IRS Audits Poorest Families at Five Times the Rate for Everyone Else @TRACReports
New data show that low-income wage earners with less than $25,000 in total gross receipts are audited at a rate five times higher than for everyone else. https://t.co/g5P1Xumdo3 pic.twitter.com/DmC0boZV6L
It’s numbers. More ppl make 25k or less so more are audited. 1 in 4 ppl claim 25k or less in america. The only reason someone claiming that income is being audited is for EIC shenanigans or some other mischievous “benefit” scam.
the author does explain it is due to low income earners getting the Earned Income Credit and says it is unjust bc the EIC is an “anti poverty” measure
what she fails to explain is how the EIC is the most abused/fraud targeted tax credit out there…in fact it is the #1 most fraudulently filed for credit.
other than that, I agree that the IRS needs ends up bothering regular, normal tax payers by hiring all these low level employees and being understaffed
the EIC given to low income tax payers is “free money” funded by OTHER people’s tax $$
for example: Taxpayer A made $19K in 2021. they did not take any federal withholding or state withholding taxes out of his paychecks that year bc his income was low enough that he knew he wouldnt have a taxable income when filing.
his income is so low that there is no tax due to the IRS. they did not take any $$ out of his checks to begin with BUT he is still getting a few thousand $$ deposited into his bank from the EIC
Because it’s easier to figure out if they’re full of shit versus going after some billionaire with multiple accountants combing tax laws to figure out loop holes and spreading their earnings over multiple offshore accounts.
You think IRS agents really want to work that hard? They’re just trying to get a paycheck by doing as little work as possible.
Last year, a cleaner at the dentist started talking about how she owed back taxes. She mentioned that the IRS is very easy to work with lol. She mentioned that she was able to setup a doable payment plan.
I guess that’s first time I’ve ever heard a good review about the IRS.
What does “audit” mean here, though. I’ve had the IRS find a mistake on a return and indicate I was entitled to a refund. Technically that was an audit.
I suspect they are using the term to mean something more like an internal review of a filer’s return, rather than the TV/Hollywood version of an audit where they come to your house and demand receipts or whatever.
Not surprising as low income correlates with less sophistication and people not understanding how to fill out a return.
I have used TurboTax for 10+ years now and it’s never been a problem. Even when one year we had to guess at how much my wife made at her part time job because the employer went out of business and never issued a W2. I gave the best evidence I could find, and IRS was happy with it.
https://t.co/g5P1Xumdo3 pic.twitter.com/DmC0boZV6L
