The IRS is evolving fast! The IRS that you are dealing with today or dealt with last year is not the same IRS that you’re going to be dealing with in 2 – 3 years.
Over the next ten years, an infusion of a whopping $60 billion will be allocated to the IRS, in addition to its annual appropriation. This isn’t just a minor adjustment; it’s a major financial influx that’s enabling the agency to transform how it operates.
What Does This Mean For You And Me?
The IRS now has enough money that it can hire more people. And we’re not talking fresh graduates, but mid-career professionals who can really hit the ground running. This is evident from the job postings on their website, which now offer significantly higher pay than in the past.
And with these new hires, the IRS is ramping up its audit activities of everyone, which are going to hit pretty soon.
Last year alone, they increased the number of revenue agents by about 9%.
IRS Commissioner Danny Werfel said in March that the Service has focused enforcement on high-income groups by serving notices to 125,000 people who have not filed a federal income tax return since 2017, including 25,000 with incomes over $1 million; conducting audits focused on the use of corporate jets; and collecting $520 million since mid-2023 in taxes owed by millionaires.
But it’s not just millionaires in their sights. Pretty soon they will expand their audit activities to all individuals and businesses. Because now the IRS doesn’t have to pick and choose among whom to audit anymore.
With new technology that the IRS is putting in place and with increased audit workforce they will have the capacity to significantly increases its examinations.
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This material is for informational purposes only. It does not constitute tax, legal or accounting advice.