Robert Kovacev Discusses Increased IRS Audits After IRA in MarketWatch
Subtitle
"What it's like to be audited by the bigger, better-funded IRS. 'They are pushing harder now.'"
MarketWatch
Robert Kovacev discussed recent developments that Internal Revenue Service (IRS) auditors are now more assertive and equipped, due to funding from the 2022 Inflation Reduction Act (IRA) aimed at ensuring wealthy households, partnerships, and corporations pay their fair share of taxes. There is a marked increase in IRS inquiries, particularly regarding issues that extend beyond the initial audit scope. Kovacev highlighted this shift, stating, "Right after the Inflation Reduction Act was passed, I started seeing increased swagger, for lack of a better word." He explained that IRS agents are now more willing to explore various avenues in audits, which were previously neglected due to limited resources. Kovacev also cautions that while audits can feel like a "fishing expedition," the new funding allows the IRS to broaden its search. "The Inflation Reduction Act gave the IRS a bigger license to fish," he notes, adding a critical perspective on whether the agency is targeting the wealthiest effectively or following political directives.