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Signal Cleveland
March 10, 2023

IRS audits low-income taxpayers more often than wealthier peers, study finds
By Olivia Perkins



The IRS hadn’t been given adequate resources in the past.They are not going to be able to magically change overnight. Susan B. Long, an associate professor of managerial statistics at the Whitman School of Management and the author of the report.
 
The Internal Revenue Service was 5 ˝ times more likely to audit the tax returns of the working poor in 2022 than all other taxpayers, according to a Syracuse University report. Filers with incomes under $25,000 were more apt to be audited because the IRS viewed them as “low-hanging fruit,” said Susan B. Long, an associate professor of managerial statistics at the Whitman School of Management and the author of the report. In an era of underfunding, she said, the IRS has increasingly relied on “correspondence audits,” in which the agency writes the person being audited asking for specific documentation. She said audits of more affluent taxpayers, whose returns are often more complex, tend to lend themselves to more expensive face-to-face meetings with revenue agents. “They’re essentially being targeted,” Long said of the high rate at which the lowest-income wage-earners have been audited. “It’s also easy to go after them because basically they don’t respond, and then they’re automatically assessed [what the IRS claims they owe].


Transactional Records Access Clearinghouse, Syracuse University
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