IRS Plans Crackdown on Wealthy Tax Cheats Owing $250k+ Using AI Tools and New Funding

IRS plans to hire agents to target wealthy tax cheats who owe $250k+ in back taxes, expecting to collect hundreds of millions.
Crackdown is next phase of offensive started this summer, when IRS collected $38M from 175 high-income taxpayers.
Initiative propelled by funding boost from Inflation Reduction Act to generate more tax revenue.
IRS using AI tools to detect tax cheating not visible to humans and see where large partnerships hide income.
Audit rates for those earning under $400k a year won't increase; goal is holding wealthiest filers accountable for full amount owed.

nypost.com

Relevant topic timeline:

9/8/2023

IRS Ramps Up Pursuit of Wealthy Tax Dodgers Owning Hundreds of Millions in Unpaid Taxes

The IRS plans to aggressively pursue 1,600 millionaires and 75 large business partnerships that owe hundreds of millions of dollars in past due taxes with the help of artificial intelligence tools and increased funding.

9/8/2023

IRS Plans to Target High-Income Earners and Big Businesses, Not Middle Class, With New Enforcement Funding

The IRS is shifting its enforcement efforts to high-income earners, partnerships, and big corporations, while ensuring that audit rates do not increase for those earning less than $400,000 a year and adding more safeguards for lower- and moderate-income taxpayers.

9/12/2023

IRS Plans to Use AI to Boost Audits of Wealthy Taxpayers and Corporations

The IRS is planning to use enhanced technology and artificial intelligence to collect unpaid taxes from higher earners, partnerships, and large corporations, potentially transforming tax compliance but also raising challenges for the agency. Increased scrutiny and audits of large partnerships, businesses, and high-net-worth families are expected within the next few years. Taxpayers are advised to keep organized tax records to support their positions from past returns.

9/14/2023

IRS Cracks Down on Surge of Potentially Fraudulent Small Business Tax Break Claims

The IRS is concerned about small business owners being scammed by fraudulent actors and has initiated investigations into potentially fraudulent ERC claims totaling over $2.8 billion.

Topics

Posted 9/10/2023, 2:16:04 AM

IRS Plans Crackdown on Wealthy Tax Cheats Owing $250k+ Using AI Tools and New Funding

IRS plans to hire agents to target wealthy tax cheats who owe $250k+ in back taxes, expecting to collect hundreds of millions.
Crackdown is next phase of offensive started this summer, when IRS collected $38M from 175 high-income taxpayers.
Initiative propelled by funding boost from Inflation Reduction Act to generate more tax revenue.
IRS using AI tools to detect tax cheating not visible to humans and see where large partnerships hide income.
Audit rates for those earning under $400k a year won't increase; goal is holding wealthiest filers accountable for full amount owed.

nypost.com

Relevant topic timeline:

9/8/2023

IRS Ramps Up Pursuit of Wealthy Tax Dodgers Owning Hundreds of Millions in Unpaid Taxes

9/8/2023

IRS Plans to Target High-Income Earners and Big Businesses, Not Middle Class, With New Enforcement Funding

9/12/2023

IRS Plans to Use AI to Boost Audits of Wealthy Taxpayers and Corporations

9/14/2023

IRS Cracks Down on Surge of Potentially Fraudulent Small Business Tax Break Claims

The IRS is concerned about small business owners being scammed by fraudulent actors and has initiated investigations into potentially fraudulent ERC claims totaling over $2.8 billion.