The IRS plans to go after 125,000 high-income earners who didn’t file tax returns going again to 2017 — and the company says tons of of tens of millions of {dollars} of unpaid taxes are concerned in these instances.
Starting this week, the IRS will begin sending out noncompliance letters to greater than 25,000 individuals who earn greater than $1 million per yr and 100,000 individuals with incomes between $400,000 and $1 million who did not pay their taxes between 2017 and 2021.
The marketing campaign introduced Thursday is a part of the company’s ongoing effort to pursue excessive wealth tax cheats — mandated partially by funding supplied by Democrats’ Inflation Discount Act handed into regulation in 2022 and a directive from Treasury Secretary Janet Yellen to IRS management to not enhance audit charges on individuals making lower than $400,000 a yr yearly.
“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,” IRS Commissioner Daniel Werfel advised reporters Thursday morning.
“And when people don’t file their taxes, they need to know there’s a consequence.”
The IRS in latest months has introduced a slew of latest campaigns aimed toward focusing on high-wealth people who misuse the tax system or fail to pay their obligations.
As an example, final week IRS management stated the company will begin up dozens of audits on companies’ non-public jets and the way they’re used personally by executives and written off as a tax deduction. And earlier this yr, the company introduced it had collected roughly half a billion {dollars} in overdue taxes from delinquent millionaires.
Werfel stated the company’s non-filer packages have solely run sporadically since 2016 because of lack of funding and staffing. However because the federal tax collector acquired sources from the IRA, “the IRS now has the capacity to do this core tax administration work,” he stated.
“This isn’t a small group of people we’re talking about.”
