Sen. John Thune (RS.D.) discusses whether China stole U.S. tax information via Varney & Co.’s TikTok.
The Internal Revenue Service (IRS) has announced it is cracking down on more than 125,000 high-income individuals who have failed to file federal income tax returns since 2017 in an effort to recover hundreds of millions of dollars in unpaid taxes.
Under the new nonfiler initiative, the agency announced this week that 25,000 people who earned more than $1 million annually from tax years 2017 through 2021, and those with income between $400,000 and $1 million Begin sending non-compliance letters to more than 100,000 people. In those few years.
In all of the cases listed above, the IRS has provided third party evidence, such as through W-2s or 1099 forms, that these people had income in these ranges but did not file a tax return. He said he had received the information.
Daniel Werfel, Commissioner of the Internal Revenue Service. (Tom Williams/CQ-Roll Call, Inc, Getty Images/Getty Images)
The IRS has issued 20 million tax refunds to date.this is an average amount
IRS Commissioner Danny Wuerffel said tight budget and staffing constraints have limited resources to police non-compliant earners in these income groups since 2016, but the passage of the Inflation Control Act has given the agency more policy enforcement. provided the necessary means to carry out the This latest enforcement.
The bill was signed into law by President Biden in 2022.
“Resources from the Inflation Control Act will allow government agencies to finally identify non-filers, ensure this core civic responsibility is fulfilled, and ultimately ensure fairness for everyone who plays by the rules. We were able to get funding that will help us,” Werfel said.
“At a time when millions of hard-working people are doing the right thing and paying their taxes, we cannot tolerate high-income earners neglecting their basic civic duty to file their tax returns. .”
The IRS said the exact amount of unpaid taxes in these cases is unknown because it does not know what deductions or deductions these people may have received.
However, third-party information on these taxpayers indicates financial activity in excess of $100 billion.
The Inflation Control Act was signed into law by President Biden in 2022. (Chip Somodevilla/Getty Images | Alex Wong/Getty Images/Getty Images)
Social Security recipients could be hit with a surprise tax bill this year
By conservative estimates, the IRS believes these cases involve hundreds of millions of dollars in unpaid taxes. At the same time, some non-filers may actually be owed a refund.
“If you have someone who has not filed a tax return in the past few years, now is the time to review and correct that situation,” Werfel said. “For those in debt, the risks only increase over time, as do the potential for penalties and interest. These non-filers should check IRS.gov for helpful information and get reliable tax help as soon as possible.” You should consider consulting a professional.”
According to the IRS, this non-filer initiative is part of a larger effort by the IRS to ensure that large corporations, large partnerships, and high-income individual filers pay the taxes they owe. It is said that there is.
Over the past decade, the agency says it has failed to keep up with an increasingly complex set of tools used by the wealthiest taxpayers to hide or manipulate their income to avoid taxes. .
A blank 1040 tax return from the IRS. (license/image)
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The IRS said it is now taking “swift and aggressive action” to close this gap.
For example, the IRS is going after billionaires with hundreds of millions of dollars in unpaid taxes, and has already recovered $500 million owed by 1,600 billionaires.
IRS leaders announced last week that the agency would begin dozens of audits of companies’ private jets and how they are used personally by executives and written off as tax deductions, according to the Associated Press. Announced.
The IRS is also ramping up its audits of more than 75 of the largest partnerships using artificial intelligence, going after multimillion-dollar partnership balance sheet discrepancies.
