IRS Projects Collecting $561-B In Overdue Taxes

The Internal Revenue Service (IRS) is projected to collect a significantly higher amount of overdue and unpaid taxes than previously estimated, as detailed in a new analysis released by the Treasury Department and the IRS.

The IRS now suggests that if IRA funding is restored and diversified, revenues could soar to as much as $851 billion over the specified period.

Fatima Hussein's report for the Associated Press (AP) highlights the anticipated increase in tax revenues, driven by enhanced enforcement efforts facilitated by funding from the Democrats' Inflation Reduction Act, enacted in August 2022.

The analysis forecasts a rise in tax revenues by up to $561 billion between 2024 and 2034, attributing this surge to the substantial investment in IRS funding provided by the IRA.

Initially estimated by the Congressional Budget Office to increase revenues by $180.4 billion from 2022 to 2031, the IRS now suggests that if IRA funding is restored and diversified, revenues could soar to as much as $851 billion over the specified period.

Administration officials are leveraging this report to advocate for President Joe Biden's economic agenda, particularly as he campaigns for reelection.

National Economic Adviser Lael Brainard emphasized that the investment in rebuilding the IRS would significantly reduce the deficit by ensuring that wealthy individuals and large corporations fulfill their tax obligations.

Brainard criticized Congressional Republicans for prioritizing tax evasion by the affluent and corporations over deficit reduction, citing their efforts to cut IRS funding.

The IRS's anticipated success in collecting overdue taxes underscores the significance of robust enforcement measures in bolstering government revenues and addressing fiscal challenges.

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