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1 1 (June 13, 2022)

handle is hein.crs/govefvx0001 and id is 1 raw text is: Congressional ____ '.Research Service Audits of EITC Returns: By the Numbers June 13, 2022 The Internal Revenue Service (IRS) audits taxpayers to determine whether they are in compliance with tax law and have accurately reported tax liability. Some policymakers are concerned that the IRS is auditing low-income taxpayers-in particular taxpayers who claim the earned income tax credit (EITC)- at disproportionately high rates compared to higher-income taxpayers. These higher audit rates may be in response to the high improper payment rates associated with the EITC. This Insight examines recent data related to audits of EITC returns. For the purposes of this Insight, an EITC return is defined as a return which includes a claim of the EITC. For comparison, data on audits of other individual income tax returns that do not include an EITC claim (non-EITC returns) are also provided. These two types of taxpayers-taxpayers filing EITC returns and non-EITC returns- represented about 90% of all audits of 2017 tax returns (see IRS Databook Table 17). The remaining 10% includes corporations, estates, and employers and is not discussed in this Insight. A Small Share of Taxpayers-Claiming the EITC or Not-Are Audited Audits of individual returns, whether with or without an EITC claim, are relatively uncommon, as illustrated using IRS data for 2017 tax returns below. (While the IRS has published data on 2018 and 2019 audits, the data are incomplete since returns filed for those years are within the statute of limitations where examinations may be ongoing.) Congressional Research Service https://crsreports.congress.gov IN11952 CRS INSIGHT Prepared for Members and Committees of Congress -