What You Need To Know About Increased IRS Auditing

In July, as part of President Biden’s American Families Plan, it was announced that he intends to increase funding to the IRS by $80 Billion. The goal is that with increased funding, the IRS will be able to do a better job of auditing high-earning individuals and hopefully stop tax evaders in their tracks. As with anything related to politics, there are varying opinions around this plan. But, I’m not here to get political. 

Regardless of anyone's opinions on the matter, increased IRS funding and increased auditing undoubtedly have people all across the country concerned about how organized their records are and whether their past taxes have been filed properly.

The president's plan will increase the likelihood that individuals who make more than $400,000 a year will be audited. If you don’t fall within that category there is less of a chance that you will be included in future audits funded by this program. If all goes as they hope it will, the government will collect upwards of $700 Billion in unpaid taxes that will more than cover the cost of increased audits.

Regardless of your income, if hearing the news of increased auditing fills you with panic, it may be a good sign that it's time to get all of your financial ducks in a row. We cannot express enough to you how important it is to hire an excellent accountant. At Fix-It Accounting, we spend a good deal of our time fixing expensive mistakes that were made by well meaning accountants. Your childhood friend, your next-door neighbor, or even the person who has been doing your taxes for years, would never intend to make mistakes on your tax filings, but we see it happen all the time.
As the government increases their auditing, make sure that you have an accounting firm on your team who will do your taxes correctly every time. For more information about IRS audits, or to schedule a consultation with a member of our team, contact us today.