WASHINGTON (dpa-AFX) - The U.S. Department of the Treasury and the Internal Revenue Service announced that $172 million was recovered from 21,000 wealthy taxpayers who have not filed tax returns for the past seven years.
The IRS in February hd launched an initiative to pursue 125,000 high-income, high-wealth taxpayers who have not filed taxes since 2017. IRS had received third party information indicating these people received income between $400,000 and $1 million or more than $1 million, but failed to file a tax return.
In the first six months of this initiative, nearly 21,000 of these wealthy taxpayers have filed, leading to $172 million in taxes being paid.
The IRS in the fall of 2023 launched a new initiative using Inflation Reduction Act funding to pursue high-income, high-wealth individuals who have failed to pay recognized tax debt, with dozens of senior employees assigned to these cases.
IRS officials concentrated on taxpayers with more than $1 million in income and more than $250,000 in recognized tax debt. The IRS was previously unable to collect from these individuals due to a lack of resources.
After successfully collecting $38 million from more than 175 high-income, high-wealth individuals last year, the IRS expanded this effort last fall to around 1,600 additional high-income, high-wealth individuals. Nearly 80 percent of these millionaires with delinquent tax debt have now made a payment, leading to recovery of more than $1.1 billion. This is an additional $100 million since July, when Treasury and IRS announced reaching the $1 billion milestone.
U.S. Secretary of the Treasury Janet L. Yellen and Commissioner of the Internal Revenue Service Danny Werfel announced new milestones under Inflation Reduction Act initiatives while delivering remarks at the IRS campus in Austin, Texas. They said the initiative was launched to ensure wealthy individuals pay taxes owed, improve service for taxpayers through the Digital First Initiative, and modernize foundational technology.
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