IRS Emphasizes Strides as It Presses to Keep Funding
IRS Emphasizes Strides as It Presses to Keep Funding
IRS ramps up enforcement efforts to close the tax gap and ensure fair tax compliance.
The IRS, under Commissioner Danny Werfel, is intensifying efforts to collect owed taxes, targeting U.S. subsidiaries of foreign corporations, initiating audits of 60 large corporations, and continuing investigations of high-wealth individuals who evade tax payments.
Werfel emphasized that compliance leads to a fairer tax system and helps close the projected tax gap of $688 billion in 2022. The focus is on:
1: U.S. subsidiaries of large foreign companies that distribute goods in the U.S., about 150 of which will receive compliance alerts to remind them of their U.S. tax obligations.
2: Large corporate taxpayers with significant assets and taxable income, with 60 corporations set to be audited beginning in early 2024.
3: Companies that filed amended returns totaling $6 billion to claim the repealed Sec. 199 domestic production activities deduction.
4: High-income, high-wealth individuals who fail to file tax returns or pay taxes on time. The IRS is concentrating on 1,600 taxpayers with over $1 million in income and $250,000 in recognized tax debt, collecting $122 million in 100 of those cases.
The IRS is also launching online business tax accounts, improving various types of online accounts, and implementing technology upgrades, including enhanced document scanning. The efforts come under the Inflation Reduction Act, allocating $60 billion to the IRS over 10 years. For more information click the link!
