IRS Confirms Systemic Racial Bias, Vows Reform

The IRS acknowledged that its audit processes unfairly target Black taxpayers at a higher rate due to biases in its audit selection algorithms.
Multiple studies found Black taxpayers were audited at three to five times the rate of white taxpayers, especially those claiming the Earned Income Tax Credit.
The agency is evaluating its systems and procedures to address racial disparities in tax enforcement and make changes to focus on broader compliance issues rather than anti-poverty tax credits.
The IRS intends to use part of its $80 billion in funding to improve outreach in underserved communities and understand the root causes of racial inequities in its audit processes.
Lawmakers and policy experts called for reforms to address systemic discrimination following the findings.