IRS collected $360M more from rich tax cheats as its funding is threatened yet again
WASHINGTON — The IRS says it has collected another $360 million in back taxes from delinquent millionaires, as the agency’s leadership tries to promote the latest work it has done to modernize the agency with funding from the Inflation Reduction Act that Republicans threaten to steal away.
The leadership of the federal tax collector held a call with reporters Thursday to provide updates on how the agency has used some of the tens of billions of dollars allocated to the agency through the Democrats’ Inflation Reduction Act, which will become law in August 2022 was signed.
Together with the $122 million collected from delinquent millionaires last October, nearly half a billion dollars in back taxes from wealthy tax fraudsters have now been recovered, IRS leaders say.
The announcement comes as the IRS braces for a tougher round of cuts.
Cuts previously agreed to by the White House and congressional Republicans in the debt ceiling and the austerity package passed by Congress last year — including $20 billion withdrawn from the IRS over two years — would be brought forward if part of the overall spending package for the current fiscal year that could help avoid a partial government shutdown later this month.
IRS Commissioner Daniel Werfel said that “the impact of the repeal being discussed as part of the current budget will not impact our efforts until later years.”
He said the agency would still spend its current $60 billion allocation over the next decade and would spread the need for more funding into later years.
“Our intent is to spend the money in a way that will have maximum impact and help taxpayers,” he said, “to have maximum impact now and for the foreseeable future.”
“My hope is that as we demonstrate the positive impact that IRA funding has for all taxpayers, at that point there will be a need and a desire among policymakers to restore IRS funding so that we can continue the momentum that has a very positive impact. impact,” says Werfel.
The IRS says it opened 76 investigations in December into the largest partnerships in the U.S., including hedge funds, real estate investment partnerships and major law firms.
“It is clear that funding the Inflation Reduction Act makes a difference for taxpayers,” Werfel said. “To continue making progress, we must maintain reliable, consistent annual appropriations for our agency.”
The 2024 tax season starts on January 29, the IRS says.