlling program operations for the issuance of the RRCs.  We evaluated these controls
by meeting with IRS management, reviewing IRS procedures, and reviewing IRS reports.

1 We used a random number generator to select our samples for use to determine whether the extract information
could be relied upon in conducting our testing.

Page  16
Processing of Recovery Rebate Credit Claims During the 2022 Filing Season
Appendix II
Outcome Measures
This appendix presents detailed information on the measurable impact that our recommended
corrective actions will have on tax administration.  These benefits will be incorporated into our
Semiannual Report to Congress.
Type and Value of Outcome Measure:
•
Cost Savings (Funds Put to Better Use) – Potential; 192,939 individuals incorrectly
allowed more than $265 million in the RRCs associated with ineligible dependents
(see Recommendation 2).
Methodology Used to Measure the Reported Benefit:
We obtained extracts from the Individual Master File for Tax Years 2020 and 2021.  We also
obtained extracts from the Individual Return Transaction File for Processing Year 2022 as of
May 5, 2022.
Our computer analysis of Tax Year 2021 tax returns that were processed as of May 5, 2022,
identified 214,976 individuals who filed tax returns with potentially erroneous RRCs totaling
$296,190,918 in which the individual who filed the return is an ineligible dependent or claimed a
dependent for a duplicate RRC.  To be conservative, we removed duplicate tax returns and
returns that appeared in multiple populations to arrive at 192,939 individuals who were allowed
$265,207,818 more in RRCs than entitled.  These include:
Figure 1:  ARPA RRC Payments Issued to Potentially Ineligible Dependents

Individuals
Dollars
Individuals claimed as a dependent on someone else’s tax return
and dependent checkbox not checked
88,209
$123,467,755
Individuals who are potentially the dependent of another taxpayer
68,898
$98,710,478
Joint filers who received an advance RRC payment for a
dependent and received an RRC on their Tax Year 2021 return for
the same dependent under a different filing status
34,970
$41,832,585
Dependents claimed on more than one tax return
862
$1,197,000
Totals
192,939
$265,207,818
Source:  TIGTA analysis of Tax Year 2021 tax returns processed as of May 5, 2022.
Type and Value of Outcome Measure:
•
Cost Savings (Funds Put to Better Use) – Potential; 59,694 individuals incorrectly allowed
$87.7 million in the RRCs because the IRS does not have processes to identify and
prevent nonresident aliens from filing Form 1040 (see Recommendation 2).

Page  17
Processing of Recovery Rebate Credit Claims During the 2022 Filing Season
Methodology Used to Measure the Reported Benefit:
We obtained extracts from the Individual Master File for Tax Year 2021; the Individual Return
Transaction File for Processing Year 2022 as of May 5, 2022; and the Information Returns Master
File for Tax Year 2021 as of September 1, 2022.
Our computer analysis of Tax Year 2021 tax returns that were processed as of May 5, 2022,
identified 59,889 returns with the RRCs totaling $88,009,405 issued to potential nonresident
aliens.  To be conservative, we removed duplicate tax returns and returns that appeared in
multiple populations to arrive at 59,694 individuals who potentially were issued $87,708,005
more in the RRCs than entitled.
IRS management disagreed with the method we used to determine whether an individual is
potentially a nonresident alien but continues to offer no alternative methodology to ensure that
nonresident aliens are not receiving payments.
Type and Value of Outcome Measure:
•
Taxpayer Rights and Entitlements – Potential; 75,321 individuals who died in Calendar
Year 2021 and are potentially eligible for the RRC totaling $105.4 million but did not
claim the credit on their Tax Year 2021 return (see Recommendation 3).
Methodology Used to Measure the Reported Benefit:
We obtained extracts from the Individual Master File for Tax Year 2021; the Individual Return
Transaction File for Processing Year 2022; and the National Account Profile for Processing
Year 2022 as of December 29, 2022.
Our computer analysis of tax returns that were processed as of December 29, 2022, identified
75,321 individuals who died in Calendar Year 2021 and are potentially eligible for the RRC.  The
actual amount of the RRC these individuals are entitled to receive is dependent on each
taxpayer’s circumstances and will not be known until the taxpayer files a Tax Year 2021 tax
return and claims the RRC.  According to the ARPA, each eligible individual can receive up to
$1,400, we estimated that these deceased individuals are potentially eligible for $105,449,400
(75,321 x $1,400 = $105,449,400) in the RRC.
Type and Value of Outcome Measure:
•
Taxpayer Rights and Entitlements – Potential; 2.9 million individuals who are potentially
eligible for the RRC totaling $4.6 billion but did not claim the credit on their Tax
Year 2021 return (see Recommendation 4).
Methodology Used to Measure the Reported Benefit:
We obtained extracts from the Individual Master File for Tax Year 2021 and the Individual Return
Transaction File for Processing Year 2022 as of May 5, 2022.
Our computer analysis of tax returns that were processed as of May 5, 2022, identified
2,927,919 individuals who are potentially eligible for the RRC but did not claim the credit on
their Tax Year 2021 return.  To be conservative, we removed 11,180 individuals who are also
included in the 75,321 individuals in the previous measure who were deceased in Calendar
Year 2021.  We arrived at 2,916,739 individuals who are potentially eligible.  The actual amount

Page  18
Processing of Recovery Rebate Credit Claims During the 2022 Filing Season
of the RRC these individuals are entitled to receive is dependent on each taxpayer’s
circumstances and will not be known until the taxpayer files an amended tax return to claim the
RRC.  Based on the information reported on these individuals’ Tax Year 2021 tax return, they are
potentially eligible to receive $4,615,415,584 in the RRC.

