More than half of the $80 billion Inflation Reduction Act will be spent on IRS enforcement, including activities that aim to collect back taxes, conduct criminal investigations, monitor digital assets, obtain legal support and hire thousands of new IRS auditors.
How many auditors will the IRS hire?
The IRS is looking to hire nearly 87,000 employees over the next 10 years, a major increase from its current 80,000 employees. A majority of the new hires will help bring IRS staffing levels back up to par to maintain efficiency. As of now, it remains to be seen exactly how many of the new hires will be responsible for auditing since the bill does not set any requirements for staffing. It will be up to the IRS to determine the number of enforcement agents that are hired, in addition to all other positions within the agency.
Who will be audited?
More auditors mean more audits, so understandably taxpayers are wondering if they will be impacted. The U.S. Treasury Department has said that the low and middle-class, as well as small businesses, will not be the focus of the upcoming increased enforcement activity. In addition, the Biden Administration has called for the IRS to focus its auditing efforts on high-income taxpayers and large corporations that earn more than $400,000 per year. The bill itself includes language that states the goal of the Inflation Reduction Act is not to increase taxes for any individual or entity earning less than $400,000 per year.
Are you prepared for an audit?
With increased IRS enforcement activity approaching, it’s important to be prepared. It’s never to late to seek tax debt relief. Let Optima’s team of experts help you get protected from the stress and burdens that come with IRS enforcement. Give us a call at 800-536-0734 for a free consultation.