IRS plans to increase audit rates of wealthy taxpayers by 50% [View all]
Source: CNN Politics
Published 1:42 PM EDT, Thu May 2, 2024
Washington CNN — The Internal Revenue Service detailed its plans Thursday to significantly ramp up audit rates of wealthy taxpayers and large corporations, using funds provided by the Democrat-backed Inflation Reduction Act that passed in 2022.
The audit rate of taxpayers earning more than $10 million is expected to increase by 50%, going up from 11% in 2019 to 16.5% in 2026. The IRS also plans to triple the audit rates of large corporations with assets over $250 million, as well as increase the audit rates of business partnerships with assets over $10 million by tenfold over the seven-year period.
Despite the expected increases, audit rates won’t exceed those reached in 2010 because the number of filings by large corporations, partnerships and wealthy individuals have grown and become more complex, the IRS said.
The IRS is using the influx of money provided by the Inflation Reduction Act to modernize the agency, improve services for taxpayers and collect more tax revenue from those who have not been paying what they owe. But Republicans, concerned that small businesses and the middle class could be targeted by IRS auditors, have made several efforts to chip away at the agency’s funding.
Read more: https://www.cnn.com/2024/05/02/politics/irs-audit-tax-rates-wealthy/index.html
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