IRS Campaign on Wealthy Taxpayers and Partnerships, Explained

The Inflation Reduction Act signed by President Joe Biden in 2022 provided tens of billions of dollars so the IRS can more effectively collect revenue, including that from high-wealth individuals, partnerships, and large corporations the agency says aren’t paying their fair share.

The federal agency has long been plagued by budget cuts, staffing issues, outdated technology, and a large tax gap or the difference between taxes paid and owed. Congressional leaders have an agreement to claw back $20 billion of the $80 billion originally allotted to the IRS, which the agency chief has said won’t impact plans in the near ...