Warren, Chu press IRS on increase in audits of low-income households

[Yo_Mama_Been_Loggin]

Two congressional Democrats are pressing the Internal Revenue Service for more details about why the audit rate for the lowest-earning households has nearly doubled in the past year, in face of pledges by President Biden to restrain such examinations.

Senator Elizabeth Warren of Massachusetts and Representative Judy Chu of California asked IRS Commissioner Chuck Rettig to explain a rise in audits of those earning less than $25,000, which is at odds with Biden’s policy of not increasing tax examinations for those earning less than $400,000.

“We know the IRS suffers from underfunding, and we are working to secure substantial, permanent funding so the IRS can take on the tax cheating of giant corporations and the ultra-wealthy,” the progressives Chu and Warren wrote in a letter obtained by Bloomberg News. “But, we also urge you to move swiftly to end the targeting of low-income Americans, in line with the administration’s commitment.”

The lawmakers referred to recent data from Syracuse University that found that 1.3 percent of households making less than $25,000 were audited in the 2021 fiscal year — up from 0.79 percent the previous year and notably higher than the 0.45 percent rate for households earning $200,000 to $1 million.

https://www.msn.com/en-us/news/politics/warren-chu-press-irs-on-increase-in-audits-of-low-income-households/ar-AAWc0a8

TFG holdovers?

[Ocelot II]

1. It's been that way for awhile, even if it's at a higher rate now.

It's much easier to successfully audit a lot of poor people even if they don't owe much tax per person because they don't have the resources to defend themselves. Rich people have lawyers and accountants and lots of paperwork to sift through, so even if they'd owe more money it's too much work and takes too long to audit them. The more understaffed and underfunded the IRS is, the more they go after poorer taxpayers because they don't have the staff to deal with the rich ones. And the rich people know it.

[TreasonousBastard]

2. Beat me to it. This has been going on for years simply...

because the IRS goes after the low hanging fruit. Not sure, but I suspect they get bonus points for the cases they open and close, not how much money they win.

Going after the big guys also means multiple appeals that could keep a team busy for years. It also means lots of side issues to play with.

This is how law firms make their money, and the IRS can't compete.

[iemanja]

3. They audited my grandmother

Living off social security and a railroad pension. She let them have an earful. I bet they were sorry they messed with her.

[Diablo del sol]

4. The IRS is a straight up fucking mess and Dems need to be careful

The tactics are inline with a shakedown criminal enterprise and when people hate the government, they vote for Repukes.

My experience, I received RSUs from my employer and was also apart of buying Incentive Stock from the employer. RSUs are basically bonus. No cash outlay on my part. The ISUs I purchased at a 15% discount.

On my 2017 taxes I listed each transaction line separately. So my cost basis at sell on the incentive stocks may have been 15% lower. Issue was IRS claimed they received a form from broker that all were given to me. In fact 75% I bought at the discount.

They demanded full payment within 60 days, 10k, in 2019. Spent hours trying to get through to talk to them, after 10 hours on hold over two days got a live person. Was told it was an issue with broker. Refused to look at my 1099 statement that clearly listed the differences between the different stock buys.

Another four hours wasted dealing with broker who said it was an IRS issue. Time ran out so I was forced to pay. Hired a CPA to go at them. COVID hits, the all go to work remote. Service and response is even worse. She finally gets some traction and sends letter in Feb 2021 with all backup documents proving IRS error and requests immediate refund. Nothing for months. In October 2021 I finally get letter from IRS stating resolution is pending. No amount, no detail other than 2017 tax payment and resolution expected in 30 days.

Nothing happens so I contact Katie Porter’s office in December. They get a tax advocate assigned. He calls and leaves message. Return call and request meeting to resolve. Call every week into March. Finally get a letter stating it was an IRS error, but two year statute of limitations expired so they won’t pay. Call again and actually get him live. Tell him letter was sent prior to two years, he says doesn’t count because it wasn’t certified. Refuses to even look to see if the letter was received and noted in my file.

So now I am back to having to call him weekly to make sure he passed my request to escalate to his boss for resolution. Three weeks in to that request. Not one returned call back.