Tax bill’s EITC rules could hamstring taxpayers, IRS

EITC Provision Could Swamp IRS

As Senate Republicans eye passing their tax-and-spending bill this week, tax researchers are sounding the alarm about a proposal that would increase documentation requirements for a tax credit for low-income households.

A provision in both the House and Senate versions of the bill would direct the IRS to develop a system to verify that taxpayers’ children qualify for the earned income tax credit before it can be claimed. Taxpayers would apply to the IRS to have their child certified as eligible, providing supporting documents.

Republicans say the requirements would help to prevent improper payments of ...