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"When you have a tax system where you are targeting the lowest-wage earners at a much higher rate than higher-income taxpayers, how fair of a tax system is that?" Long told CBS MoneyWatch. "And what does it do to the confidence of taxpayers?"
She added, "And at the same time when you don't provide the agency with the budget to fairly administer the tax laws — this is really shortsighted.
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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.
The reason is a rise in what are known as "correspondence audits," a review of a tax return that's typically handled by the IRS via letters and phone calls, as opposed to the typically more complex face-to-face audits. More than half of the correspondence audits initiated by the IRS last year involved low-income people who claimed the Earned Income Tax Credit (EITC), TRAC found.
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