IRS Audits: Understanding the Focus on Millionaires and Low-Income Earners

IRS Auditing Patterns

Of the millions of tax returns filed each year, the IRS audits two groups more frequently than others. Keep reading to learn who they are.

The Wealthy

• Wealthy taxpayers and large corporations are on the IRS radar for potential tax evasion.
• IRS utilizes artificial intelligence to track tax cheats.

Low-Income Earners

• Low-income households are audited more due to budget cuts.
• Outdated software leads to targeting of benefits like the Earned Income Tax Credit.

Changes in funding and audit priorities may reduce audits for low-income earners and intensify actions against wealthy tax dodgers.