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also even if most income is from a W2. They get 1099s from savings accounts and the like.
Actually there’s a de minimus rule for income 10.00 or less. Most savings accounts aren’t earning 10.00
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Everyone gets tax breaks[ The most audited tax break, according to IRS data, is mainly for the poor and is a big reason over half pay no tax - the earned income tax credit. Those are the things that will likely be audited in greater numbers.
No federal income tax. Why you continue to misstate this knowing it’s untrue is questionable at best
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The biggest issue is that audits will impact many more - the majority of current audits are of businesses - with the increase in agents, they will have to do more individual audits. The increase projected is to double the size of the IRS - that will likely impact nearly everyone eventually.
The bill states how many agents? That’s right zero. What you are continuing to reference is a study that discusses what they could do and project they need because in large part retirements. You should stop being disingenuous with your doubling nonsense.
The biggest issue is that audits will impact many more - the majority of current audits are of businesses - with the increase in agents, they will have to do more individual audits. The increase projected is to double the size of the IRS - that will likely impact nearly everyone eventually.
In a hypothetical situtation what documents would me and my wife need to produce. We get 1099's from SS and our pensions. We take the standard deduction and that's it.
Actually most people get 1099s also even if most income is from a W2. They get 1099s from savings accounts and the like. Everyone gets tax breaks - most get at least the standard deduction and many get child credits and the like. The most audited tax break, according to IRS data, is mainly for the poor and is a big reason over half pay no tax - the earned income tax credit. Those are the things that will likely be audited in greater numbers.
The biggest issue is that audits will impact many more - the majority of current audits are of businesses - with the increase in agents, they will have to do more individual audits. The increase projected is to double the size of the IRS - that will likely impact nearly everyone eventually.
Looking at a chart posted earlier in this thread, fewer than 1% of people get audited. Under $200,000 or so, far fewer than 1%. So even if audits double, and they double for every single income bracket, your chances of audit are very low.
Looking at a chart posted earlier in this thread, fewer than 1% of people get audited. Under $200,000 or so, far fewer than 1%. So even if audits double, and they double for every single income bracket, your chances of audit are very low.
The intent is to at least triple the number audits - not looking towards being audited more often.
According to the U.S. Government Accountability Office, the audit rate declined the most for taxpayers with annual incomes of $200,000 and higher while the IRS audited taxpayers with incomes below $25,000 at higher-than-average rates. From the GAO report - https://www.gao.gov/products/gao-22-104960
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In recent years, IRS audited taxpayers with incomes below $25,000 and those with incomes of $500,000 or more at higher-than-average rates. But, audit rates have dropped for all income levels—with audit rates decreasing the most for taxpayers with incomes of $200,000 or more.
The intent is to at least triple the number audits - not looking towards being audited more often
Can you cite a source that confirms the intent to raise audits by 3x?
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According to the U.S. Government Accountability Office, the audit rate declined the most for taxpayers with annual incomes of $200,000 and higher while the IRS audited taxpayers with incomes below $25,000 at higher-than-average rates. From the GAO report - https://www.gao.gov/products/gao-22-104960
The GAO report doesn’t have language in the bill that passed. You continue to conflate and fabricate
Actually most people get 1099s also even if most income is from a W2. They get 1099s from savings accounts and the like. Everyone gets tax breaks - most get at least the standard deduction and many get child credits and the like. The most audited tax break, according to IRS data, is mainly for the poor and is a big reason over half pay no tax - the earned income tax credit. Those are the things that will likely be audited in greater numbers.
The biggest issue is that audits will impact many more - the majority of current audits are of businesses - with the increase in agents, they will have to do more individual audits. The increase projected is to double the size of the IRS - that will likely impact nearly everyone eventually.
There is no doubling of the IRS involved. The IRS needs to replace workers retiring over the next 10 years, as more than half of the employees are retirement eligible. There will be an increase in the total number of employees, but only up to previous levels, and certainly not doubling.
There is no doubling of the IRS involved. The IRS needs to replace workers retiring over the next 10 years, as more than half of the employees are retirement eligible. There will be an increase in the total number of employees, but only up to previous levels, and certainly not doubling.
