Tag Archives: tax audit

The IRS already has all your income tax data – so why do Americans still have to file their taxes?

The government could toss the 1040 in the trash.
Kameleon007iStock via Getty Images

 

Beverly Moran, Vanderbilt University

Doing taxes in the U.S. is notoriously complicated and costly. And it gets even worse when there are delays and backlogs, making it especially hard to reach the Internal Revenue Service for assistance.

But to me this raises an important question: Why should taxpayers have to navigate the tedious, costly tax filing system at all? Continue reading

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IRS: Sorry, But It’s Just Easier and Cheaper to Audit the Poor

Congress asked the IRS to report on why it audits the poor more than the affluent. Its response is that it doesn’t have enough money and people to audit the wealthy properly. So it’s not going to.

By Paul Kiel. Published 10-2-2019 by ProPublica

Charles Rettig testifying at his confirmation hearing on June 28, 2018. Screenshot: C-SPAN

The IRS audits the working poor at about the same rate as the wealthiest 1%. Now, in response to questions from a U.S. senator, the IRS has acknowledged that’s true but professes it can’t change anything unless it is given more money.

ProPublica reported the disproportionate audit focus on lower-income families in April. Lawmakers confronted IRS Commissioner Charles Rettig about the emphasis, citing our stories, and Sen. Ron Wyden, D-Ore., asked Rettig for a plan to fix the imbalance. Rettig readily agreed. Continue reading

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