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GAO-22-106044 1 (2022-06-29)

handle is hein.gao/gaongz0001 and id is 1 raw text is: The Big Picture From April 2020 to December 2021, the federal government made direct payments to individuals totaling $931 billion to address pandemic-related financial stress. The CARES Act, the Consolidated Appropriations Act, 2021, and the American Rescue Plan Act of 2021 (Public Laws 116-136, 116-260, and 117-2, respectively) authorized three rounds of Economic Impact Payments (EIP) that went to around 165 million Americans. The American Rescue Plan Act of 2021 also temporarily expanded the eligibility of the Child Tax Credit (CTC) to more families and increased the payment amounts. From July to December 2021, eligible families received advance monthly payments of half their total expected CTC, benefiting around 84% of children in the US. According to Census Bureau and Federal Reserve assessments of survey data, the EIPs and advance CTC payments reduced financial hardship and food insufficiency among recipients. These pandemic-related payments to individuals far exceeded other stimulus payments made to individuals in recent history. Stimulus payments to individuals in 2001, 2008-2009, and 2020-2021 5931 $93.5 Total Advance CTC -$837.5 Total EIP 2001 2008-2009 2020-2021 Source: GAO analysis of IRS, Bureau of the Fiscal Service, and Joint Committee on Taxation data. I GAO-22-106044 Refundable tax credits sometimes have issues with improper payments (payments made in the wrong amount or to the wrong person). In September 2020, we reported that the EIP improper payment rate was around 2% and IRS took some actions to recover those payments. More recently, Treasury's Inspector General for Tax Administration (TIGTA) reported on additional steps IRS should take to recover improper payments. What GAO's Work Shows 1. IRS can use data to tailor outreach efforts. It was challenging for IRS and Treasury to get payments to some people-especially nonfilers, or those who are not required to file tax returns. These people were eligible for the payments for a couple reasons: first, there was no earned income requirement, so Americans with no or little income could receive economic relief; and second, the payments were refundable tax credits, so eligible individuals can claim the full amount even if it exceeds what they owe in taxes. In 2020, Treasury and IRS used other data to identify and reach out to around 9 million potentially eligible nonfilers. In May 2021, TIGTA identified potentially 10 million individuals eligible for payments, but IRS has no further plans to reach out to these individuals. >> We recommended that Treasury and IRS use available data to develop an updated estimate of total eligible individuals which they could use to better tailor and redirect their ongoing outreach and communications efforts for similar tax credits. GAO-22-106044 Stimulus Checks: Direct Payments to Individuals during the COVID-19 Pandemic

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