Fraud and Earned Income Tax Credit
No surprise to me or any other tax professional but there is fraud, lots of fraud, resulting from the Earned Income Tax Credit. Yep, over the last 10 years the IRS has paid out more than $110 billion in fraudulent EITC claims according to a report by the TIGTA. The report also estimates that somewhere between 21% and 25% of the EITC claims are fraudulent in 2012.
This may explain why I question the honesty of many who receive welfare, SNAP, housing assistance, etc. and people in general. I have the privilege of telling people to leave my office when I get a whiff of fraud. Of course that doesn't stop them from preparing their own fraudulent return or going down the street and lying to the next preparer.
Here is a link that might be useful: TIGTA report