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> The real reason they’re targeted is that, quite simply, they’re unable to fight back. I think there is a misunderstanding of what an 'audit' means. It can be
by gist 4y ago
> The real reason they’re targeted is that, quite simply, they’re unable to fight back.
I think there is a misunderstanding of what an 'audit' means. It can be as simple as a letter from the IRS (after their analysis alerts them) asking that certain documents be provided to support a deduction or otherwise. The IRS is not conducting large scale audits on people with low incomes it would not be feasible there is not enough to even dig into.
What the government (in this particular case for the EITC) should be easy for the taxpayer to reply with info needed to dispute the claim.
- biomcgary 4y agoI got a tax bill for more than a hundred thousand dollars when I sold my primary residence a few years ago. No taxes were actually owed due to the primary residence carve out for capital gains. The sale had been reported to the IRS by a couple different entities (realtor and title company, IIRC) with a few dollar discrepancy, so the transaction was not merged, even though they for the same address (and single family home). I wrote the IRS a nice letter and they eventually replied that they were closing the case. Sometimes "unpaid" taxes are due to limitations of the IRS, which has historically had very legacy software (not sure if that has been fixed recently).