Worried the IRS is going to audit you? If you make less than $400K, here’s one reason you can relax

Some clarity is emerging regarding statements from Biden administration officials that no one making less than $400,000 will see higher audit rates from the Internal Revenue Service, which is about to step up its scrutiny of wealthy taxpayers.

The Inflation Reduction Act — the tax and climate package enacted last summer — earmarked $80 billion for the IRS over the next decade and a half. The money is intended to provide for more audits of corporations and wealthy households.

Ahead of the bill’s passage, Treasury Secretary Janet Yellen pledged that there would be no increase in the rate of audits for households and small businesses earning below $400,000 “relative to historical levels.”