Taxpayers who make more then $100,000 annually will face increased federal scrutiny when it comes to their tax obligations. The Internal Revenue Service (IRS) recently announced it has requested additional funding to modernize and improve the agency. These efforts would then help the agency focus its efforts on some of the wealthier taxpayers in the country.
Will this effort find success?
Thus far, it appears likely. Lawmakers are voicing their support of these efforts.
Senator Angus King (I-Maine) is one example. He recently sent a letter to Treasury Secretary Steven Mnuchin requesting more information on his call on the IRS to focus on high-income earners. He claims the nation’s high-income earners are “responsible tax avoidance on a tremendous scale.” He also calls on the IRS to further raise its audit rate for those who earn $1 million and more per year.
What does this mean for high-earning taxpayers?
Those who earn $100,000 or more in annual income will likely find themselves at an increased risk of an audit in coming years. As such, it is a good idea to review your tax obligations and make sure you are following applicable tax laws. If you have not filed tax returns, consider doing so. If you have foreign assets, make sure they are properly reported.
These issues can be complex. As such, it is often wise to seek the counsel of an attorney experienced in are of the law to help mitigate the risk of hefty fees and potential criminal charges for failing to abide by applicable tax law.