The IRS is overhauling how it audits. Heres who is a target [Video]

(NEXSTAR) – The IRS is changing things up. The tax agency said Thursday it will be “taking swift and aggressive action” to crack down on people and companies not paying taxes properly.

The IRS now has the funding to take a closer look thanks to an influx of cash from the Inflation Reduction Act, or IRA, the agency said. “Prior to IRA, more than a decade of budget cuts prevented the IRS from keeping pace with the increasingly complicated set of tools that non-compliant taxpayers use to shelter or manipulate their income to avoid taxes.”

The audit rate of millionaires fell by more than 70% from 2010 to 2019 and the rate on large corporations dropped by more than 50%. The IRS estimates there’s now a $683 billion tax gap made up of taxpayers underreporting income, underpaying what they owe, or not filing at all.

As it audits more taxpayers, the IRS …