Sarah Jones
7 Sept 2023
IRS Expands Focus on Wealthy Filers to Address Tax Evasion
The IRS is intensifying its focus on auditing wealthy individuals and large financial entities, such as partnerships and corporations, as part of a broader strategy to close the tax gap. This shift is in response to a dramatic decrease in audit rates for these groups over the past decade, which has contributed to significant revenue losses for the federal government.
To better target tax evasion, the IRS is deploying artificial intelligence and other advanced technologies to identify complex schemes used by high-income taxpayers to avoid paying their fair share. This effort is part of the IRS’s ongoing commitment to ensuring that all taxpayers, especially the wealthiest, are held accountable under the law.
The IRS has clarified that these increased enforcement efforts will not affect middle- and low-income taxpayers, who will continue to benefit from historically low audit rates. This initiative is a key component of the IRS’s strategy to restore fairness and integrity to the tax system, ensuring that resources are focused on those most likely to engage in tax evasion​.