Tax Evasion By Wealthiest People Reached $150 Billion Annually?!

Wealthy people Commit $150 Billion of Tax Evasion Annually

( – According to the Internal Revenue Service, millionaires and billionaires are evading more than $150 billion a year in taxes.

They’ve said that these evasions have created a growing government deficit and also created a “lack of fairness in the tax system.” The IRS has received funding from Congress and has implemented a crackdown on the wealthiest people, partnerships, and larger companies. Danny Werfel, IRS Commissioner, has said that the IRS has launched multiple programs that will be used to target taxpayers who have the most complex returns and to make sure that everyone contributes their fair share.

Werfel said, “When I look at what we call our tax gap, which is the amount of money owed versus what is paid for, millionaires and billionaires that either don’t file or are underreporting their income, that’s $150 billion of our tax gap.”

He also said that the IRS hasn’t been able to fund audits because of a lack of funding to the IRS, especially when it comes to auditing more complex returns, which take more time, resources, and effort. According to the Internal Revenue Service, audits of taxpayers making more than $1 million fell 80% over the last year, but the number of taxpayers making more than $1 million grew by 50% over the last year.

Werfel said that for complex filings, it was difficult to even find out how much was owed. “So to ensure fairness, we have to make investments to make sure that whether you’re a complicated filer who can afford to hire an army of lawyers and accountants or a more simple filer who has one income and takes the standard deduction, the IRS is equally able to determine what’s owed. And to us, that’s a fairer system,” he said.

The IRS is looking to develop more audit systems and be able to look into more taxpayers in order to ensure a balanced and fair tax season every year. The IRS has already found that 1,600 millionaires have not paid at least $250,000 in taxes each. The IRS has collected about $480 million from the group of millionaires so far.

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