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Black Taxpayers

All articles tagged with #black taxpayers

politics2 years ago

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.

via The New York Times|
#audit-practice#black-taxpayers#discrimination
finance2 years ago

IRS confirms higher audit rates for Black taxpayers.

The IRS has confirmed that Black taxpayers are more likely to face an audit, with a recent study finding that they are audited three to five times more than other Americans. The IRS is now considering changes to address the disparity, including examining algorithms for audits of filers claiming the earned income tax credit. The agency has dedicated significant resources to address the issue and will not consider race as part of the audit selection process. Senate Finance Committee Chair Ron Wyden called the findings a "shameful consequence" of racial discrimination and said the previous decade of IRS budget cuts made it "virtually impossible to enforce our tax laws fairly."

via CNBC|
#black-taxpayers#earned-income-tax-credit#finance
politics2 years ago

IRS confirms higher audit rates for Black taxpayers.

The Internal Revenue Service (IRS) audits Black taxpayers at significantly higher rates than other Americans, according to Commissioner Daniel Werfel. The agency will review audit algorithms for certain anti-poverty tax credits to search for systemic racial bias. Researchers found that the algorithms are more likely to identify Black taxpayers for audits, despite no evidence that Black taxpayers perpetrate fraud at a higher rate than any other demographic. The IRS will devote “significant resources” to determine the scope of the problem. The algorithmic shortcomings may have been a result of more than a decade of IRS budget cuts.

via The Washington Post|
#audit-algorithms#black-taxpayers#irs