IRS aims to more than double its audit rate for wealthiest taxpayers in strategic plan update

Internal Revenue Commissioner Danny Werfel speaks during his swearing in ceremony at the IRS in Washington, D.C., on April 4, 2023.

The IRS has released an update on its strategic operating plan, which outlines "major accomplishments" in taxpayer service, technology and enforcement since its infusion of funding less than two years ago.

Emphasizing key focus areas, the agency on Thursday highlighted the need for sustained funding, including a $104 billion proposal to extend Inflation Reduction Act funding through fiscal 2034.

The agency also renewed its focus on "tax fairness" with plans to increase audits on the wealthiest taxpayers, large corporations and complex partnerships.

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"This update also reflects our ongoing effort to make sure we focus compliance resources where they need to be," IRS Commissioner Danny Werfel told reporters on a press call.

The IRS aims to more than double the audit rate for the wealthiest taxpayers with total positive income of more than $10 million by tax year 2026. This would bring the audit rate for these individuals to 16.5% in 2026, compared to 11% in 2019.

The agency also plans to "nearly triple audit rates" on large corporations with assets over $250 million and boost audit rates "by tenfold" for large, complex partnerships with assets over $10 million, Werfel said.