I think the reality is somewhere in the middle, as it usually is.
Yellen said in her memo that the CHANCES of an audit for tax payers earning under #400,000 should not increase. Not the actual number of audits. The fact that the IRS audit budget is basically doubling means that the number of audits for households can double and still stay true to the memo.
The IRS, just like any organization will follow the path of least resistance in increasing their income. W2 households have little to fear. Small businesses should be VERY fearful. They look like easy targets because they do not have the expertise or bankrolls to fight the US government.
Anytime a government apparatus is given the mission of creating income, it creates an atmosphere that is ripe for over reach. Unfortunately, despite the best of intentions, this will not end well.
I hope I’m wrong… we’ll see.
Darryl