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Accountancy Slice
North America
An IRS strategy to audit high-income taxpayers is facing significant challenges due to staffing and budget cuts initiated during the Trump administration. A TIGTA report has highlighted that while the IRS aimed to increase audits on high-income individuals, the reduction in funding from the Inflation Reduction Act of 2022 has limited enforcement resources. The IRS has lost about 26% of its workforce this year, which may hinder its ability to meet the goals set by the 2022 Treasury Directive. The report does not provide recommendations, or include responses from IRS officials.
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