“There’s been confusion about the meaning of the directive that you cited in the letter last August and then repeated here today,” Smith told Yellen, referencing her August 2022 letter in which she directed that the IRS shall not use new personnel or auditors “to increase the share of small businesses or households below the $400,000 threshold that are audited relative to historical levels.”

Yellen’s letter stated that “contrary to the misinformation from opponents of this legislation, small business or households earning $400,000 per year or less will not see an increase in the chances that they are audited.” //

So Smith asked what are they talking about when they’re talking about “will not see an increase” — did she mean the total number of new IRS audits or a proportionate number based on historic levels?

“I’m talking about the proportion of those small businesses and families,” Yellen responded.

“Okay. So the proportion, I mean, just for the record, the proportion is 90%,” said Smith, referencing the GAO report. “So 90% of the new audits will be, you know, according to the data, that we can expect up to 90% of new audits to be on those making less than $400,000.”

Oh, so they were playing word games with us. They’re still going to have 90 percent of the new audits falling on us.