The agency credited the passage of the Inflation Reduction Act for its stepped-up ability to pursue high-income, high-wealth individuals who owe money.
The IRS announced Friday that it has recently collected more than half a billion dollars from millionaire Americans who owed tax debt.
The agency credited the passage of the Inflation Reduction Act for its stepped-up ability to pursue “high-income, high-wealth individuals,” as well as complex partnerships and large corporations, who are not paying overdue tax bills.
The IRA, pushed by President Joe Biden and approved in 2022, earmarked $80 billion over 10 years to step up the IRS’ enforcement capabilities. While $20 billion was ultimately clawed back in 2023 as part of the deal to head off a debt-ceiling crisis, the agency indicated it had already made use of its initial allotment.
Over the past year, the IRS said, enforcement officers had recouped approximately $520 million from the most well-off segments of society.
And that’s why I like the German system. A part of your your income(income tax) directly goes to our version of the IRS. At the end of the year you can do a tax computation and maybe get taxes back if you payed to much, but you aren’t required to do that.
Yes, it’s the same in the US but sometimes people don’t set it up right so the correct amount is not withheld from their income and they have to pay back the difference at the end of the year. For the majority of people, they get money back from the government. There are lots of sales every year around tax filing time because so many people get a sudden amount of money back from the government.