IRS Collected Another $360 Million from Delinquent Millionaires

[iluvatar5150]

IRS says it collected $360 million more from rich tax cheats as its funding is threatened yet again

The IRS says it has collected an additional $360 million in overdue taxes from delinquent millionaires.

apnews.com

WASHINGTON (AP) — The IRS says it has collected an additional $360 million in overdue taxes from delinquent millionaires as the agency’s leadership tries to promote the latest work it has done to modernize the agency with Inflation Reduction Act funding that Republicans are threatening to chip away.

Along with the $122 million collected from delinquent millionaires last October, now nearly half a billion dollars in back taxes from rich tax cheats has been recouped, IRS leaders say.

 

[essentialsaltes]

IRS expects to collect hundreds of billions more in overdue and unpaid taxes thanks to new funding​

Tax revenues are expected to rise by as much as $561 billion from 2024 to 2034, thanks to stepped-up enforcement made possible with money from the Democrats’ Inflation Reduction Act, which became law in August 2022.

 

[essentialsaltes]

Thousands of millionaires haven’t filed tax returns for years, IRS says​

Thousands of high-income earners have not filed tax returns for several years, but the cash-strapped Internal Revenue Service did nothing to get them to pay what they owe.

That changes now, the tax agency announced Thursday. The IRS will send notices to thousands of people who made more than $400,000 and did not file returns in at least one year from 2017 to 2022, the first step to collecting any tax owed.

About 25,000 cases involve people whose income is known to the agency to be above $1 million, IRS Commissioner Danny Werfel said.

As Congress slashed the IRS’s funding in the last decade, the agency’s shrinking staff did less to enforce tax compliance — including one of the most basic tasks, simply sending letters to people who fail to file their tax return. Werfel said the “non-filer program” last operated in 2016, with only sporadic attempts since then to contact non-filers.

hmmmm....

 

[essentialsaltes]

IRS plans to increase audit rates of wealthy [$10,000,000 and up] taxpayers by 50%​

The IRS also plans to triple the audit rates of large corporations with assets over $250 million, as well as increase the audit rates of business partnerships with assets over $10 million by tenfold over the seven-year period.

IRS Commissioner Danny Werfel has repeatedly said the agency is committed to shielding American households that earn less than $400,000 a year from an increase in audit rates. Specifically, audit rates of those Americans will not exceed what they were in 2018, a record-low year, he said Thursday on a call with reporters.

The IRS is also using the funding from the Inflation Reduction Act to modernize taxpayer services. As a result, the agency was able to answer 1 million more calls this year than it did during the previous tax season.

Earlier this year, the IRS launched a pilot version of its own tax filing service that allowed Americans to file their returns for free directly with the IRS.

 

[essentialsaltes]

Earlier this year, the IRS launched a pilot version of its own tax filing service that allowed Americans to file their returns for free directly with the IRS.

IRS announces Direct File as permanent free tax-filing option starting next year​

The program was rolled out on a limited basis this year.

In a release, the IRS, along with the U.S. Treasury Department, said its Direct File pilot program, which rolled out on a limited basis earlier this year, saw 140,000 taxpayers claim more than $90 million in refunds and save an estimated $5.6 million in filing costs.

Direct File is designed for filers with relatively straightforward tax returns — like W2s or Social Security income — and who take the standard deduction. Other types of income, like those from gig work or other business returns, are not eligible.

 

[RocksInMyHead]

Twelve states have already signaled opposition to doing so, echoing complaints by TurboTax parent Intuit that Direct File is a waste of taxpayer resources.

"Wait, what do you mean we can't scam half the US population out of $80-$120 every year just to submit a simple 1040-EZ?"

 

[essentialsaltes]

Thread title now should be $1 billion.

IRS reports collecting $1 billion from rich households’ back taxes​

For years, the tax agency simply didn’t try collecting sizable debts owed by 1,600 people with annual incomes of at least $1 million.

“The tax bill wasn’t even in dispute — the taxes were clearly owed by these people,” IRS Commissioner Danny Werfel said in a call with reporters. “But we didn’t have the people or the resources. … It takes time and staffing to work through these cases.”

Some of [the new hires that came with IRS funding in the Inflation Reduction Act] have focused their efforts on specific groups of tax delinquents, including a group of 1,600 households with annual incomes above $1 million who were all known to owe at least $250,000 in back taxes, based on their previous tax returns.

[A few delinquents paid up immediately.] Others took much more effort, and in some cases, levies on the taxpayers’ assets to collect the money. Werfel described months of letters back and forth between the IRS’s new agents and the millionaires’ accountants and lawyers.

 

[Palmfever]

Will now be able to purchase a couple hammers and a toilet seat.

