The IRS announced it will begin targeting thousands of super-rich tax cheats and making them hundreds of millions of dollars in the coming months.
The federal agency said it plans to aggressively hunt down 1,600 millionaires and 75 large business partnerships that routinely “cut their way” on their taxes.
“If you pay your taxes on time, it should be very disappointing when you see that wealthy filers don’t,” said IRS Commissioner Daniel Werfel.
Each of the billionaire tax evaders targeted by the IRS owes at least $250,000 each in back taxes, while the partnership has assets of about $10 billion on average.
The IRS plans to hire an undisclosed revenue agent to focus on luxury collection cases so the new initiative can begin rolling out in October of this year.
The crackdown represents the next phase of an offensive launched by the Biden Administration earlier this summer — in July, the IRS said it collected $38 million in back taxes from more than 175 high-income taxpayers over a period of several months.
IRS Commissioner Daniel Werfel said the agency would hold “their wealthiest filers accountable for paying the full amount they owe.”
According to Werfel, the initiative was prompted by a large boost in federal funding from the Inflation Reduction Act, which is intended to generate tax revenue for the state.
The agency is also adding an artificial intelligence tool that can detect tax fraud tactics that may not be visible to the human eye.
“The new tools help us see patterns and trends that we couldn’t see before, and as a result, we have more confidence in where to look and find where big partnerships are protecting revenue,” Werfel said.
The Biden administration is giving the IRS a financial boost to begin a crackdown on the rich.POOL/AFP via Getty Images
A team of academic economists and IRS researchers in 2021 found that the top 1% of US earners failed to report more than 20% of their income to the IRS.
With additional support and funding, the IRS will continue to hunt down bigger and wealthier tax evaders in the years to come.
As part of the initiative, the agency promised that citizens earning less than $400,000 a year would not see an increase in their audit rates.
The IRS set its sights on 1,600 millionaires and 75 business partnerships that cheated on their taxes.AP
“This new compliance pressure makes good on the Inflation Reduction Act’s promise to ensure the IRS holds our wealthiest filers accountable for paying the full amount they owe,” Werfel said.
“The years of underfunding that preceded the Inflation Reduction Act led to the lowest audit rates for wealthy filers in our history.”
By Postal Wire
Categories: Trending
Source: thtrangdai.edu.vn/en/
