IRS Increases Audit Rates for Wealthy Taxpayers and Large Corporations

The IRS plans to increase audit rates of wealthy taxpayers and large corporations by 50% using funds from the Inflation Reduction Act. The agency assures that middle-class Americans earning less than $400,000 annually will not be targeted for audits.

Tax Refunds and Owed Taxes Trend

The number of tax refunds is down 3.3 percent, while the number of people owing the government is rising. This trend could be due to changes in how people work and how taxes are withheld from paychecks. The drop in refunds could have consequences for tax compliance and the IRS's ability to collect taxes owed.