IRS says its number of audits is about to surge. Here's who the agency is targeting.
IRS says its number of audits is about to surge. Here's who the agency is targeting.
The IRS is tapping Inflation Reduction Act funding to hire more agents and go after more tax cheats. Here's where it is focusing.
The agency will focus on wealthy individuals and large corporations:
- The IRS plans to triple the audit rates on large corporations with assets of more than $250 million. Audit rates for these companies will rise to 22.6% in tax year 2026 from 8.8% in 2019.
- Large partnerships with assets of more than $10 million will see their audit rates increase 10-fold, rising to 1% in tax year 2026 from 0.1% in 2019.
- Wealthy individuals with total positive income of more than $10 million will see their audit rates rise 50% to 16.5% from 11% in 2019.
"There is no new wave of audits coming from middle- and low-income [individuals], coming from mom and pops. That's not in our plans," Werfel said.
More of the progress Trump wants to stop.
But this is actually a good thing? They will be targeting wealthy enterprises to pay what they owe.
Thanks, Biden
The opposite of dystopian, this seems like a great thing. And this isn't even raising tax rates; just enforcing the laws we already have.
We know full well that the rich have the resources to dodge way more tax than the poor legally. But lets make damn fucking sure they are putting in the work to do it.
Reminder for folks that the dystopia is often in the details. It's not who or how much they're going to audit in this instance, it's how frequently the wealthy were being audited before and how it's still significantly lower than it should be for the wealthy.
Yeah... It's also literally progress. I know everything's shit (and could be much, much *worse with Trump's vengeful 2nd term), but it's okay to advocate for and cheer things moving in the right direction. We just need more of it!
Werfel noted that the IRS' strategic plan over the next three tax years include a sharp increase in audits, although the agency reiterated it won't boost its enforcement for people who earn less than $400,000 annually — which covers the bulk of U.S. taxpayers.
Saved you a click.
Wrong sub weirdo.
I'm already about to lose my house and starve to death, fucking bring it