A recently concluded study by TaxLifeBoat shows that a disproportionate number of IRS actions target minorities, especially Hispanics.
The study “IRS Enforcement’s Impact on Minority Communities” analyzed the 1,000 zip codes where the IRS files most of its liens and compared those to Census racial information on those areas. The study concluded that 22% of African-Americans and 24% of Hispanics comprised those heavily IRS enforced areas, almost double what the rate was for the non-minority population.
The reason: low wage earner which most of these individuals tend to be, commit obvious mistakes and are easily caught. More sophisticated tax filers get professional tax advice and are more familiar with how to work the tax system.
TaxLife Boat, tax service advisers, feels that the IRS is wasting their time going after those individuals that already have very little. The solution -educating Hispanics and Blacks on the tax code and appropriate filing rules.