Clay County residents were audited by the Internal Revenue Service at a greater rate than all similar jurisdictions in Kentucky, according to an analysis by the website 24/7 Wall St.
24/7 Wall St. reviewed the tax return audit rates for more than 3,000 counties, equivalent jurisdictions and independent municipalities in order to pinpoint where audits are most common in each state. Nationally, the IRS audits about 7.7 returns for every 1,000 returns filed, the study said.
The audit rate for filers in Clay County was 9.9 per 1,000 tax returns.
The poverty rates for 43 out of the 50 jurisdictions listed by 24/7 Wall St. were higher than the state’s overall poverty rate, the analysis found. That goes against common perceptions that wealthier Americans are more often targeted in IRS audits, according to the study.
Clay County has a median household income of $24,596 and a poverty rate of 39.5 percent. The percentage of residents in the county with bachelor’s degrees is 9.5.
The analysis pointed to a 2018 report by the nonprofit group ProPublica that found low-income, working-class households claiming the earned income tax credit are disproportionately audited, the study said.
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Most Audited Jurisdictions, State by State
| State | County / Jurisdiction | Audits per 1,000 Tax Returns | Median Household Income | Poverty Rate | Adults with a Bachelor's Degree |
| Alabama | Greene County | 10.9 | $20,954 | 38.8% | 11.4% |
| Alaska | Kusilvak Census Area | 9.4 | $36,468 | 39.1% | 4.9% |
| Arizona | Santa Cruz County | 10 | $39,630 | 21.8% | 22.1% |
| Arkansas | Phillips County | 10.2 | $26,652 | 33.0% | 11.3% |
| California | Imperial County | 9.7 | $44,779 | 23.8% | 14.3% |
| Colorado | Saguache County | 9.5 | $34,765 | 21.0% | 26.0% |
| Connecticut | Fairfield County | 8.2 | $89,773 | 8.8% | 46.5% |
| Delaware | Sussex County | 7.4 | $57,901 | 12.0% | 25.1% |
| Florida | Miami-Dade County | 9.1 | $46,338 | 19.0% | 27.8% |
| Georgia | Calhoun County | 10.8 | $29,617 | 32.2% | 9.4% |
| Hawaii | Hawaii County | 8.1 | $56,395 | 17.4% | 28.6% |
| Idaho | Butte County | 9.3 | $43,207 | 16.2% | 15.5% |
| Illinois | Alexander County | 8.8 | $31,014 | 33.4% | 10.7% |
| Indiana | Marion County | 7.8 | $44,869 | 19.8% | 29.7% |
| Iowa | Ringgold County | 8.5 | $50,642 | 10.9% | 20.1% |
| Kansas | Sheridan County | 9.3 | $56,607 | 4.8% | 24.6% |
| Kentucky | Clay County | 9.9 | $24,596 | 39.5% | 9.5% |
| Louisiana | East Carroll Parish | 11.4 | $20,795 | 48.2% | 9.8% |
| Maine | Washington County | 7.9 | $40,328 | 18.2% | 20.9% |
| Maryland | Baltimore | 8.3 | $46,641 | 22.4% | 30.4% |
| Massachusetts | Nantucket County | 7.6 | $91,942 | 11.2% | 45.1% |
| Michigan | Wayne County | 8.1 | $43,702 | 23.7% | 22.8% |
| Minnesota | Mahnomen County | 8.4 | $42,439 | 22.7% | 12.1% |
| Mississippi | Humphreys County | 11.8 | $26,188 | 40.5% | 13.6% |
| Missouri | Pemiscot County | 9.5 | $32,468 | 28.5% | 12.0% |
| Montana | Big Horn County | 9.6 | $47,276 | 26.8% | 17.6% |
| Nebraska | Greeley County | 9.5 | $47,218 | 9.8% | 17.3% |
| Nevada | Clark County | 7.7 | $54,882 | 14.6% | 23.3% |
| New Hampshire | Coos County | 7.3 | $45,386 | 13.3% | 18.3% |
| New Jersey | Essex County | 8.4 | $57,365 | 16.7% | 34.0% |
| New Mexico | McKinley County | 10.2 | $30,336 | 37.5% | 10.8% |
| New York | Bronx County | 9.1 | $36,593 | 29.7% | 19.4% |
| North Carolina | Edgecombe County | 9.3 | $32,929 | 24.6% | 11.6% |
| North Dakota | Sioux County | 9.5 | $40,795 | 37.1% | 17.3% |
| Ohio | Adams County | 8 | $36,320 | 23.8% | 12.1% |
| Oklahoma | Adair County | 9.4 | $33,366 | 30.8% | 13.6% |
| Oregon | Sherman County | 8.5 | $42,074 | 13.7% | 17.6% |
| Pennsylvania | Philadelphia County | 8.4 | $40,649 | 25.8% | 27.1% |
| Rhode Island | Providence County | 7.5 | $52,530 | 16.7% | 27.8% |
| South Carolina | Allendale County | 10.3 | $23,331 | 30.4% | 9.4% |
| South Dakota | Oglala Lakota
County | 11.2 | $27,804 | 51.9% | 12.4% |
| Tennessee | Lake County | 9.3 | $31,993 | 29.9% | 9.4% |
| Texas | Starr County | 10.4 | $27,133 | 35.0% | 9.7% |
| Utah | Rich County | 9 | $52,917 | 18.0% | 22.8% |
| Vermont | Essex County | 8 | $38,767 | 15.5% | 14.7% |
| Virginia | Emporia city | 9.6 | $27,426 | 30.9% | 15.3% |
| Washington | Garfield County | 8.4 | $51,399 | 11.7% | 23.0% |
| West Virginia | McDowell County | 8.6 | $25,595 | 34.9% | 4.9% |
| Wisconsin | Menominee County | 9.2 | $38,080 | 35.8% | 15.9% |
| Wyoming | Niobrara County | 8.8 | $36,793 | 14.9% | 18.3% |
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