GOP Cuts Threaten IRS Effort to End Bias in Low-Income Audits

TL/DR –

Research indicates that Black taxpayers may be audited at higher rates than other demographics, leading to IRS efforts to correct any system bias. However, these efforts could be hindered by potential funding cuts following a Republican sweep of Congress and the White House. The Inflation Reduction Act’s additional funding of tens of billions intended to assist the IRS may also be affected.

IRS Fighting System Bias Amidst Potential Funding Cuts

Recent research has suggested that Black taxpayers face higher audit rates than their peers, spurring the IRS to rectify potential system bias. However, this initiative may hit a roadblock due to impending Republican control of Congress and the administration.

The IRS, anticipating to share an update on its earned income tax credit system pilot soon, might see progress stalled by promised funding cuts following a Republican takeover.

Additional billions from the 2022 Inflation Reduction Act, a tax and climate law meant to boost the IRS post…

—
Read More US Economic News