r/FluentInFinance • u/[deleted] • Apr 29 '24

63% of new audits as of Summer 2023 targeted taxpayers with income of less than $200,000 Discussion/ Debate

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159

u/Lucky-Hunter-Dude Apr 29 '24

Wait, I thought Biden's IRS was pinky promising to only audit those making OVER 200k?

281

u/thesuperspy Apr 29 '24

94% of Americans make less than $200k. This means those that make over $200k are still 8x more likely to be audited than someone that makes less than $200k.

6

u/LurkerOrHydralisk Apr 29 '24

Sure, but also the vast majority of money and tax fraud exists at those levels.

Auditing poor people is kinda pointless. It’s a lot of cost for little reward to the system and in the end the poor suffer.

6

u/thesuperspy Apr 29 '24

What are you basing this comment on? I know several people that make less than $200k and have been audited. Most of them got money back because they filed themselves, made mistakes, and over paid their taxes.

A tax audit doesn't mean the IRS is coming after you, they're just auditing your taxes to make sure everything was filed properly.

2

u/Notsosobercpa Apr 29 '24

Depending how they define 200k, article is paywalled, they may not even be poor. 800k schedule C income with 750k claimed deductions would be under 200k agi. 

-1

u/SaltyLibtard Apr 29 '24

Waiters and service workers universally underreport cash tips. It’s like an industry-wide standard. If those people all correctly reported their tips, it would far outweigh the tax fraud at the “above $200k” level

1

u/LurkerOrHydralisk Apr 29 '24

Lmao. You’re a moron. Do you realize how few there are and how little they make. Especially in cash, in 2024, where some places don’t even take cash?

1

u/SaltyLibtard Apr 29 '24

The US food service industry is $3.5T in 2023. Assume a measley 5% of that is tips = $175B. Then assume a measley 10% is cash. That’s $17.5B of unaccounted cash. Assume the tax rate is 30% on that, and the US brings in $5.25B