Why Poorer Americans Are More Likely To Get Audited Than The Rich

The video discusses the challenges of tax filing, highlighting the IRS's focus on auditing lower-income individuals due to limited resources. It explains the disparity in audit rates between the rich and the poor, driven by budget cuts and reduced enforcement personnel. Despite a slight budget increase for 2022, significant changes in auditing fairness remain uncertain.

Why are lower-income individuals more likely to be audited by the IRS?

• They are more likely to commit tax fraud.

• It is cheaper and easier for the IRS to audit them.

• The IRS has more resources to audit them.

• They have more complex tax returns.

What was the percentage drop in the IRS enforcement budget between 2010 and 2018?

• 10%

• 24%

• 50%

• 31%

How many high-income individuals failed to file their taxes between 2014 and 2016?

• 2 million

• 1 million

• 500,000

• 880,000

What is the expected tax avoidance by the rich over the next decade?

• $1 trillion

• $5 trillion

• $3 trillion

• $10 trillion

What was the actual increase in the IRS budget for 2022?

• 4%

• 6%

• 10%

• 14%