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LINK IRS audits the poor at 5 times the rate of everyone else, analysis finds

(Because the rich contribute to political campaigns. Thus, the new NY AG doesn't want to pursue tax fraud charges for Trump, even though there is conclusive evidence. And, that is just on the state level.)

Tax season is a fraught time for taxpayers, who are understandably eager to get their refunds quickly and who may fret that processing hiccups could delay their checks. But some Americans may have more grounds for concern than others: low-income households with less than $25,000 in annual earnings.

This group is five times as likely to be audited by the IRS as everyone else, according to a new analysis of IRS data by the Transactional Records Access Clearinghouse (TRAC) at Syracuse University. About 13 tax returns out of 1,000 filed by those earning less than $25,000 were audited in the fiscal year ended September 30, compared with a rate of 2.6 for every 1,000 returns for people with incomes above $25,000, TRAC found.

snytiger6 9 Mar 9
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4 comments

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1

No surprise there.

3

I want to know what the number of audits is for those earning more than a million dollars a year? The audits obviously take much longer and are defended by an army of tax lawyers and accountants, but I would think the yield when done would be a whole lot more than they get from the poor.

3

Not news, I saw this info at least +/-decades ago, but I think then it was "seven times"

1

That's because the US Treasury is paying the poor and taking money from the rich. They have a long record of giving out payments for fraudulent returns.

IRS paid $3.6 billion in fraudulent tax refunds

[money.cnn.com]

Now it looks like they are trying to make sure their payments are legitimate.

BD66 Level 8 Mar 9, 2022

I'll take a stab at this: Taxation of the wealthy class is the only method of insuring a fresh class of wealthy individuals. This is important because old money rots. It gets moldy and turns to self protection. By taxing that money it returns it to public markets where a fresh genius might make lots of it. That genius will probably be innovative and good for our near future society more than the old money would have.

@rainmanjr Yes, it should be noted that from the end of WWII through the early 1960's when the wealthy were taxes the most was the same period when the U.S. experienced that largest economic growth and the largest average increase in the standard of living.

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