The Internal Revenue Service plans to increase the number audits of the wealthiest taxpayers and business organizations. The IRS emphasized it will not increase rates for small businesses and taxpayers making less than $400,000.The agency’s updated Strategic Operating Plan, released this month, calls for tripling audit rates on large corporations with assets over $250 million to 22.6 percent in tax year 2026, up from 8.8 percent in tax year 2019.
The IRS also plans a ten-fold increase on audit rates on large, complex partnerships with assets over $10 million, going from 0.1% in 2019 to 1% in tax year 2026.
Audit rates will rise by more than 50 percent on wealthy individual taxpayers with total positive income over $10 million, with audit rates going from an 11 percent coverage rate in 2019 to 16.5 percent in tax year 2026.
