Federal Tax, Tax

IRS Audits for High-Income Taxpayers

Has the IRS changed its focus on auditing high-income taxpayers? The Treasury Inspector General for Tax Administration (TIGTA) recently looked. In 2020, the U.S. Treasury set a goal to audit at least 8% of individual returns filed each year with incomes exceeding $10 million. The IRS later modified that approach, stating that most of those audits resulted in no change. TIGTA’s report found that this was true for the Large Business and International Division. But for the Small Business / Self-Employed Division, high-income audits were more productive, yielding additional tax of about $574 million over six years, an average of $124,389 per return. Here’s TIGTA’s report: https://bit.ly/3RPbqr3. Contact us with questions. © 2024