The IRS is increasing audits for large corporations and wealthy individuals but promises not to increase audits for those earning $400,000 or less.
IRS Plans to Increase Audits for Big Companies and Rich Individuals by 2026
According to the published article by The Kiplinger, the IRS got more money from Congress to do more checks. They plan to look at big companies and rich people more closely. Last year, they said they’d do more audits on big businesses and rich individuals, and now they have a detailed plan for it.
They want to check big companies a lot. For those with over $250 million in assets, the audit rate could go up to 22.6% by 2026. Rich people with over $1 million in income might face audit rates of up to 16.5% by then. They also plan to check partnerships and S corporations more, aiming for a 1% audit rate by 2026. But they promise not to increase checks for people earning $400,000 or less.
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$80 Billion Boost: IRS to Conduct 22.6% Increase Audits on Large Corporations – 16.5% on High-Income Individuals on 2026 (PHOTO: Reuters)
IRS to Increase Audits for Big Businesses and Wealthy Individuals While Easing Concerns for Those Earning $400,000 or Less
Furthermore, while the IRS’s aim is to make sure everyone pays the right amount of tax, some worry about how it might affect regular taxpayers. With more audits, people with lots of money or big businesses might have more paperwork and stress. But the IRS says they’ll keep things the same for people earning $400,000 or less, which could bring some relief to smaller earners.
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