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One noteworthy point is that the IRS has recently focused its recent enforcement efforts on two groups: Wealthy taxpayers and low-income households.
In fact, households with less than $25,000 in annual earnings are five times as likely to be audited by the IRS as everyone else, according to an analysis of IRS data by the Transactional Records Access Clearinghouse (TRAC) at Syracuse University.
That's largely due to the IRS checking whether tax returns claiming the Earned Income Tax Credit (EITC) actually qualify for the benefit, which can provide a tax credit of up to $7,000 to some families. It's a valuable benefit, but one that can be abused, with one analysis finding that as many as half of returns claiming the tax credit had erroneously claimed too much, or even incorrectly claimed the credit at all.
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