The company aggressively fought back in court, lobbied Congress and changed the law.
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The Big Story

Wed. Jan 22, 2020

The IRS Decided to Get Tough Against Microsoft. Microsoft Got Tougher.

For years, the company has moved billions in profits to Puerto Rico to avoid taxes. When the IRS pushed it to pay, Microsoft protested that the agency wasn’t being nice. Then it aggressively fought back in court, lobbied Congress and changed the law.

   

More From This Investigation

The IRS Tried to Crack Down on Rich People Using an “Abusive” Tax Deduction. It Hasn’t Gone So Well.

The tax agency, Justice Department and Congress have all taken aim at a much-abused deduction exploited by wealthy investors. Yet the crackdown is having minimal impact, costing the Treasury billions.

IRS: Sorry, but It’s Just Easier and Cheaper to Audit the Poor

Congress asked the IRS to report on why it audits the poor more than the affluent. Its response is that it doesn’t have enough money and people to audit the wealthy properly. So it’s not going to.

It’s Getting Worse: The IRS Now Audits Poor Americans at About the Same Rate as the Top 1%

As the agency’s ability to audit the rich crumbles, its scrutiny of the poor has held steady in recent years. Meanwhile, a new study shows that audits of poor taxpayers make them far less likely to claim credits they might be entitled to.

You Can’t Tax the Rich Without the IRS

Until the budget-starved agency is restored, corporations and the wealthy will easily fend off attempts to increase the rates they pay.

How the IRS Gave Up Fighting Political Dark Money Groups

Six years after it was excoriated for allegedly targeting conservative organizations, the agency has largely given up on regulating an entire category of nonprofits. The result: More dark money gushes into the political system.

The IRS Tried to Take on the Ultrawealthy. It Didn’t Go Well.

Ten years ago, the tax agency formed a special team to unravel the complex tax-lowering strategies of the nation’s wealthiest people. But with big money — and Congress — arrayed against the team, it never had a chance.

Where in the U.S. Are You Most Likely to Be Audited by the IRS?

A new study shows dramatic regional differences in who gets audited. The hardest hit? Poor workers across the country.

Americans Dodge $660 Billion in Taxes Each Year — And It’s Probably Getting Worse

The IRS is underfunded and understaffed. One result: audits of the wealthy are rapidly declining.

Who’s More Likely to Be Audited: A Person Making $20,000 — or $400,000?

If you claim the earned income tax credit, whose average recipient makes less than $20,000 a year, you’re more likely to face IRS scrutiny than someone making twenty times as much. How a benefit for the working poor was turned against them.

How the IRS Was Gutted

An eight-year campaign to slash the agency’s budget has left it understaffed, hamstrung and operating with archaic equipment. The result: billions less to fund the government. That’s good news for corporations and the wealthy.

You Don’t Earn Much and You’re Being Audited by the IRS. Now What?

Millions of low-income families rely on the earned income tax credit. We took an IRS audit notice sent to one taxpayer who’d claimed the EITC and annotated it to help explain what it really means.

After Budget Cuts, the IRS’ Work Against Tax Cheats Is Facing “Collapse”

Audits and criminal referrals are down sharply since Congress cut the tax agency’s budget and management changed priorities.

How Are Things at the IRS? Help Us Get the Real Story.

ProPublica would like to hear from people who have worked at the Internal Revenue Service or are otherwise knowledgeable about tax enforcement.

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