S.Amdt. 2628

This is amendment SA 2628, submitted by Mr. Reed to the bill H.R. 1. If we want to hold our elected officials accountable and make sure common-sense rules are followed, here is what this amendment aims to change and add to the bill regarding IRS audits:

• The Internal Revenue Service shall not start an audit for everyday taxpayers (anyone below a specific income threshold) unless the IRS has already completed audits on higher-income earners and large businesses first.
• The large corporations that must be audited first are those with taxable income exceeding $10,000,000.
• Other taxpayers (non-corporations) that must be audited first are those with taxable income exceeding $5,000,000.
• The income threshold amounts protecting everyday taxpayers from being audited first are $200,000 for joint returns, $150,000 for the head of a household, and $100,000 in any other case.
• These specific dollar amounts will be adjusted for inflation for any taxable year beginning after December 31, 2026.
• These new audit rules apply to returns for taxable years beginning after December 31, 2025.