The IRS has been successful in recovering more than $1.3 billion in unpaid taxes from wealthy individuals who owed more than $250,000 in recognized tax debt. Treasury Secretary Janet Yellen and IRS Commissioner Danny Werfel disclosed this figure during a visit to an IRS campus in Austin, Texas. This amount is an increase from the $1 billion recovered in July. Yellen highlighted that the top 1% of wealthy Americans owed more than one-fifth of all unpaid taxes in 2019, placing a burden on ordinary Americans.
In response to the significant amount of unpaid taxes from wealthy individuals, the IRS has focused on combating tax evasion by investing in resources to address the issue. Nearly 80% of the 1,600 millionaires targeted for tax delinquency have made payments following the IRS’s efforts. Additionally, this year alone, the IRS collected $172 million from 21,000 wealthy taxpayers who had not filed tax returns since 2017. The IRS has also taken steps to crack down on businesses wrongfully deducting personal flights on corporate jets.
Despite the success of the IRS in recovering unpaid taxes from wealthy individuals, Republicans have expressed opposition to increasing the agency’s funding. They argue that increasing resources for the IRS could negatively impact middle-class taxpayers and small business owners, as it would likely lead to increased taxpayer scrutiny. Audit rates have dropped significantly over the past decade, from 7.2% in 2011 to 0.7% in 2019, according to the IRS.
The focus on recovering unpaid taxes from wealthy individuals is part of a broader effort by the IRS to ensure tax compliance across all income levels. By targeting millionaires with significant tax debt, the IRS aims to level the playing field and prevent high-income individuals from shirking their tax responsibilities. The agency’s increased investment in combating tax evasion has resulted in substantial collections from delinquent taxpayers, sending a strong message to those who attempt to evade their tax obligations.
In conclusion, the IRS’s efforts to recover unpaid taxes from wealthy individuals have been successful, with over $1.3 billion collected from those who owed significant tax debt. Treasury Secretary Janet Yellen and IRS Commissioner Danny Werfel have emphasized the importance of addressing the tax gap and ensuring that all individuals pay their fair share of taxes. Despite criticism from some Republicans regarding increased IRS funding, the agency’s efforts have proven effective in holding wealthy taxpayers accountable and reducing tax evasion. Moving forward, the IRS remains committed to promoting tax compliance and closing the gap on unpaid taxes among wealthy Americans.
