Who’s More Likely to Be Audited: A Person Making $20,000 — or $400,000?

If you claim the earned income tax credit, whose average recipient makes less than $20,000 a year, you’re more likely to face IRS scrutiny than someone making twenty times as much. How a benefit for the working poor was turned against them.

News Story (NATIONAL)

Paul Kiel, Jesse Eisinger
December 12, 2018

Tags: Tax Relief

Organizations mentioned/involved: Texas RioGrande Legal Aid (TRLA), Prairie State Legal Services (northern Illinois), Legal Aid of Arkansas (LAA) (Jonesboro, AR)


Budget cuts have crippled the IRS over the past eight years. Enforcement staff has dropped by a third. But while the number of audits has fallen across the board, the impact has been different for the rich and poor. For wealthy taxpayers, the story has been rosy: Not only has the audit rate been cut in half, but audits now tend to be less thorough.