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

Webinar: Special Education Bootcamp - Compliance Foundations Under IDEA

Whether you are new to special education leadership or looking to reinforce your foundational knowledge, this interactive webinar will provide a comprehensive overview of the core compliance requirements under the Individuals with Disabilities Education Act (IDEA). Designed for school leaders who are responsible for ensuring legally sound practices, this session will offer practical tools and strategies to help participants navigate common procedural and substantive pitfalls, support sound decision-making, and build a compliant and student-centered special education program.

Explore more
Event

Telehealth Week Webinar 2025: Navigating Legal Changes and Future Trends for Healthcare Providers

Join Paul Schmeltzer, Carrie Foote, and John Howard for our one-hour annual Telehealth Week webinar, focused on the evolving legal landscape of telehealth. This session will cover key topics, including the upcoming DEA final rule on prescribing controlled substances via telehealth, federal reimbursement concerns for telehealth, and what healthcare providers need to prepare for other upcoming changes.

Explore more
Event

2025 Cybersecurity and Data Privacy Laws Summit

Join us for an immersive half-day seminar exploring the rapidly evolving landscape of cybersecurity, data privacy, and AI-related regulation. This year’s summit will feature dynamic discussions with industry leaders, offering practical insights into the tools, tactics, and legal implications shaping incident response and AI accountability in 2026 and beyond.

Explore more