September 23, 2023
Remember how people were all freaked out last year that hiring more IRS agents was going to mean more audits?
Well – the IRS just announced more audits. But they’re probably not coming for you.
Before I tell you who is going to see the wrong end of an audit notice – I want to thank my TikTok subscribers for voting for this story as the bonus this week. If you want to vote too you can subscribe to my page during my live event, or you can follow these steps and vote right now.
The IRS announced they are expanding on an already successful program to aggressively pursue 1600 millionaires who owe at least $250,000 in back taxes and 75 large business partnerships that have assets of about $10 billion. And on top of that, starting in October the IRS will be following up with about 500 additional partnerships that have “balance sheet discrepancies.”
The IRs commissioner says that 80 billion dollars congress gave the agency in the Inflation Reduction Act allowed the IRS to hire more people as well as develop some new internal AI tools. Both of those things are playing a huge role in identifying these super wealthy tax cheats.
And it’s working! In July the IRS announced their efforts earlier in the year – using these same new tools were the reason why they were able to collect $38 million in back taxes from only about 175 high income earners.
So besides the 1600 millionaires, 75 large business partnerships and 500 additional partnerships who else may be seeing audit or compliance notices from the IRS?
Those of you with large amounts of digital assets who aren’t paying taxes, high income earners who aren’t paying taxes on your foreign bank accounts and construction contractors who are trying to get cute with shell companies.
The IRS says based on the records they receive from the digital currency exchanges, they’ve determined that there’s a 75% non-compliance rate among taxpayers with digital assets – meaning – they aren’t paying taxes on them. So those people will be a focus starting in October. As will hundreds of high-income earners who have – on average – $1.4 million in off shore bank accounts and are not paying taxes. And construction contractors who are paying 1099 employees who aren’t real so that money can be funneled back to the company. Apparently this scheme has already been seen in Texas and Florida.
Read more from the IRS about these new audits here.
