Rettig Suggests Congress Simplify Family Tax Credit System

IRS Commissioner Chuck Rettig suggested Thursday that Congress make changes to family-related tax credits in order to reduce the error rate.

“We need to change the earned income tax credit to a family-law credit,” Rettig said during a hearing of the House Ways and Means Committee’s Oversight Subcommittee. He indicated he wasn’t offering an official IRS proposal but was making the recommendation based on his experience at the agency.

Rettig said the earned income tax credit has an error rate of 25%, and a main challenge is the definition of a qualifying child that is eligible for the credit.

“We ...