The IRS Recovers $1 Billion in Unpaid Taxes from Millionaires in Less than a Year – Boston News, Weather, Sports

IRS Crackdown on Wealthy Tax Cheats

IRS Success in Collecting Past-Due Taxes

The Internal Revenue Service has reported a significant achievement in collecting over $1 billion in overdue taxes from millionaires. This success can be attributed to the increased enforcement efforts funded by the Inflation Reduction Act.

The Biden administration is keen on showcasing how the IRS is utilizing these funds to combat wealthy tax evaders and enhance taxpayer services. Despite criticisms from Republicans, the IRS continues its efforts to recover unpaid taxes from high-income individuals.

Targeting Wealthy Tax Cheats

Over the past two years, the IRS has implemented various initiatives to crack down on wealthy tax cheats. One strategy involves ramping up audits for wealthy taxpayers, corporations, and large business partnerships by leveraging additional staff and artificial intelligence.

Moreover, the agency is scrutinizing the personal use of corporate jets as part of its enforcement measures. Funding from the Inflation Reduction Act is also allocated to modernize taxpayer services, resulting in improved call response rates and digitization of paper records.

Additionally, the IRS introduced a pilot version of its Direct File tax filing service, allowing more than 140,000 individuals to file their returns directly with the IRS for free. Plans are in place to expand this program in the coming year.

Battles Over IRS Funding

The Inflation Reduction Act, passed by Democrats, allocated approximately $80 billion to the IRS over a decade. However, Republicans have made several attempts to retract this funding. In previous negotiations, Democrats agreed to a $20 billion reduction in these funds to address the debt ceiling and prevent a government shutdown.

Despite these challenges, the IRS remains steadfast in its efforts to recover unpaid taxes from high-income individuals and combat tax evasion.

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Read More of this Story at – 2024-07-11 11:54:06

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