The IRS audited fewer taxpayers in fiscal 2022, according to a new report from Syracuse University's Transactional Records Access Clearinghouse.
Of the more than 164 million individual income tax returns filed with the IRS last year, the revenue service audited only 626,204 — down from 659,003 during fiscal year 2021, the report said.
Of those 626,204 audits, 93,595 were regular audits while the remainder (532,609) were correspondence audits, which are usually done for simple mistakes on a tax return and can be easily corrected through mail correspondence with the IRS.
While the 2022 Inflation Reduction Act provides the IRS with $80 billion of future funding to ramp up audits of the wealthy, the odds the revenue service audited a millionaire in 2022 was just 1.1%, according to the report.
Low-income wage-earners taking the earned income tax credit had a higher-than-expected audit rate at 1.27%, the report said. Read more.