Page  19
Processing of Recovery Rebate Credit Claims During the 2022 Filing Season
Appendix III
Comparison of Recovery Rebate Credit Eligibility Requirements
The ARPA created a third RRC.  Figure 1 provides a comparison of the eligibility requirements for
each of the individual RRCs enacted since March 2020.
Figure 1:  Comparison of Major Provisions of the First, Second, and Third RRC

CARES Act
CAA
ARPA
Payment
Amount
$1,200 individual.
$2,400 married joint filers.
Additional $500 for each
qualifying child.
$600 individual.
$1,200 married joint filers.
Additional $600 for each
qualifying child.
$1,400 individual.
$2,800 married joint filers.
Additional $1,400 for each
dependent, including older
children and adult dependents.
Phase-
Out
Total payment amount
phased out by 5 percent of
AGI over the following
thresholds:
$75,000 Single.
$112,500 Head of
Household.
$150,000 Married Filing
Joint and Qualifying
Widower.
Total payment amount
phased out by 5 percent of
AGI over the following
thresholds:
$75,000 Single.
$112,500 Head of
Household.
$150,000 Married Filing
Joint and Qualifying
Widower.
Total payment phases out ratably
between the following income
levels:
$75,000 - $80,000 Single.
$112,500 - $120,000 Head of
Household.
$150,000 - $160,000 Married
Filing Joint and Qualifying
Widower.
Eligibility
Everyone except:
Nonresident aliens.
Dependents of other
taxpayers.
Estates and trusts.
Everyone except:
Nonresident aliens.
Dependents of other
individuals.
Estates and trusts.
Individuals who died before
January 1, 2020.
Everyone except:
Nonresident aliens.
Dependents of other individuals.
Estates and trusts.
Individuals who died before
January 1, 2021.
Source:  TIGTA’s analysis of the various RRCs.  AGI – Adjusted Gross Income.

Page  20
Processing of Recovery Rebate Credit Claims During the 2022 Filing Season
Appendix IV
Issuance of Recovery Rebate Credits
for Calendar Years 2020 to 2022
The IRS began issuing advance payments of the RRC two weeks after the CARES Act was
enacted.  The IRS began making advance payments of the second RRC enacted in the CAA just
two days after enactment.  Advance payments of the third RRC began the same day the ARPA
was enacted.  Figure 1 shows the timeline of the IRS’s issuance of RRCs beginning with
enactment of the CARES Act.
Figure 1:  Timeline of the Issuance of RRCs

Source:  TIGTA’s analysis of the various RRCs.

Page  21
Processing of Recovery Rebate Credit Claims During the 2022 Filing Season

Appendix V
Management’s Response to the Draft Report

Page  22
Processing of Recovery Rebate Credit Claims During the 2022 Filing Season

Page  23
Processing of Recovery Rebate Credit Claims During the 2022 Filing Season

Page  24
Processing of Recovery Rebate Credit Claims During the 2022 Filing Season

Page  25
Processing of Recovery Rebate Credit Claims During the 2022 Filing Season

Page  26
Processing of Recovery Rebate Credit Claims During the 2022 Filing Season

Appendix VI
Glossary of Terms
Term
Definition
Individual Master File
The IRS database that maintains transactions or records of individual tax
accounts.
Individual Return
Transaction File
A database the IRS maintains that contains information on the individual
tax returns it receives.
Individual Taxpayer
Identification Number
Individual Taxpayer Identification Numbers are issued by the IRS to
individuals who are required to have a Taxpayer Identification Number for
Federal tax purposes but do not have and are not eligible to receive a
Social Security Number.
Integrated Data Retrieval
System
IRS computer system capable of retrieving or updating stored information.
It works in conjunction with a taxpayer’s account records.
National Account Profile
A compilation of selected entity data from various IRS Master Files and the
Social Security Administration.
Tax Year
A 12-month accounting period for keeping records on income and
expenses used as the basis for calculating the annual taxes due.  For most
individual taxpayers, the tax year is synonymous with the calendar year.

Page  27
Processing of Recovery Rebate Credit Claims During the 2022 Filing Season
Appendix VII
Abbreviations
ARPA
American Rescue Plan Act of 2021
CAA
Consolidated Appropriations Act, 2021
CARES
Coronavirus Aid, Relief, and Economic Security
ERS
Error Resolution System
IRS
Internal Revenue Service
RRC
Recovery Rebate Credit
TIGTA
Treasury Inspector General for Tax Administration

To report fraud, waste, or abuse,
contact our hotline on the web at www.tigta.gov or via e-mail at
oi.govreports@tigta.treas.gov.

To make suggestions to improve IRS policies, processes, or systems
affecting taxpayers, contact us at www.tigta.gov/form/suggestions.

Information you provide is confidential, and you may remain anonymous.

File and source

File

2023-47-056-processing-of-recovery-rebate-credit-claims-during-the-2022-filing-season.pdf

Size

3,227,576 bytes

SHA-256

72becdf0fd2da13fbad878241d55de1713695c3f53ac0a6e88ef476d1734a653

Our copy

2023-47-056-processing-of-recovery-rebate-credit-claims-during-the-2022-filing-season.pdf

Original

www.oversight.gov