The Internal Revenue Service is currently hiring a number of new agents. They’ll be coming for you, regardless of your income.
President Joe Biden signed the Inflation Reduction Act into law last month. It provides the IRS with almost $80 billion in additional funds. The IRS is the world’s largest tax collection agency and will use the funds to hire more staff to support its enforcement efforts.
The assumption is that audits will be harsh and widespread. Taxes begin with tax returns. These must be signed under penalty of perjury. Biden’s administration stated that audits on steroids are only for those who have been able to avoid having to pay too much.
According to the administration, no new audits would be conducted by the IRS on individuals earning less than $400,000 per year. Republicans attempted to include it in the law. However, every Senate Democrat voted împotriva the amendment. Also, the IRS audit protections for those making less that $400,000.
This means that American taxpayers of every income level are equally eligible, regardless of their income.
Think about your taxes and records. What would they look like under a microscope? Under penalty of perjury, tax returns must be signed. The IRS will not allow you to alter that language. This means that your statute of limitations for an audit has never begun. Audits can continue for as long as you want.