IRS aims to more than double its audit rate for wealthiest taxpayers in strategic plan update

https://www.cnbc.com/2024/05/02/irs-aims-to-more-than-double-its-audit-rate-on-wealthiest-taxpayers-.html

35 comments

  1. >wealthiest taxpayers with total positive income of more than $10 million

    Fox News tonight: “Democrats plan to use the IRS to go after middle class families.”

  4. >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.

    This would also be great.

  6. Some of these audit levels go up 10 times. From .1% to 1%. That is such a small amount but for the richest of the rich. I’d say it should go up higher than that

  7. Don’t blame me for saying it, but Trump’s about to get a shit load of billionaire donor money.

  8. And now you know why the GOP wanted so badly to defund the IRS and attacked the increase in funding for the agency. Back in January 2023: [House GOP kicks off majority with vote to slash IRS funding.](https://apnews.com/article/politics-united-states-government-internal-revenue-service-us-republican-party-house-of-representatives-64692090ef20e35a59ba1ea7d21a9eea) It takes a while for a large agency to get it together to start enacting actual change, but looks like their tax enforcement on rich people is finally happening as promised.

  10. ….it’s no wonder wealthy donors visited Mar-a-Lago recently. No coincidence.

  12. WTG, Biden and the Dems. Patriotism is all about paying your fair share of taxes, not waving stupid flags around.

  13. There will still be plenty of people making under $400k who get audited and magas will cry, “see they are targeting average people”. In reality people do try to get away with stuff that flags an audit, and should be caught. Don’t do stupid things and you’ll be fine. Go ahead audit me I’ve done nothing wrong and if there is an error, I’d like to know so I can correct it, see, that’s integrity and basic decency as part of living in society.

  14. 2×0 is still 0, I’m exaggerating a little but we’re going in the right direction finally.

  15. Just sayin’: what the IRS considers ‘income’ will still exclude the most fabulously wealthy Americans.

  16. This is huge. This one of the biggest issues in America. Tax the fucks.

  17. Sounds great, but I’ll believe it when it starts happening.

  19. Glad they’re finally doing what they shouldve been for years

  20. As a cpa, good, I can’t wait. Really. I’ve been practicing for fifteen years and in all that time I would be very hard pressed to name three clients who’ve been examined by the IRS. Off the top of my head I can literally only name one, a HNW individual who donated art to charity.

    In my career I’ve seen the following:

    – A business with around $1 billion assets that hadn’t even filed in about a decade, with “shoebox full of receipts” level of organization

    – A real estate investment group sent me financial statements including a balance sheet with no real estate on it. I asked “where’s the beef” and they just gave me blank stares. There’s a $20 million hole in their balance sheet and the client was clueless.

    – Dozens or even hundreds of individuals making good good money, like $500k-$1million a year, who run all their personal expenses through their business. Deducting entire vehicles, his and hers, all their gas, travel, meals, everything. I try my best to catch everything and limit it but it’s impossible for me to go through everything with a fine tooth comb.

    – I had this one corporate client that would essentially record expenses in one entity that they owned the majority of, and record the revenue in another entity that they owned way less of, and then take distributions for themselves of the cash and record it as loans from the other company to themselves. The result is they get all the cash and all the deductions leaving the income tax and an empty bag for the owners of the other entity.

    – Egregious abuse of all kinds of rules that I can’t begin to get into here, things that I’ve read court cases about where the taxpayer and cpa get hit with heavy fines and penalties, but the IRS and courts are too busy to catch it all.

    – Entire firms that should go the way of Arthur Anderson for enabling the above.

    Too much to count. We need a whole lot more enforcement because taxpayers don’t have any fear or shame.

  23. Smart investment, we get back multiples of each dollar spent on properly staffing the IRS…it’s truly a win-win for jobs and our country. Go get em!

  24. A larger percentage from the few wealthy is way more practical than a lower percentage from a much larger middle and lower classes.

  25. One brilliant use case for AI/ML is to train on fraudulent taxpayer profiles. They in fact already use a list of criteria with which to go after taxpayers. Unfortunately a lot of the trigger criteria are things like child tax credits.

    The issue really is allocating resources towards enforcement and streamlining those workflows. Because people with that kind of money hire lawyers to stall and gunk up the process.

  26. Those Treasury agents are no joke. I got a subpoena for information about a client who was in rehab. I referred them to the relevant laws saying I couldn’t release anything. In less than 24 hours they had a court order from a DC federal judge and I was ok, here’s all the stuff please leave!

  27. now we see why the republicans were railing against them so hard.

  29. Sure, I’m gonna get chased by a Tyrannosaurus rex. /s

  30. Finally, something being done about the leeches benefiting from all our social spending without paying their fair share.

  31. If you earn more by yourself than the average 100-employee company, you should be audited every single year. Full stop.

  33. Biden has my vote just for this, there’s way too many rich tax cheats.

  34. For anyone looking for a job, IRS has a bunch of openings as a result. Plenty of direct hire as well so you can get an interview and offer quicker.

  35. Incoming screeching about defunding the IRS from the right.

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