IRS Crackdown on High-Income Earners Brings In $160 Million in Back Taxes

The IRS crackdown on high-income earners in the U.S. brought in $160 million in back taxes. Further reports say the agency collected $122 million from 100 taxpayers in addition to the $38 million from more than 175 taxpayers.

On October 20, the Internal Revenue Service (IRS) stated that it had brought in a total of $160 million worth of back taxes from the wealthiest taxpayers during the current IRS crackdown on high-income earners.

According to Shapero, the IRS crackdown resulted in the collection of $122 million from 100 taxpayers in addition to the collection of $38 million from more than 175 high-income earners early this year. Further reports say the 100 taxpayers are just a part of the 1,600 individuals that the IRS crackdown is targeting for the collection of hundreds of millions of dollars in back taxes.

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Inflation Reduction Act Efforts on IRS Crackdown

According to Lobosco, the recent investments from the Inflation Reduction Act took part in enforcing the IRS crackdown. During a press release, the IRS stated that prior to the Inflation Reduction Act, several years of budget cuts prevented the agency from challenging the wealthiest taxpayers who hide their income and avoid paying their share.

Nonetheless, reports say the additional funding included in the Inflation Reduction Act has still been reduced after the Democrats agreed to cut $20 billion of the $80 billion budget intended to reach a deal with the Republicans in increasing the debt ceiling.

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