Should You be Afraid of the Newly Formed IRS Army of Auditors?

With the IRS receiving billions in new funding and hiring thousands of new agents, many taxpayers are concerned about increased audit activity. Should you be worried?

The Facts

The Inflation Reduction Act allocated approximately $80 billion to the IRS over 10 years, with a significant portion dedicated to enforcement. The IRS has stated its intention to hire tens of thousands of new employees, including revenue agents who conduct audits.

Who's Most Likely to Be Audited?

Historically, the IRS focuses its audit resources on:

- High-income earners (over $400,000) - Complex business returns - Returns with unusual deductions or credits - Cash-intensive businesses - Cryptocurrency transactions - Earned Income Tax Credit claims

What You Can Do

The best defense against an audit is a good offense:

1. Keep accurate records of all income and deductions
2. File on time and pay what you owe
3. Report all income , including 1099s and cash payments
4. Don't inflate deductions or claim credits you don't qualify for
5. Work with a qualified CPA who understands current IRS enforcement priorities

Our IRS Monitoring Service

At EverydayCPA, we offer an IRS Action Notification Service that monitors your tax transcript around the clock. We can detect potential audit flags up to six months before you receive official notice, giving you time to prepare.

Don't wait for a letter from the IRS. Call us at 888-784-1040 to learn about proactive tax monitoring.