Stefani Reynolds / Bloomberg via Getty Images
‘Potentially wrong’ QBI deductions
The IRS allowed business owners to claim $ 57 million in “potentially erroneous” deductions on 12,980 tax returns filed last year, according to a report released publicly on Tuesday by the Inspector General of the Treasury for Tax Administration.
The inspection body urged the tax agency to increase its supervision of the deduction of the transfer.
This is a rich vein for the IRS to be prospecting, because so far the IRS is getting positive results [almost] every time.
Steven Rosenthal
senior member of Urban-Brookings Tax Policy Center
It is not entirely clear why the Inspector General of the Treasury signed these tax records to the IRS. Many details were written in the report, which analyzed tax returns for 2019 submitted until April 16 last year.
The analysis also highlights the high frequency of error in relation to tax returns that claim a transfer deduction, according to Steven Rosenthal, senior researcher at Urban-Brookings Tax Policy Center.
For example, when the IRS selected 68 tax year 2018 statements for further examination, the agency ended up denying a transfer deduction for 85% of them, amounting to about $ 4.8 million, according to the report.
“This is a rich vein for the IRS to be prospecting because, so far, the IRS is getting positive results [almost] every time, “said Rosenthal.
“I think the QBI is written in a very complicated way, with exceptions to the exceptions,” he said of the deduction and why the errors may be occurring.
The IRS and the Inspector General of the Treasury were contacted, but did not respond to a request for comment at the time of publication of this story.