In 2022, the U.S. Internal Revenue Service focused its audits on low-income individuals, according to IRS data analyzed by Syracuse University’s Transactional Access Records Clearinghouse (TRAC).
“The taxpayer class with audit rates five-and-a-half times [that] of virtually everyone else were low-income wage earners taking the earned income tax credit,” the TRAC study said.
Such individuals “are easy marks in an era when the IRS increasingly relies on correspondence audits”—those carried out through the mail, not in person—“yet doesn’t have the resources to assist taxpayers or answer their questions,” TRAC grumbled.
“If one ignores the fiction of auditing a millionaire through simply sending a letter through the mail, the odds that millionaires received a regular audit by a revenue agent—1.1 percent—was less than the audited rate of the targeted lowest-income wage earners, whose audit rate was 1.27 percent!”
TRAC added the exclamation point.
Auditing a wealthy taxpayer can take considerable amounts of time and teams of auditors. The IRS has claimed it lacks the personnel to audit the wealthiest individuals at the same rate as lower-income earners.
To correct the situation, the Inflation Reduction Act signed by president Joe Biden funds the IRS to hire 87,000 new agents over the next ten years to focus more audits on wealthy taxpayers with complicated financial lives.
Adding 87,000 new agents will not increase the audit rate for individuals earning under $400,000 a year, Biden has pledged.
However, the law itself contains no language requiring increased audits of high-income earners or the wealthy.
New IRS agents with auditing or accounting experience will need as long as three years to learn to conduct accurate, detailed audits, according to the Congressional Budget Office.
Therefore, the IRS is likely to continue to target the poorest taxpayers for some time, even if new agents are hired, the libertarian magazine Reason pointed out.
TREND FORECASTS: As we have forecast, across the globe there will be growing populist anti-tax/anti-establishment movements.
Last night, Republicans in the U.S. House of Representatives voted to slash the $80 billion Congress approved last year to ramp up the IRS.
While the bill will not become law since the Democratic-controlled Senate won’t support it, it is a sign of the times that will generate strong public support, since not only are the plantation workers of Slavelandia being billed for the $80 billion, as noted above, they are the main IRS targets.
TREND FORECAST: The Government is in full control and the fullest in control are the central Banksters… as Gregory Mannarino notes in his article “Currency Destruction on A Grand Scale.”
“Central banks have the absolute authority to issue their single product, debt, to governments and people of the world in any amount they see fit. Moreover, they can do whatever they want with their product with ZERO oversight. Today central banks collectively are the single most powerful organizations on the planet, and nothing they do is ever just by accident.”