IRS Targets Poor, Lets Rich Slide

March 14, 2022

The figures show that the lowest-income wage earners, defined as those eligible for the federal Earned Income Tax Credit, were audited at a rate of 13 per 1,000 returns in 2021. For everyone else, the rate was 2.6 per 1,000 returns.

March 14, 2022

The Internal Revenue Service is broken. This isn’t a flaw, it’s a feature. It is by design. Years and years of public bad-mouthing by politicians, coupled with underfunding of its budget have made it nearly impossible to carry out its basic job, ensuring the federal government is properly funded by making all Americans pay what they owe. 

In its current form, the IRS lacks the resources to engage in much in the way of audit or enforcement activity, particularly directed at the wealthiest, and most likely to underpay Americans. Focusing resources at low-income Americans is an absurdly inefficient use of limited resources because it unlikely to yield much if any underpayment is found. 

This needs to be corrected, but as long as wealthy people hold the puppet strings over Congress, don’t hold your breath!