IRS: Sorry, but it's easier and cheaper to audit the poor -

ProPublica
Congress asked the IRS to report audited why the poor more than the rich. His answer is that not enough money and people to properly audit the rich. Then it will not do so

by Paul Kiel October 2 2:47 pm EDT

IRS Commissioner Charles Rettig at the Capitol on May 15, 2019, in Washington. Rettig said to increase audit rates of the rich depends on whether the IRS budget grows. (Anna Moneymaker / Getty Images)

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The IRS audits the working poor  at about the same rate as the richest 1%  . Now, in response to questions from a US senator. UU., The IRS has acknowledged that it is true, but states that it can not change anything unless you give more money.

ProPublica  reported audit disproportionate focus  on low - income families in April. Lawmakers confronted the IRS Commissioner Charles Rettig on the emphasis,  citing our stories  , and  Sen. Ron Wyden, D-Ore. , He asked Rettig a plan to address the imbalance. Rettig agreed immediately.

Last month,  Rettig responded to a report,  but said the IRS does not have a plan and not have it until Congress agrees to restore funding cut from the agency over the past nine years, something that legislators have shown little inclination to do.

On the one hand, he said the IRS audit the poor taxpayers is much easier: the agency uses relatively low - level employees to audit statements from low - income taxpayers claiming the tax credit for earned income. Audits, of which there were about 380,000 last year, representing 39% of the total by the IRS, are made by mail and do not require too much staff time. Are "the most efficient use of available IRS exam resources , " says Rettig report.

On the other hand, the rich audit is difficult. A senior auditors takes them hours to complete an exam. What's more, he says the letter, "the dropout rate is significantly higher among these more experienced examiners." As a result, budget cuts have particularly affected this part of the IRS.

For now, says the IRS, even if it agrees to audit the wealthiest taxpayers would be a good idea, without adequate funding there is nothing I can do. "Congress must fund and the IRS must hire and train an appropriate number of [auditors] to have a balanced coverage at all income levels , " says the report.

Since 2011, Republicans in Congress have  driven budget cuts IRS compliance  ; It is more than a quarter lower than its 2010 level, adjusted for inflation.

Recently, there has been bipartisan support in both the House and Senate to increase spending on compliance, but the proposals on the table are relatively modest and will not restore the budget to pre - cut levels. However, even a small increase proposed could not be approved, because it is not  clear whether Congress will pass a bill this year assignments  .

In response to the letter Rettig, Wyden agreed in a statement that the IRS needs more money, "but that does not eliminate the need for the agency begins to reverse the alarming trend of collapsing rates auditing of the rich within your budget current".

It is getting worse: the IRS now audits poor Americans at about the same rate as the top 1%

As the capacity of the agency to audit the rich crumbles, scrutiny of the poor has remained stable in recent years. Meanwhile, a new study shows that poor audits of taxpayers make them much less likely to claim credits you may be entitled.

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