As part of an effort to restore fairness to the tax system in Hollywood FL and the rest of the country, the IRS has announced its plan to shift the focus of compliance enforcement efforts away from working class taxpayers to high-income earners, partnerships, large corporations, and promoters of abusive tax-schemes. The changes will be driven by Artificial Intelligence (AI), which will help IRS compliance teams better detect tax cheating especially during tax season, identify emerging compliance threats, and improve case selection tools. As part of the effort, the IRS will also ensure audit rates do not increase for those earning less than $400,000 a year and add new fairness safeguards for those claiming the Earned Income Tax Credit. You might want to consult this with your accounting provider, as some other key elements of the new effort include: 1) expanded work on digital asset compliance, 2) increased focus on FBAR violations, and 3) improved efforts to protect against identity theft.
News Release IR 2023-166
