The IRS is gearing up for a crackdown on tax cheats, with plans to ramp up audits and bolster its enforcement efforts. This move comes as part of a broader initiative to replenish the agency’s resources, which have been depleted over the years, resulting in service delays and decreased audit rates.
Thanks to the Inflation Reduction Act (IRA), signed into law by President Biden in 2022, the IRS has received a significant boost in funding—$80 billion to be exact. The aim is to revitalize the agency and enhance its ability to serve taxpayers effectively.
Commissioner Danny Werfel outlined the IRS’s strategy during a recent briefing. He emphasized that while audits will increase, the focus will primarily be on wealthy individuals and large corporations. Specifically, the IRS plans to triple audit rates for large corporations with assets exceeding $250 million, increase audit rates for large partnerships with assets over $10 million, and raise audit rates for wealthy individuals earning more than $10 million annually.
Werfel made it clear that middle- and low-income earners, including small businesses, won’t face heightened scrutiny. Instead, the IRS aims to send a message to complex filers and high-wealth individuals that they are the focus of enforcement efforts.
Contrary to some misconceptions, Werfel clarified that the IRS isn’t embarking on a hiring spree to amass an army of auditors. While the agency’s workforce has grown to around 90,000 employees, it still falls short of historical levels. The goal is to reach approximately 102,500 workers in the coming years, which is still below staffing levels seen in the 1980s and early 1990s.
Werfel emphasized that much of the hiring is necessary to replace retiring employees and improve service levels, debunking claims of a bloated IRS workforce. The focus remains on enhancing enforcement capabilities and ensuring compliance among high-income taxpayers and large corporations.
For conservative Americans concerned about government overreach and excessive taxation, the IRS’s targeted approach may come as a relief. By concentrating audits on those with substantial financial resources, the agency aims to uphold fairness in the tax system without burdening ordinary taxpayers.
Ultimately, the IRS’s efforts to crack down on tax evasion and bolster enforcement align with broader conservative principles of fiscal responsibility and accountability. As the agency works to ensure that all taxpayers fulfill their obligations, it remains committed to transparency and efficiency in its operations.
