The IRS says it has collected an additional $360 million in overdue taxes from delinquent millionaires as agency leadership tries to promote the latest work done to modernize the agency with Inflation Reduction Act funding. Which Republicans are threatening to end. ,
Federal tax collector leadership spoke with reporters Thursday to outline how the agency has used a portion of the billions of dollars allocated to the agency through the Democrats’ Inflation Cut Act signed into law in August 2022.
IRS leaders say nearly half a billion dollars in back taxes has now been taken back from wealthy tax cheats, along with the $122 million recovered from convicted millionaires last October.
The announcement comes as the IRS prepares for an even more severe round of funding cuts.
Agency cuts already agreed to by the White House and congressional Republicans in the debt ceiling and budget cuts package passed by Congress last year — which included $20 billion taken out of the IRS over two years — will be put forward as part of the overall spending package. . current fiscal year that could help it avoid a partial government shutdown at the end of this month.
IRS Commissioner Daniel Werfel said that “the repeal being discussed as part of the current budget will not impact our efforts until later in the year.”
He said the agency will still spend its $60 billion allocation over the next 10 years and spread the need for more money over subsequent years.
“Our intention is to spend the money to have maximum impact in helping taxpayers,” he said, “now and in the immediate future.”
“My hope is that as we demonstrate the positive impact of IRA funding for all taxpayers, there will be a need and desire among policymakers to restore IRA funding so that we can continue the momentum that is so positive.” impact,” Werfel said.
As of December, the IRS says it launched examinations of 76 of the largest partnerships in the US, including hedge funds, real estate investment partnerships and large law firms.
“It’s clear that the Inflation Cut Act funding is making a difference for taxpayers,” Werfel said. “To continue progress we must maintain a credible, consistent annual appropriation for our agency.”
The IRS says the 2024 tax season begins Jan. 29.
Source: Business news
