Marie Deary
May 15, 2023
African Americans are more likely to be audited!
African Americans are more likely to be audited by the IRS than white Americans. A 2023 study by Stanford University, the University of Michigan, the University of Chicago, and the Treasury Department found that; Black Tax Payers are audited 2.9 to 4.7 Times The rate of non-black Tax Payers
There are a number of possible reasons for this disparity. One possibility is that the IRS uses a biased risk assessment tool against Black taxpayers. Another possibility is that Black taxpayers are more likely to be audited because they are more likely to file complex tax returns. Finally, it is also possible that Black taxpayers are more likely to be audited because they are more likely to be poor, and poor people are more likely to commit tax fraud.
Whatever the reason, the disparity in audit rates between Black and white taxpayers is a serious problem. It is a form of discrimination that disproportionately harms Black Americans. The IRS needs to take steps to address this disparity and ensure that all taxpayers are treated fairly.
Here are some of the steps that the IRS can take to address the disparity in audit rates between Black and white taxpayers:
Review its risk assessment tool to ensure that it is not biased against Black taxpayers.
Provide more training to its auditors on how to avoid racial profiling.
Create a more transparent audit process so that taxpayers can understand why they are being audited.
Establish a program to help taxpayers who are audited by the IRS.
A good education is one of the best ways to increase your earning potential. Encourage your child to study hard and get a good job.
Here are some things that African Americans can do to protect themselves from being audited by the IRS:
File their taxes accurately and on time. This is the most important thing that taxpayers can do to avoid being audited.
Keep good records of their income and expenses. This will make it easier to substantiate their tax deductions and credits.
Be aware of the red flags that the IRS looks for when selecting taxpayers for audit. These red flags include things like filing a complex tax return, claiming large deductions or credits, or having a history of tax problems.
If you are audited, be polite and cooperative. The auditor is just doing their job. Answer their questions honestly and provide them with the information they request.
If you have any questions about the audit process, ask the auditor for clarification. You have the right to understand the audit process and to ask questions.
If you believe that you are being audited unfairly, you can contact the IRS taxpayer advocate service. The taxpayer advocate service can help you resolve your audit issue.