$1.3B in Unpaid Taxes Recovered from High-Income Americans Under Inflation Reduction Act
Recovery of $1.3B in High-Income Tax Debt
The Treasury Department announced the recovery of $1.3 billion in unpaid taxes from high-income Americans. This initiative is part of a broader effort under the Biden administration's Inflation Reduction Act to guarantee that affluent individuals fulfill their tax obligations.
IRS's Aggressive Tax Collection Plan
Starting in February 2024, the IRS plans to pursue 125,000 high-income, high-wealth taxpayers who have not filed taxes since 2017. These individuals were identified based on third-party income reports like W2 and 1099 forms.
- Inflation Reduction Act Benefits: The act has enabled the IRS to enhance its funding, allowing for better oversight of tax compliance.
- Political Controversy: The funding has sparked debate, with Republicans questioning the focus on middle-class taxpayers.
- Filing Surge: Within six months, approximately 21,000 wealthy taxpayers filed, contributing an initial $172 million in taxes.
Continued Efforts Yield Results
The effort that began in fall 2023 has already yielded significant results, with $160 million collected in the last year alone. Remarkably, nearly 80% of 1,600 millionaires with delinquent tax debts have failed to make any payment, resulting in the recovery of over $1.1 billion
Treasury Secretary Janet Yellen is set to discuss these developments alongside IRS Commissioner Danny Werfel in Austin, Texas.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.