How the IRS Plans to Ramp up Audits of Wealthy Taxpayers
The Internal Revenue Service anticipates increasing audits on the highest-income taxpayers by sizable percentages for the 2026 tax year. Audit rates would jump by nearly triple for large corporations, nearly 10-fold for complex partnerships, and more than 50% for individuals with more than $10 million in income, the agency said in an update to its strategic operating plan released Thursday. The plan says the IRS will: + raise audit rates on large corporations with assets over $250 million to 22.6% in tax year 2026, up from 8.8% in tax year 2019; + increase audit rates by nearly ten-fold on large, complex partnerships with assets over $10 million, going from 0.1% in 2019 to 1% in tax year 2026; and + lift audit rates by more than 50% on individual taxpayers with total income over $10 million, with audit rates going from an 11% coverage rate in 2019 to 16.5% in tax year 2026.