The IRS announced that it will begin targeting thousands of super-rich tax evaders and making them hundreds of millions of dollars in the coming months.
The federal agency said it plans to aggressively pursue 1,600 millionaires and 75 large business corporations that routinely “cut” their taxes.
“If you pay your taxes on time, it should be particularly frustrating to see wealthy taxpayers not doing so,” said IRS Commissioner Daniel Werfel.
Each of the millionaire tax evaders targeted by the IRS owes a minimum of at least $250,000 each in back taxes, while the corporations have assets of approximately $10 billion on average.
The IRS plans to hire an undisclosed number of revenue agents to focus on high-level collection cases so the new initiative can begin rolling out in October of this year.
The crackdown represents the next phase of a crackdown the Biden Administration launched earlier this summer: In July, the IRS said it had collected $38 million in delinquent taxes from more than 175 high-income taxpayers in the span of about few moths.
IRS Commissioner Daniel Werfel said the agency will hold its “wealthiest filers responsible for paying the full amount of what they owe.”
According to Werfel, the initiative is being driven by a massive increase in federal funding from the Inflation Reduction Act, which aims to generate tax revenue for the nation.
The agency also has artificial intelligence tools that can detect tax fraud tactics that might be imperceptible to the human eye.
“The new tools are helping us see patterns and trends that we couldn’t see before, and as a result, we have more confidence about where to look and find where great partnerships protect revenue,” Werfel said.
The Biden administration gave a financial boost to the IRS to further crack down on the wealthy. POOL/AFP via Getty Images
A team of academic economists and IRS researchers found in 2021 that the top 1% of earners in the US do not report more than 20% of their income to the IRS.
With additional support and funding, the IRS will continue to pursue the biggest and richest tax evaders for years to come.
As part of the initiative, the agency promised that citizens who earn less than $400,000 a year will not see an increase in their audit fees.
The IRS is targeting 1,600 millionaires and 75 business companies that are evading their taxes.AP
“This new enforcement push delivers on the promise of the Inflation Reduction Act to ensure that the IRS holds our wealthiest filers accountable for paying the full amount of what they owe,” Werfel said.
“The years of underfunding prior to the Inflation Reduction Act led to the lowest rich filer audit rate in our history.”
With pole cables
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Source: vtt.edu.vn