The giant consulting firm proposed that Microsoft transfer billions in profits to a small factory in Puerto Rico. The step initially saved the software company billions — then led to an IRS audit and a bill for $28.9 billion in back taxes.
Following up on ProPublica stories about the IRS, lawmakers pressed the commissioner on the agency’s disproportionate focus on auditing the working poor while examinations of the rich plummeted.
Why are the rural poor audited more frequently than other groups, he asks, citing ProPublica. Another Democratic senator adds, “There are two tax codes in America, and there are also two enforcement regimes.”
Bernie Sanders, Elizabeth Warren and three fellow senators say the agency should do more to tackle financial crimes, even in the face of crippling budget cuts.