Middle-class Americans to bear brunt of IRS audits under Dem inflation bill, analysis shows

[Blondy]

Originally Posted by saltine

The increase is already started on the poor, even pocahontas is questioning it
https://www.bostonglobe.com/2022/04/...20%24400%2C000.

There is a significant amount of non-compliance in the low income category due to the Earned Income Credit.

People make up wages that qualify them for the credit, list dependents they aren't entitled to and claim wrong filing statuses in order to increase the amount of refund they get. The yield on these cases is good which is one of the primary drivers for a return to be audited.

There is also a high level of tax preparer fraud around the credit. Sometimes taxpayers intentionally participate in this fraud and sometimes they are preyed upon. Either way they owe the tax back.

[remco67]

I can't think of a person i know of who is well off, by which i mean at least 150k a year who doesn't use an actual accountant or CPA for their Taxes. At least a couple of them have serious money and use high end firms. They are meticulous at following the letter of the law taking every legal loophole they can. Does anybody think the IRS is really going to go after these people. The IRS knows the Accountants and CPA doing their taxes are doing everything legal, unless an actual mistake is made. Not much money to find there despite what the left says.

You know who pushes the limits, it's the less well off who do their own taxes or use some guy with basic training at a kiosk or perhaps some 20 buck computer program. These people are far more likely to make mistakes or to take questionable deductions and these are also the people who do not have the financial resources to argue with the IRS. They will just pay up. And those people are most of America not the Wealthy.

[Annandale_Man]

Originally Posted by remco67

I can't think of a person i know of who is well off, by which i mean at least 150k a year who doesn't use an actual accountant or CPA for their Taxes. At least a couple of them have serious money and use high end firms. They are meticulous at following the letter of the law taking every legal loophole they can. Does anybody think the IRS is really going to go after these people. The IRS knows the Accountants and CPA doing their taxes are doing everything legal, unless an actual mistake is made. Not much money to find there despite what the left says.

You know who pushes the limits, it's the less well off who do their own taxes or use some guy with basic training at a kiosk or perhaps some 20 buck computer program. These people are far more likely to make mistakes or to take questionable deductions and these are also the people who do not have the financial resources to argue with the IRS. They will just pay up. And those people are most of America not the Wealthy.

Not everyone with a higher income earns their money from anything but wages. My wife and I earn around $400K and can complete our return in about 30 minutes using online software.