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It's because the costs for going after well-funded and well-defended tax cheats is higher than going after middle and lower income people who can't defend thems
by x86_64Ubuntu 6y ago
It's because the costs for going after well-funded and well-defended tax cheats is higher than going after middle and lower income people who can't defend themselves. This has been known since George Bush II's tenure.
- refurb 6y agoThe IRS selects which returns to audit based in part on a statistical formula that identifies returns most likely to be at risk of having an error So yes, you're correct. Analyzing whether or not someone is eligible for EITC (those making less than ~$50,000) can be automated and if flagged, a letter sent telling them they aren't eligible or asking for more information. [1]https://www.taxpolicycenter.org/briefing-book/how-do-irs-audits-affect-low-income-families https://www.taxpolicycenter.org/briefing-book/how-do-irs-aud...