9/25/2023 0 Comments 2022 tax brackets irs![]() According to IRS officials, greater complexity of higher-income audits and increased case transfers due to auditor attrition contributed to the time increase.Īudits of the lowest-income taxpayers, particularly those claiming the EITC, resulted in higher amounts of recommended additional tax per audit hour compared to all income groups except for the highest-income taxpayers. Over this time, the average number of hours spent per audit was generally stable for lower-income taxpayers but more than doubled for those with incomes of $200,000 and above. However, the additional taxes recommended per audit increased as taxpayer income increased. From fiscal years 2010 to 2021, the majority of the additional taxes IRS recommended from audits came from taxpayers with incomes below $200,000. IRS officials explained that EITC audits require relatively few resources and prevent ineligible taxpayers from receiving the EITC.Īudit Rates by Total Positive Income, Tax Year 2019Īudit Results and Resources. However, the audit rate for lower-income taxpayers claiming the Earned Income Tax Credit (EITC) was higher than average. ![]() Lower-income audits are generally more automated, allowing IRS to continue these audits even with fewer staff.Īlthough audit rates decreased more for higher-income taxpayers, IRS generally audited them at higher rates compared to lower-income taxpayers, as shown in the figure. According to IRS officials, these audits are generally more complex and require staff's review. Audit rates decreased the most for taxpayers with incomes of $200,000 and above. Internal Revenue Service (IRS) officials attributed this trend primarily to reduced staffing as a result of decreased funding. On average, the audit rate for these returns decreased from 0.9 percent to 0.25 percent. Audit Rates. From tax years 2010 to 2019, audit rates of individual income tax returns decreased for all income levels.
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