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The IRS Needs to Leverage the Most Effective Training for Revenue Agents Examining High-Income Taxpayers

Report Information

Date Issued
Report Number
2023-30-054
Report Type
Audit
Joint Report
No
Agency Wide
Yes (agency-wide)
Questioned Costs
$0
Funds for Better Use
$0
View Report

Recommendations

Ensure that the IRS leverages the LB&I Division’s extensive knowledge base for auditing global high-wealth taxpayers by embracing its current HII training content and providing revenue agent new hires, responsible for income tax examinations, HII training commensurate with the intent of IRA funding.

Ensure that revenue agent new hires, responsible for income tax examinations, receive Form 1040 individual tax return training.

The Commissioner, LB&I Division, should ensure that the examination plans are more transparent in showing the examination effort on individual high-income taxpayers.

The Commissioners, SB/SE and LB&I Divisions, should coordinate examination planning to ensure that the examination plans will follow the Secretary of the Treasury Directive to prioritize coverage of individual high-income earners over $400,000.

Establish a definition for high-income taxpayers in reference to examination compliance for purposes of focusing on income levels above which taxpayers have unique and varied opportunities for tax avoidance.