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Between 2010 and 2019, the audit rate decreased by more than half, with millionaires 71 percent less likely to encounter an IRS agent asking questions about their returns, while audits of corporations with at least $10 million in profits are down by more than 60 percent. The number of auditors able to conduct complex investigations of high-net-worth individuals and companies fell by 40 percent between 2010 and 2020.
This diminished enforcement deprives the U.S. government of as much as $600 billion a year, according to a Treasury report last September.
That is partly because the lowest-income filers are the ones getting the most enforcement: Households poor enough to receive the earned-income tax credit are five times more likely to be audited than higher-earning filers, according to research released by Syracuse University’s Transactional Records Access Clearinghouse.
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