IRS Audits to Focus on Individuals Earning Less Than $400,000: A Betrayed Trust

In the world of politics, promises are often made with a pinch of salt.

One such promise that has recently come under scrutiny is Joe Biden’s pledge not to increase audits on households or small businesses earning less than $400,000 per year. This assurance, it seems, was nothing more than political rhetoric.

The Treasury Inspector General for Tax Administration (TIGTA) recently released a report that raised eyebrows. The report highlighted the impracticality of limiting audits to high-income individuals, citing a myriad of complications.

It appears the IRS, an organization designed to be apolitical, openly stated they have no intention of restricting their audits to high-income earners. Instead, they argue for the need for “flexibility.”

Abolish the federal reserve and the IRS. pic.twitter.com/C8j71aOYr2

— Declaration of Memes (@LibertyCappy) September 12, 2023

This revelation sparked criticism from various quarters.

Grover Norquist, president of Americans for Tax Reform, has labeled Biden’s audit promise as “not credible,” echoing the suspicions of many taxpayers. The promise was made amidst the Biden administration’s desperate attempts to dramatically increase the size and power of the IRS.

TIGTA has recommended that the IRS update its definition of “high-income” households from its current threshold of $200,000 per year. However, the IRS refused, insisting it requires “agility” to target any taxpayer it deems necessary.

This refusal further fueled skepticism about the credibility of the administration’s promise. The promise was part of Biden’s push for the “Inflation Reduction Act,” which sought an additional $80 billion for the IRS.

Income taxes are voluntary. IRS commissioner confirms to Senate pic.twitter.com/ilgZ5UAZFM

— Jack Straw (@JackStr42679640) September 15, 2023

The IRS’s insistence on flexibility and agility in conducting audits implies that they will not limit their increased audits to taxpayers with incomes over $400,000. Instead, it seems that the IRS will expand audits across the board, affecting everyone, including those earning less than the promised threshold.

This situation is reminiscent of past political promises that have fallen flat. Just as the Obama administration’s assurance that Obamacare would not affect existing insurance plans proved hollow, Biden’s audit promise appears to be following a similar trajectory.

Despite these repeated disappointments, many Americans continue to believe in these political assurances, often out of loyalty or the need for palatable talking points.

The IRS’s refusal to limit audits to high-income individuals exposes the hollowness of Biden’s promise. It serves as a stark reminder that political promises should be taken with a grain of salt.

As taxpayers, we must remain vigilant and critical of such pledges.

This article appeared in StatesmanPost and has been published here with permission.