6 ms·

yah, the risk needs to be high enough to hit a tipping point for mass deterrence. currently it’s much more likely (a couple percent iirc) that middle class amer

yah, the risk needs to be high enough to hit a tipping point for mass deterrence. currently it’s much more likely (a couple percent iirc) that middle class americans will be audited (for small amounts, largely automated) than the well-off (~0.1% iirc, even though the population is much smaller). we need to flip those percentages (and more), no matter the cost. we are a rich country, and fairness is actually worth paying for rather than mindless bureaucracy and rote compliance.

sokoloff 5y ago
That does not match data I’ve seen: https://www.nolo.com/legal-encyclopedia/what-are-the-odds-being-audited.html https://www.nolo.com/legal-encyclopedia/what-are-the-odds-be... (increasing audit rates at all levels over $200K in return AGI and over 2% audit rates for all ranges at/over $1M.)
- ceejayoz 5y ago
  https://projects.propublica.org/graphics/eitc-audit https://projects.propublica.org/graphics/eitc-audit > In a baffling twist of logic, the intense IRS focus on Humphreys County is actually because so many of its taxpayers are poor. More than half of the county’s taxpayers claim the earned income tax credit, a program designed to help boost low-income workers out of poverty. As we reported last year, the IRS audits EITC recipients at higher rates than all but the richest Americans, a response to pressure from congressional Republicans to root out incorrect payments of the credit. https://www.propublica.org/article/irs-sorry-but-its-just-easier-and-cheaper-to-audit-the-poor https://www.propublica.org/article/irs-sorry-but-its-just-ea... > On the other hand, auditing the rich is hard. It takes senior auditors hours upon hours to complete an exam. What’s more, the letter says, “the rate of attrition is significantly higher among these more experienced examiners.” As a result, the budget cuts have hit this part of the IRS particularly hard. > For now, the IRS says, while it agrees auditing more wealthy taxpayers would be a good idea, without adequate funding there’s nothing it can do. “Congress must fund and the IRS must hire and train appropriate numbers of [auditors] to have appropriately balanced coverage across all income levels,” the report said.
- clairity 5y ago
  my memory is hazy and i might have confused population percentages with cohort percentages, but the real point is that not only is the return greater for higher income audits[0] but it sustains a fairer and more robust economy. we’re currently doing it backwards, and that got worse (in overall funding, tax policy, and audit targeting, at least) under a purported billionaire presidency for obviously self-serving reasons. [0] just one quick link on this: https://www.cbsnews.com/news/treasury-sec-larry-summers-says-irs-should-do-more-audits-to-crack-down-on-rich-people-who-dodge-taxes/ https://www.cbsnews.com/news/treasury-sec-larry-summers-says...

sokoloff 5y ago

That does not match data I’ve seen: https://www.nolo.com/legal-encyclopedia/what-are-the-odds-being-audited.html https://www.nolo.com/legal-encyclopedia/what-are-the-odds-be... (increasing audit rates at all levels over $200K in return AGI and over 2% audit rates for all ranges at/over $1M.)

ceejayoz 5y ago
https://projects.propublica.org/graphics/eitc-audit https://projects.propublica.org/graphics/eitc-audit > In a baffling twist of logic, the intense IRS focus on Humphreys County is actually because so many of its taxpayers are poor. More than half of the county’s taxpayers claim the earned income tax credit, a program designed to help boost low-income workers out of poverty. As we reported last year, the IRS audits EITC recipients at higher rates than all but the richest Americans, a response to pressure from congressional Republicans to root out incorrect payments of the credit. https://www.propublica.org/article/irs-sorry-but-its-just-easier-and-cheaper-to-audit-the-poor https://www.propublica.org/article/irs-sorry-but-its-just-ea... > On the other hand, auditing the rich is hard. It takes senior auditors hours upon hours to complete an exam. What’s more, the letter says, “the rate of attrition is significantly higher among these more experienced examiners.” As a result, the budget cuts have hit this part of the IRS particularly hard. > For now, the IRS says, while it agrees auditing more wealthy taxpayers would be a good idea, without adequate funding there’s nothing it can do. “Congress must fund and the IRS must hire and train appropriate numbers of [auditors] to have appropriately balanced coverage across all income levels,” the report said.
clairity 5y ago
my memory is hazy and i might have confused population percentages with cohort percentages, but the real point is that not only is the return greater for higher income audits[0] but it sustains a fairer and more robust economy. we’re currently doing it backwards, and that got worse (in overall funding, tax policy, and audit targeting, at least) under a purported billionaire presidency for obviously self-serving reasons. [0] just one quick link on this: https://www.cbsnews.com/news/treasury-sec-larry-summers-says-irs-should-do-more-audits-to-crack-down-on-rich-people-who-dodge-taxes/ https://www.cbsnews.com/news/treasury-sec-larry-summers-says...