The IRS intends to raise audit rates for affluent taxpayers by 50%

Following the passing of the Inflation Reduction Act, in 2022 the Internal Revenue Service (IRS) is preparing to increase audit rates for taxpayers and big corporations.

Expected modifications involve a 50% rise in audit rates for individuals earning than $10 million projected to reach 16.5% by 2026. Similarly major corporations with assets exceeding $250 million as business partnerships with assets surpassing $10 million will also face increased scrutiny.

Despite these escalations the IRS assures that audit rates will not exceed those seen in 2010. This is due to the growing complexity of filings by corporations, partnerships and affluent individuals according to the IRS.

To enhance their audit capabilities the IRS is actively hiring staff from fields like accounting, engineering, data science, law and tax expertise.

Furthermore the IRS is utilizing technology advancements by incorporating intelligence to pinpoint businesses for audits. These efforts have already led to recovering $520 million, in tax revenue from millionaires who failed to file or pay their taxes.

Thanks, to the support received through the Inflation Reduction Act the IRS plans to update its processes improve services for taxpayers and increase tax collection from those who have fallen behind on payments. However there are worries among Republicans about the IRS possibly focusing on businesses and middle class citizens leading to efforts to limit funding, for the agency.