as opposed to the typically more complex face-to-face audits. More than half of the correspondence audits initiated by the IRS last year involved low-income people who claimed the Earned Income Tax Credit (EITC),
Study shows IRS audits poor Southerners most often
The sad story in full at “IRS admits it audits poor people because auditing rich people is too expensive.” Pair with “The Rich Really Do Pay Lower Taxes Than You.” * Leona Helmsley ### As we shake our heads, we might recall that it was on this date in 2011, a Saturday, that...
The Inflation Reduction Act would invest $370 billion in fighting climate change and $64 billion to lower costs for people with Affordable Care Act health plans. To pay for that, Democrats want the IRS to step up audits and enforcement efforts to collect billions that currently get lost in th...
Enforcing tax laws shouldn’t scare anyone except people breaking tax laws.. As usual, this is completely false. The IRS audits irregularities, and not even on the first issue. Be honest with your constituents. This is a lie. Those suffering the worst, are making nowhere near 400K. The ...
Before commencing audits for self-directed IRAs, it’s crucial to have an understanding of these accounts and their differences from traditional IRAs. A self-directed IRA is an individual retirement account which gives account holders the power to choose and manage their investments freely – in co...
IRS AUDITS MORE POOR TAXPAYERS BECAUSE IT'S EASIER, CHEAPER THAN TARGETING THE RICH You can remain under the radar by making sure your facts are accurate – that means double-checking your math, making sure your forms match your returns and making sure you entered the correct information for...
The auditor's review isn't always the last word. Many taxpayers who are audited successfully appeal their audits and save thousands of dollars. To get a reduction approved, the taxpayer must prove that the total amount owed is incorrect, the probability of being able to pay back the full am...
The IRS freely admits that it needs only a single anomaly toaudit a return. Sometimes, audits are based solely on a statistical formula that your return had the misfortune of deviating from. The IRS develops those "norms" from audits of a statistically valid random sample of returns, as part...
The IRS wins 80% of all audits, mostly because taxpayers cannot properly verify the information on their tax returns.[5] A taxpayer can sue the IRS for up to $1 million if an IRS collector willfully disregards the law.[5]