"The IRS correspondence audit process is structured to expend the least amount of resources to conduct the largest number of examinations – resulting in the lowest level of customer service to taxpayers having the greatest need for assistance," National Taxpayer Advocate Erin M. Collins said of the report during an annual report to Congress.
The Transactional Records Access Clearinghouse (TRAC) at Syracuse University examines internal IRS management reports each month, and the group noticed different trends by reviewing 2022 data. Most notably, the group looked at audits, particularly considering the agency relying more heavily on automatically produced letters sent to taxpayers.
The data showed that the IRS conducted 85% of its audits through these letters, which request additional information and documentation related to specific items of interest. Overall audits dropped from 659,003 in FY 2021 to 626,204 in FY 2022 out of 164 million income tax returns filed last year.
The rate of income tax audits for those in the lowest income bracket hit 12.7 per 1,000, compared to 2.3 per 1,000 among theose in the highest – a nearly five-fold increase. The odds of a millionaire facing an audit were around 1.1%.
The exterior of the Internal Revenue Service (IRS) building in Washington D.C. (AP Photo/Susan Walsh, File)
This roughly matched similar numbers – 13 per 1,000, and 2.6 per 1,000, respectively – during FY 2021, but that rate nearly doubled from FY 2020, when the lowest income bracket saw...
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3 comments:
Well, surprise, surprise, surprise!
- Gomer Pyle
Further details show that the cause was claiming the EIC. To my certain knowledge as a tax preparer for the low income -mostly black- group, that group is notorious for attempting and committing EIC fraud. Sounds like a righteous target to me. One example of many: a lady who earned less than 18K, walking away with a 14K refund- due to EIC! She not only paid no taxes, the rest of us subsidized her multiple bastard children.
Not to mention that there are way more than 5x as many low income people per every high income person. But yes, low hanging fruit without a whole law office on retainer… easy pickings.
Drew458
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