Want To Avoid An IRS Audit? Make A Lot Of Money
The IRS is a bunch of bullies...literally. IRS Commissioner Charles Rettig admitted to members of Congress, they target poor people for audits because they don't have the resources to fight back. Auditing lower-income taxpayers is easier and cheaper than going after the wealthy.
Nearly 40% of IRS audits conducted last year were of taxpayers who claimed the earned income credit. Those examinations can be executed by low-level employees, usually by mail. Low-income taxpayers don't claim a lot of deductions and often file the short form. Auditing their returns is easy and cost-efficient.
Pursuing wealthy individuals requires involving senior auditors who have to pour through extensive records. There's been a lot of attrition at the senior level in recent years, due to budget cuts. So, if you don't want to get audited, all you have to do is make a lot of money! No problem, right?