IRS will 'substantially' reduce audits on low-income tax credit, commissioner says
CNBC 2023-09-19 19:18:48 • 3 mins
Key Points
- The IRS on Monday said it will "substantially" reduce the number of so-called correspondence audits for filers claiming the earned income tax credit, a tax break for low- to moderate-income filers.
- It's part of the agency's broader effort to fix inequity in enforcement, with a focus on auditing higher earners, partnerships and large corporations.
- The IRS aims to curb earned income tax credit audits by helping taxpayers file more accurate returns upfront.
IRS Commissioner Daniel Werfel testifies before the House Small Business Committee on July 17, 2013.
James Lawler Duggan | Reuters
The IRS is shifting how it examines tax returns of lower earners as part of its broader effort to fix inequity in enforcement.
Starting in fiscal year 2024, the agency will "substantially" reduce the number of so-called correspondence audits which happen by mail for certain tax credits. This includes the earned income tax credit, claimed by low- to moderate-income filers, according to a letter sent on Monday by IRS Commissioner to Senate Finance Committee Chair Ron Wyden, D-Oregon.
