The IRS Says Audits Are About to Surge — Here’s Who’s Most at Risk

The Internal Revenue Service said it plans to sharply increase audit rates for big corporations, partnerships and multimillionaires over the next three years after a massive boost in funding by the Biden administration.

The IRS said in a news release Thursday that it’s aiming to nearly triple its audit rate, to 22.6%, on corporations with upwards of $250 million worth of assets in the 2026 tax year. . .

For complex partnerships with assets topping $10 million, the IRS said it intends to increase audit rates nearly 10-fold, to 1% in tax year 2026 — up from 0.1% in 2019.

The IRS also said it is targeting a 50% increase in audit rates for individuals with a total positive annual income exceeding $10 million. . .

At the same time, the IRS assured that it would not increase audit rates on individuals and small businesses earning under $400,000, in keeping with President Biden’s pledge not to increase taxes on that population. (Read more from “The IRS Says Audits Are About to Surge — Here’s Who’s Most at Risk” HERE)