# IRS

The IRS (Internal Revenue System) is a new feature within the Pett.AI Central Bank designed to regulate and enforce tax collection on withdrawals. It introduces a taxation system based on player levels and offers a strategic mechanism to reduce tax rates by employing accountants. The IRS ensures compliance and fairness while maintaining the stability of the in-game economy.

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During the IRS launch event, **all withdrawals will be halted for 3 days,** affecting all players.
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### Key Mechanics

#### **1. Withdrawal Restrictions During IRS Activation**

* **No new withdrawals** can be created while the IRS is active.
* Players can **jump the queue** or place withdrawals in the queue but **cannot create new ones**.
* **Claiming rewards remains active at all times.**

#### **2. IRS Audit Triggers**

* Every time an **IRS audit begins, new withdrawals stop**.
* Audits are **randomized events**. No one knows when it's going to happen.
* This ensures a controlled taxation process and prevents tax evasion.

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The IRS only affects the in-game balance, excluding withdrawals.
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#### **3. IRS Eligibility**

* **All players above level 15+** are subject to the IRS.
* Lower-level players are exempt to encourage progression.

#### **4. Reducing Taxation with Accountants**

Players undergoing an IRS audit can reduce the amount of **$AIP** taxed by purchasing **Accountants**. Each accountant hired reduces the base tax rate, following a diminishing returns model.

<table data-header-hidden data-full-width="false"><thead><tr><th></th><th></th><th></th><th></th></tr></thead><tbody><tr><td><strong>Number of Accountants</strong></td><td><strong>Tax Rate After Reduction</strong></td><td><strong>Reduction Amount</strong></td><td><strong>Cumulative Cost ($AIP)</strong></td></tr><tr><td>0 (Base Rate)</td><td>25%</td><td>-</td><td>-</td></tr><tr><td>1 Accountant <br><span data-gb-custom-inline data-tag="emoji" data-code="1f575-2640">🕵️‍♀️</span></td><td>18%</td><td>7%</td><td>5k</td></tr><tr><td>2 Accountants <br><span data-gb-custom-inline data-tag="emoji" data-code="1f575-2640">🕵️‍♀️</span><span data-gb-custom-inline data-tag="emoji" data-code="1f575">🕵️</span></td><td>13%</td><td>5%</td><td>10k</td></tr><tr><td>3 Accountants <br><span data-gb-custom-inline data-tag="emoji" data-code="1f575">🕵️</span><span data-gb-custom-inline data-tag="emoji" data-code="1f575">🕵️</span><span data-gb-custom-inline data-tag="emoji" data-code="1f575">🕵️</span></td><td>9%</td><td>4%</td><td>15k</td></tr><tr><td>4 Accountants <br><span data-gb-custom-inline data-tag="emoji" data-code="1f575">🕵️</span><span data-gb-custom-inline data-tag="emoji" data-code="1f575">🕵️</span><span data-gb-custom-inline data-tag="emoji" data-code="1f575">🕵️</span><span data-gb-custom-inline data-tag="emoji" data-code="1f575">🕵️</span></td><td>6%</td><td>3%</td><td>20k</td></tr><tr><td>5 Accountants <br><span data-gb-custom-inline data-tag="emoji" data-code="1f575">🕵️</span><span data-gb-custom-inline data-tag="emoji" data-code="1f575">🕵️</span><span data-gb-custom-inline data-tag="emoji" data-code="1f575">🕵️</span><span data-gb-custom-inline data-tag="emoji" data-code="1f575">🕵️</span><span data-gb-custom-inline data-tag="emoji" data-code="1f575">🕵️</span></td><td>4%</td><td>2%</td><td>25k</td></tr><tr><td>6 Accountants<br><span data-gb-custom-inline data-tag="emoji" data-code="1f575">🕵️</span><span data-gb-custom-inline data-tag="emoji" data-code="1f575">🕵️</span><span data-gb-custom-inline data-tag="emoji" data-code="1f575">🕵️</span><span data-gb-custom-inline data-tag="emoji" data-code="1f575">🕵️</span><span data-gb-custom-inline data-tag="emoji" data-code="1f575">🕵️</span><span data-gb-custom-inline data-tag="emoji" data-code="1f575">🕵️</span></td><td>2.5%</td><td>1.5%</td><td>30k</td></tr></tbody></table>

Your accountants are required for every IRS audit, meaning you'll need to repurchase them each time a new audit occurs.

### Past Audits

| Time Started  | Time Ended    |
| ------------- | ------------- |
| 12 March 2025 | 15 March 2025 |

{% hint style="info" %}
**Accountants offer a cost-effective way** to minimize taxation for frequent high-level players.
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