IRS launches aggressive audits, targeting middle-class americans earning less than $200,000 annually

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Amidst a surge in IRS audits targeting taxpayers with incomes under $200,000, the middle-class finds itself increasingly in the agency’s crosshairs. With audit rates soaring and reforms faltering, understanding the audit process has never been more crucial for taxpayers.

Key Points:

  • Despite President Biden’s mandate to audit more ultra-wealthy individuals, recent data reveals that the majority of new IRS audits are targeting taxpayers earning less than $200,000 annually.
  • A 43-page report by the U.S. Treasury Inspector General for Tax Administration (TIGTA) highlights the IRS’s failure to meet strategic operating goals, with only 33% of milestones completed for Fiscal Year 2023.
  • The Transactional Records Access Clearinghouse (TRAC) reports that individuals earning up to $200,000 annually are the most audited by the IRS, while efforts to pursue the ultra-wealthy remain sluggish.
  • Taxpayers facing audits should understand the different levels of scrutiny, ranging from mail audits for minor errors to field audits conducted in-person by IRS agents.
  • Organizing paperwork, seeking assistance from tax preparers, and knowing taxpayer rights are essential steps for navigating the audit process effectively.
  • Taxpayers should beware of phone scams impersonating the IRS and exploiting fears of audits, emphasizing the importance of verifying communication channels to avoid falling victim to fraud.
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Source:

finance.yahoo.com/news/middle-class-earners-most-targeted-101000528.html

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