Each year, the IRS releases a data book showing the number of returns filed, how many were e-filed, statistics on examinations, and more for the government’s fiscal year. The newest Data Book is for the government’s 2022 fiscal year ending September 30, 2022. During this period, the government processed 160.6 million individual income tax returns and collected a total of $4.9 trillion in tax revenue.
Perhaps because 2022 fiscal year covered the period in which the IRS had to distribute economic impact payments and advance monthly child tax credits, as well as provide guidance on various pandemic-related tax rules, the number of returns audited was down significantly. However, with the new budget for hiring additional IRS agents, expect the rate of audits to increase in future years. Nevertheless, the IRS Commissioner on April 19 pledged that the historically low 2018 audit rate for those making less than $400,000 would provide a maximum benchmark for IRS audits of those taxpayers at least for the next several years. The IRS intends to focus on high-income and high-wealth individuals, complex partnerships, and large corporations.
Interesting findings:
A nondeductible contributory IRA that allows for tax-free accumulation of income. Qualifying distributions are completely tax free.