Date of Posting : March 1, 2024

The IRS is targeting 125,000 high-income earners who have not filed tax returns since 2017, aiming to recover hundreds of millions in unpaid taxes. This initiative is part of a broader effort to combat tax evasion among high-wealth individuals.

The Internal Revenue Service (IRS) has initiated a significant crackdown on wealthy individuals who have failed to file tax returns, targeting 125,000 high-income earners. The agency aims to address hundreds of millions of dollars in unpaid taxes linked to these cases. The enforcement action will involve sending noncompliance letters to over 25,000 individuals earning more than $1 million annually and 100,000 individuals with incomes ranging from $400,000 to $1 million who have not fulfilled their tax obligations between 2017 and 2021.

This campaign is part of the IRS’s ongoing strategy to combat tax evasion among high-wealth individuals. The effort has been bolstered by funding allocated through the Democrats’ Inflation Reduction Act of 2022 and a directive from Treasury Secretary Janet Yellen to focus on pursuing tax cheats among the wealthy without increasing audit rates for individuals earning less than $400,000 annually.

IRS Commissioner Daniel Werfel emphasized the importance of holding individuals accountable for their tax responsibilities, stating that failure to file taxes has consequences and undermines the fairness of the tax system. Recent IRS initiatives have included targeting high-wealth individuals who exploit loopholes or evade taxes. The agency’s increased capacity for such enforcement actions stems from enhanced resources provided through recent legislation.
This crackdown underscores the IRS’s commitment to ensuring tax compliance among all income brackets and sending a clear message that tax evasion will not be tolerated.