Treasury research reveals widespread discrimination in tax deductions, credits

The new report is part of the agency’s push to examine how race is related to the tax system.

“Given the increased reliance on the tax system as a means of providing benefits over the past several years, it is important that we understand how different families and policies are affected by the law of tax reaches all families,” said the official of the office on Friday. in a blog post.

The IRS does not know the race of the filers so the Treasury Department has developed a method to determine the race of the person originally listed on a return based on other information. . It focused on whites, blacks and Hispanics “because of the high uncertainty in comparisons for other groups.”

“This new study provides evidence of differences in the use of tax expenditures by race and ethnicity, but there is still much work to be done to understand the reasons for these differences and the their impact,” said the Finance Office.

“The difference in income, wealth, job characteristics, employees, families, access to credit, and other things may cause these differences with the structure of the tax law, but it requires a lot of work to determine which differences contribute most. .”

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