IRS Set to Boost Audit Rates for High-Income Earners and Large Corporations

The Internal Revenue Service (IRS) announced plans on Thursday to significantly increase audit rates for wealthy taxpayers and large corporations, using funds provided by the Democrat-backed Inflation Reduction Act of 2022.
The audit rate for taxpayers earning more than $10 million is expected to rise by 50%, from 11% in 2019 to 16.5% in 2026.
The IRS also plans to triple the audit rates of large corporations with assets over $250 million and increase the audit rates of business partnerships with assets over $10 million by tenfold over the seven-year period.
IRS Commissioner Danny Werfel has repeatedly reassured that audit rates for American households earning less than $400,000 a year will not exceed 2018 levels, a record-low year.
To ramp up audits, the IRS is hiring accountants, engineers, economists, data scientists, attorneys, and tax experts, and has added about 11,000 full-time positions since 2022.
The agency is also investing in improving its technology, using artificial intelligence to help select businesses to audit, and has recovered $520 million from millionaires who have either not filed their taxes or failed to pay their tax debt.