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Accountancy Slice
North America
The IRS is planning to increase audit rates for wealthy taxpayers and corporations, according to Commissioner Danny Werfel. The agency aims to raise audit rates by over 50% on wealthy taxpayers with more than $10m in total positive income and nearly triple audit rates on corporations with assets over $250m by 2026. However, Werfel emphasized that audit rates won't increase for small businesses and taxpayers making under $400,000. The IRS is also addressing racial disparities in tax enforcement, following a study that found Black taxpayers were audited at higher rates. The agency is using funding from the Inflation Reduction Act to modernize and improve taxpayer services. The Treasury Department estimates that the IRS could collect over $561bn in overdue taxes over the next 10 years. The IRS plans to hire more personnel and double audit rates on the wealthiest taxpayers. Stable funding is crucial for the IRS to continue technology modernization and taxpayer service improvements.
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