IRS plans to increase audits of top earners, large corporations, and complex partnerships to close the tax equity gap.

The IRS aims to close the 'equity gap' for unpaid taxes, focusing on auditing top earners, large corporations, and complex partnerships. IRS Commissioner Danny Werfel stated that they are working to reverse the historically low audit rates for these groups. The tax gap for tax year 2021 was estimated at $688 billion, with audit rates for taxpayers earning $1 million or more dropping from 7.2% in 2011 to 0.7% in 2019.

February 20, 2024
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