Page 79 - IRS Plan
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Initiative 3.4 Expand enforcement for high-income and high-wealth individuals
The IRS will increase enforcement activities to help ensure tax compliance of high-income
and high-wealth individuals
Where we are heading 2. Refine approaches to high-income and
high-wealth enforcement and use data
The IRS has not had sufficient resources and analytics to explore new treatments.
to adequately increase enforcement and close Leverage advanced analytics to identify optimal
the tax gap attributable to high-income and high- interventions to address potential
wealth taxpayers. Taxpayers earning $1 million noncompliance, given issue-specific risks.
or more were subject to an audit rate of just 0.7% Deploy appropriate interventions to help
in 2019—a sharp decline from 7.2% in 2011. 7 taxpayers resolve compliance issues, while also
applying sufficient enforcement to promote
We will increase enforcement for high-income compliance.
and high-wealth individuals to help ensure they
are paying the taxes they owe. Given the size Milestones
and complex nature of these tax filings, this work
often requires specialized approaches, and we will FY 2023
make these resources available. We will use data 1 First wave of specialists hired and
and analytics to improve our understanding onboarded to increase compliance
of the tax filings of high-wealth individuals. We coverage rates for high-income and
will pursue noncompliance through a variety high-wealth individuals
of mechanisms, including audits and non-audit
contacts. FY 2025
2 Refined approaches and treatments
What success would look like piloted for high-income and high-wealth
enforcement
Success for this initiative would include an
increase in audit coverage and other types 3 Ongoing
of enforcement of high-income and high-wealth Workforce hired and onboarded
taxpayers to improve voluntary compliance. to achieve compliance coverage rates
for high-income and high-wealth
Key projects individuals, including specialists
and experienced hires
1. Hire, onboard and train the staff needed
to achieve appropriate compliance coverage
rates. Strategically focus on hiring and training Key dependencies
to ensure appropriate resources to address
the variety of skill sets needed. Focus on hiring 3.4 depends on projects in initiatives:
employees with the education and experience 1.3, 3.1, 3.7, 4.5-4.7, 5.1, 5.4-5.8
to examine high-income and high-wealth
taxpayers. Increase staff in the Independent Initiatives dependent on projects in 3.4:
Office of Appeals to resolve tax controversies None
arising from enhanced compliance efforts.
Increase staff in the Office of Chief Counsel
to support both compliance and appeals
and to litigate cases when necessary.
72 IRS IRA Strategic Operating Plan
Part II: Objectives and Initiatives
