IRS Audits Targeting Businesses, Partnerships and Individuals Expected to Increase in 2026

We expect to see an increase in Internal Revenue Service (IRS) audits targeting businesses, partnerships, and high-income individuals in 2026. Audits have been trending upward in recent months, and it appears likely that this trend will continue into the new year. Learn more from New York tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group.

The IRS is Prioritizing Enforcement of Businesses’, Partnerships’ and High-Income Individuals’ Tax Obligations

The IRS appears to be prioritizing enforcement of businesses’, partnerships’ and high-income individuals’ tax obligations. This includes both domestic and international entities and individuals that are subject to federal income taxation. Some examples of recent audit targets include:

• Construction companies
• Financial services firms
• Licensed professionals
• Professional athletes
• Technology companies

These truly are just examples, and the breadth of this list illustrates just how wide of a net the IRS is currently casting. Heading into 2026, entities and individuals involved in all industries and professions will need to be wary of the risk of facing an IRS audit—and those that have concerns about what the IRS might find will want to take proactive steps to protect themselves before an audit notice arrives in the mail.

Mitigating the Risk of Facing an IRS Audit in 2026

If you are concerned that you (or your business) may be at risk of facing substantial liability in the event of an IRS audit, it will be in your best interests to come into compliance before the IRS opens an inquiry. What this entails will depend on the specific circumstances at hand—including (but not limited to) the amount you owe and your ability to pay.

While filing an amended return is one option, it isn’t the best option in all cases. Some taxpayers will want to consider alternatives such as streamlined filings and voluntary disclosures. Others will want to consider the IRS’ pre-filing and pre-audit resolution procedures, and those who cannot afford to pay may need to consider options such as submitting an offer in compromise or negotiating a settlement agreement with the IRS as well.

Defending Against an IRS Audit in 2026

What if it is too late to avoid an IRS audit? When facing an audit, it is critical to remember that an audit itself does not indicate noncompliance. In some cases, the IRS selects audit targets at random, and many of its targeted audits are misguided.

That said, when facing an IRS audit, defending against it should be your priority. To defend against the audit successfully, you will need to have a clear and comprehensive understanding of what (if anything) revenue agents may find, and you will need to build a defense strategy that is custom-tailored to the circumstances at hand.

Discuss Your (or Your Business’) Needs with New York Tax Attorney Kevin E. Thorn

If you need more information on options to mitigate your (or your business’) audit-related risk, please contact us promptly. To schedule a confidential consultation with New York tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, please call 914-534-6004 or tell us how we can reach you online today.