● Tax Alpha Solutions: Effective Tax Management Strategies for High-Net-Worth Investors
Matthew Chancey
Essay by author via WealthManagement.com
The Internal Revenue Service recently announced its plans to significantly increase audits on the wealthiest taxpayers, large corporations and large, complex partnerships for tax year 2026.
Audit rates will rise by more than 50% for those with total positive income over $10 million (up from an 11% coverage rate in 2019 to 16.5% in tax year 2026). That news is sure to trigger anxiety in some high-net-worth earners.
But an IRS audit is more of an exercise that seeks documentation; it’s not necessarily an accusatory event. They just want to see your clients’ homework to show how they got their answers.