IRS Audit Reveals Flaws in Efforts to Pursue High-Income Non-Filers

A new watchdog report reveals that while IRS “sweeps” targeting high-income non-filers have proven more effective than standard enforcement efforts, the agency faces critical issues in training, data accuracy, and geographic coverage. The Treasury Inspector General for Tax Administration found that between 2021 and 2022, revenue officers collected more returns and dollars per sweep case, yet many regions with high concentrations of non-filers were overlooked. Additionally, over 11,000 IRS employees—many revenue agents—have been laid off, raising concerns about future enforcement capacity. The report also cited errors in key taxpayer data and underused training opportunities, recommending more strategic targeting, better data tracking, and increased management oversight. The IRS has agreed to all suggested improvements.

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