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Americans Suffered $7B In Tax Penalties Last Year Following Biden Admin’s Additional Funding Of IRS, Thousands Of Added Positions

(Photo by Zach Gibson/Getty Images)

OAN’s Brooke Mallory
Friday, June 14, 2024 3:11 PM

The Internal Revenue Service reportedly assessed $7 billion in additional tax penalties last year, nearly four times the $1.8 billion it assessed in 2022 following the Biden administration’s push to fund the IRS and beef up enforcement.

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In 2022, the Biden administration plans to spend “approximately $78 billion” [to] The IRS plans to phase it in over a 10-year period. Time Magazine.

The Wall Street Journal The Wall Street Journal reported that most of the penalties were levied on individuals who paid less than expected in income taxes for the quarter, including investors, entrepreneurs, freelancers and others who don’t typically have federal income tax withheld from their paychecks.

Based on data released by the IRS journalthe average projected tax bill for fiscal year 2023 has increased to $500 from $150 the previous year.

Non-employees are subject to interest and penalties if they fail to pay their quarterly estimated dues, and the recent spike in interest rates has seen the penalty rate rise from just 3% in 2021 to 6% in 2022.

In the fourth quarter of last year, the tax rate was increased to 8 percent. The higher rate was applied in the first two quarters of this fiscal year.

“These fees can be a big hit, so doing it right can save you hundreds or even thousands of dollars a year,” said Richard Pong, a San Francisco accountant. The Washington Post.

Most employees have their pay withheld, while others are liable to pay all or part of federal income tax each quarter.

Monday is the deadline for filing second-quarter taxes with the IRS.

Tax revenues are expected to increase by $561 billion between 2024 and 2034 as a result of enhanced enforcement made possible by funding from Democrats’ August 2022 Combating Inflation Act.

However, the Biden administration has laid out a completely different position on its official website regarding the details of the Inflation Control Act.

“On August 16, 2022, President Biden signed the Controlling Inflation Act into law, the most significant action taken by Congress on clean energy and climate change in American history. With a wave of his pen, the President redefined American leadership and ushered in a new era in confronting the existential threat that is the climate crisis,” the White House said in a statement.

The IRS received an $80 billion infusion of funding through the Inflation Control Act, and thousands of new employees were hired.

Additionally, the IRS is expected to receive hundreds of billions of dollars in delinquent and unpaid taxes, according to a study released by the Treasury Department earlier this year.

“In 2022, the Congressional Budget Office estimated that tens of billions of dollars in new IRS funding provided by the IRA would increase revenues by $180.4 billion from 2022 to 2031. But House Republicans included a $1.4 billion cut to the IRS in the debt ceiling and budget cut package passed by Congress last summer. A separate agreement would redirect another $20 billion from the IRS to other non-defense programs over the next two years.” New York Post report.

Some Republicans have speculated that Biden’s initial strategy was to appease Democrats while simultaneously imposing significantly higher taxes on all American taxpayers to “fund unnecessary government programs that support diversity, equity, and inclusion (DEI), LGBTQ and transgender services, clean needles and drug paraphernalia for addicts, and promote more ‘green’ initiatives.” All the while, according to one Republican political analyst, the same “green” elite fly in private jets to every event they attend.

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