Latest News, Local News, International News, US Politics, Economy

IRS Cracks Down on Unfiled Tax Returns Among High Earners

The IRS is launching a major initiative to collect unpaid taxes from high earners who haven’t filed tax returns in years. 

This crackdown targets individuals who made significant income but failed to fulfill their tax obligations.

Closing the Gap on Unfulfilled Tax Obligations

  • The agency is sending notices to 25,000 individuals who earned over $1 million annually between 2017 and 2021 without filing tax returns.
  • An additional 100,000 people who earned between $400,000 and $1 million during the same period and didn’t file are also being targeted.

This effort is made possible by increased funding allocated to the IRS through the Inflation Reduction Act. 

These resources allow the agency to pursue cases that were previously sidelined due to budget and staffing limitations.

The Internal Revenue Service (IRS) is taking a long-overdue step towards collecting unpaid taxes from high earners who have shirked their tax responsibilities for years. This significant crackdown targets a persistent problem: tax delinquency among affluent individuals. The initiative holds the potential to recover hundreds of millions of dollars in lost revenue, a critical boost for the government’s coffers.

The campaign has a two-pronged approach, focusing on distinct groups of tax delinquents:

  • Millionaires Under the Microscope: The IRS will send notices to a staggering 25,000 individuals who earned over $1 million annually between 2017 and 2021, yet failed to file a single tax return during that period. This deliberate targeting sends a clear message that those with substantial financial resources cannot expect to escape their tax obligations.
  • Casting a Wider Net: The agency isn’t stopping there. They’re also reaching out to an additional 100,000 individuals who earned between $400,000 and $1 million annually but neglected to file their tax returns for the same five-year period. By including this broader category, the IRS casts a wider net to capture a significant portion of non-filers. This ensures that a larger segment of tax-delinquent individuals are held accountable.

Read more: AI Officer Position Surpasses $1 Million Mark, Becomes Premier High-Paying Job

IRS Targets Non-Filers: Potential for Billions in Unpaid Taxes Uncovered

California’s ongoing homeowners insurance crisis is worsening as another major insurer, American National, prepares to leave the state.

This renewed focus on tax collection is a direct result of the increased funding allocated to the IRS through the recent Inflation Reduction Act. Prior to this, a lack of resources severely hampered the agency’s ability to pursue non-filer cases. Budgetary constraints and staff limitations meant that many such cases remained unaddressed, leading to a growing backlog of unpaid taxes.

The additional funding represents a critical turning point. With increased capacity, the IRS can now dedicate necessary resources to tackling the issue of non-filers. 

This enhanced capability is a crucial step in ensuring a fairer and more equitable tax system where everyone contributes their fair share.

The IRS isn’t starting from scratch. They’re leveraging valuable information from third-party sources, such as 1099 forms. These forms, used to report income earned outside of traditional employment, provide a window into the economic activity of non-filers. 

According to the IRS, the data paints a concerning picture: unreported income exceeding $100 billion is linked to these individuals. This staggering figure underscores the potential magnitude of tax revenue that could be recovered through this initiative.

IRS Commissioner Danny Werfel recognizes that some non-filers may have made unintentional mistakes or faced complex tax situations. He’s urging those who haven’t filed tax returns to come forward and take steps to rectify their situation.

 The IRS website ( offers resources and information to help individuals understand their tax obligations and navigate the process of settling outstanding tax liabilities. Additionally, Werfel recommends seeking professional help from a qualified tax professional to ensure accurate reporting and resolution of any tax issues.

While the IRS initiative represents a positive step towards collecting unpaid taxes, it’s important to acknowledge the broader context of government funding and spending issues. 

The IRS crackdown on high-income tax delinquents sends a clear message: neglecting tax obligations will no longer be tolerated. With increased resources and a focus on leveraging existing data, the agency aims to recover substantial amounts of unpaid taxes.  

This initiative, while existing within a larger context of budgetary complexities, signifies a crucial step towards a more equitable and efficient tax system. It’s a long-awaited reckoning for wealthy tax evaders, and a potential windfall for the government’s coffers.

Read more: Terraform Labs, A Crypto Pioneer, Initiates Chapter 11 Bankruptcy Proceedings

Leave A Reply

Your email address will not be published.