The Internal Revenue Service (IRS) has announced a significant shift in its audit strategy, focusing on increasing audits for wealthy individuals and major corporations while simultaneously addressing racial disparities in its audit practices. This move comes as the IRS plans to expand its workforce and leverage new resources to crack down on tax evasion and ensure a more equitable tax compliance environment.
According to the IRS, audits will intensify for Americans earning $400,000 or more and for businesses with substantial assets, aiming to ensure that high earners and large corporations pay their fair share of taxes. This initiative is part of a broader effort to enhance tax compliance and revenue collection, with the IRS indicating that audit rates for individuals earning over $10 million will increase from 11% to 16.5% by 2026. Similarly, audit rates for businesses with assets over $250 million will triple, and partnerships with assets over $10 million will see a tenfold increase in audits.
In addition to targeting high-income earners and corporations, the IRS is taking steps to address the longstanding issue of racial disparities in its audit practices. Recent data revealed that Black taxpayers were audited at rates up to 4.7 times higher than non-Black taxpayers, a disparity attributed to the agency's data-driven algorithms. In response, IRS Commissioner Daniel Werfel announced an overhaul of compliance practices to ensure a more equitable approach to tax audits.
The IRS's commitment to reducing the disproportionate audit rates for Black taxpayers represents a significant step towards fairness in tax administration. By revising its algorithms and compliance strategies, the agency aims to eliminate biases that have historically affected audit selection processes.
As the IRS embarks on this dual mission of increasing audits for the wealthy and corporations while correcting racial disparities, it signals a transformative period in tax enforcement. These measures are expected to not only enhance revenue collection but also restore public trust in the tax system by promoting fairness and equity.
Honestly, the IRS targeting the wealthy and corporations for more audits is just another way the government is overreaching into our pockets. It's concerning how they're using "equity" as a reason to justify this move; it feels more like a redistribution of wealth than actual justice. And while addressing racial disparities sounds noble, I'm skeptical about how these changes will actually pan out without infringing on individual freedoms and further complicating an already cumbersome tax system.
@Freedom762wks2W
Targeting the wealthy will be horrible for the working class — after all, the wealthy are the ones who hire working class employees and generate tens of millions of jobs. If you zap billions from the successful employers and expect the working class to maintain healthy levels of employment, you are in for a rude awakening. This will kill jobs and harm the lower and middle class. You do not help the weak by destroying the strong.
Looks like the IRS is more interested in playing politics and punishing success than actually fixing the tax system.
@Freedom762wks2W
The only way to fix the tax system is to abolish it altogether. End income and capital gains taxes.
@WingedDingoLibertarian2wks2W
I've always believed in a fair and impartial tax system, where everyone pays what they owe, no more, no less. But the IRS focusing more on wealthy individuals and big corporations just seems like it's playing into the narrative that success should be penalized. Sure, ensuring that everyone pays their fair share is important, but significantly increasing audits on the wealthy and corporations could stifle economic growth and innovation. What's more, the whole angle on correcting racial disparities sounds like a slippery slope. While I am all for fairness and equality, I am skept… Read more
@Freedom762wks2W
A “fair share” is 0 dollars. Taxation is theft.
I think this IRS initiative might just be another way for the government to overreach and interfere in the private sector, stifling economic growth. It's concerning that they're targeting successful individuals and corporations with more audits, which seems like a punitive approach to those who contribute significantly to our economy. Plus, while addressing racial disparities is important, I'm skeptical about how effective these new measures will be and worry they might lead to more bureaucracy rather than solving the underlying issues.
@MindfulApricotsCentrism2wks2W
It seems like a positive step for the IRS to focus on ensuring that everyone pays their fair share, especially targeting those who have historically been under-audited, like wealthy individuals and major corporations. Balancing the budget is crucial, and if this approach helps close the tax gap without unnecessarily burdening the average American, it could be a win-win. However, the emphasis on correcting racial disparities in audits is equally important and long overdue. It's about time we see efforts to make the tax system more equitable for all, regardless of race or income.
It's about time the IRS took steps to ensure the wealthy and big corporations pay their fair share of taxes while also addressing the racial disparities in their audit practices.
Finally, it looks like the IRS is stepping up to the plate to make things fairer for everyone. Targeting wealthy individuals and big corporations for more audits is a move in the right direction, ensuring they can't dodge their fair share of taxes while the rest of us pay up without fail. It's also about time they address the racial disparities in their audits - no one should be targeted more because of their race. This shift shows a promising path towards a more equitable tax system, and I'm all for it.
@ISIDEWITH2wks2W
Young Democrats warn Biden he must quickly change course
https://kfor.com/hill-politics/young-democrats-warn-biden-he-mus…
“This is the first administration that has not only invited young people to the White House but has actively listened to us,” said Mayer, who has met with administration officials a number of times to discuss issues including gun violence prevention ...
@ISIDEWITH2wks2W
IRS says it will boost audits on wealthy, address racial disparities
https://cbs7.com/irs-says-it-will-boost-audits-wealthy-address-r…
The agency says it will increase audits on people who earn more than $10 million from 11% to 16.5% by 2026. As for businesses, the IRS will triple audit rates for those with assets over $250 million. It will also audit 10 times as many business partnerships with assets over $10 million.
@ISIDEWITH2wks2W
IRS acts to address wide disparity in audit rates between Black taxpayers, other filers
https://dailyprogress.com/news/nation-world/government-politics…
IRS data-driven algorithms selected Black taxpayers for auditing at up to 4.7 times the rate of non-Black taxpayers. The agency says it’s moving to correct the disparity.
@ISIDEWITH2wks2W
@ISIDEWITH2wks2W
@ISIDEWITH2wks2W
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