Wealthiest taxpayers are a priority for IRS with more audits on the way

investmentnews.com:

The Internal Revenue Service will focus more on wealthy taxpayers, with increased audits and enforcement action for noncompliance with the highest dollar amount.

The agency has updated its Strategic Operating Plan with five key objectives and also highlighting its achievements since the passing of the Inflation Reduction Act in 2022. It says that the latest tax filing season has been one of its most successful thanks in part to “dramatic improvement” in taxpayer services and tools.

“We have made fundamental changes that have improved taxpayer services, brought new fairness to compliance efforts and launched important changes to our technology. We are making a difference to taxpayers and the nation, and the improvements at the IRS are just beginning,” said IRS Commissioner Danny Werfel. “The funding provided by the Inflation Reduction Act creates a unique opportunity to realize a future of tax administration that meets the evolving needs of taxpayers. This opportunity is important for the future of the IRS, the nation and especially the taxpayers we serve.”

The IRS answered 1 million calls from taxpayers in the 2024 tax filing season, with an average wait time of just over three minutes, while more than 780,000 taxpayers were served in person by IRS Taxpayer Assistance Centers, an increase of more than 37% over last year.

For 2024 and 2025 the IRS says its five key objectives are:

The agency has also pledged to improve live assistance and online services for taxpayers, accelerate digitalization, simplify its notices, disrupt tax scams and schemes, modernize tech, and ensure fairness in enforcement.

The wealthiest taxpayers, large corporations and large, complex partnerships should expect an increase in IRS audits by