IRS IS CRACKING DOWN
The IRS has made it clear: they’re targeting the ultra-rich who’ve been skipping out on filing their tax returns. With a focus on individuals earning over $400,000 annually, the agency is on a mission to recoup hundreds of millions in unpaid taxes discovered in about 125,000 cases spanning from 2017 to 2021.
In a move kicked off last week, the IRS began sending out non-compliance notices to these high earners. While the exact amount owed remains uncertain, the agency estimates it’s dealing with “hundreds of millions of dollars” in unpaid taxes. Specifically, they’ll be sending out 25,000 notices to those with over $1 million in income and over 100,000 notices to folks earning between $400,000 and $1 million during the specified tax years. Altogether, these non-filers are suspected to be involved in financial activities totaling over $100 billion, according to the IRS.
Compliance Alerts
The IRS will also be dispatching compliance alerts, known as CP59 notices, to those suspected of dodging their tax obligations. Expectations are that 20,000 to 40,000 notices will be sent weekly, starting with those in the highest income brackets.
IRS Commissioner Danny Werfel emphasized the importance of everyone fulfilling their civic duty, particularly during tax season. “At this time of year when millions of hard-working people are doing the right thing paying their taxes, we cannot tolerate those with higher incomes failing to do a basic civic duty of filing a tax return,” Werfel stated. “The IRS is taking this step to address this most basic form of non-compliance, which includes many who are engaged in tax evasion.”
This crackdown on tax evasion is part of a broader initiative by the IRS to tackle the issue. Acknowledging previous shortcomings in tax compliance efforts due to budget and staff limitations, the agency now has the financial backing from President Joe Biden’s Inflation Reduction Act to go after wealthy tax evaders.
Get Compliant and Get Tax Relief
Morris and Associates are experts when it comes to helping individuals and companies find tax relief in Georgia but can help no matter where you live. If you receive a CP59 notice or if you are contact by the IRS that you owe tax, contact us to help get you compliant and possibly even reduce the amount that you owe.
