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It's important to remember that an "EITC correction" != "audit", despite the parent assuming all audits are equal. Correcting a simple error might never even i
by koheripbal 4y ago
It's important to remember that an "EITC correction" != "audit", despite the parent assuming all audits are equal.
Correcting a simple error might never even involve a human IRS auditor. It's as simple as an automated letter going out and instructing someone to correct an obvious mistake (this happened to me).
Never spoke to anyone - just submitted the correction. There should be no limit to audits that are nearly-automated, regardless of whom they target.
Audits that require an investigator are far more effort and those investigative resources need to be proportioned by the expected return on investment. ...and while that will likely tend more frequently to the rich, it shouldn't necessarily be so.
- NovemberWhiskey 4y agohttps://www.taxaudit.com/irs-letters/irs-letter-cp75a-sample-1 https://www.taxaudit.com/irs-letters/irs-letter-cp75a-sample... This is what a typical audit of EITC looks like. It is literally "send us some forms and some proof like a birth certificate showing you're the parent of the child you're claiming".
- int_19h 4y agoIf it's so automated, why require people to submit tax returns at all? Just calculate everything and send them the breakdown along with the check.
- drewbug01 4y agoLobbying. https://www.propublica.org/article/filing-taxes-could-be-free-simple-hr-block-intuit-lobbying-against-it https://www.propublica.org/article/filing-taxes-could-be-fre...
- koheripbal 4y agoThis is obviously wrong. The reason is that they need people to affirm ALL sources of income, not just their W2.
- int_19h 4y agoIf this is obviously wrong, then how and why does it work in most countries other than US? Most people don't have sources of income other than employment (or other sources that are similarly transparent to the tax authorities already). Most tax systems, accordingly, are structured around that, and only those who have unusual income sources have to submit documentation about them.