IRS Collected $500M From Rich Tax Cheats

The Inner Income Service continues to take “swift and aggressive motion” to rein in high-income tax cheats, recovering prior to now 12 months $520 million in again taxes from people with greater than $1 million in earnings and greater than $250,000 in acknowledged tax debt, IRS Commissioner Danny Werfel advised lawmakers.

“That’s half a billion {dollars} recovered from fewer than 1,000 millionaires and billionaires,” Werfel mentioned in latest testimony.

On Sept. 8, the IRS mentioned that it was shifting its consideration to rich taxpayers, partnerships and different excessive earners “which have seen sharp drops in audit charges” in the course of the previous decade.

“Will probably be pushed with the assistance of improved know-how in addition to Synthetic Intelligence that can assist IRS compliance groups higher detect tax dishonest, establish rising compliance threats and enhance case choice instruments to keep away from burdening taxpayers with unnecessary ‘no-change’ audits,” the company defined.

The new compliance initiative was funded by the $80 billion, 10-year funding increase the IRS acquired in 2021 beneath the Inflation Discount Act. A spending deal in 2023 clawed again $20 billion of that funding.

Werfel advised lawmakers on Feb. 15 that reaching the company’s “formidable transformation agenda requires us to rebuild areas within the IRS which have suffered from greater than a decade of underfunding that preceded the IRA.”

2024 Submitting Season

Offering an summary of the 2024 tax submitting season, which started on Jan. 29, Werfel mentioned that it’s “going easily to date,” and that by means of Feb. 2, the IRS acquired greater than 15.3 million particular person earnings tax returns and issued greater than 2.6 million refunds for about $3.65 billion.

The company additionally has a aim this 12 months of offering extra in-person assist at its Taxpayer Help Facilities, he added.

“The aim is to offer over 8,500 extra hours of in-person help than we did final submitting season,” Werfel advised members of the Home Methods and Means Committee on Feb. 15.

“We’re increasing hours at practically 250 TACs across the nation in the course of the submitting season; once more providing particular Saturday hours at sure TAC areas; and opening extra pop-up facilities to achieve taxpayers who don’t dwell close to a TAC,” he mentioned.

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