IRS Receives $80 Billion in New Funding

The Internal Revenue Service (IRS) recently announced that it will receive $80 billion in new funding through the federal government’s recently approved Inflation Reduction Act.

The IRS will use the funding to hire new enforcement agents, modernize technology, and audit wealthy taxpayers and large corporations over the next decade.

The IRS will increase audit rates

Of the $80 billion, $46 billion will be used to beef up IRS staff and resources to increase audits and compliance from wealthy taxpayers and large corporations. The remainder of the funding will be used to improve technology and infrastructure.

According to the Congressional Budget Office, the investment is projected to bring more than $203 billion in revenue from 2022-2031.

Last year, the IRS conducted 509,917 audits, according to a recent analysis by the agency. That number is down from 771,000 audits in 2019 and significantly less than the 1.5 million audits the agency conducted in 2010.

Who will the IRS focus its efforts on?

The agency will utilize its additional personnel and resources to increase its focus on high-income taxpayers, including those who have failed to file returns. The IRS will focus on taxpayers who earn more than $400,000 per year, according to the U.S. Treasury Department.

Help is available

The attorneys at O’Reilly Rancilio are available to answer your questions regarding the Inflation Reduction Act and tax law. For more information, please call 586-726-1000 or visit our website.

Categories: Business