IRS Plans to Target High-Income Earners and Big Businesses, Not Middle Class, With New Enforcement Funding

The IRS says it will focus enforcement on high-income earners, partnerships, and big corporations - not Americans earning under $400k.
The IRS received $80 billion in funding from the Inflation Reduction Act to improve enforcement and customer service.
Republicans argue the IRS will use the funds to audit middle-class Americans, not the wealthy.
The IRS plans to use technology like AI to better detect tax evasion and identify audit targets.
Key IRS targets include taxpayers earning over $1 million, large partnerships, those with unreported foreign accounts, and construction contractors.

cnn.com

Relevant topic timeline:

9/7/2023

IRS Plans to Use New Funding to Modernize Tax Collection Through Technology, Not Just Hiring

The Internal Revenue Service (IRS) plans to use its increased funding to enhance enforcement and customer service through technological improvements, including the hiring of data scientists and the use of data analytics in audits, with the goal of focusing enforcement on taxpayers attempting to avoid taxes. This investment in technology aims to improve efficiency, reduce taxpayer correspondence time, and increase compliance, ultimately making tax payment less burdensome for taxpayers.

9/8/2023

IRS Pursuing 1,600 Millionaires and 75 Large Businesses Owing Hundreds of Millions in Unpaid Taxes

The IRS is targeting 1,600 millionaires and 75 large business partnerships that owe hundreds of millions of dollars in past due taxes using AI tools and increased funding, signaling a crackdown on wealthy tax evaders.

9/12/2023

IRS Plans to Use AI to Boost Audits of Wealthy Taxpayers and Corporations

The IRS is planning to use enhanced technology and artificial intelligence to collect unpaid taxes from higher earners, partnerships, and large corporations, potentially transforming tax compliance but also raising challenges for the agency. Increased scrutiny and audits of large partnerships, businesses, and high-net-worth families are expected within the next few years. Taxpayers are advised to keep organized tax records to support their positions from past returns.

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Posted 9/8/2023, 6:59:00 PM