IRS reforms target wealthier taxpayers and companies, address race disparity in audits

FILE - The Internal Revenue Service 1040 tax form for 2022 is seen on April 17, 2023. The IRS said Thursday that it has taken steps to address a wide disparity in audit rates between Black taxpayers and other filers, and is more closely examining the returns of larger numbers of wealthy people and major companies.

"We have taken swift initial action to dramatically reduce the number of those audits. We have also made changes to the selection criteria for those audits,” IRS Commissioner Daniel Werfel said. He added: “There is no new wave of audits coming for middle and low income" taxpayers — "that is not in our plans in any way shape or form."

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