CHICAGO – NOVEMBER 1: Current federal tax forms are distributed at the offices of the Internal Revenue Service November 1, 2005 in Chicago, Illinois. A presidential panel today recommended a complete overhaul of virtually every tax law for individuals and businesses. (Photo Illustration by Scott Olson/Getty Images)
Despite the IRS’s race-blind audit selection, a report done by Stanford University’s institute for economic policy research, African American taxpayers have a 3 to 5 times greater chance of being audited by the IRS.
The report says black taxpayers make up 21% of nonbusiness earned income tax credit returns and that is why they are audited more frequently than other taxpayer categories.