The IRS only audits working people, because it’s cheaper

The IRS only audits working people, because it's cheaper.
Leona Helmsley said “Only the little people pay taxes.”  That’s who the IRS audits, any way.

“On the one hand, the IRS said, auditing poor taxpayers is a lot easier: The agency uses relatively low-level employees to audit returns for low-income taxpayers who claim the earned income tax credit. The audits — of which there were about 380,000 last year, accounting for 39% of the total the IRS conducted — are done by mail and don’t take too much staff time, either.”

“On the other hand, auditing the rich is hard. It takes senior auditors hours upon hours to complete an exam. What’s more … ‘the rate of attrition is significantly higher among these more experienced examiners.’ As a result, the budget cuts have hit this part of the IRS particularly hard.”

“For now, the IRS says, while it agrees auditing more wealthy taxpayers would be a good idea, without adequate funding there’s nothing it can do.”

“Since 2011, Republicans in Congress have driven cuts to the IRS enforcement budget; it’s more than a quarter lower than its 2010 level, adjusting for inflation.”

— “IRS: Sorry, but It’s Just Easier and Cheaper to Audit the Poor,” Paul Kiel, ProPublica

Related:

“The Rich Really Do Pay Lower Taxes Than You,” David Leonhardt, New York Times

________________________

Short link: https://wp.me/p6sb6-tYm

 

Comments are welcome if they are on-topic, substantive, concise, and not boring or obscene. Comments may be edited for clarity and length.

Tags: , , , , , , , , , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s


%d bloggers like this: