Investing to Wealth

Typically, IRS audits are one form of humiliation that the poor are spared from. But if you're really poor, then maybe not.

The Seattle Times (via ABA Journal):

Rachel Porcaro knows she's hardly rich. When you're a single mom making 10 bucks an hour, you don't need government experts to tell you how broke you are.

But that's what happened. The government not only told Porcaro she was poor. They said she was too poor to make it in Seattle.

It all started a year ago, when Porcaro, a 32-year-old mom with two boys, was summoned to the Seattle office of the Internal Revenue Service (IRS). She had been flagged for an audit.

She couldn't believe it. She made $18,992 the previous year cutting hair at Supercuts. A few hundred of that she spent to have her taxes prepared by H&R Block.

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See Also:

• The IRS Does Not Make People Claiming The Homebuyer Tax Credit Prove They Bought A House
• American Tax Cheats Race To Beat Midnight IRS Deadline
• Suicide After IRS Offshore Tax Crackdown