Friday, April 1, 2022

No Story

Writing for The Epoch Times, Mark Tapscott observes the following, which can appear counterintuitive until you think it through. Hat tip to Instapundit for the link.
Internal Revenue Service officials audit returns of taxpayers making $25,000 or less at a much higher rate than for all other income earners, including those in the top 1 percent who President Joe Biden claims pay nothing.

Imagine if you will the effort an audit of some “top 1 percent” person takes. No “one percenters” do their own taxes, all of those have CPA firms file for them so any problems with their returns will be well-concealed and at least arguably legal. Such audits to succeed will likely end in a years long lawsuit.

On the other hand, the problems of those making 25k or less are mostly simple screwups a clerk can catch in a few minutes and have to do with the person misunderstanding the forms OR simply forgetting to file. Of course many more of the latter are done, many more of the latter make obvious errors.

Those who make millions find it worth spending thousands to have professionals file their taxes professionally, meaning at least superficial legality. Poor taxpayers are the “low-hanging fruit” of those filing incorrectly, and as such are targeted. 

There is no story here. The IRS knows how to allocate its scarce resources for maximum return.