The Internal Revenue Service (IRS) has announced a redefined approach to its audits, pivoting towards what they term as “equity.”
This strategy, seemingly influenced by broader socio-political shifts towards concepts like Critical Race Theory (CRT), neo-Marxism, and so-called DEI (Diversity, Equity, and Inclusion), intends to center its scrutiny on America’s wealthiest while lessening the audit burden on the working poor.
Danny Werfel, the IRS Commissioner, stated, “The IRS is on the side of taxpayers, and we will be working to protect hard-working people from scammers or fraudsters,” according to The Washington Times.
While the intent sounds benign, skeptics view this as an extension of an ideology that emphasizes equal outcomes over equal opportunities, a foundational principle of neo-Marxist thought.
After the Inflation Reduction Act’s passage, orchestrated by President Biden, the IRS saw an influx of $80 billion.
While the declared objective is to boost audits and subsequently increase revenue, critics voice concerns.
They fear this monetary injection might embolden the IRS, leading to excessive probing into Americans’ financial matters.
Given the newfound focus on “equity,” there’s apprehension about the criteria being used to select audit targets.
Werfel’s commitment to “a deep respect for taxpayer rights” is being weighed against this ideology-driven push.
The IRS’s acknowledgment of the high audit rates for those claiming the Earned Income Tax Credit (EITC)—predominantly the working poor—adds another layer.
Though specifics on how the IRS will handle this remain nebulous, with more information promised in the fall.
Where the IRS was clearer was in its strategy towards the affluent.
They intend to hone in on large partnerships, those with assets surpassing $100 million and with at least 100 partners.
According to the Government Accountability Office (GAO), these entities have largely gone unchecked in recent years.
Individuals declaring an income over $1 million, and with a known tax debt exceeding $250,000, will also face intensified scrutiny.
Such measures, while sounding practical on paper, beg the question: Are we witnessing a mere fiscal adjustment or the institutional manifestation of a controversial ideology?
The integration of artificial intelligence, as claimed by the IRS to identify tax evasion, is another move drawing suspicion.
While technology in governance is generally welcomed, given the ideological undertones of the IRS’s recent announcements, questions are raised about the algorithms’ fairness and objectivity.
As the IRS solidifies its stance, its alignment with President Biden’s promise of not amplifying audit rates for those earning below $400,000 remains unclear.
Statistics from GAO underscore fluctuating audit rates across various income groups, yet the overarching narrative seems to be shifting from financial accountability to a more ideologically tinted “equity.”
Rep. Richard Neal (D), instrumental in the previous year’s legislation, endorsed the IRS’s recent directions.
His statement, “For too long, the wealthy and well-connected have played by their own set of rules,” is emblematic of the ethos driving these changes—an ethos that not all Americans might be on board with.
