The IRS targets 1,600 millionaires and 75 large business partnerships with overdue tax debts, aided by AI tools.
IRS Crackdown
On Friday, the Internal Revenue Service (IRS) unveiled a new initiative aimed at cracking down on 1,600 millionaires and 75 large business partnerships who are suspected of having outstanding tax debts, as reported by the AP.
“If you pay your taxes on time it should be particularly frustrating when you see that wealthy filers are not,” IRS Commissioner Daniel Werfel told AP News. “New tools are helping us see patterns and trends that we could not see before, and as a result, we have higher confidence on where to look and find where large partnerships are shielding income.”
To enhance its enforcement capabilities, the IRS has incorporated artificial intelligence tools, which assist in uncovering previously elusive patterns and trends employed by tax evaders to hide their income.
“Every business and every person should pay their taxes — full stop,” David Williams, a representative of the Taxpayers Protection Alliance, told AP News. “I just hope this isn’t used as a justification to hire thousands of new agents.” The Inflation Reduction Act has been criticized for a provision to add 87,000 new agents.
This targeted effort focuses on the 1,600 millionaires, each of whom is believed to owe at least $250,000 in taxes and major business partnerships with assets totaling approximately $10 billion.
In the upcoming fiscal year 2024, the IRS plans to assign numerous revenue officers to concentrate on these high-value collection cases, as noted by Werfel.
House Republicans previously included a $1.4 billion reduction in IRS funding as part of the debt ceiling and budget cuts package passed by Congress earlier this summer.
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