IRS chief ‘deeply concerned’ about rising black taxpayer audit rates: NPR
Susan Walsh/Associated Press
Black taxpayers are audited at: Higher percentage than other racial groups, IRS internal survey confirmed.
“There is a need for more research, but our initial findings indicate that black taxpayers are a higher proportion than would be expected given their share of the population,” IRS Director Daniel Werfel told lawmakers. It supports the conclusion that it may be investigated in the
of letter Werfel told the Senate Finance Committee on Monday that it would review audit algorithms for certain anti-poverty tax credits to look for and address racial bias.
“We are devoting significant resources to rapidly assessing the extent to which IRS testing priorities, automated processes, and the data available to the IRS in selecting trials contribute to this disparity. Werfel said in the letter.
Werfel said the agency was “deeply concerned” about the findings and would undertake efforts to understand and address differences in practices.
Senate Finance Committee Chairman Ron Wyden (Oregon Democrat) said: statement On Monday, it was revealed that audit algorithms are at the root of the problem of racial bias in audits.
“The racism that has plagued American society for centuries is routinely manifested in algorithms introduced by governments and private organizations, even if the algorithms are intended to be race-neutral,” Wyden said. Even if they do,” he said, adding that racial prejudice was “totally unacceptable.”
The results of the agency’s internal investigation came after researchers from Stanford University, the University of Michigan, the University of Chicago and the Treasury Department reported in January that: Black Americans are 3-5 times more likely Get your federal tax returns audited more than taxpayers of other races.
or study It suggests that the main reason behind the unfair treatment is the way audits are conducted through the earned income tax credit (EITC), a tax relief scheme aimed at supplementing the income of low-wage workers. increase.
The IRS to receive Raised approximately $80 billion through Inflation control lawThe letter said the company will use some of the funding to understand “potential systemic biases” in its compliance strategy and responses.
Daniel Ho, faculty director of the Laboratory of Regulation, Valuation and Governance at Stanford Law School, was pleased with NPR that authorities are devoting resources to better understand the gaps in tax audits. said there is.
“The letter was a very positive development, affirming the following: [researchers] Our paper first discovered that black taxpayers are three to five times more likely to be audited than non-black taxpayers, and the implications of thinking about audit choices to improve that situation. It showed that there is a way,” Ho said.
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This is March 22, 2013, the Internal Revenue Service building in Washington. IRS Director Danny Warfel has acknowledged that black taxpayers may be audited at a higher rate than non-black taxpayers.
Susan Walsh/Associated Press
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Susan Walsh/Associated Press
This is March 22, 2013, the Internal Revenue Service building in Washington. IRS Director Danny Warfel has acknowledged that black taxpayers may be audited at a higher rate than non-black taxpayers.
Susan Walsh/Associated Press
Black taxpayers are audited at: Higher percentage than other racial groups, IRS internal survey confirmed. “There is a need for more research, but our initial findings indicate that black taxpayers are a higher proportion than would be expected given their share of the population,” IRS Director Daniel Werfel told lawmakers. It supports the conclusion that it may be investigated in the of letter Werfel told the Senate Finance Committee on Monday that it would review audit algorithms for certain anti-poverty tax credits to look for and address racial bias.
“We are devoting significant resources to rapidly assessing the extent to which IRS testing priorities, automated processes, and the data available to the IRS in selecting trials contribute to this disparity. Werfel said in the letter. Werfel said the agency was “deeply concerned” about the findings and would undertake efforts to understand and address differences in practices.
Senate Finance Committee Chairman Ron Wyden (Oregon Democrat) said: statement On Monday, it was revealed that audit algorithms are at the root of the problem of racial bias in audits. “The racism that has plagued American society for centuries is routinely manifested in algorithms introduced by governments and private organizations, even if the algorithms are intended to be race-neutral,” Wyden said. Even if they do,” he said, adding that racial prejudice was “totally unacceptable.” The results of the agency’s internal investigation came after researchers from Stanford University, the University of Michigan, the University of Chicago and the Treasury Department reported in January that: Black Americans are 3-5 times more likely Get your federal tax returns audited more than taxpayers of other races.
or study It suggests that the main reason behind the unfair treatment is the way audits are conducted through the earned income tax credit (EITC), a tax relief scheme aimed at supplementing the income of low-wage workers. increase. The IRS to receive Raised approximately $80 billion through Inflation control lawThe letter said the company will use some of the funding to understand “potential systemic biases” in its compliance strategy and responses.
Daniel Ho, faculty director of the Laboratory of Regulation, Valuation and Governance at Stanford Law School, was pleased with NPR that authorities are devoting resources to better understand the gaps in tax audits. said there is. “The letter was a very positive development, affirming the following: [researchers] Our paper first discovered that black taxpayers are three to five times more likely to be audited than non-black taxpayers, and the implications of thinking about audit choices to improve that situation. It showed that there is a way,” Ho said.
https://www.npr.org/2023/05/16/1176441745/irs-audits-black-taxpayers IRS chief ‘deeply concerned’ about rising black taxpayer audit rates: NPR