Boots & Sabers

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Tag: IRS

IRS to Dramatically Increase Audits

Uh huh.

Werfel noted that the IRS’ strategic plan over the next three tax years include a sharp increase in audits, although the agency reiterated it won’t boost its enforcement for people who earn less than $400,000 annually — which covers the bulk of U.S. taxpayers.


Here’s who will face an increase in audits


At the same time, the IRS is increasing its audit efforts, with Werfel noting on Thursday that the agency will focus on wealthy individuals and large corporations:


The IRS plans to triple the audit rates on large corporations with assets of more than $250 million. Audit rates for these companies will rise to 22.6% in tax year 2026 from  8.8% in 2019.Large partnerships with assets of more than $10 million will see their audit rates increase 10-fold, rising to 1% in tax year 2026 from 0.1% in 2019.Wealthy individuals with total positive income of more than $10 million will see their audit rates rise 50% to 16.5% from 11% in 2019.


“There is no new wave of audits coming from middle- and low-income [individuals], coming from mom and pops. That’s not in our plans,” Werfel said.

Let’s set aside, for a moment, the notion that imposing rectal audits on thousands of American companies won’t have negative consequences in terms of passing costs onto consumers, sucking wind out of the economy by diverting cash from productive activities to regulatory enforcement, or forcing companies to move operations overseas to friendlier environments. For a moment, let’s ignore that fact.

While the IRS Commissioner’s statement may be being made in good faith, there is absolutely no way that they will not go after small businesses and middle class folks. They may show restraint for a few months or even a year, but they are coming after all of us. They are like the scorpion. It is in their nature. And you can thank Joe Biden for that.

IRS Fiasco

Soooo… taxes will be higher and even more complicated, but the IRS is in no position to help at least half of the people. This is government working?

WASHINGTON (AP) — Filing a federal tax return is about to get more complicated for millions of families because of President Barack Obama’s health law. But they shouldn’t expect much help from the Internal Revenue Service.

Got a question for the IRS? Good luck reaching someone by phone. The tax agency says only half of the 100 million people expected to call this year will be able to reach a person.

Callers who do get through may have to wait on hold for 30 minutes or more to talk to someone who will answer only the simplest questions.



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