The Internal Revenue Service (IRS) announced Friday that it is aggressively pursuing 1,600 millionaires and 75 large corporate partnerships that owe hundreds of millions of dollars in overdue taxes.
With increased federal funding and help from artificial intelligence tools, IRS Commissioner Daniel Wayfair says the agency has new tools for the rich They “cut corners” on taxes.
“If you pay your taxes on time, it’s going to be especially frustrating when you see wealthy taxpayers who don’t pay their taxes on time,” Wayfair told reporters on a conference call previewing the announcement. He said the new “Compliance Efforts” targets 1,600 millionaires who each owe at least $250,000 in taxes and 75 large business partnerships with average assets of about $10 billion.
Wayfair said a massive recruiting effort and artificial intelligence research tools developed by IRS employees and contractors have played an important role in identifying wealthy tax evaders.The agency is working hard to show its positive results A burst of new money Under President Joe Biden’s Democratic administration, congressional Republicans want to claw back some of the money.
“New tools are helping us see patterns and trends we couldn’t see before, so we’re more confident about where to look and discover where large partnerships are protecting revenue,” he said.
In 2021, a team of academic economists and IRS researchers found that the top 1 percent of earners in the U.S. Not reporting more than 20% of revenue to the IRS.
The newly announced tax work could start as soon as October.
“We have more recruiting to do,” Wayfair said. “It’s going to be a very busy fall for us.”
Federal tax collectors have enhanced their ability to identify tax delinquents with resources from: Reducing Inflation Actwhere Biden signed into law August 2022. Under the law, the agency is expected to receive an $80 billion injection, but that funding is vulnerable to potential cuts by Congress.
House Republicans cut $1.4 billion File the debt ceiling and budget cuts Congress passed this summer with the IRS. The debt deal also has a separate agreement to take $20 billion from the IRS over the next two years and divert that money to other nondefense programs, the White House said.
with the threat A government shutdown is looming The agency is likely to make further cuts amid disputed spending levels.
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