Sorry, that is incorrect - you don't need to increase the budget $80B to replace current workers - their 2021 budget was $13.7B to pay for about 80K workers. The $80B being added is based on the US Treasury report that says they expect to hire just under 87K new workers with the increased budget.
The Congressional Budget Office report said that they found that if Congress authorizes the $80 billion, it would expected to double the agency’s staff by 2031. But even the CBO projection to double the numbers said that they expect most (3/4 of the increase) to be associated with enforcement. From the CBO Report
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Spending would increase in each year between 2021 and 2031, though the highest growth would occur in the first few years. By 2031, CBO projects, the proposal would make the IRS’s budget more than 90 percent larger than it is in CBO’s July 2021 baseline projections and would more than double the IRS’s staffing. Of the $80 billion, CBO estimates, about $60 billion would be for enforcement and related operations support.
With over 50% of current audits on those making less than $75K/year and over 75% on those making less than $200K (IRS Data) - the percent of audits on those making less than $400K may go down as percent of whole but the seriousness of those audits will likely increase as they significantly increase the number doing enforcement. From the CBO estimates also, they expect audit rates to be about triple from the current rates overall - they expect the "rate would rise for all taxpayers, but higher-income taxpayers would face the largest increase" - the expectation that low income folks will not be audited at a higher rate is not supported by the reports.
A bit outdated (2020).
So, Over $400k will be going up. $0 or less reported also very high ongoing audit rate. Everyone else less than 1% chance of an audit. Any questions?
Sorry, that is incorrect - you don't need to increase the budget $80B to replace current workers - their 2021 budget was $13.7B to pay for about 80K workers. The $80B being added is based on the US Treasury report that says they expect to hire just under 87K new workers with the increased budget.
The Congressional Budget Office report said that they found that if Congress authorizes the $80 billion, it would expected to double the agency’s staff by 2031. But even the CBO projection to double the numbers said that they expect most (3/4 of the increase) to be associated with enforcement. From the CBO Report
With over 50% of current audits on those making less than $75K/year and over 75% on those making less than $200K (IRS Data) - the percent of audits on those making less than $400K may go down as percent of whole but the seriousness of those audits will likely increase as they significantly increase the number doing enforcement. From the CBO estimates also, they expect audit rates to be about triple from the current rates overall - they expect the "rate would rise for all taxpayers, but higher-income taxpayers would face the largest increase" - the expectation that low income folks will not be audited at a higher rate is not supported by the reports.
The money is not just going to hire more agents. A lot of it is going to go into upgrading their computer and software systems, which by accounts has the IRS using computer systems from the 1960s.
I do think there will be more audits for people who say, sell items on eBay and the like. The new software systems will allow them to collect a lot of information that they don’t collect now from online transactions.
Sorry, that is incorrect - you don't need to increase the budget $80B to replace current workers - their 2021 budget was $13.7B to pay for about 80K workers. The $80B being added is based on the US Treasury report that says they expect to hire just under 87K new workers with the increased budget.
The Congressional Budget Office report said that they found that if Congress authorizes the $80 billion, it would expected to double the agency’s staff by 2031. But even the CBO projection to double the numbers said that they expect most (3/4 of the increase) to be associated with enforcement. From the CBO Report
With over 50% of current audits on those making less than $75K/year and over 75% on those making less than $200K (IRS Data) - the percent of audits on those making less than $400K may go down as percent of whole but the seriousness of those audits will likely increase as they significantly increase the number doing enforcement. From the CBO estimates also, they expect audit rates to be about triple from the current rates overall - they expect the "rate would rise for all taxpayers, but higher-income taxpayers would face the largest increase" - the expectation that low income folks will not be audited at a higher rate is not supported by the reports.
Continue to be disingenuous and quote “staff” increase while conflating with agents. Ignore the parts of the repairs which clearly outline hiring to replace retirees, ignore the expense to hire and train new employees, ignore the fact the report clearly does not outline a path to double the workforce and then also acknowledge the report isn’t the bill, it’s not the act that passed it’s no where near what you continue to claim
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