Black Americans are most likely to be audited by the IRS. Black Americans are most likely to be audited by the IRS. The IRS gave unprecedented access to tax returns and completed audits to an outside research team, which included professors from Stanford and the University of Michigan among others. Researchers investigated over 148 million anonymous tax returns and 780,000 audits, with them finding out that the higher audit rate for Black Americans corresponds to a flaw in the IRS' AI algorithm used to flag potential fraudulent tax returns. "The IRS should drill down to understand and modify its existing audit selection methods to mitigate the disparity we've documented," was expressed by Stanford University law professor, Daniel Ho, co-author of the study.

Source: New York Times February 03, 2023 08:14 UTC