Monday, April 08, 2024

Tax Audits: Good News and Bad News

(Image from mymcmedia)
There's good news and bad news if you're worried about being audited. The bad first: [bold added[
The most recent data suggests the IRS is still focused on the middle class. As of last summer, 63% of new audits targeted taxpayers with income of less than $200,000. Only a small overall share reached the very highest earners, while 80% of audits covered filers earning less than $1 million...

Tigta reports that revenue-agent recruitment is “far below” the agency’s target, and it hired only 34 in the first six months of its expansion, according to trade publication Government Executive. That compares with its goal of 3,700 in the first year.

The agency faces the same tight labor market as any other employer, but the job specs aren’t bad. A typical salary for these agents is about $125,000, plus public-employee perks such as up to $60,000 in student-loan forgiveness. But for one reason or another, America’s treasurers and accountants aren’t lining up to become federal tax collectors.
Thousands-fewer IRS agents reduces the likelihood that anyone would be audited (good), but Joe Biden's focus on under-$200,000 returns (bad) puts the lie to his promise that the agency would focus on over-$400,000 returns. Disappointing, to say the least.

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