IRS plans to increase audit rates of wealthy taxpayers and large corporations

SOURCE www.cnn.com
The IRS plans to increase audit rates of wealthy taxpayers and large corporations using funds provided by the Inflation Reduction Act. The agency aims to modernize, improve services, and collect more tax revenue. The funding is also being used to hire additional staff and improve technology. Republicans have expressed concerns about potential targeting of small businesses and the middle class.

Key Points

  • Audit rates of wealthy taxpayers and large corporations set to increase
  • IRS using funds from the Inflation Reduction Act for hiring, technology improvement, and modernization
  • Republican concerns about potential impacts on small businesses and the middle class

Pros

  • Increased audit rates may lead to more tax revenue collection from those who owe
  • Efforts to modernize the IRS and improve taxpayer services

Cons

  • Concerns from Republicans about potential targeting of small businesses and the middle class
  • Risk of running out of funding allotted for modernizing IRS systems by fiscal year 2026