The Congressional Research Service (CRS) has issued a report (https://bit.ly/3MVTXb7 ) that examines the impact of the Earned Income Tax Credit (EITC) on IRS audits. The report was spurred by concern that the IRS is auditing low-income taxpayers, particularly taxpayers who claim the EITC, at disproportionately high rates compared with higher-income taxpayers. “These higher audit rates may be in response to the high improper payment rates associated with the EITC,” the CRS said. Of the more than 150 million returns filed by individuals for tax year 2017, more than 27 million included an EITC claim. Only about 280,000 of the 27 million EITC returns were audited (1%), the report noted.
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