The IRS Reports Collecting $1 Billion in Delinquent Taxes from Millionaires

At Extreme Investor Network, we understand the importance of staying up-to-date on the latest news and trends in personal finance. That’s why we’re excited to share with you the recent announcement from the U.S. Department of the Treasury and the IRS about their efforts to collect more than $1 billion in tax debt from high-income individuals over the past year. This milestone is a result of the IRS expanding its scrutiny of those making above $1 million annually with more than $250,000 in recognized tax debt.

Treasury Secretary Janet Yellen emphasized the success of these efforts, stating that the IRS has shown it can successfully launch strategic new initiatives and achieve the greatest return on investment. With the IRS estimating that investments in enforcement, technology, and data could generate up to $851 billion through 2034, the impact of this funding is significant.

Related:  Survey finds student loan forgiveness to be a critical issue leading up to the election

While the IRS’s focus on high-income earners has increased in recent years, audit rates for taxpayers earning $1 million or more have fluctuated. In 2019, the audit rate was just 0.7%, compared to 7.2% in 2011. This disparity has raised concerns among government agencies like the U.S. Government Accountability Office and the U.S. Treasury Inspector General for Tax Administration, who have scrutinized the IRS’s audit selection process and no-change rate among audits of certain high-earning filers.

Despite criticism from some quarters, IRS Commissioner Danny Werfel highlighted the positive impact of increased funding on tax collection from high-income individuals. He emphasized the difference in collecting unpaid taxes from similar earners before and after the infusion of funding, noting that the IRS now has the resources and staffing to pursue those who owe taxes.

Related:  IRS Issues Final Guidance on Reporting Taxes for Cryptocurrency

These efforts by the IRS and the Treasury come on the heels of their plans to close a “major tax loophole” used by large, complex partnerships. This crackdown is expected to raise $50 billion in tax revenue over the next decade, further demonstrating the government’s commitment to ensuring fairness in the tax system.

Stay tuned to Extreme Investor Network for more updates on personal finance trends and news that can help you make informed decisions about your financial future.

Source link