IRS to Hire 87,000 New Agents – Will Middle-Class Be a Target for Audit ‘Enforcement’?

Senate Democrats passed a massive spending package, dubbed the ‘Inflation Reduction Act’, on Sunday that is now on its way to the House for a vote.

More than half of that amount, $45.6 billion, will be allocated to “tax enforcement activities such as hiring more enforcement agents, providing legal support, and investment."

The Treasury department says that the IRS will aim to hire an additional 87,000 agents, with the ultimate goal of closing the “tax gap” of unpaid federal taxes.

Closing the ‘Tax Gap’

According to a 2021 Treasury Inspector General for Tax Administration report, overall audits fell 44% between 2015 and 2019.

Is the Middle-Class an IRS Audit Target?

New auditors may have a six-month training program and receive cases worth a few hundred thousand dollars rather than tens of millions.

How Will IRS Audits Change with $80 Billion Cash Infusion?

Some common audit triggers include unreported income that doesn’t match a W-2 or 1099, large cash deposits, and disproportionate itemized deduction.

Common Audit Triggers and How You Can Prepare

One of the best ways to avoid future headaches is by keeping accurate records with detailed bookkeeping and saving all receipts.

Common Audit Triggers and How You Can Prepare

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