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A new report from Transactional Records Access Clearinghouse (TRAC) at Syracuse University found that the IRS audits low-income workers at a rate five times higher than everyone else. Local experts said there are a number of reasons that may be contributing to this statistic, but believe it's mainly due to the inadequate staffing at the IRS and dishonest tax preparers.
The IRS releases reports to TRAC each month, under a court order from successful litigation under the Freedom of Information Act. Using 2021 numbers on tax returns, the organization said there's a concerning disparity in audits between low-income and high-income taxpayers.
According to the data, people making between $200,000 to $1 million a year had 4.5 out of every 1,000 returns audited. Meanwhile, people making below $25,000 annually were audited for 13 out of every 1,000 returns.
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