The IRS focused a greater percentage of its audits on high-income individuals in fiscal year 2024 without increasing audits of lower- and middle-income individuals, a main objective for the Treasury Department under former President Joe Biden.
But staffing cuts made by the Trump administration will likely stifle that progress, the Treasury Inspector General for Tax Administration said in a recent report.
The IRS planned audits of 70,812 returns for taxpayers who made above $400,000, which was 17% of the total exams planned for fiscal year 2024, according to TIGTA. Between fiscal 2019 and 2023, returns with income of more ...