At Extreme Investor Network, we believe in providing our readers with unique and valuable information on personal finance to help them make informed decisions about their money. Today, we’re diving into the latest update from the Internal Revenue Service (IRS) on its strategic operating plan.
The IRS recently outlined its “major accomplishments” in taxpayer service, technology, and enforcement since receiving additional funding less than two years ago. One key focus area highlighted by the agency is the need for sustained funding, including a $104 billion proposal to extend Inflation Reduction Act funding through fiscal 2034.
Moreover, the IRS announced its renewed focus on “tax fairness,” with plans to increase audits on the wealthiest taxpayers, large corporations, and complex partnerships. IRS Commissioner Danny Werfel emphasized the importance of focusing compliance resources where they are needed most.
In an effort to enhance tax enforcement, the IRS aims to more than double the audit rate for the wealthiest taxpayers with total positive income of over $10 million by 2026. The agency also plans to significantly increase audit rates for large corporations and complex partnerships.
It’s important to note that despite the increase in audit rates for high-income individuals and corporations, the IRS has stated that audit rates for small businesses and taxpayers making under $400,000 will remain at historically low levels.
In fiscal 2023, the IRS closed nearly 583,000 tax return audits, resulting in $31.9 billion in recommended additional tax. This demonstrates the agency’s commitment to enforcing tax laws and ensuring compliance.
At Extreme Investor Network, we understand the importance of staying informed about changes in tax enforcement and compliance. By providing valuable insights and unique analysis, we aim to empower our readers to make smart financial decisions and navigate the complex world of personal finance with confidence. Stay tuned for more updates and tips on optimizing your financial strategy.
