IRS Audits Will Impact Small, Midsize Businesses, Expert Testifies
The Biden administration’s assurances that there will be no expanded tax audits on businesses and households making less than $400,000 per year applies to “total positive” income without losses, according to testimony before the Senate Finance Committee.
Chris Edwards of the CATO Institute testified before the committee on May 16 on the issue of the $80 billion in additional funds given to the Internal Revenue Service (IRS) as part of the Inflation Reduction Act.
During Edwards’ testimony, he was questioned by Sen. Charles Grassley (R-Iowa) about the promise, asking whether it was true that the $400,000 threshold assessed “total positive income.”
Edwards confirmed that the IRS plan was to assess income without accounting for losses and that the increased audits would likely impact “mainly small to midsize businesses, who actually may have [adjusted gross income] under 400,000.”…