The IRS has announced significant steps to address the disparity in audit rates between Black taxpayers and others, as well as to increase scrutiny on wealthy individuals and major corporations. In an effort to promote fair and equitable tax administration, the agency is revamping its compliance efforts and holding itself accountable to the taxpayers it serves.
A recent study conducted in January 2023 revealed that Black taxpayers were audited at a rate up to 4.7 times higher than non-Black taxpayers. The IRS was found to disproportionately target individuals claiming the Earned Income Tax Credit, with Black taxpayers comprising 21% of claims but facing 43% of audits related to the credit.
