Blog: Legislation seeks to clarify IRS audit prohibitions – Financial Regulation News – Financial Regulation News

Senate Finance Committee Republicans Ranking Member Mike Crapo (R-ID) has introduced legislation that outlines Internal Revenue Service (IRS) audit prohibitions regarding those earning less than $400,000 annually.

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According to Crapo, the legislation stems from an allocation of $80 billion to the agency.

“Democrats cannot achieve their desired tax revenue goals without targeting the middle class, small businesses, and taxpayers earning under $400,000 per year–taxpayers who cannot afford teams of lawyers and legal fees–which is why they rejected my original amendment,” Crapo said regarding the bill co-sponsored by each of the Senate Finance Committee Republicans. “While advocates promise they do not intend to increase audits on people making less than $400,000, the best way to protect those taxpayers is to turn that promise into law.”

The measure prevents the IRS from using any of the $80 billion allotment for auditing of taxpayers, individuals, and small businesses, with taxable incomes below the $400,000 threshold, per officials, adding the legislation contrasts Treasury Department guidance related to taxpayers within that earning scope.

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