The President's SAVE award

[Black Bart]

Here's an interesting website: Asks for IRS employee ideas to increase efficiency and decrease waste. Says 10,000 ideas have been posted, 12K co-worker comments, 71K votes (agree/disagree).

At top left of page -- under "IMPACTED AGENCY" - change "All Ideas" to "Department of the Treasury".

http://saveaward2012.ideascale.com/a/ideafactory.do?discussioID=58658

Guess I haven't been giving IRS enough credit; they (these guys at least) are not slackers and apparently want to streamline IRS. Voting has been closed on several of them; adjacent posts generally list 1-2-3 up to 6 votes and then "voting disabled" pops up. I don't know if this means replies rose into the stratosphere or if IRS thinks three/four of such stuff is enough.

Here's a couple posts of note (you'll scroll across them) re things (1) so obvious that you wouldn't expect it need be mentioned and (2) an insider's (ranking officer perhaps?) worldview about these things.

(1) REVAMPED FORM W-7:

"As a bilingual lead CSR, every day I see ITINS assigned that should not have been assigned for one reason or another. The form needs to be updated to ask where the applicant is - in the U.S., or if not, in what country (emphasis-mine). Also, educate the employees of the ITIN unit on these tax law issues so they know when to process an application and when not to process an application. This will save millions if not billions in unnecessary paper work and processing not to mention unwarranted refundable credits given to dependents that are not physically present here in the U.S."

(That could add up -- a recent news item reported several occupants of a single trailer house in Texas claimed CTC on 19 kids who actually lived in Mexico.)

(2) PERFORM DESK AUDIT

"PERFORM A DESK AUDIT ON ANY EMPLOYEE THAT HAS TIME TO SUBMIT MORE THAN FIVE SUGGESTIONS DURING WORK HOURS. THEY NEED MORE WORK TO DO."

(Hmmm...must be an old-timer like me who doesn't like change.)

[Gary2]

(1) REVAMPED FORM W-7:

"As a bilingual lead CSR, every day I see ITINS assigned that should not have been assigned for one reason or another. The form needs to be updated to ask where the applicant is - in the U.S., or if not, in what country (emphasis-mine). Also, educate the employees of the ITIN unit on these tax law issues so they know when to process an application and when not to process an application. This will save millions if not billions in unnecessary paper work and processing not to mention unwarranted refundable credits given to dependents that are not physically present here in the U.S."

(That could add up -- a recent news item reported several occupants of a single trailer house in Texas claimed CTC on 19 kids who actually lived in Mexico.)

This doesn't quite get it right, though it's on the right path.

There's no requirement that you be physically present in the US to qualify for an ITIN. Furthermore, a child residing in Mexico can be claimed as a dependent, if the other criteria are met, but can't qualify for the child tax credit.

Now the W-7 usually must be attached to a tax return, and I suppose the people processing it could see whether or not the request is for someone for whom the CTC was claimed on the return. But what do they do if the they can't qualify for the CTC? Issue the ITIN and input the return with changes?

Or suppose they deny the ITIN, so the scamsters get a little smarter - they apply without claiming the CTC, then amend to claim it, or claim it the following year, after the ITIN has been issued?

The solution can't be a blanket denial of ITINs for non-residents. I believe it will take a denial of the CTC (or at least the refundable part) on the tax return for dependents with ITINs unless accompanied by their US Visa or other proof of residency in the US. Or, since the Visa is often presented with the W-7, perhaps it can be tracked by the IRS at that point (I'm not sure how old a child has to be before a visa issued in their name, if at all.)

[Black Bart]

... I believe it will take a denial of the ACTC (or at least the refundable part) on the tax return for dependents with ITINs unless accompanied by their US Visa or other proof of residency in the US. Or, since the Visa is often presented with the W-7, perhaps it can be tracked by the IRS at that point...

I'm don't think that's on the program. IRS agrees (see link) to go along with 7 of 9 TIGTA's recommendations, but they don't say if they're (1) going to stop discouraging examiners from identifying questionable ITIN apps and/or (2) stop eliminating processes that have been successful in identifying fraud. Still, seems pretty much a no-brainer.

http://www.treasury.gov/tigta/press/press_tigta-2012-37.htm

Gosh; do ya think the manager of a (I hesitate to say the word so soon after Nov. 6) private business would get fired for giving away money?

[Black Bart]

I'm don't think that's on the program. IRS agrees (see link) to go along with 7 of 9 TIGTA's recommendations, but they don't say if they're (1) going to stop discouraging examiners from identifying questionable ITIN apps and/or (2) stop eliminating processes that have been successful in identifying fraud. Still, seems pretty much a no-brainer.

http://www.treasury.gov/tigta/press/press_tigta-2012-37.htm

Gosh; do ya think the manager of a (I hesitate to say the word so soon after Nov. 6) private business would get fired for giving away money?

Postscript: As a member of the campaign-crushed/election-exhausted citizenry and having reconsidered my above last paragraph with its politically-implicit/partisan-grindstone mention of Nov. 6th, I herewith withdraw and declare it null and void. In the words of my wise and favorite (conservative) columnist; "...vote, go home and shut up; further disturbing the peace should be a felony."