The IRS plans to target high-wealth individuals, large corporations, and complex partnerships for audits to close the $688bn tax gap for 2021.

The IRS plans to close the $688bn tax gap for 2021 by targeting high-wealth individuals, large corporations, and complex partnerships for audits. Audit rates for these groups have historically been low, with taxpayers earning $1m+ dropping from 7.2% in 2011 to 0.7% in 2019. The IRS has already collected over $482m from delinquent millionaires, and areas of increased scrutiny include partnerships, residency in Puerto Rico, international tax evasion, cryptocurrency, and estate and gift tax returns.

February 20, 2024
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