Biden Plan Includes Uptick in Tax Audits for the Wealthy

Filing taxes is a stressful-enough prospect without throwing audit fears into the mix. Thankfully, the IRS audit rate is generally low, coming in at under 1% of all returns filed.

Higher earners, however, are statistically more likely to get their returns audited than average earners. And if President Biden's new tax proposal goes through, the probability of getting audited will increase even more among the country's wealthiest.

The IRS estimates that as much as $1 trillion in taxes may go uncollected each year. The problem, however, is that the agency is extremely short-staffed and doesn't have the capacity to conduct as many tax audits as it would like to. In fact, the IRS has lost 17,000 auditors since 2010.

Source Fool.com