IRS Cracks Down on High-End Tax Cheats, Collects $122 Million
The Internal Revenue Service (IRS) is stepping up its efforts to catch tax cheats, particularly among the wealthy. In a recent announcement, the IRS revealed that it has already collected $122 million from 100 cases involving millionaires who were behind on their taxes. This comes after the agency collected $38 million from 175 other millionaires, bringing the total amount recouped from wealthy households to $160 million. The IRS is determined to ensure that high-end tax cheats pay their fair share.
Tougher Enforcement and Increased Funding
The IRS’s success in collecting back taxes is a result of its tougher enforcement measures and increased funding. Last year, the agency received billions of dollars from the Inflation Reduction Act to improve its operations, enhance customer service, and target the wealthiest taxpayers and major businesses.
Notable Cases
The funds collected by the IRS provide a glimpse into the magnitude of tax evasion among the wealthy. One case involved an individual who falsely claimed as deductible business expenses the costs of building a luxurious mansion with tennis, basketball, and bocce courts. They were ordered to pay $15 million in restitution. Another case involved a person who filed a false tax return, defrauding a business of over $670,000 and spending $502,000 on gambling.
IRS Targets Corporate Taxes
The IRS’s enforcement efforts extend beyond individual tax cheats to corporations as well. Starting next year, the agency will conduct 60 audits of major corporations with significant assets and high taxable income. Additionally, the IRS will send alerts to U.S.-based subsidiaries of foreign companies, reminding them of their U.S. tax obligations.
Government Shutdown and Budget Uncertainty
Despite the IRS’s progress in tax enforcement, challenges remain. A potential government shutdown looms, and budget uncertainty adds to the complexity of the agency’s operations. However, the IRS remains committed to its mission of ensuring tax compliance and fairness.
– Andrew Keshner
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
Read More of this Story at www.morningstar.com – 2023-10-22 23:49:00
Read More US Economic News
