Closing the Earned Income Tax Credit Audit “Doom Loop”

Source: The American Prospect
by Gabrielle Gurley

“For some African American taxpayers, and especially people claiming the Earned Income Tax Credit, the stepped-up IRS taxpayer resources assistance could be the difference between an error-free return and a major stress-inducing IRS audit. The Inflation Reduction Act delivered a landmark $80 billion boost to the chronically underfunded agency over the next decade, with $3 billion allocated to tax filing assistance and education. The Treasury Department has steered $426 million into IRS taxpayer services since February, which led to the hiring of more than 5,000 customer [sic] service representatives to take calls in the run-up to Tax Day, a long-overdue development after years of staffing cutbacks. A recent Stanford University-Treasury Department research study highlighted sharp racial disparities in IRS audits.” (03/16/23)