The IRS disproportionately audits people who are eligible for the EITC. These people almost uniformly don't have assets worth hiding, but they still wind up paying fines in many cases because tax law is intentionally complicated.
Much hay is made about how Intuit et al prevent this stuff from happening, and that's true, but the government itself has a very real incentive here. This is the easiest money they can get, as evidenced by the fact it's what the IRS goes after when it's "chronically underfunded."
Why would they willingly give it up by making compliance easier?
Much hay is made about how Intuit et al prevent this stuff from happening, and that's true, but the government itself has a very real incentive here. This is the easiest money they can get, as evidenced by the fact it's what the IRS goes after when it's "chronically underfunded."
Why would they willingly give it up by making compliance easier?