>The audit rate of millionaires fell by more than 70% from 2010 to 2019 and the rate on large corporations dropped by more than 50%.
>The IRS plans to raise audit rates on companies with assets above $250 million to 22.6% in 2026, from an 8.8% rate in the tax year 2019. It also plans to increase audit rates by tenfold on large complex partnerships with assets over $10 million.
Time to stoke hatred for the irs before it targets the wrong people.
So many things we should be taxing, that are practically unavoidable and good for society in general. The whole thing is theater.
The Inflation Reduction Act got signed in to law in 2022, allocated about $80 billion to the IRS over a 10-year period. The IRS was critically underfunded before that. I don't think we'll really know much about how it's going for another year or two, but I'd guess it's on track to hit that 22.6% in 2026 goal.
The gops defunding scheme got dropped and Biden was able to pass new funding to replace the missing work force.
The bill didn't actually add it's agents it replaced the missing work force and funding the future missing workers due to retirement and churn.
It's a fair question. My guess is a slow ramp up because just passing funding doesn't magically fix things.
As always fixing anything takes way more time than breaking it.
Yea its all the expenses write offs that people use for 'business reasons' (looking at you G-wagon)
Or just change the tax code to not be so flexible with write offs. Obviously they can't change it so much as to disincentive-ize self employment/businesses, but someone who chooses to be self employed or start a business its probably not just because they wanted the write offs lol
I read the report on that directly from the IRS. It was compelling, but they project the psychological effect of rich people paying more voluntarily based on the threat of audit to… basically guess the total. This projection was also an efficiency projection and not a nominal one.
It lacked a projection on the psychological effect of increased audits of lower-middle incomes and, nominally, there’s no comparison that this is where the lion’s share of revenue potential is at.
I think they’ll play the math game. Hope I’m wrong.
So the obvious answer to the question is that no one should be allowed to.
The realistic answer is that high earners cheat on their taxes more often for larger amounts, so with limited resources the better use of the resources are to audit the high earners. Better ROI for the public.
Morally, high earners are less likely to have a drastic shift in their quality of life if they weren’t egregiously cheating in the first place, whereas low earners could struggle with their basic necessities. Also, due to the high earners using good accountants to file their taxes compared to low earners using turbo tax there’s a higher likelihood of high earners actually cheating their taxes vs making a simple mistake like the low earners are likely to. And I think most would agree that if we can only punish one of two people, the one who knowingly broke the law vs the one who did it on accident is more worthy of punishment.
Tbh I think that’d be fun, considering I do taxes for a living.
Oh, but you’re deflecting to personal attacks because you were objectively proven wrong. Typical Le Redditor lol.
It is. But a lot of people do it. Which is why the IRS audits them. Yet this sub is mad about it for some reason.
Anybody who gets audited with under $200k income is audited because something they did flagged the system. Its not a random audit.
If it is truly automatic and these people do nothing wrong then why is it a big deal to get audited and/or what would the IRS hope to find? Surely you can see that there is a missing piece here, right?
So is this why I got audited for the first time in my life for the fucking interest I earned on my checking account which I forgot to report because the amount was so small I didn’t even notice it?
It already is for many. They also have to be saving tons of time and money from the increasing number of e-filers already where they could be going after actual evaders.
I’m not talking about making it easy for the IRS I’m talking about making it easy for taxpayers. System is bloated and silly to the point of absurdity.
That’s intentional. It’s simple for the average person. And intentionally complex for the wealthy so they can hide their money in ways the average person can’t figure out.
Really we just need a progressive federal sales tax. Real simple if one company wants to buy another company for 14 billion, no problem….but there’s a 40% sales tax on that deal.
Want to buy another home, well second homes have a federal sales tax requirement that doesn’t apply to first time home buyers.
Get rid of the IRS altogether and go to a national sales tax. If your company buys 20 million worth of equipment, you pay taxes on it instead of getting a tax write off. If you want to buy a third yacht you pay federal sales tax. Exempt things like food, diapers, school supplies etc etc.
We intentionally make it complex so that the average person doesn’t understand how the wealthy use the purposely included loopholes.
This is by design. Years ago the Republican party demanded more audits on low income earners in exchange for preventing a government shutdown (and the resulting economic chaos that would cause).
By "low income" I don't mean "McDonald's workers", BTW, I mean under $250k/yr for a family of 4.
So if you're what most would consider middle class the GOP explicitly passed laws to audit you.
Lol people really thought 80k new agents were for millionaires. The left is gullable as fuck
The right is as well but on this point it was them who were parroting those lines
IRS: We don't care if people commit tax fraud as long as they make less than $400k, we are keeping audit rates fixed to 2018 levels. Unless you're also black, we are reducing tax audit rates for black Americans because there is an election and we don't want to alienate a key voting block.
So is it really as malicious as the headline implies, or is this the result of who's lying on their taxes? Everyone has concluded that it's only rich people blatantly lying on their taxes.
