IRS Targeting Wealthy Americans

Photo by Mathieu Stern on Unsplash

( – In a renewed initiative to hold wealthy tax evaders accountable, the U.S. Internal Revenue Service (IRS) has successfully reclaimed $160 million in delinquent taxes. A recent announcement from the agency confirmed the collection of $122 million from a select group of 100 high-income individuals, in addition to the $38 million previously secured from another 175 affluent taxpayers earlier in the year.

This recovered amount represents only the tip of the iceberg; as per the IRS, they are actively engaging with around 1,600 wealthy taxpayers to recoup hundreds of millions more in unpaid taxes. Some cases have been particularly egregious. One individual was mandated to pay upwards of $15 million after using personal extravagances—such as the building of a sprawling 51,000-square-foot estate, high-end automobiles, costly art, elite club memberships, and additional residences for offspring—as falsely claimed business write-offs. Another individual received a prison term exceeding four years for deceptively securing $5 million in pandemic relief funds, which were then lavishly spent on multiple luxury vehicles.

The IRS attributes its escalated enforcement to funding allocated through the Inflation Reduction Act. Before this legislative change, the agency had struggled for over ten years with budget constraints that severely hampered its capacity to keep up with the intricate financial mechanisms employed by wealthy citizens to conceal income and sidestep tax obligations. In light of the new funds, the IRS has been emboldened to act quickly and assertively to rectify this imbalance.

It’s worth noting, however, that this financial boost hasn’t been without its controversies. Initially slated to receive $80 billion for enforcement through the Inflation Reduction Act, the allocation was scaled back to $60 billion in a bipartisan compromise to facilitate a debt ceiling increase this past summer. Despite this reduction, the IRS remains committed to narrowing the tax compliance gap among the nation’s wealthiest taxpayers.

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