IRS To Collect On 125,000 Unfiled High-Income Tax Returns

The Internal Revenue Service (IRS) said it will crack down on high-income earners who have failed to file tax returns in 125,000 cases since 2017, resurrecting a non-filer enforcement program that was idled for years by past budget cuts, David Lawder reported for Reuters.

The IRS said that the $80 billion in funding over a decade from the 2022 Inflation Reduction Act has enabled it to hire sufficient staff to resume the mailing of non-filing notices to these individuals. I Photo: TravelingOtter Flickr

The IRS said that the $80 billion in funding over a decade from the 2022 Inflation Reduction Act has enabled it to hire sufficient staff to resume the mailing of non-filing notices to these individuals, including 25,000 with apparent annual income above $1 million.

Another 100,000 of the targeted missing returns indicated income between $400,000 and $1 million, based on third-party documents including W-2 and 1099 income reports.

IRS Commissioner Danny Werfel said the total "financial activity" associated with the unfiled returns tops $100 billion, and unpaid tax liabilities could easily run into the hundreds of millions of dollars.

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