Daniel Williams
7 Sept 2023
IRS Unveils Sweeping Enforcement Reforms to Target High-Income Earners
In a significant policy shift, the IRS has launched a comprehensive initiative aimed at improving tax compliance among high-income earners, large corporations, and partnerships. This initiative is part of the broader efforts funded by the Inflation Reduction Act to enhance fairness in the U.S. tax system.
The new compliance measures focus on increasing audit rates for wealthy individuals and complex financial structures, reversing a decade-long trend of declining audit rates in these segments. The IRS will leverage advanced technology, including artificial intelligence, to identify tax evasion schemes more effectively and allocate resources where they are most needed.
Importantly, the IRS has assured that these enhanced enforcement efforts will not increase audit rates for individuals earning less than $400,000 annually. This initiative underscores the agency’s commitment to restoring public trust and ensuring that all taxpayers, particularly the wealthiest, meet their tax obligations. The IRS is also taking steps to protect low-income taxpayers from being disproportionately targeted in audits, particularly those claiming the Earned Income Tax Credit (EITC)​.