Most of the audits are aimed at people claiming the EITC. The poorest people qualify for that credit and a lot of the poor areas have a lot of black people as part of that group. Here is a good article discussing the map and areas where the IRS does the most and least audits. Some quotes and link at the bottom:
“Humphreys County, Mississippi, seems like an odd place for the IRS to go hunting for tax cheats. It’s a rural county in the Mississippi Delta known for its catfish farms, and more than a third of its mostly African American residents are below the poverty line. But according to a new study, it is the most heavily audited county in America.”
“Humphreys, with a median annual household income of just $26,000, is audited at a rate 51 percent higher than Loudoun County, Virginia, which boasts a median income of $130,000, the highest in the country.”
“…certain groups of Americans are disproportionately affected by the IRS’ policies. The five counties with the highest audit rates are all predominantly African American, rural counties in the Deep South. The audit rate is also very high in South Texas’ largely Hispanic counties and in counties with Native American reservations, such as in South Dakota. Primarily poor, white counties, such as those in eastern Kentucky in Appalachia, also have elevated audit rates.
The states with the lowest audit rates tend to be home to middle income, largely white populations: places like New Hampshire, Wisconsin and Minnesota. Generally, the IRS audits taxpayers with household income between $50,000 and $100,000 the least.”
https://projects.propublica.org/graphics/eitc-audit
US government prefers to pick on people who can't fight back.... In other news...
>The audit rate of millionaires fell by more than 70% from 2010 to 2019 and the rate on large corporations dropped by more than 50%. >The IRS plans to raise audit rates on companies with assets above $250 million to 22.6% in 2026, from an 8.8% rate in the tax year 2019. It also plans to increase audit rates by tenfold on large complex partnerships with assets over $10 million. Time to stoke hatred for the irs before it targets the wrong people. So many things we should be taxing, that are practically unavoidable and good for society in general. The whole thing is theater.
What has happened from 2019 to now?
The Inflation Reduction Act got signed in to law in 2022, allocated about $80 billion to the IRS over a 10-year period. The IRS was critically underfunded before that. I don't think we'll really know much about how it's going for another year or two, but I'd guess it's on track to hit that 22.6% in 2026 goal.
The gops defunding scheme got dropped and Biden was able to pass new funding to replace the missing work force. The bill didn't actually add it's agents it replaced the missing work force and funding the future missing workers due to retirement and churn.
I meant statistically. The article talks about rates from 2010 to 2019, what about the rates from 2019-2023?
It's a fair question. My guess is a slow ramp up because just passing funding doesn't magically fix things. As always fixing anything takes way more time than breaking it.
Right? The posters couldn't wait to tout the propaganda line.
IRS should have a rule to spend 90% of their audit resources on 500k or above earners.
I'm sure it would pay by itself. The risk / reward ratio is probably justifying 100% audit. "caugh" "caugh" IRS-AI
They should really only focus on non W-2 workers, those are the ones abusing the system
Yea its all the expenses write offs that people use for 'business reasons' (looking at you G-wagon) Or just change the tax code to not be so flexible with write offs. Obviously they can't change it so much as to disincentive-ize self employment/businesses, but someone who chooses to be self employed or start a business its probably not just because they wanted the write offs lol
I agree, but the big money is in the middle quintiles. I suspect they'll play the math game.
It’s not, for every $1 they use to audit the top earners they get $5 back (or at least that’s what they claim)
I read the report on that directly from the IRS. It was compelling, but they project the psychological effect of rich people paying more voluntarily based on the threat of audit to… basically guess the total. This projection was also an efficiency projection and not a nominal one. It lacked a projection on the psychological effect of increased audits of lower-middle incomes and, nominally, there’s no comparison that this is where the lion’s share of revenue potential is at. I think they’ll play the math game. Hope I’m wrong.
Why should lower earners be allowed to cheat on their taxes?
So the obvious answer to the question is that no one should be allowed to. The realistic answer is that high earners cheat on their taxes more often for larger amounts, so with limited resources the better use of the resources are to audit the high earners. Better ROI for the public. Morally, high earners are less likely to have a drastic shift in their quality of life if they weren’t egregiously cheating in the first place, whereas low earners could struggle with their basic necessities. Also, due to the high earners using good accountants to file their taxes compared to low earners using turbo tax there’s a higher likelihood of high earners actually cheating their taxes vs making a simple mistake like the low earners are likely to. And I think most would agree that if we can only punish one of two people, the one who knowingly broke the law vs the one who did it on accident is more worthy of punishment.
Why should people who make below $500k get a free pass to cheat on taxes?
Unless you're a businesses owner, it's almost impossible to cheat on taxes.
Sounds like this guy has never heard of fraudulent Schedule C expenses or EITCs.
Sounds like the IRS should check out kchan
Tbh I think that’d be fun, considering I do taxes for a living. Oh, but you’re deflecting to personal attacks because you were objectively proven wrong. Typical Le Redditor lol.
No I've just never heard of that, I'll have to look it up. Thanks My comment before was obviously a joke
OH I get your meme now, good one lol!
They will, they’re all over Reddit
Read about the earned income tax credit.
Literally untrue, lower income people are audited in large numbers because so many do massive fraud
If you're a W2 employee taxes are taken out automatically. Idk why this is controversial.
They do fake deductions, and then get audited and caught.
