Tax Code Inequities Fuel Call for IRS to Collect Race-Based Data

IRS data on racial disparities in the laws it administers remains conspicuously absent, but the effort to change that is starting to gain traction.

Researchers say the code could be more equitable if the IRS, Treasury Department, and Joint Committee on Taxation incorporated race into their data and analyses, something many other federal agencies already do. But collection of the data raises thorny questions of authority, privacy, and public perception that don’t yield easy answers.

The collection and analysis of race-based tax data would make it easier for lawmakers to see who is disproportionately benefiting from tax breaks or bearing ...