IRS Set to Boost Audit Rates for High-Income Earners and Large Corporations

5 months ago
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The Internal Revenue Service (IRS) announced plans on Thursday to significantly increase audit rates for wealthy taxpayers and large corporations, using funds provided by the Democrat-backed Inflation Reduction Act of 2022.
The audit rate for taxpayers earning more than $10 million is expected to rise by 50%, 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 and increase the audit rates of business partnerships with assets over $10 million by tenfold over the seven-year period.
IRS Commissioner Danny Werfel has repeatedly reassured that audit rates for American households earning less than $400,000 a year will not exceed 2018 levels, a record-low year.
To ramp up audits, the IRS is hiring accountants, engineers, economists, data scientists, attorneys, and tax experts, and has added about 11,000 full-time positions since 2022.
The agency is also investing in improving its technology, using artificial intelligence to help select businesses to audit, and has recovered $520 million from millionaires who have either not filed their taxes or failed to pay their tax debt.

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