IRS Compliance Efforts Under the Inflation Reduction Act
The IRS has collected over $1 billion from high-wealth taxpayers with past-due taxes as part of its compliance efforts under the Inflation Reduction Act. This initiative targets 1,600 individuals earning over $1 million annually who owe more than $250,000 in taxes, with significant collections achieved since last fall.
Key Points:
IRS Milestone: The IRS has collected over $1 billion from high-wealth individuals since last fall, marking significant progress in ensuring tax compliance and fairness.
Enforcement Efforts: Increased funding has enabled the IRS to pursue overdue taxes from wealthy taxpayers, reversing years of insufficient resources that hindered collection efforts.
Targeted Individuals: Focus is on high-income taxpayers with substantial tax debt, resulting in over $1 billion collected from more than 1,200 individuals.
Broader Initiatives: The IRS is also addressing high-wealth non-filers, complex partnerships, and large corporations, with expanded enforcement made possible by the new funding.
Ongoing Projects: Efforts include combating abusive partnerships, examining large corporations, and auditing personal use of business aircraft.
Background: The Inflation Reduction Act's funding is revitalizing the IRS's ability to enforce tax laws, particularly among the wealthiest taxpayers who often evade taxes through complex schemes. These enhanced efforts are essential for maintaining a fair tax system and ensuring compliance.