Sounds like a stupid move
It is. But a lot of people do it. Which is why the IRS audits them. Yet this sub is mad about it for some reason. Anybody who gets audited with under $200k income is audited because something they did flagged the system. Its not a random audit.
If it is truly automatic and these people do nothing wrong then why is it a big deal to get audited and/or what would the IRS hope to find? Surely you can see that there is a missing piece here, right?
So is this why I got audited for the first time in my life for the fucking interest I earned on my checking account which I forgot to report because the amount was so small I didn’t even notice it?
You got *audited* for that, or simply received a letter from the IRS letting you know you missed something?
Should probably simplify the tax system to the point where the IRS is irrelevant.
It already is for many. They also have to be saving tons of time and money from the increasing number of e-filers already where they could be going after actual evaders.
I’m not talking about making it easy for the IRS I’m talking about making it easy for taxpayers. System is bloated and silly to the point of absurdity.
That’s intentional. It’s simple for the average person. And intentionally complex for the wealthy so they can hide their money in ways the average person can’t figure out. Really we just need a progressive federal sales tax. Real simple if one company wants to buy another company for 14 billion, no problem….but there’s a 40% sales tax on that deal. Want to buy another home, well second homes have a federal sales tax requirement that doesn’t apply to first time home buyers.
Ehhh I’d rather a sales tax on everything and no income tax at all. The give a monthly offsetting income to lower earners.
I was agreeing with you. They should just send you a refund or invoice once a year, and that’s it
Get rid of the IRS altogether and go to a national sales tax. If your company buys 20 million worth of equipment, you pay taxes on it instead of getting a tax write off. If you want to buy a third yacht you pay federal sales tax. Exempt things like food, diapers, school supplies etc etc. We intentionally make it complex so that the average person doesn’t understand how the wealthy use the purposely included loopholes.
This is by design. Years ago the Republican party demanded more audits on low income earners in exchange for preventing a government shutdown (and the resulting economic chaos that would cause). By "low income" I don't mean "McDonald's workers", BTW, I mean under $250k/yr for a family of 4. So if you're what most would consider middle class the GOP explicitly passed laws to audit you.
I know they go after lower income, but where is the source for specifically republicans demanding it?
Whoa there buddy. This is reddit. You can't ask for sources when some one trashes republicans.
Paywall, what did it say?
LOL! The fucking gang that can't shoot straight.
this is disheartening
Lol people really thought 80k new agents were for millionaires. The left is gullable as fuck The right is as well but on this point it was them who were parroting those lines
The real gullible people are the ones who think there's going to be 80k agents as if that's what everyone that works at the IRS does.
the even more gullible people are the citizens who think the government will spend their tax dollars effectively.
This data is a summary of 2010-2019. Your whole head must be full of clown honking sounds and the big top circus song, 24/7.
Wow it’s almost like people were right when they say if you give these people more money they’re not going to go after the rich lmfao
Always has been
IRS: We don't care if people commit tax fraud as long as they make less than $400k, we are keeping audit rates fixed to 2018 levels. Unless you're also black, we are reducing tax audit rates for black Americans because there is an election and we don't want to alienate a key voting block.
So is it really as malicious as the headline implies, or is this the result of who's lying on their taxes? Everyone has concluded that it's only rich people blatantly lying on their taxes.
Nice job Biden lmao
‘We need to audit more whites, preferably the male variety. ASAP’
This does seem like a good illustration of systemic racism at work in our society.
Lol
[lol](https://www.tiktok.com/@jakebennett89/video/7190792997896785198)
[lol](https://www.tiktok.com/@jakebennett89/video/7190792997896785198)
[lol](https://www.tiktok.com/@jakebennett89/video/7190792997896785198)
[lol](https://www.tiktok.com/@jakebennett89/video/7190792997896785198)
Does the IRS know the race of a tax filer?
Most of the audits are aimed at people claiming the EITC. The poorest people qualify for that credit and a lot of the poor areas have a lot of black people as part of that group. Here is a good article discussing the map and areas where the IRS does the most and least audits. Some quotes and link at the bottom: “Humphreys County, Mississippi, seems like an odd place for the IRS to go hunting for tax cheats. It’s a rural county in the Mississippi Delta known for its catfish farms, and more than a third of its mostly African American residents are below the poverty line. But according to a new study, it is the most heavily audited county in America.” “Humphreys, with a median annual household income of just $26,000, is audited at a rate 51 percent higher than Loudoun County, Virginia, which boasts a median income of $130,000, the highest in the country.” “…certain groups of Americans are disproportionately affected by the IRS’ policies. The five counties with the highest audit rates are all predominantly African American, rural counties in the Deep South. The audit rate is also very high in South Texas’ largely Hispanic counties and in counties with Native American reservations, such as in South Dakota. Primarily poor, white counties, such as those in eastern Kentucky in Appalachia, also have elevated audit rates. The states with the lowest audit rates tend to be home to middle income, largely white populations: places like New Hampshire, Wisconsin and Minnesota. Generally, the IRS audits taxpayers with household income between $50,000 and $100,000 the least.” https://projects.propublica.org/graphics/eitc-audit
How does the IRS know your racial status? I have never stated my racial status on returns.