It will start sending compliance notices next month to about 150 subsidiaries to “reiterate their US tax obligations and incentivize self-correction,” the announcement said.Īs new accountants come on board at the IRS in early 2024, they are expected to begin 60 audits of some of the largest corporate taxpayers. The agency will target US subsidiaries of foreign companies that distribute goods in the US and do not pay what they owe in taxes on the profit they earn. The IRS plans to bring a new focus to cracking down on large corporations that have not been paying the taxes they owe. The most recent estimate shows that $688 billion was not collected during tax year 2021. The agency’s effort to ramp up enforcement aims to narrow what’s known as the “ tax gap,” the difference between the amount owed and the amount actually collected on time by the IRS. The person spent $110,000 on personal expenses and $502,000 on gambling, the IRS said. The person also falsified expenses for luxury vehicles, artwork, country club memberships and homes for his children.Īnother individual pleaded guilty last week to filing false tax returns and skimming more than $670,000 from his business. In one successful case, an individual was ordered to pay more than $15 million in restitution last month for falsifying personal expenses as deductible business expenses, including the construction of a 51,000-square-foot mansion complete with an outdoor pool and pool house, as well as tennis, basketball and bocce courts, according to an IRS press release. “I think that the evidence that we’ve seen to date, in terms of the amount that we have recovered … points to this being a highly important effort for us,” IRS Commissioner Danny Werfel said on a call with reporters. That brings the total to $160 million so far this year. So far, the IRS has closed 100 of those cases, collecting $122 million, it said Friday.Įarlier this year, the IRS collected $38 million from more than 175 high-income earners.

In September, the IRS started seeking back taxes from about 1,600 taxpayers with income above $1 million and more than $250,000 in tax debt. Republicans have criticized the amount of money the IRS is getting, and future funding is uncertain.

The recent effort to target high-income individuals has been boosted by an increase in federal funding provided by Democrats last year through the Inflation Reduction Act. The Internal Revenue Service has collected $160 million in back taxes this year by cracking down on millionaires who haven’t paid what they owe, the agency said Friday.

Irs raises gambling winning reporting