4.15.2002

Perhaps an example that the current US tax system is a bit, er, complex?

IRS Paid $30 Million In Credits For Slavery (washingtonpost.com)

The Internal Revenue Service, handling more than 100,000 tax returns seeking nonexistent slavery tax credits, paid out more than $30 million in erroneous refunds in 2000 and 2001.

One IRS employee is under investigation for allegedly helping process returns that claimed the credit, officials said yesterday. At least 12 current and former IRS employees, all low-level workers in processing centers, applied to receive such a credit.

While it has been known for years that some fraud artists advertised the false credit and offered to help African Americans get it -- for a fee -- this is the first indication that the cost to the government was so high.

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