IRS Collects Over $1B in Overdue Taxes from Millionaires
TL/DR –
The Internal Revenue Service (IRS) has collected over $1 billion in past-due taxes from high-wealth individuals, following increased efforts to enforce compliance under the Inflation Reduction Act. Over 1,200 individuals, each with an income over $1 million and owing the IRS more than $250,000, have made payments. The IRS has also used resources from the Inflation Reduction Act to improve taxpayer services, increase compliance efforts towards wealthy individuals, groups and large corporations, and pursue high-income taxpayers who fail to file federal income tax returns.
IRS Surpasses $1 Billion Mark in Collections from High-Wealth Taxpayers
According to the Internal Revenue Service (IRS), the agency has surpassed the $1 billion mark in collections from high-wealth taxpayers with past-due taxes, as part of their compliance efforts under the Inflation Reduction Act. This milestone is a result of increased action on 1,600 high-income individuals, who each owed the IRS more than $250,000 in recognized tax debt.
“This collection activity marks an important milestone in our effort to improve tax compliance and fairness,” said IRS Commissioner Danny Werfel. “With increased work in this area, these past-due tax bills from wealthy taxpayers aren’t being left on the table as in the past.”
Before the Inflation Reduction Act, budget cuts prevented the IRS from keeping pace with wealthy taxpayers’ complex maneuvers to hide their income and evade taxes. The IRS is taking action to close this gap, with a focus on high-income individuals who failed to pay their tax bills.
IRS’ Efforts on High-Wealth Non-Filers and Large Corporations
Earlier this year, the IRS announced a new effort focused on high-income taxpayers who failed to file federal income tax returns. This initiative involves more than 25,000 people with income exceeding $1 million and over 100,000 people with income between $400,000 and $1 million, who did not file a tax return between 2017 and 2021.
The IRS has also initiated steps to combat abusive use of partnerships by wealthy taxpayers. Other elements of their renewed compliance focus include audits of personal use of business aircraft by high-income taxpayers, and examining the activities of large corporations and partnerships.
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