{"id":101093,"date":"2023-04-15T15:31:00","date_gmt":"2023-04-15T19:31:00","guid":{"rendered":"https:\/\/framinghamsource.com\/?p=101093"},"modified":"2023-04-15T15:43:13","modified_gmt":"2023-04-15T19:43:13","slug":"senator-warren-urges-irs-and-treasury-to-address-racial-inequities-in-tax-enforcement","status":"publish","type":"post","link":"https:\/\/framinghamsource.com\/index.php\/2023\/04\/15\/senator-warren-urges-irs-and-treasury-to-address-racial-inequities-in-tax-enforcement\/","title":{"rendered":"Senator\u00a0Warren\u00a0Urges IRS and Treasury to Address Racial Inequities in Tax Enforcement"},"content":{"rendered":"\n

In\u00a0full transparency, the following is a media release from Sen. Elizabeth Warren\u2019s office. She was elected by voters in the Commonwealth of Massachusetts to serve the state in Washington DC in the US Senate. She is a Democrat<\/em>. (stock photo).\u00a0SOURCE publishes press release from elected leaders as a community service.<\/em><\/p>\n\n\n\n

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WASHINGTON DC – U.S. Senator Elizabeth\u00a0Warren\u00a0(D-Mass.) sent a letter to Internal Revenue Commissioner Daniel Werfel and Treasury Secretary Janet Yellen urging both to follow through on the commitments of the Biden Administration by examining and taking concrete steps to address racial inequities in tax benefits and enforcement.<\/p>\n\n\n\n

In January of this year, researchers from Stanford University and the U.S. Treasury Department published a new working paper that revealed that, despite race-blind audit selection, the Internal Revenue Service (IRS) audits Black taxpayers at 2.9 to 4.7 times the rate of non-Black taxpayers. <\/p>\n\n\n\n

\u201cClearly, race-blind tax data has not led to race-blind tax enforcement outcomes,\u201d\u00a0wrote Senator\u00a0Warren.\u00a0\u201cThe IRS should collect racial data in a way that protects taxpayers and allows the IRS to guard against racial bias.\u201d<\/p>\n\n\n\n

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This working paper is just the latest in a long line of research raising concerns about racial inequities in tax enforcement. In 2019, former IRS Economist Kim Bloomquist found regional bias in IRS audit case selection, resulting in disproportionately targeting poor Black communities in the South. Last year, an NYU Law Review article found that \u201cthe IRS being race-blind has not resulted in racially neutral outcomes, and instead has exacerbated racial disparities in tax administration.\u201d Senator Warren questioned former IRS Commissioner Charles Rettig on these findings and was disappointed to have her concerns dismissed.<\/p>\n\n\n\n

\u201cThe latest working paper should put to bed any question about the existence of a problem with racial inequities in audits,\u201d\u00a0wrote Senator\u00a0Warren.\u00a0\u201cIRS and Treasury must conduct internal examinations of these racial disparities.\u201d\u00a0<\/p>\n\n\n\n

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In the letter, Senator Warren also argues that these internal efforts would be in line with IRS funding and transformation goals, the Taxpayer Bill of Rights the IRS\u2019s mission to enforce tax laws \u201cwith integrity and fairness to all.\u201d In February 2023 at his confirmation hearing, IRS Commissioner Daniel Werfel committed to send a report to Congress within 60 days detailing why there is racial discrimination in auditing, and the actions the agency can take in order to correct it.<\/p>\n\n\n\n

\u201cThis effort to examine and increase equity in enforcement should include audit selection, as well as other areas such as seizure of assets, length of time refunds are held, tax relief including the innocent spouse relief program, collection due process hearings, civil penalty assessments, criminal referrals, and tax court litigation outcomes,\u201d\u00a0concluded Senator\u00a0Warren.<\/p>\n\n\n\n

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Senator Warren has led the call for the IRS to enforce the tax system fairly on all Americans: <\/p>\n\n\n\n