Poor taxpayers are much more more likely to be audited by the IRS than high-income taxpayers – and the pattern has solely elevated within the final decade, in response to knowledge launched by the company final week.
Individuals who obtain the earned revenue tax credit score – the U.S.’ largest anti-poverty program – are audited at a better price than all however the prime 1%, ProPublica reported, citing the information.
Sen. Ron Wyden, D-Ore., known as the double commonplace an “open invitation to cheat, low-income taxpayers are receiving heightened scrutiny as a result of they are often audited much more simply. All it takes is a letter as a substitute of a group of investigators and attorneys.”
CONFIDENTIAL DRAFT IRS TAX MEMO SAYS TAX RETURN MUST BE HANDED TO CONGRESS UNLESS PRESIDENT USES EXECUTIVE PRIVILEGE: REPORT
Dean Patterson, IRS spokesman, blamed the poor being audited extra ceaselessly on enormous swaths of brokers going into retirement due to funds cuts. With the IRS’ restricted sources, Patterson stated, “Correspondence audits are additionally essentially the most environment friendly use of IRS’ restricted examination sources.”
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On prime of that, the response price of the poorest taxpayers is dismally low. In keeping with one other research, solely 34% of these with annual wages below $10,000 responded to EITC audits – a statistics blamed on their hard-to-reach residencies.