Biden administration’s crackdown on rich tax evaders yields $1 billion
US Treasury Secretary Janet Yellen reacts during a meeting with Chinese Vice Premier Liu He in Zurich, Switzerland, January, 18, 2023. PHOTO: REUTERS
The Joe Biden administration's yearlong effort to crackdown on delinquent wealthy taxpayers has resulted in $1 billion in recovered revenue, the Treasury Department announced Thursday. This success is attributed to strengthened enforcement by the Internal Revenue Service (IRS).
"Efforts to increase tax fairness and bring in revenue from high-end taxpayers who have not paid what they owe are already paying off to the American people," Treasury Secretary Janet L. Yellen said during a briefing with reporters.
The IRS targeted 1,600 taxpayers with incomes over $1 million who owed more than $250,000 in tax debt. IRS Commissioner Daniel Werfel stated that many affluent taxpayers had neglected to pay their taxes, believing the IRS lacked the capacity to pursue them.
The agency is also focusing on identifying over 100,000 high-wealth individuals suspected of not filing taxes for years. Additionally, the IRS is increasing audits of hedge funds, real estate investment partnerships, and cracking down on the misuse of corporate jets for personal travel.
Despite these enforcement efforts, the IRS has faced criticism for its slow resolution of identity theft cases and inadequate response to taxpayer inquiries, as reported by The New York Times on Thursday.