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Report File
Date Issued
Submitting OIG
Treasury Inspector General for Tax Administration
Agencies Reviewed/Investigated
Internal Revenue Service
Report Number
2025-408-014
Report Type
Audit
Agency Wide
Yes
Number of Recommendations
3
Questioned Costs
$0
Funds for Better Use
$0
Report updated under NDAA 5274
No

Open Recommendations

This report has 3 open recommendations.
Recommendation Number Significant Recommendation Recommended Questioned Costs Recommended Funds for Better Use Additional Details
1 No $0 $0

The Chief, Tax Compliance Officer, should review the 1,130 tax returns with potentially erroneous clean vehicle tax credits and assess the additional tax owed, if any.

2 No $0 $0

As of May 2024, our analysis identified 225 individual taxpayers who had their tax returns incorrectly rejected for Tax Year 2023. The IRS incorrectly rejected tax returns when the taxpayer claimed the Previously Owned Clean Vehicles Credit on the Form 1040, U.S. Individual Income Tax Return, Schedule 3, Additional Credits and Payments, and attached the Form 8936. This occurred because the business rule was looking for the Form 8936 to be attached to the specific line claiming the credit instead of attached to the tax return.

3 No $0 $0

In February 2024, we notified the IRS of concerns with seven business rules on the Form 8936 not functioning as stated in the business rule documentation. These business rules ensure the accuracy of the calculations on the Form 8936. Although the rules worked appropriately based on the context of the tax form, the business rule documentation did not match the computer programming.

Treasury Inspector General for Tax Administration

United States