July 11th, 2024

IRS Collects $1B in Back Taxes from Millionaires

The IRS collected $1 billion in back taxes from millionaires through a targeted initiative. House Republicans proposed budget cuts, potentially impacting tax enforcement efforts. IRS faces challenges in increasing audit activities efficiently.

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IRS Collects $1B in Back Taxes from Millionaires

The IRS has successfully collected $1 billion in back taxes from millionaires since 2023 through an initiative targeting high-income individuals with recognized tax debts. This effort focused on about 1,600 individuals, resulting in an average tax levy of $625,000 per person. The IRS aims to generate significant revenue, potentially up to $851 billion over the next decade, by continuing investments under the Inflation Reduction Act. Despite these successful collections, House Republicans proposed budget cuts for the IRS, including a $2 billion cut to enforcement funding, which could impact efforts to improve tax fairness and compliance. To enhance audit coverage for the top 1% of earners, the IRS would need to significantly increase its audit activities. The agency's slow expenditure of its enforcement budget poses challenges in ramping up enforcement efforts, highlighting the importance of strategic investment in targeting high-income individuals for tax compliance.

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By @exabrial - 6 months
The problem isn't tax revenue.

The problem is the federal government spends $1billion dollars every 1.46 hours.

We collect an _absurd_ amount of taxes. Far Far Far Far too much. The vast majority of it is wasted.

Collecting more isn't going to solve the problem and it never has.

By @ddoolin - 6 months
This is why Republicans are trying to defund the IRS.
By @tonetegeatinst - 6 months
One interesting thing is that the us government can.leverage its national debt....or so it claims.....as this is why we are apparently not freaking out over the debt crisis. The government has learned to use debt as a measure of "progress" like sure technically every us citizen is responsible for that debt but when every vote gets to decide on a handful of people.... Millions could disagree with the representative and yet they still are responsible.

Like imagine if the average person could just decide they arnt going to be able to cover interest on the debt they have, yet they still could print tons of money. Money that's only backed by their word, and the debt gets used in your local town negotiations as a weapon.

By @mylastattempt - 6 months
This only affects the IRS's cashflow, it's a matter of collecting as the title states. No new policies or tax laws are responsible for this $1B. Just working harder or more focussed at collecting. A good thing, for sure, but not something new or newsworthy for HN if you ask me.
By @anon373839 - 6 months
> The cuts were couched as preventions against the IRS “targeting hardworking Americans”—but enforcement actions in general have focused on individuals making $400,000 or more

Is the assumption here that if one’s skills are worth $400k, one isn’t hardworking?

By @mythrwy - 6 months
The federal treasury also spent 140 billion paying just interest on the national debt in June alone (nearly 900 billion year to date).

So, this isn't even a drop in the bucket.