Hello Richard.

In May 2024, the IRS announced increasing audits on individuals with annual incomes exceeding $400,000. This adjustment reflects a strategic shift to allocate resources toward higher-risk returns, potentially leading to increased revenue collection and greater tax fairness.

Key Highlights

·        Increased Focus on High-Income Earners: The IRS directs more auditing resources toward individuals earning over $400,000 annually.

·        Reduced Audits for Lower Incomes: This change also means fewer audits for those earning less, as the IRS reallocates its efforts.

·        Enhanced Use of Technology: The IRS plans to leverage advanced data analytics and machine learning to identify audit targets more accurately.

·        Policy Motivation: The shift aligns with broader governmental efforts to address income inequality and enhance revenue collection.

Read our latest blog post for some things you need to know, actions you can take to prepare for an audit, and what to expect from an audit.

If your income exceeds $400,000, it's more important than ever to ensure your tax affairs are in order. Taking proactive steps now can save you from potential headaches and penalties in the future.

Reach out to us if you have concerns about a potential audit. We are here to help you prepare and to answer any questions you may have. 

Thank you.

Rich Pavano, CPA