I’d need to dig up the links, but my understanding was the opposite—rich people have harder to analyze finances compared to low cap with simpler finances. So they audit the easy ones even though low reward.

This seems easy to automatically audit? I mean there is a government record of who receives the money.

Citation for this? The opposite seems to be the case based on reporting from Propublica among others:

https://www.propublica.org/article/irs-sorry-but-its-just-ea...

As others have pointed out, this assertion is the exact opposite of reality.