 

[essentialsaltes]

Closing asset loophole can raise $100 billion in taxes, Treasury now says​

The new estimate doubles what the agency previously said it could recover by preventing certain large businesses from manipulating the taxable value of assets.

The IRS’s pledge to go after the practice known as “basis shifting” has made waves among accountants for the largest and most complex business partnerships. Some of them say that the true amount of taxes avoided far dwarfs even the $100 billion figure, though the IRS is unlikely to ever find anywhere close to all of the money.

Basis shifting allows complex partnership businesses to shift the value of certain assets, such as land or machinery, by moving assets from one business to another one that are linked entities. The moves can allow the partnership to depreciate the same asset over and over again in some cases, greatly reducing tax bills.

Lawyers and accountants for the partnerships say it is legal, and that Congress could pass a ban if lawmakers want to stop the practice. Biden administration officials view basis shifting for the sole purpose of reducing tax bills as illegal, citing a rule known as the “economic substance doctrine” that says the transactions must have a purpose other than just avoiding taxes.

The 2022 Inflation Reduction Act, which included tens of billions of dollars for the IRS, gave the tax agency resources to improve customer service and enforcement — including more auditors focused on partnerships.

[The GOP has been looking to cut those funds, but the new estimate (if accurate) would mean the IRS spending would more than pay for itself in increased revenue.]

 

[essentialsaltes]

IRS announces Direct File as permanent free tax-filing option starting next year​

The program was rolled out on a limited basis this year.

29 House Republicans want Trump to scrap the IRS's free direct tax-filing tool on day one of his presidency​

Many Americans rely on tax-prep companies such as TurboTax and H&R Block to do their taxes each year. The new program is designed to compete with those programs and make filing easier and less costly for Americans.

Republican Reps. Adrian Smith of Nebraska and Chuck Edwards of North Carolina sent a letter to the president-elect on Tuesday urging him to end the program via executive order, saying it posed a "threat to taxpayers' freedom from government overreach."

They also cast the free Direct File program as an example of the "weaponization of government against Americans," a long-standing focus of Trump and the MAGA-aligned right.

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Popular free government service or weapon threatening American citizens... you make the call.

 

[iluvatar5150]

29 House Republicans want Trump to scrap the IRS's free direct tax-filing tool on day one of his presidency​

Many Americans rely on tax-prep companies such as TurboTax and H&R Block to do their taxes each year. The new program is designed to compete with those programs and make filing easier and less costly for Americans.

Republican Reps. Adrian Smith of Nebraska and Chuck Edwards of North Carolina sent a letter to the president-elect on Tuesday urging him to end the program via executive order, saying it posed a "threat to taxpayers' freedom from government overreach."

They also cast the free Direct File program as an example of the "weaponization of government against Americans," a long-standing focus of Trump and the MAGA-aligned right.

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Popular free government service or weapon threatening American citizens... you make the call.

All of center-left media/forums/etc are crowing about how one of the reasons so many urban minorities have abandoned the Democratic party is because of Dems' poor track record on governance in their cities.

^THIS^ is what we lost to.

 

[essentialsaltes]

Closing asset loophole can raise $100 billion in taxes, Treasury now says​

The new estimate doubles what the agency previously said it could recover by preventing certain large businesses from manipulating the taxable value of assets.

The IRS’s pledge to go after the practice known as “basis shifting” has made waves among accountants for the largest and most complex business partnerships. Some of them say that the true amount of taxes avoided far dwarfs even the $100 billion figure, though the IRS is unlikely to ever find anywhere close to all of the money.

Basis shifting allows complex partnership businesses to shift the value of certain assets, such as land or machinery, by moving assets from one business to another one that are linked entities. The moves can allow the partnership to depreciate the same asset over and over again in some cases, greatly reducing tax bills.

Lawyers and accountants for the partnerships say it is legal, and that Congress could pass a ban if lawmakers want to stop the practice. Biden administration officials view basis shifting for the sole purpose of reducing tax bills as illegal, citing a rule known as the “economic substance doctrine” that says the transactions must have a purpose other than just avoiding taxes.

The 2022 Inflation Reduction Act, which included tens of billions of dollars for the IRS, gave the tax agency resources to improve customer service and enforcement — including more auditors focused on partnerships.

[The GOP has been looking to cut those funds, but the new estimate (if accurate) would mean the IRS spending would more than pay for itself in increased revenue.]

Sorry, everyone. It appears the billionaires like this loophole.

Trump's IRS ditches effort to close major loophole​

 

[Say it aint so]

Sorry, everyone. It appears the billionaires like this loophole.

Trump's IRS ditches effort to close major loophole​

These are not the droids you're looking for.
Look over there -------------------------------- > God, Guns, Gays Sharia Law, CRT DEI and those ten transgender college student-athletes