![]() In 2021 the IRS made Form 1040 available in Spanish for the first time released Schedule LEP, which allows taxpayers with limited English proficiency to indicate to the IRS the language in which they would like to be contacted and published Publication 17, "Your Federal Income Tax," in English, Spanish, Chinese (traditional and simplified), Vietnamese, Russian, and Korean. One of Rettig’s frequent points about the IRS’s recent improvements is that the agency has expanded its taxpayer services by offering support in multiple languages. Spending on modernization was up from $299 million in 2020. The data book explains that the agency spent $348 million on business systems modernization, which is a thin slice of its $13.7 billion budget but should help it move into the 21st century a little faster because that spending funds capital asset acquisition of information technology systems. ![]() The IRS is notoriously behind the times in buying and implementing new technology, mostly because of the costs of replacing its museum-piece computers. The IRS noted that there are only about 6,500 revenue agents in the field performing exams in the high-end noncompliance area because of resource constraints, so that while audit rates at high incomes are picking up, they’re still far below the rates that the IRS had reported for audits of 2010 income tax returns. The other rates range from 0.2% for returns with a total positive income of between $25,000 and $500,000 to 2% for returns between $5 million and $10 million. That’s the highest audit rate of all income groups - by far. Taxpayers with incomes over $10 million in 2019 had an audit rate of 8.7% as of May 1, 2022, according to the IRS. The biggest jumps in audit rates between September 2021 and May 2022 started with taxpayers with a total positive income of $500,000 and increased as incomes climbed. The agency reported that it spent $5 billion on enforcement in fiscal 2021.Īccordingly, it touted its audit rates for 2019, particularly the increase in audits of taxpayers with high incomes. The IRS performs many functions, but enforcement of the tax laws is chief among them. (Photo by Kevin Dietsch/Getty Images) Getty Images Enforcement Gaining Steam, but Not That Fast Rettig testified on the 2022 filing season and the President's proposed fiscal year 2023 budget request for the IRS. testifies before the Senate Finance Committee on Capitol Hill, Apin Washington, DC. WASHINGTON, DC - APRIL 07: Commissioner of the Internal Revenue Service (IRS) Charles Rettig.
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