Last week, the IRS announced new plans for the funding received in 2022 from the Inflation Reduction Act. The IRS intends to ramp up audits.
The strategic plan released is to be rolled out over the next three years. The sharp increase in audits expected is intended to focus on the following Taxpayers:
- The IRS plans to triple the audit rates on large corporations with assets of more than $250 million, rising from 8.8% in 2019 to 22.6% by 2026.
- Large partnerships with assets of more than $10 million can expect audit rates to increase ten-fold, from 0.1% in 2019 to 1% by 2026.
- Wealthy individuals with income of more than $10 million will see audit rates increase from 11% in 2019 to 16.5% in 2026.
- The IRS stated that it does not plan to increase enforcement under this plan on Taxpayers who earn less than $400,000 annually.
In order to do this, the IRS also has plans to increase the size of their workforce – the IRS had approximately 73,000 employees 2019, and the plan now is to expand to approximately 102,500 employees over the next few years.
