The agency credited the passage of the Inflation Reduction Act for its stepped-up ability to pursue high-income, high-wealth individuals who owe money.
The IRS announced Friday that it has recently collected more than half a billion dollars from millionaire Americans who owed tax debt.
The agency credited the passage of the Inflation Reduction Act for its stepped-up ability to pursue “high-income, high-wealth individuals,” as well as complex partnerships and large corporations, who are not paying overdue tax bills.
The IRA, pushed by President Joe Biden and approved in 2022, earmarked $80 billion over 10 years to step up the IRS’ enforcement capabilities. While $20 billion was ultimately clawed back in 2023 as part of the deal to head off a debt-ceiling crisis, the agency indicated it had already made use of its initial allotment.
Over the past year, the IRS said, enforcement officers had recouped approximately $520 million from the most well-off segments of society.
The Biden administration previously pledged to freeze audit rates for filers with $400,000 or less.
I hadn’t heard this, but I’m very disillusioned, discouraged and angry right now.
I’m 40, a teacher, single income (widowed) with two children. I don’t make six figures. But guess who got the IRS on their ass for the first time ever this year?
Apparently I guessed a line wrong on my 1040 last year in Tax Game. Or Turbo Tax did, because I just feed it all the digital documents I get. IRS let me know I get to redo that form (back to start!) and will probably have to pay back $50 of my refund. GOTTEM!
Just send me a fucking bill. For 8 billion per year, and you already know what I should pay, just send me a god damned bill. Fuck this.
They are piloting the “just send a bill” program this year in 12 states thanks to the IRA Biden passed. It’s called Direct file.
If you live in one of those 12 states and just do the 1040ez, you may literally be able to just have them send you the goddamn bill.
Participating states The Direct File pilot will be available to eligible participants in these states:
Arizona
California
Florida
Massachusetts
Nevada
New Hampshire
New York
South Dakota
Tennessee
Texas
Washington state
Wyoming
The pilot is not an option for you if you did not live in one of the 12 participating states in 2023.
Damn I don’t qualify. I hope it goes well in those states and expands.
Editing for formatting.
And that’s why I like the German system. A part of your your income(income tax) directly goes to our version of the IRS. At the end of the year you can do a tax computation and maybe get taxes back if you payed to much, but you aren’t required to do that.
Yes, it’s the same in the US but sometimes people don’t set it up right so the correct amount is not withheld from their income and they have to pay back the difference at the end of the year. For the majority of people, they get money back from the government. There are lots of sales every year around tax filing time because so many people get a sudden amount of money back from the government.
Being a little hyperbolic, aren’t we? You didn’t get the IRS “on your ass,” your form failed an automated check.
The Biden administration previously pledged to freeze audit rates for filers with $400,000 or less.
It “failed an automatic check” because it knows I got a number wrong. If it knows what the form is supposed to be, why do I have to refill the form? Or fill the form to begin with?
No amount of hyperbole can make that reality any more ridiculous.
Good. Now get the other 60 trillion.
You mean the people good at hoarding money are good at lying about how much money they’re hoarding?
I just realized that the IRS has a last name! It’s LEE!
Spending 8 billion to find half a billion doesn’t sound like something worth bragging about. Let me know when they 20x that number.
I was curious what that funding is used for and found this:
While the Inflation Reduction Act does include $78 billion over 10 years for the IRS, that money is mainly to help the agency backfill thousands of existing positions, such as IT people, taxpayer customer support — and, yes, auditors. But they will primarily be assigned to focus on ultrawealthy Americans and corporate tax cheats.
https://www.huffpost.com/entry/republicans-87000-irs-agents-biden_n_63110a90e4b07d96a24c63d0
They’ve recovered half a billion in the first year.
Yes and that’s why I said 8 billion and not 80, I accounted for the fact that this was one year worth of work.
The ROI won’t be a step function, like the flick of a switch.
But the additional money was effectively $8 billion per year ($80 billion over 10 years). I very much want to force the rich to pay taxes…but I want it to cost less than the taxes they collect to do it.
Hopefully it keeps ramping up in the coming years.Do you think this is their only accomplishment, or just the one they want most obviously publicized?
Certainly not the only accomplishment, but I expect between the agency itself and the politicians who pushed for the budget allocations, they would want to advertise the biggest number they can come up with to justify the funding. What I think is that $520 million was the biggest number they could reasonably justify reporting.
Hey, I’m gonna share a few little dad-isms that my dad shared with me many many moons ago that hopefully will help you put things into perspective when you’re feeling impatient. I know it did for me.
You gotta break a few eggs to make an omelette
Sometimes it’s about sending a message to let 'em know you’re watching
Nothing worthwhile in life comes easy
People will get away with whatever you let them get away with
There’s no honor amongst thieves
Fast, easy, cheap: pick two
You have to learn to walk before you can learn to run
The journey of a million miles begins with a single step
and the similar
You can eat an entire elephant a single bite at a time
Have you tried more than one news article before reaching your conclusions?
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