Skip to content

Inflation Reduction Act May Double Number of IRS Audits for High Net Worth Individuals, Corporations, Estates, and Others

August 17, 2022

Soon after the US Senate’s passing of the Inflation Reduction Act on Aug. 7, analysts began evaluating the final bill to judge its impact on taxpayers. The Act intends to raise revenue by increasing the IRS budget dramatically.

The Act may increase the number of IRS audits by adding up to 87,000 new employees to an IRS workforce that faces a large wave of retirements this decade.

While taxpayers should always do their best to file correct tax returns, it can often be difficult for high net worth individuals, estates, and corporations as taxable events are commonly very difficult to understand and subject to interpretation, making their audits lengthy and often ending up in Court. Working with inexperienced CPAs and attorneys can often only make matters worse, making it important to have an experienced attorney supervising from the very beginning of the audit.

Once a taxpayer, corporation, estate, or individual receives a notice of audit, the information and documents requested by the auditor must be immediately gathered, remembering that the preparer and any tax planner might have a conflict of interest making it wise to engage an outside attorney to supervise the tax return preparer and anyone assisting him.

The views and opinions expressed in the article represent the view of the authors and not necessarily the official view of Clark Hill PLC. Nothing in this article constitutes professional legal advice nor is intended to be a substitute for professional legal advice.

Subscribe for the latest

Subscribe

Related

Event

2025 California Labor and Employment Law Symposium

Join Clark Hill for a full-day symposium exploring the most pressing legal issues facing California employers today. Our California Labor & Employment attorneys, along with colleagues from our Immigration and Cybersecurity/Data Privacy groups, will provide practical insights, legal updates, and strategic guidance across a range of workplace topics. Whether your role is in-house counsel, HR leadership, or company executive, this event is designed to equip you with the tools to help navigate California’s ever-evolving employment landscape.

Explore more
Event

Webinar: End of Year Privacy Check-In: What’s Changed, What Hasn’t and What’s Happening in 2026

Attendees will gain insights specific insight into the definition of ADMT under the new rules, common in-scope use cases and requirements, risk assessment and cybersecurity audit obligations and expectations for regulatory focus in 2026. You’ll walk away with a “check-list” of compliance priorities for 2026.

The session will provide practical guidance for legal, compliance, and business teams preparing for compliance deadlines and navigating emerging privacy risks.

Explore more
Event

2025 Illinois Labor & Employment Law Symposium

Join us for a complimentary half-day seminar designed for legal, HR, and business professionals navigating today’s rapidly changing work environment. Our experienced attorneys will share timely insights, practical strategies, and legal updates to help you stay compliant, mitigate risk, and lead with confidence.

Explore more