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Possibly true. However, while the IRS is not really analogous to the SEC, they do appear to audit EITC claimants (low income) at a very high rate relative to hi
by dundarious 6y ago
Possibly true. However, while the IRS is not really analogous to the SEC, they do appear to audit EITC claimants (low income) at a very high rate relative to high income individuals. I have no evidence either way, but I wouldn't be surprised if the dollar value of tax fraud is skewed to higher incomes. https://www.propublica.org/article/earned-income-tax-credit-irs-audit-working-poor https://www.propublica.org/article/earned-income-tax-credit-...
- jefftk 6y agoExcept audit rates do rise with income, especially at the extremely high levels that are analogous to Fortune 500 companies: $0: 2.04% <$25k: 0.69% <$50k: 0.48% <$75k: 0.54% <$100k: 0.45% <$200k: 0.44% <$500k: 0.53% <$1M: 1.10% <$5M: 2.21% <$10M: 4.21% >$10M: 6.66% Per https://www.nolo.com/legal-encyclopedia/what-are-the-odds-being-audited.html https://www.nolo.com/legal-encyclopedia/what-are-the-odds-be... (Your article concurs: "Only households with income above $1 million were examined at significantly higher rates.")