IRS Launches Crackdown On 125,000 Wealthy ‘Non-Filers’

The IRS has outlined its strategy to pursue 125,000 individuals with high incomes who have neglected to file tax returns dating back to 2017, citing hundreds of millions of dollars in unpaid taxes associated with these cases.

Commencing this week, the IRS will commence issuing noncompliance notices to over 25,000 individuals earning over $1 million annually and 100,000 individuals with incomes ranging between $400,000 and $1 million annually who have failed to fulfill their tax obligations from 2017 to 2021.

This initiative, unveiled on Thursday, is part of the IRS’s ongoing campaign to target affluent tax evaders, partly driven by funding allocated through the Democrats’ Inflation Reduction Act enacted in 2022 and a directive from Treasury Secretary Janet Yellen instructing IRS leadership not to escalate audit rates for individuals earning less than $400,000 annually.

IRS Commissioner Daniel Werfel conveyed to reporters on Thursday morning, “When people don’t file a tax return they’re required to, it’s not fair to those hardworking taxpayers who responsibly do their civic duty under the laws of our nation.” He emphasized the importance of ensuring that individuals comprehend the consequences of failing to file their taxes.

In recent months, the IRS has unveiled several new initiatives aimed at addressing tax evasion among high-net-worth individuals who exploit the tax system or neglect their tax obligations.

For instance, just last week, IRS officials announced plans to initiate numerous audits targeting businesses’ usage of private jets by executives for personal purposes, often claimed as tax deductions. Additionally, earlier this year, the agency reported recovering approximately half a billion dollars in overdue taxes from affluent delinquent taxpayers.

Werfel acknowledged that the IRS’s efforts to address non-filers have been sporadic since 2016 due to insufficient funding and staffing. However, with the additional resources allocated through the Inflation Reduction Act, Werfel stated, “the IRS now has the capacity to do this core tax administration work.”

He underscored the significance of the initiative, stating, “This isn’t a small group of people we’re talking about.”

{Matzav.com}