The IRS said funding from the Inflation Reduction Act has helped it go after wealthy taxpayers who failed to pay their tax bills.

The IRS said Friday that it has recovered $1.3 billion in unpaid taxes from high-income Americans who had either failed to file their returns or who hadn’t fully paid what they owed.

The announcement, made jointly with the U.S. Treasury Department, is aimed at highlighting the agency’s ramped-up enforcement efforts against tax cheats, which have been funded under the 2022 Inflation Reduction Act.

That IRS funding has proved controversial, with some Republican lawmakers falsely claiming the money would be used to hire 87,000 new IRS agents to “to audit Walmart shoppers.”

  • partial_accumen
    1•3 months ago

    Well the $70,000 average recouped per person in this effort would certainly imply that those targeted are indeed “rich”, or at least high income.

    So an annual before tax income of $218,750 is considered rich then? (32% is the tax rate which would produce $70,000 tax liability in a single year). I understand this is purely subjective. There’s no right or wrong answer. I appreciate you sharing your view.

    • @NewNewAccount
      1•3 months ago

      So an annual before tax income of $218,750 is considered rich then?

      I mean, yeah? Kind of? I’d say it’s at least lower-upper class, which some people may consider rich. But, again, in my head rich is more about net worth, not income. Once someone’s investments are working for them then I’d say that’s a key indicator.