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It’s probably not true about people with hundreds of millions or billions. Yet, intuitively I’d still assume that the digitization efforts of the last few decad
by CityOfThrowaway 5y ago
It’s probably not true about people with hundreds of millions or billions. Yet, intuitively I’d still assume that the digitization efforts of the last few decades would still result in a net-decrease in audit headcount.
Before the 2000s, it was not uncommon for average earners to get a visit from an auditor. Based on some of the publications by the IRS I have read, it’s now significantly less likely for average earners to get audited than high-income earners. Beyond that, the probability that a high-income earner is growing relative to average income earners.
Given the sheer volume of people in the average-and-below bucket, it makes intuitive sense that changes to the audit rate in that group would have an outsized impact on the overall headcount requirements.