IRS Increases Audit Rates for Wealthy Taxpayers and Large Corporations

SOURCE www.breitbart.com
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.

Key Points

  • Audit rates for taxpayers earning more than $10 million are expected to rise by 50% by 2026.
  • Large corporations with assets over $250 million will face tripled audit rates.
  • Business partnerships with assets over $10 million will see a tenfold increase in audit rates over seven years.

Pros

  • Increased audit rates may help uncover tax evasion and improve tax compliance among the wealthy.
  • Funds from the Inflation Reduction Act are being utilized for strengthening IRS enforcement efforts.

Cons

  • There are concerns that the IRS expansion could potentially penalize middle-class Americans.
  • Critics question the effectiveness of the audit increase in closing the tax gap.