IRS ramps up new initiatives using Inflation Reduction Act funding to ensure complex partnerships, large corporations pay taxes owed, continues to close millionaire tax debt cases
IRSJan 12
IRS Collects Over $520M in Back Taxes From Millionaires
The Facts
The US Internal Revenue Service (IRS) said on Friday that it has collected more than $520M in back taxes from millionaire Americans over the past year.
The IRS credited the Inflation Reduction Act for helping it speed up efforts to scrutinize large corporations, high-income individuals, and complex partnerships not paying taxes.
The Spin
Democratic narrative
The IRS is doing a phenomenal job of reversing the historically low audit rates and ensuring that the ultra-rich pay what is legally owed under federal law. The funding has allowed the IRS to target wealthy tax dodgers, ensuring it recaptures hundreds of billions of dollars in revenue, which can then be reinvested into the country.
Republican narrative
The federal government is facing an economic crisis, and budget cuts are needed across the board. Exorbitant funding of the IRS doesn't have the impact that Democrats think it does, and targets the middle class more than the ultra-rich. Rather than using the funds to address the plethora of mismanagement issues within the department, the beefed-up IRS has wasted it on a reckless number of new auditors.
Nerd narrative
There's a 50% chance that the top marginal federal income tax rate in the US will be at least 38.5% in 2030, according to the Metaculus prediction community.