IRS Unveils Plan to Crack Down on Wealthy Taxpayers – By Michael Rainey (The Fiscal Times) / May 2, 2024
The IRS wants to increase its audit rate for taxpayers earning more than $10 million by about 50%, according to an updated operating plan released Thursday.
Relying on additional funding provided by the Inflation Reduction Act of 2022, the tax agency said it plans to raise the audit rate on high earners, which was 11% in 2019, to 16.5% by 2026.
In addition, the IRS plans to triple the audit rate on businesses with assets worth more than $250 million, raising it to 22.6% by 2026. And it will increase the audit rate for business partnerships with assets exceeding $10 million by a factor of 10, raising it to 1%.
At the same time, the tax agency said that it has no plans to increase audits on individuals earning less than $400,000 a year.
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