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Rep. Chu Reacts to Recent IRS Priority Shift to Lower Audit Burden on Low-Income Filers and Hold Ultra-Wealthy and Corporations Accountable

September 19, 2023

WASHINGTON, D.C. — This week, the Internal Revenue Service (IRS) announced a rebalancing of its compliance initiatives to focus on identifying and auditing high-wealth tax evaders as well as complex partnerships and large corporations.

Rep. Judy Chu (CA-28) released a statement in response:

“I am encouraged to see the Biden-Harris Administration and new leadership at the IRS are restructuring the agency’s priorities to ensure low-income taxpayers no longer face disproportionate, inequitable, and rising rates of audits while the ultra-wealthy and large corporations get to avoid paying their fair share of taxes. Last year, I questioned then-IRS Commissioner Rettig on the disproportionate audit rates for low-income, EITC filers as compared to wealthier taxpayers, and am pleased that the IRS now has the resources to address this disparity.

“The generational investment Congressional Democrats made in last year’s Inflation Reduction Act is already allowing the IRS to successfully hold wealthy tax cheats accountable, and this new announcement will build on that success and further bring down the deficit. I welcome future opportunities to collaborate with Commissioner Werfel and the Biden-Harris Administration to make our tax administration more equitable, efficient, and effective.”

Previous Actions:

  • March 17, 2022: Rep. Chu asks IRS Commissioner Charles Rettig about disproportionately high and rising audit rates of low-income Americans in a House Ways and Means Subcommittee on Oversight hearing.
  • April 12, 2022: Rep. Chu joins Sen. Elizabeth Warren (MA) to write to Secretary of Treasury Janet Yellen and Commissioner Rettig highlighting concerns audit rates of low-income Americans and challenging Commissioner Rettig’s March testimony.
  • August 16, 2022: Congress passes the Inflation Reduction Act, making an $80 billion investment in the under-funded IRS to enable the agency to hold the wealthy and corporations accountable.
  • March 9, 2023: Rep. Chu joins Ways and Means Oversight Subcommittee Democrats to write to IRS Commissioner Daniel Werfel regarding the disproportionate audit rate of Black Americans and Earned Income Tax Credit (EITC) recipients.