IRS Math Errors

Math errors are a two-way street, according to the latest IRS statistics. The Service refunded over $6 billion to filers who made mistakes in 2010.  That compares to $9.5 billion that IRS took from those who erred in their own favor, including arithmetic flubs, using invalid tax ID numbers and claiming excess credits.  But the good news will be short-lived. More than half of the money refunded is attributable to individuals who neglected to claim the Making Work Pay credit, which disappeared after 2010. IRS computers spotted people eligible for the credit who didn’t claim it and added it to their refunds or reduced the balance they owed. [Kiplinger]