The IRS Continued Compliance Efforts for High-Income Taxpayers After Disbanding the High Income High Wealth Strategy, but With Less Effective Outcomes.

The Director, Examination Case Selection, Small Business/Self-Employed Division, should create a dedicated work stream with the purpose of focused examinations of Individual Master File (IMF) returns with Total Positive Income (TPI) of at least $200,000 to address the high-income taxpayer underreporting segment of the Tax Gap.

The Director, Planning and Performance, should increase the monitoring of planned versus actual examinations for additional income categories such as taxpayers with Total Positive Income (TPI) from $1 million to $5 million, $5 million to $10 million, and over $10 million and make adjustments to ensure that planned examination closures are met within an acceptable range each fiscal year for all high-income taxpayer subcategories.

The Director, Examination, Small Business/Self-Employed Division, should dedicate some resources to developing Compliance Initiative Projects with the purpose of focused examinations of IMF returns with Total Positive Income (TPI) of at least $200,000 to address the high-income taxpayer underreporting segment of the Tax Gap.

The Director, Examination, Small Business/Self-Employed Division, should add additional activity codes for the $200,000 to $500,000 and $500,000 to $1,000,000 income categories, similar to the IRS Data Book, to allow for a more focused approach to monitoring the compliance of specific income segments of the high-income taxpayer population.