IRS Tax Audits

At a recent tax conference at New York University, it was announced by the co-commissioners of IRS’s Small Business/Self-Employed Division (De Lon Harris and Darren Guillot) and the commissioner of the Criminal Investigations Division (James Lee) that as soon as the budget passes they will be hiring thousands of auditors by the end of September 2021. This amounts to roughly 1300 additional field revenue officers, 400 tax compliance officers, and 518 automated collection phone representatives. The Criminal Division also plans to add over 500 people this year with about half of them being special agents.

What Does That Mean?

  • The agencies expect to be ready to handle phone calls for IRS notices; with their largest call center to be in Puerto Rico, with a bilingual staff.
  • They expect to use new personnel to increase compliance in the areas of fuel tax, syndicated conservation easements and employment taxes.
  • They expect to see an increase in audits.

President Biden and the House Appropriations Committee have both submitted a budget increase for IRS for fiscal 2022 totaling $1.7 billion more than the agency received in 2021.

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