The Internal Revenue Service detailed its plans Thursday to significantly ramp up audit rates of wealthy taxpayers and large corporations, using funds provided by the Democrat-backed Inflation Reduction Act that passed in 2022.
Edit: sorry I think my first answer posted earlier was wrong, after more review I misunderstood “audit percentage,” it would be the percentage of taxpayers in those brackets who get audited, not the percentage of audits that bracket makes up of all audits. Below answer should be closer now.
If you’re curious you can use the percentage from article and do simple math to find the number.
Those making more than $10 million will go from 11% of them being audited to 16.5%. And we can get data on tax return audit actual numbers below.
So diving back to the numbers, there were 3,353 audits of individuals make $10 million or more in 2023, meaning if the audit rate was 11% there were would be about 30,481 individuals total in this bracket that filed that year. So the higher audit rate would bring it to a total of about 5,029 audits of those making ten million or more, assuming the number of audits and number of people filing in that bracket are constant.
Also here are the audit rates by tax bracket for 2022 and 2021.
A 50% increase from 0 is still 0.
Edit: sorry I think my first answer posted earlier was wrong, after more review I misunderstood “audit percentage,” it would be the percentage of taxpayers in those brackets who get audited, not the percentage of audits that bracket makes up of all audits. Below answer should be closer now.
If you’re curious you can use the percentage from article and do simple math to find the number.
Those making more than $10 million will go from 11% of them being audited to 16.5%. And we can get data on tax return audit actual numbers below.
https://www.irs.gov/statistics/compliance-presence
So diving back to the numbers, there were 3,353 audits of individuals make $10 million or more in 2023, meaning if the audit rate was 11% there were would be about 30,481 individuals total in this bracket that filed that year. So the higher audit rate would bring it to a total of about 5,029 audits of those making ten million or more, assuming the number of audits and number of people filing in that bracket are constant.
Also here are the audit rates by tax bracket for 2022 and 2021.
https://www.irs.gov/pub/irs-utl/statement-for-updated-audit-rates-ty-19.pdf
The $10 million plus bracket went from only 2% audited in 2021 to 8% audited in 2022. Wonder what changed between those years…