EITC

The Earned Income Tax Credit is for low income filers. For a family with two children the credit is Earnings Credit $20,000 $5,988 $30,000 $5,021 $40,000 $2,915 In 2021 28 million families got $60 billion dollars in EIT credits. The IRS audits 1.4percent of these which is 380,000 and most of these are by mail. 42% of these taxpayers do not respond to audit questions and forfeit their refund. If you claim the earned income tax credit, whose average recipient makes less than $20,000 a year, you’re more likely to face IRS scrutiny than someone making $400,000 Last year, the IRS audited 381,000 recipients of the EITC. That was 36 percent of all audits the IRS conducted, up from 33 percent in 2011, when the budget cuts began. Another big source of income for the IRS is audits on the child tax credit. Families with less than $400,000 income qualify for this credit. Auditing for these two credits is so lucrative that the IRS audits the poorest families at five times the rate for everyone else