TIGTA criticial of the IRS audit plan for taxpayer’s earning less than $400,000

In 2022, the U.S. Treasury Secretary directed the IRS not to use additional resources to audit taxpayers earning less than $400,000 a year. According to the Treasury Inspector General for Tax Administration (TIGTA), the IRS has yet to develop a solid methodology to prevent it from increasing audits on these taxpayers. Although the IRS has stated it would use 2018 as a benchmark, it hasn’t finalized its methodology for calculating audit coverage. TIGTA has called particular attention to the IRS’s failure to explain its intention to “waive” audits from the calculation when the agency determines a taxpayer intentionally excluded income. To read the TIGTA report: https://bit.ly/3X8gQ28