High Earners & Partnerships Face More IRS Audits—But for How Long?

A new Treasury Inspector General for Tax Administration (TIGTA) report says that IRS audits of high-income taxpayers and partnerships increased from fiscal years 2020 through 2023. Although audits of large corporations fell during the period, “examination starts” for partnerships rose by 63%. Audit rates of individuals with incomes over $400,000 rose from 5.2% in 2020 to 8.8% in 2023. They fell for individuals making less than $400,000 during that time. But as TIGTA’s report asserts, it’s unlikely that such rates will be sustained going forward due to “decreased enforcement funding and recent government staffing cuts.” View the report: https://bit.ly/3GLMmPB