IRS reports or sector-specific financial disclosures

IRS Boosts Audit Rates: 50% Increase for Wealthy, Corporations to 22.6%

May 3, 2024, 12:55 AM

The IRS has announced a strategic update to significantly increase its audit rates, particularly targeting the wealthiest taxpayers and large corporations. The agency plans to more than double the audit rate for individuals with high incomes by 50% and nearly triple the rate for corporations with assets over $250 million to 22.6%. Additionally, audit rates for large, complex partnerships with assets over $10 million will see a tenfold increase. This initiative, aimed at cracking down on tax evasion and boosting U.S. Treasury revenues, will not uniformly apply to all taxpayer groups, as stated by IRS Commissioner Danny Werfel. The move is part of a broader effort to ensure tax compliance and fairness, following criticisms of previous disparities in audit rates.