Research Shows IRS Disproportionately Audits Black Taxpayers

In late January 2023, a research team co-led by Daniel Ho, the William Benjamin Scott and Luna M. Scott Professor of Law at Stanford Law School and a senior fellow at the Stanford Institute for Economic Policy Research, found that Black taxpayers are three to five times more likely to be audited than are other taxpayers. The reason, the study authors said, wasn’t express discrimination, but problems in the audit selection schemes used to spot potential tax cheats.
The study made headlines—and seems to be getting results. The Internal Revenue Service confirmed that an initial review of its auditing process confirms the results of the Stanford study. In a letter to Congress dated May 15, IRS Commissioner Danny Werfel pledged to be “laser-focused” on the racial disparities identified in the study and to make needed changes before the next tax filing season. SL