A long time in arriving, the IRS now has tools in hand to pursue high-wealth taxpayers who are carrying high debt to the IRS. In a lengthy release, the IRS described its blueprint to restore fairness to the tax system (read: reducing working class audit rates) and take a deep dive into individuals and entities with high wealth and complex portfolios (by increasing audit rates and investigating high earners, partnerships, and large enterprise).
It should come as no surprise that the IRS is earnestly shifting gears. The finally-funded agency has been on a hiring spree and now boasts approximately 90,000 full-time employees. In 2022, the IRS was just getting by with approximately 79,000 employees. In the last year, the rumor mill went wild with claims that the IRS was staffing up with armed agents to bust middle-class businesses and taxpayers, but the opposite is true. The IRS has literally ended its unannounced visits on regular audits. Plus, the majority of new agency hires are data scientists and those with wage and investment specialties who have been poached from accounting and law firms.
And to what end all the hiring? The IRS set forth key features of its forward plan, including:
We have discussed the possibility of a ramped up IRS and the implications for high-asset individuals and entities before. It looks like the future has arrived, with an AI chip on its shoulder. If you have reason to believe your personal or corporate balance sheet is out of order—speak with an experienced tax attorney before you end up on the receiving end of a compliance letter.
Serving local and international clients from offices in Chicago and Cleveland, the legal team at Robert J. Fedor, Esq., LLC provides strong representation for those with compliance questions, employment tax disputes or concerns about a tax fraud investigation. Call 800-579-0997 or contact us online today.