Tax code racial discrimination in the wake of Supreme Court affirmative action ruling

June 30, 2023

Supreme Court pediment_Court Equal Justice

The U.S. Supreme Court yesterday struck down college admission affirmative action policies. Some legal experts say the high court’s decision could also lead to more, and similar, challenges in how corporations make hiring and promotion decisions.

That got me thinking, of course, about taxes.

IRS audit unfairness: Most people who are audited by the Internal Revenue Service think they are being unfairly targeted. It seems that might actually be true in some cases.

IRS Commissioner Danny Werfel recently acknowledged that the way the tax agency applies the federal tax laws is discriminatory.

In a letter to the chair of the Senate Finance Committee, Werfel said initial findings by an internal investigation “support the conclusion that Black taxpayers may be audited at higher rates than would be expected given their share of the population.”

“We are deeply concerned by these findings and committed to doing the work to understand and address any disparate impact of the actions we take,” wrote Werfel.

Lawsuit potential: The first question is what exactly will the IRS do to address any discrimination in its audit process?

The next question is will someone file a lawsuit against the IRS when it makes examination changes?

Probably. This is the United States, one of the most litigious countries in the world.

This hot button issue is exacerbated by today’s political and cultural climates.

Plus, there are plenty of creative attorneys who would love to take the IRS to task and trial.

While we wait for the inevitable lawsuit, here are some prior ol’ blog posts on bias in the way the tax code is administered.

I know this is an emotional topic. Comments are welcome, but please keep them on point and civil.

 

 

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