IRS CEO Promises Audits of Wealthy as Democrats Slam Worker Cuts

IRS Chief Frank Bisignano told lawmakers Wednesday the agency is staying tough on some of the wealthiest taxpayers even as steep workforce cuts last year decimated many IRS units.

Bisignano, also the commissioner of the Social Security Administration, told Senate Finance Committee members in a hearing on the last day most Americans can file taxes that enforcement revenue is up 12% this year. The IRS collected about $2 billion from its top five cases, he said. Audits can take several months to years to resolve.

Democrats, including Sens. Michael Bennet (D-Colo.) and Sheldon Whitehouse (D-R.I.), pressed the CEO on how the agency would manage with an over 30% loss of workers in the enforcement divisions. The IRS also estimates that audit starts on high-income individuals will drop to 2,264 in fiscal year 2026, compared to 6,786 in fiscal year 2025, according to its recent budget request.

“There is no bias to any of it,” Bisignano said during the hearing. “It’s every bad actor. You are not going to have the type of revenue we have coming in from enforcement if you are not collecting from highly compensated people and bad actors.”

The IRS under the Biden administration was beefing up its enforcement units to go after the richest taxpayers and largest companies. Bisignano said the agency is relying more on technology instead of people to boost its audit efforts.

The agency also is evaluating the tax gap—the difference between taxes paid and taxes owed—which sits at about $ 696 billion for fiscal year 2022, the latest year for that data.