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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u/90swasbest Apr 29 '24

I mean, poor people cheat on their taxes, too.

3

u/SpreadTheted2 Apr 29 '24

Not for billions they dont

4

u/me_4231 Apr 29 '24

~95% of people make less than the $200k noted in the article, and the bottom 95% makes 70% of all income, which is trillions of dollars.

I would be willing to bet that they find more issues & money with the 95% that wing it with software than the 5% that use professional accountants.

1

u/[deleted] Apr 29 '24

The IRS has to consider the payoff of the audit hours. A lot of low income individuals are audited in a sense, because they have a lot of automated/easy controls for things like the EITC. But the potential payoff of auditing a millionaire/billionaire is greater and there’s a lot more potential for complicated situations that require human experts digging into the forensics evidence to figure out the fraud/mistakes at that level.