Tax audits

An extra $80 billion over 10 years will have major repercussions — though not necessarily the expected ones.

Remembering a reform expert; more suggestions for IRS improvement; fluffy nonsense; and other highlights from our favorite tax bloggers.

Taxpayers are concerned the extra $80 billion will lead to more tax audits.

The legislation would deter the Internal Revenue Service from using the $80 billion in extra funding from the Inflation Reduction Act to increase audits of taxpayers earning under $400,000 per year.

The agency has become a target of GOP lawmakers in recent weeks after President Biden signed a new spending law with funding for tax enforcement, technology upgrades and taxpayer service.

The Inflation Reduction Act has highlighted the perpetual tension within the agency between helping taxpayers and auditing them.

There are several key strategic considerations for the in-house practitioner to put their company in a strong position to resolve a tax dispute.

Commissioner Rettig is promising not to use the nearly $80 billion his agency will be receiving to increase audits of small businesses or taxpayers who earn less than $400,000.

Republicans and Democrats have been sparring over whether the extra funding will be used to audit low-income and middle-class taxpayers.