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Law360
April 13, 2022

Dem Lawmakers Push IRS to Limit Audits of Low-Income Filers
By Joshua Rosenberg



"It is important that Commissioner Rettig owns up to [the] IRS' increased targeting of audits on these lowest-income families," Susan B. Long, co-director at TRAC and associate professor of managerial statistics at Syracuse, told Law360. "The public is entitled to weigh in on whether this is who and what [the] IRS' limited resources should be used for."
 
The number of low-income taxpayers who were audited by the IRS nearly doubled in fiscal year 2021 from the previous year's total increasing from 0.79% to 1.3% of such earners the lawmakers said in their letter, citing a report from the Transactional Records Access Clearinghouse. TRAC is a data research organization based out of Syracuse University. The upswing in audit rates can be attributed to, at least in part, the IRS' increased reliance on correspondence audits, the lawmakers said in the letter, citing TRAC's findings. As part of correspondence audits, the agency sends mail to taxpayers and asks them to provide documentation. Chu broached the topic during a House Ways and Means oversight subcommittee hearing in March, citing research from TRAC that found the agency audits low-income earners those with less than $25,000 in gross receipts five times as much as it does everyone else, based on data from the 2021 fiscal year


Transactional Records Access Clearinghouse, Syracuse University
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