HomeBusinessBiden promised that IRS funding would not increase the number of audits...

Biden promised that IRS funding would not increase the number of audits for everyday Americans, as the IRS audits the poorest Americans five times more often than others

Biden promised that IRS funding would not increase the number of audits for everyday Americans, as the IRS audits the poorest Americans five times more often than others

Once it was announced that the IRS would receive $80 billion in additional funding as part of the Inflation Reduction Act, the Biden administration sought to assure ordinary Americans that these funds would not make them more likely to be audited by the agency.

Treasury Secretary Jannet Yellen said individuals and small businesses making less than $400,000 a year will not see audit rates increase.

A recent White House press release highlighted how many of the funds are “intended to close the tax gap by specifically enforcing tax compliance by the wealthiest tax evaders.”

Do not miss it:

However, data from Syracuse University’s Transactional Records Access Clearinghouse (TRAC), a nonpartisan data provider focused on federal government agencies, shows that the poorest Americans—particularly those applying for the Earned Income Credit (EIC)—are at greater risk of the IRS to be audited. .

See also  Trump Media drops 15% after registration of shares and warrants

TRAC analyzed 2021 tax returns and found that annual earners under $25,000 were five times more likely to be audited than everyone else. They also found that 13% of these filings claimed the EIC was audited, an even higher increase to 13.5% in 2022.

Meanwhile, barely more than 1% of millionaires received an IRS audit in 2022.

Trending: This ‘Future of Gaming’ Startup Is Disrupting a $272 Billion Industry now anyone can invest for a limited time.

According to Taxpayer Advocate, the average individual taxpayer already spends about 13 hours and $240 in out-of-pocket costs to file one annual return. Facing an IRS audit can save taxpayers even more time and money.

The fear of an IRS audit has been a way for private tax preparation services to profit further. H&R block (NYSE:HRB), for example, offers filers an additional benefit called “Peace of Mind,” which is marketed as a service to provide representation and assistance in the event of an IRS audit.

See also  What's going on with MSCI stock on Monday?

Some politicians have gone so far as to call for the abolition of the IRS, such as Florida Governor Ron Desantis, who would prefer to implement a single flat tax that gives all taxpayers the same rate and abolishes the current tax code.

read about Start-up investing:

“SECRET WEAPON OF ACTIVE INVESTORS” Boost your stock market game with the #1 trading tool for “news & everything else”: Benzinga Pro – Click here to start your 14-day trial now!

Want the latest stock analysis from Benzinga?

This article promised Biden that IRS funding would not increase audits for everyday Americans as the IRS audits the poorest Americans five times more often than others originally appeared on Benzinga.com.

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

- Advertisement -
RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments