Audit rates for households making under $400,000 will not be greater than in past years, Treasury Secretary Janet Yellen pledged in a letter to the IRS Commissioner. Any additional resources created under the Inflation Reduction Act—including any new personnel or auditors that are hired—shall not be used to increase the share of small business or households below the $400,000 threshold that are audited relative to historical levels, the letter continued. The IRS will focus on closing the tax gap by targeting crucial challenges, like large corporations, high-net worth individuals and complex pass-throughs, Secretary Yellen stated. [Treasury Secretary Yellen Letter to ...
