The IRS plans to ramp up audits of wealthy taxpayers, large corporations, and complex partnerships. They aim to increase the audit rate for those with total positive income over $10 million by more than double by 2026. The IRS also plans to nearly triple audit rates on large corporations and boost them by tenfold for large partnerships. This emphasis on tax fairness prioritizes compliance resources for those with the highest potential for non-compliance.
The IRS is targeting high net worth individuals with overdue tax returns since 2017. Letters have been sent to those earning $400,000-$1 million, with future expansion targeting higher earners. The IRS urges taxpayers to fulfill their obligations, warning of penalties and interest charges for non-filers. To avoid complications, individuals are advised to seek professional assistance for tax calculations and filing. This initiative aims to recover unpaid taxes from delinquent high-income earners.
