IRS plans to increase audit rates of wealthy taxpayers by 50%

[BumRushDaShow]

Source: CNN Politics

Published 1:42 PM EDT, Thu May 2, 2024


Washington CNN — The Internal Revenue Service detailed its plans Thursday to significantly ramp up audit rates of wealthy taxpayers and large corporations, using funds provided by the Democrat-backed Inflation Reduction Act that passed in 2022.

The audit rate of taxpayers earning more than $10 million is expected to increase by 50%, going up 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, as well as increase the audit rates of business partnerships with assets over $10 million by tenfold over the seven-year period.

Despite the expected increases, audit rates won’t exceed those reached in 2010 because the number of filings by large corporations, partnerships and wealthy individuals have grown and become more complex, the IRS said.

The IRS is using the influx of money provided by the Inflation Reduction Act to modernize the agency, improve services for taxpayers and collect more tax revenue from those who have not been paying what they owe. But Republicans, concerned that small businesses and the middle class could be targeted by IRS auditors, have made several efforts to chip away at the agency’s funding.

Read more: https://www.cnn.com/2024/05/02/politics/irs-audit-tax-rates-wealthy/index.html

[brewens]

1. Good move. What kind of popcorn is best for a shitstorm? LOL I can't wait to see millionaires in suits

squalling like little bed wetting mama's boys because they might get caught cheating.

[jimfields33]

3. For the majority, they will owe unless it's totally egregious.

The tax laws are too complex even for the IRS which they mentioned in the story.

[Think. Again.]

5. Then the IRS needs to do some training.

[twodogsbarking]

2. Fifty percent is not a number. It could be thousands or just one.

Fix the tax system.

[jimfields33]

4. It said going from 11% to 16.5% of the wealthy tax payers.

[twodogsbarking]

10. How many? One, two or a million?

That is a fifty percent increase but not a number. Where does wealthy start?

[jimfields33]

11. Here's what I found. More hard numbers. sorry it old numbers but probably pretty close to 2024 numbers

Here's the most eye-opening statistic. Some 23,456 U.S. households reported income of $10 million or more last year (that is, for the 2018 tax year), averaging more than $26 million each in taxable income. The IRS audited seven of them. That comes to less than three-hundredths of a percent.

[twodogsbarking]

18. Thanks for the actual numbers. Was 7 now 11.

That should fix everything.

[jimfields33]

21. Yieks. That does put this whole thing

into perspective and not a good one.

[twodogsbarking]

25. At least someone gets it. Thanks.

[jimfields33]

28. My pleasure. Have a great day!

[Think. Again.]

7. How about...

...just auditing everybody randomly?

Like, in a fair system?

[Traurigkeit]

8. That leaves TSF in the clear .....

Not wealthy

[NanaCat]

9. I can't express how much

This warms the very depths of my cold, black heart.

[mpcamb]

22. Gawbless those IRS agents!

[alwaysinasnit]

12. My initial reaction to the article's title was, why announce this increased auditing and alert the tax cheats?

On the other hand, it might be a bit tactical to watch and see who increased their political donations, and to whom?

[Martin68]

14. The point is to get the money. If an announcement scares them into paying, it saves the taxpayers a lot of

money.

[Martin68]

13. Excellent news!

[BaronChocula]

15. This seems like something a majority of Americans would support

Even those considering voting for trermp who would reverse this crackdown. So many people in this country have a fuc*ed thought process.

[AllaN01Bear]

16. good news. go get em.

[patphil]

17. Republicans say the IRS wants to target small businesses and the middle class?

And what will they get for all their effort? Very little indeed! They would probably spend more on these audits than they take in.
They're going after the big bucks, where millions of tax dollars can be recovered in a single audit.
That's the real reason the Republicans want to cut funding...they and their corporate buddies are gonna lose some money.

[SupportSanity]

19. It depends on funding. If IRS is underfunded,

they target small businesses because of lack of funding. Lack of funding equals lack of manpower. And with small business audits, results are pretty quick so explained to me by the tax guru of a small business -- a financial company.

He also said that it takes a lot of time and money to go after the big guys. It can take years for results - if at all.

I guess that makes sense.

So, if you're president of the USA and your friends are influential billionaires, cutting funding to the IRS might be a priority.

[BumRushDaShow]

20. "So, if you're president of the USA and your friends are influential billionaires, cutting

funding to the IRS might be a priority."

But not only that, appointing the Treasury Secretary and IRS Commissioner to refuse to honor subponeas for tax records with claims that they are "still under audit" or there was no "legislative purpose" - https://www.cnbc.com/2019/05/17/mnuchin-says-will-defy-house-democrats-subpoena-for-trumps-tax-returns.html

https://www.cnn.com/2019/05/05/politics/irs-commissioner-charles-rettig-trump-taxes/index.html

[TexasBushwhacker]

23. This should easily pay for itself

Not only will they recover $$$ billions in unpaid taxes, penalties and interest, some cheaters will decide the risk is to great and just do their taxes right the first time.

[LeftInTX]

24. Good!!!

[Mr. Sparkle]

26. Can we not do this or announce this until after the election

rather then give gop a bunch of new donors in an election year.

[Chainfire]

27. Yea? Well lets see how long that lasts.

[-misanthroptimist]

29. So the IRS will now audit 3 rich people / year instead of 2?

I mean, that's a 50% increase, right?

[twodogsbarking]

30. Actually 11 rather than 7. No shit.