IRS Expands Enforcement Efforts on High-Income Individuals and Corporations

The Internal Revenue Service (IRS) shared on January 12, 2024 that it's making strides in expanding enforcement efforts targeting high-income individuals, large corporations, and complex partnerships. This is part of the agency's broader initiative to undergo a transformation.

IRS Commissioner Danny Werfel highlighted the ongoing support from the Inflation Reduction Act, emphasizing its positive impact across various areas. In addition to previously announced plans to enhance taxpayer service for the upcoming 2024 filing season, the IRS is directing resources towards reinforcing enforcement. The focus is on pursuing overdue tax payments from complex partnerships, large corporations, and high-income individuals.

One specific area of progress is the IRS's attention to people using partnerships to evade self-employment taxes. The agency also provided additional insights into its current enforcement priorities. The pursuit of millionaires who owe substantial tax debts continues, with an additional $360 million collected, adding to the $122 million reported in late October. The total collected in ongoing efforts to recover taxes from 1,600 millionaires now stands at $482 million.

Werfel emphasized the IRS's commitment to intensifying scrutiny on high-income taxpayers, aiming to reverse historically low audit rates. The focus extends to partnerships, large corporations, and individuals with significant wealth, ensuring compliance with federal tax laws. The IRS is increasing personnel and technology resources to facilitate this process.

While concentrating on enforcement, the IRS remains dedicated to enhancing taxpayer service for hard-working individuals. Plans include offering more in-person and online resources to ensure a successful tax season in 2024. The additional resources received by the IRS are already making a positive difference for taxpayers, with plans to build on these improvements in the coming months.

Werfel provided these updates as part of a quarterly review on the IRS Strategic Operating Plan, driven by funding from the Inflation Reduction Act. As efforts to improve compliance among high-income individuals, complex partnerships, and large corporations advance, the IRS continues its parallel work to enhance customer service and modernize its core technology infrastructure.

If you owe taxes from previous years and are looking for tax relief, Morris and Associates can help find a solution and in many cases negotiate a reduction in the amount of taxes and penalties owed. Contact us if you need help with your tax situation.