IRS Commissioner Daniel Werfel has vowed to address racial disparities in IRS audits. He acknowledged that the IRS’s current algorithmic protocols for audit selection can lead to minorities, especially Black taxpayers claiming the earned income tax credit, being chosen disproportionately for audits. Werfel said that “we are dedicating significant resources to quickly evaluating the extent to which IRS’s exam priorities and automated processes, and the data available to the IRS for use in exam selection, contribute to this disparity.” A study found that Black taxpayers receive IRS audit notices at least 2.9 times to as much as 4.7 times more often than non-Black taxpayers.
Our Blog 