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Wealthier people are much more likely to use a professional tax consultant or are better at knowing how to file. Audits are usually triggered by mistakes. Say t
by singlow 4y ago
Wealthier people are much more likely to use a professional tax consultant or are better at knowing how to file. Audits are usually triggered by mistakes. Say the IRS gets a 1099 form that wasn't included in the return, which triggers an investigation. A wealthier person is much more likely to have filed the 1099 because they are more educated and/or can afford a tax professional. A poorer person is much more likely to just ignore the 1099 or not even know that it needs to be filed.