IRS Strengthening: Increased Audits and New Financial Reporting Rules
This act aims to increase funding for the Internal Revenue Service (IRS) to modernize technology and strengthen tax enforcement, especially for high-income individuals and large corporations. It introduces new reporting obligations for financial institutions regarding account flows, which may impact the transparency of citizens' financial transactions. It also increases penalties for tax underpayments for higher-income individuals.
Key points
Increased funding for the IRS to modernize and enhance tax audits, particularly for individuals with incomes over $1 million and large corporations.
Financial institutions will be required to report monthly gross inflows and outflows from accounts, increasing oversight of financial transactions.
Higher penalties for tax underpayments for individuals with taxable incomes over $2 million, potentially leading to increased costs for errors or tax fraud.
A goal to reduce the net tax gap by at least one-third within ten years and improve the quality of taxpayer assistance from the IRS.
Status:
Expired
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