- ORIGINAL NEWS
IRS aims to more than double its audit rate for wealthiest taxpayers in strategic plan update
- SUMMARY
The IRS has released an update on its strategic operating plan, highlighting significant accomplishments and plans for the future.
Since receiving additional funding less than two years ago, the agency has made strides in taxpayer service, technology, and enforcement.
To enhance tax fairness, the IRS aims to significantly increase audit rates for certain high-income individuals and businesses.
By tax year 2026, the IRS plans to more than double the audit rate for wealthy taxpayers reporting over $10 million in positive income.
This would result in an audit rate of 16.5%, up from 11% in 2019.
The agency also plans to nearly triple audit rates for large corporations with assets exceeding $250 million and boost audit rates tenfold for large, complex partnerships with assets over $10 million.
However, the IRS emphasizes that small businesses and taxpayers earning under $400,000 will not face increased audit rates.
These rates remain at historically low levels.
In fiscal 2023, the IRS conducted almost 583,000 tax return audits, leading to $31.9 billion in recommended additional tax.
The IRS will continue to seek sustained funding to execute its plan effectively.
This includes a $104 billion proposal to extend funding from the Inflation Reduction Act through fiscal 2034.
- NEWS SENTIMENT CHECK
- Overall sentiment:
positive
Positive
“The IRS has released an update on its strategic operating plan, which outlines “major accomplishments” since its infusion of funding less than two years ago.”
“The agency aims to more than double the audit rate for the wealthiest taxpayers with total positive income of more than $10 million by tax year 2026.”
Negative
“This would bring the audit rate for these individuals to 16.5% in 2026, compared to 11% in 2019.”