IRS Increases Audits of Businesses, Partnerships and Individuals
Posted in Offshore Account Update on December 31, 2025 | Share
The Internal Revenue Service (IRS) has been ramping up its efforts to target businesses, partnerships and individuals with high-risk audits. We have recently seen a significant uptick in audits targeting entities and high-income individuals, and it appears that this trend will continue well into 2026. Learn more from Washington D.C. tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group:
IRS Audits Targeting Businesses and Partnerships
The IRS is auditing businesses and partnerships in a wide range of industries. These audits can involve scrutiny not only of entities’ income tax returns, but of their payroll tax and other filings as well. Some examples of the types of entities the IRS is targeting include U.S. and foreign:
- Construction companies and real estate developers
- Gaming, gambling and cryptocurrency companies
- Financial services firms
- Professional services firms
- Technology companies
The IRS is also continuing to heavily prioritize fraud under the pandemic-era Paycheck Protection Program (PPP) and Employee Retention Credit (ERC) program. Businesses and partnerships accused of fraud under these programs can face steep penalties, and, in many cases, business owners and other individuals can face steep penalties as well.
IRS Audits Targeting High-Income Individuals
We have also recently seen the IRS place increased emphasis on auditing high-income individuals. This includes both U.S. citizens and foreign citizens who have domestic tax obligations. Some examples of individuals the IRS has recently targeted include:
- Corporate executives and large shareholders
- Cryptocurrency and securities investors
- Licensed professionals
- Professional athletes
- Professional gamers and gamblers
From underreporting taxable income to failing to disclose offshore accounts, high-income individuals can face a wide range of allegations from the IRS. When facing any of these allegations, it is imperative to take a proactive and strategic approach focused on resolving the IRS’ audit without unnecessary consequences.
What To Do if You Receive an Audit Notice from the IRS
If you receive an audit notice from the IRS, what should you do? If the IRS is auditing your business (or you personally), the worst thing you can do is ignore your situation. The IRS isn’t simply going to go away, and, if you choose to ignore the audit process, there is a very good chance it will lead to consequences that could (and should) have been avoided.
When facing an IRS audit, it is important to engage experienced defense counsel promptly. An experienced attorney will be able to advise you and help protect your interests while communicating with the IRS on your behalf. While IRS audits can have serious consequences, audit targets can influence the outcome by intervening and challenging revenue agents’ assumptions and tactics. If you need to know more, we strongly encourage you to contact us right away.
Request a Confidential Consultation with Washington D.C. Tax Attorney Kevin E. Thorn
Washington D.C. tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, has extensive experience representing businesses, partnerships and individuals during high-stakes IRS audits. To request a confidential consultation, please call 202-349-4033 or contact us online today.
