- The IRS has released an update on its strategic operating plan, which outlines "major accomplishments" since its infusion of funding less than two years ago.
- The agency aims to more than double the audit rate for the wealthiest taxpayers with total positive income of more than $10 million by tax year 2026.
- It also plans to nearly triple audit rates on large corporations with assets over $250 million and boost audit rates by tenfold for large, complex partnerships with assets over $10 million.
The IRS has released an update on its strategic operating plan, which outlines "major accomplishments" in taxpayer service, technology and enforcement since its infusion of funding less than two years ago.
Emphasizing key focus areas, the agency on Thursday highlighted the need for sustained funding, including a $104 billion proposal to extend Inflation Reduction Act funding through fiscal 2034.
The agency also renewed its focus on "tax fairness" with plans to increase audits on the wealthiest taxpayers, large corporations and complex partnerships.
More from Personal Finance:
The Fed holds rates steady. What that means for your high-interest bills
Treasury Department: Series I bond rate is 4.28% through October 2024
'It's a good time to lock in,' expert says. How to get the best rates on cash
"This update also reflects our ongoing effort to make sure we focus compliance resources where they need to be," IRS Commissioner Danny Werfel told reporters on a press call.
The IRS aims to more than double the audit rate for the wealthiest taxpayers with total positive income of more than $10 million by tax year 2026. This would bring the audit rate for these individuals to 16.5% in 2026, compared to 11% in 2019.
Money Report
The agency also plans to "nearly triple audit rates" on large corporations with assets over $250 million and boost audit rates "by tenfold" for large, complex partnerships with assets over $10 million, Werfel said.
"At the same time, the IRS continues to emphasize the agency will not increase audit rates for small businesses and taxpayers making under $400,000," he said. "And those remain at historically low levels."
Get a weekly recap of the latest San Francisco Bay Area housing news. >Sign up for NBC Bay Area’s Housing Deconstructed newsletter.
In fiscal 2023, the IRS closed nearly 583,000 tax return audits, resulting in $31.9 billion in recommended additional tax, according to the latest Databook.
For all returns filed between 2013 and 2021, the IRS examined 0.44% of individual returns and 0.74% of corporate returns as of the end of fiscal 2023.
