IRS admits to discriminating against Black Americans despite Biden’s promise of racial equity.

IRS Admits Targeting Black Americans Despite Biden’s Promise of Racial Equity

Disproportional Auditing

The IRS has admitted to targeting black Americans at a higher rate than other groups, despite President Joe Biden’s promise to pursue racial equity across his administration. In a letter to the Senate Finance Committee, IRS commissioner Daniel Werfel acknowledged that black taxpayers may be audited at higher rates than expected given their share of the population. This admission comes after a report revealed that black taxpayers are three times more likely to be audited by the agency.

The same report also found that poor people are five times more likely to be audited than the average wage earner. These findings are concerning, especially since they come more than two years after Biden signed an executive order to “strengthen racial equity” and support “underserved communities” through the federal government.

Addressing the Disparity

The IRS is looking for ways to address its disproportional auditing, according to the New York Times. Mr. Werfel said the agency had dedicated “significant resources” to determine the reasons for the disparity and evaluating the data available to the agency when deciding who to audit and its automated processes. He suggested that the IRS could consider basing audits on “broader tax issues” rather than focusing on people who might be improperly claiming earned-income tax credits.

Mr. Werfel also said he intended to use some of the $80 billion that has been dedicated to modernizing the IRS to improve outreach to underserved communities and help those taxpayers claim credits that are available to them. He added that the agency would also be working to reduce disparities in tax enforcement on the basis of gender, geography, and ethnicity.

“The IRS is committed to enforcing tax laws in a manner that is fair and impartial,” Mr. Werfel said. “When evidence of unfair treatment is presented, we must take immediate actions to address it.”

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