According to the Treasury Inspector General for Tax Administration (TIGTA), the IRS is working to comply with an executive order for reporting requirements.
Even though there has been a decline of improper payment for Earned Income Tax Credit (EITC) since the 2003 fiscal year, the amount of incorrect payments has increased from $10.5 billion in 2003 to $14.5 billion in 2013. In a report to TIGTA, the IRS reported improper payment in 2013 of EITC totaling approx. $60 billion and that 24 % were paid in error.
This prompted an audit because Executive Order 13520 (Reducing Improper Payments and Eliminating Waste in Federal Programs) requires that TIGTA assess IRS compliance with the order annually. This is so the TIGTA could determine if the IRS has complied with the Executive Order.
They found that the IRS was not in compliance for 2013 because it has not established annual payments in error reduction target as required.
The IRS is currently working to find a solution for this problem. The agency has obtained approval from the Office of Management and Budget to create and release additional measures instead of annual reduction targets.