COLUMBUS, Ohio — The Internal Revenue Service is using its bigger budget from the Inflation Reduction Act to hire more staff, invest in technology updates and help close the more than $680 billion tax gap. That’s money the U.S. Treasury said is owed as taxes to the government, but wasn’t paid.

What You Need To Know

  • The IRS plans to address the more than $680 billion tax gap by auditing the wealthiest taxpayers to ensure compliance 

  • The enhanced audits are made possible through the Inflation Reduction Act

  • The IRS said it is also working on improving customer service, increasing staff and upgrading technology

The IRS announced in its latest strategic operating plan it plans to collect on some of those debts by increasing audits of the highest-income individuals and businesses.

The enhanced enforcement effort is made possible by the $80 million the IRS received through the Inflation Reduction Act, signed in August 2022.

The IRS said it’s targeting taxpayers who make more than $400,000 per year, large corporations and complex partnerships.

Audit rates for small businesses and taxpayers making less than $400,000 will remain the same.

Tax experts recommend you keep all tax records and receipts for at least six years, in case you happen to get audited.