IRS Implements Reforms to Address Racial Bias in Tax Audits

The Internal Revenue Service (I.R.S.) is changing its audit practice to reduce enforcement disparities that have disproportionately targeted Black taxpayers. The agency will overhaul how it scrutinizes tax returns claiming the earned-income tax credit, which is aimed at alleviating poverty. Historically, tax returns claiming this credit have been more likely to be audited, with audit rates for Black Americans being three to five times higher than for other taxpayers. The I.R.S. aims to use the $80 billion it received to target wealthy taxpayers and make the tax system more equitable. The changes include adjusting how the I.R.S. considers information about children's residency and dedicating more resources to helping taxpayers fix mistakes.