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They don't ignore much larger sums; larger sums are much harder to automate detection of. So with the limited amount of manpower they have, far fewer are identi

They don't ignore much larger sums; larger sums are much harder to automate detection of. So with the limited amount of manpower they have, far fewer are identified. They can send a letter asking for documentation for everything the automated system flags. The automated system detects "simple" cases at a far higher confidence ratio, which tends to be lower income. Once you get upper income, with all manner of complicated itemized deductions, the confidence of the automated system is much lower, and the effort to ask for appropriate documentation, and verify it, is much higher, for a much lower expectation of return (since, again, low confidence from the system).

LorenPechtel 4y ago
And the rich guy probably has a CPA filing their taxes. It's quite unlikely there will be anything in there that's easily detected.
- ghaff 4y ago
  Or that is a flat-out mistake. You're right that wealthier people probably aren't going to commit obvious fraud like "forgetting" a 1099. But, assuming they are not deliberately committing fraud, their CPA will probably not make any obvious errors either.
  - mindslight 4y ago
    I wouldn't be so sure about that. I just got a letter from the IRS pointing out an error in an amended return my CPA had filed, presumably with the help of software. They tallied total taxable income to a nonzero amount, but then put a zero for the tax due on that amount. I missed it on my own review because it was one of many returns I had to file.
    - ghaff 4y ago
      Hence probably. I have no doubt CPAs like every professional including developers make mistakes. Although I assume they're probably mostly obvious one which can be corrected fairly easily. I'm also sure there are outliers. >I missed it on my own review because it was one of many returns I had to file. Honestly, I look through my returns but they're way past the point where I could find most errors even though my finances aren't especially complex.

LorenPechtel 4y ago

And the rich guy probably has a CPA filing their taxes. It's quite unlikely there will be anything in there that's easily detected.

ghaff 4y ago
Or that is a flat-out mistake. You're right that wealthier people probably aren't going to commit obvious fraud like "forgetting" a 1099. But, assuming they are not deliberately committing fraud, their CPA will probably not make any obvious errors either.
- mindslight 4y ago
  I wouldn't be so sure about that. I just got a letter from the IRS pointing out an error in an amended return my CPA had filed, presumably with the help of software. They tallied total taxable income to a nonzero amount, but then put a zero for the tax due on that amount. I missed it on my own review because it was one of many returns I had to file.
  - ghaff 4y ago
    Hence probably. I have no doubt CPAs like every professional including developers make mistakes. Although I assume they're probably mostly obvious one which can be corrected fairly easily. I'm also sure there are outliers. >I missed it on my own review because it was one of many returns I had to file. Honestly, I look through my returns but they're way past the point where I could find most errors even though my finances aren't especially complex.