The IRS has been in the news a lot recently as they make significant changes to tax laws and conduct audits on high-income taxpayers with incomes exceeding $100,000.
Despite being behind on millions of unprocessed tax returns, this is happening.
All changes to tax legislation, including audits of high-income people, are represented by an IRS letter with an American flag.
Things like disclosing $600 in payments or the agency burning 30 million paper documents have horrified Americans in recent headlines.
If you earn more than $100,000 each year, you now have an additional concern.
The IRS intends to audit high-income taxpayers regularly.
The Internal Revenue Service recently indicated that it would make it a priority to examine more high-income taxpayers.
According to CBS News, your odds of being audited have now doubled if you earn more than $100,000.
The IRS did not attempt to audit high incomes as vigorously as they plan to now in the last ten years.
Audits of those taxpayers have been more difficult to perform due to a lack of staff and funding.
Between September and May of this year, the audit rate has doubled.
Since 2019, the rate of audits has increased by.6 per cent among those earning $100,000 to $500,000.
Other laws have been changed by the government, such as reporting payments made through cash payment applications like Venmo.
According to Marca, anything worth $600 or more is required by law to be reported to the IRS.
That’s a big change from the old law, which mandated reporting of payments over $20,000 or 200 transactions.
A 1099-K is required by law for any payments made with goods and services.
Both the taxpayer and the IRS will receive a form.
The new legislation became effective on January 1, 2022.
If giving or gifting money to a family member or friend is important, there is always the option of choosing friends and family.
The IRS spends a lot of time on new rules and reforms, but millions of people are still waiting for their tax refunds in 2020.
The IRS now has a backlog of 9.8 million tax returns to process, many of which date from 2020.
A Cobb County lady is still waiting for her 2020 tax return to be processed, according to WSB-TV Atlanta.
In recent news, things, like the government exposing $600 in payments and destroying 30 million paper records, have alarmed Americans.
If you earn more than $100,000 per year, you now have a new problem to deal with.
The Internal Revenue Service (IRS) plans to audit high-income taxpayers frequently.
The Internal Revenue Service recently stated that examining more high-income people would be a priority.
If you make more than $100,000, your chances of being audited have suddenly doubled, according to CBS News.
In the last ten years, the IRS has not attempted to examine high-income taxpayers as rigorously as they plan to now.
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She’s been waiting for the completion of her 2020 amended return for 32 weeks.
They were originally in debt and continued to get bills.
They now owe $2,000, plus interest, after owing $2,000 that was escalated to $3,000.