The IRS plans to crack down on 1,600 millionaires to collect millions of dollars in back taxes - eviltoast

IRS Commissioner Daniel Werfel said that with a boost in federal funding and the help of artificial intelligence tools, the agency has new means of targeting wealthy people who have “cut corners” on their taxes.

“If you pay your taxes on time it should be particularly frustrating when you see that wealthy filers are not,” Werfel told reporters in a call previewing the announcement. He said 1,600 millionaires who owe at least $250,000 each in back taxes and 75 large business partnerships that have assets of roughly $10 billion on average are targeted for the new “compliance efforts.”

  • Naura@startrek.website
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    1 year ago

    My spouse works for compliance and usually you are given a chance to right everything before it goes as far as being audited. Like you said, mostly administrative issues is taken care at the first level and it’s no biggie.

    So if someone is being audited something is already very wrong and the first level folks have sent the case to audits or even criminal investigations.

    • solstice@lemmy.world
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      1 year ago

      Sort of. The IRS has an office of criminal investigations which is more equivalent to like an FBI raid with armed agents going to your home or a business and seizing your shit, maybe making arrests. I’ve personally never seen this or even heard of it second hand, but I’ve read about it. It’s extremely rare and as you said you usually have ample opportunity to deescalate before it gets to that point. Overall though the term audit is just a third party reviewing your work for accuracy, which could be a simple smell check review, or a long laborious process going dumpster diving with a microscope looking at everything. It’s unclear from the article what this is going to be.