Congressman Danny K. Davis Criticizes Economic Discrimination in IRS Audit Rates

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July 1, 2020
Statements

Today, Rep. Danny K. Davis (D-IL) issued the following statement after the Internal Revenue Service FY2019 Data Book released on June 29, 2020, showed an overall audit rate in 2018 for all individual taxfilers of 0.15 percent, for low-income taxfilers receiving the Earned Income Tax Credit of 0.60 percent, and for millionaire taxfilers of less than 0.05 percent.

“At the time of his assassination, Dr. Martin Luther King, Jr., was focusing the civil rights movement on economic justice and the opportunity gap that exists in this country.  That gap remains wide today – in the disproportionate unemployment rates before the pandemic, in the disparities in death rates due to the pandemic, in the unequal hemorrhaging of job losses, and – as we learned yesterday from the IRS FY2019 Data Book – in taxpayer auditing by the Internal Revenue Service.  The vast majority of recipients of the Earned Income Tax Credit are low-income, working moms.  I am outraged, saddened, and disturbed that the IRS audited poor, single mothers receiving the Earned Income Tax Credit at a rate of 0.60 percent but only audited 0.05 percent of millionaires.  For tax year 2018, the IRS audited 161,564 taxfilers who earned the Earned Income Tax Credit but only 265 taxfilers earning one million dollars or more.  Structural inequalities undermine the economic security in our nation, and the IRS must take immediate action to rectify this economic discrimination.”

Here is a link to Table 17a – Examination Coverage and Recommended Additional Tax After Examination, by Type and Size of Return, Tax Years 2010-2018.

https://www.irs.gov/statistics/compliance-presence