IRS Fails To Pursue High-Income Nonfilers Who Owe $46 Billion In Back Taxes, Watchdog Says
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The Internal Revenue Service watchdog TIGTA says the IRS is ignoring hundreds of thousands of delinquent high-income taxpayers who owe billions of dollars in total. That’s sobering news as millions of Americans still are gathering documents to file their 2019 tax returns by the July 15, 2020 deadline—pushed back from the normal April 15 deadline because of Covid-19. The American tax system is voluntary: You file an annual return and pay your share. Most taxpayers (84%) pay their taxes in full and on time.
However, the Treasury Inspector General For Tax Administration identified 879,415 high-income nonfilers for tax years 2014 through 2016 with an estimated tax due of $45.7 billion. The top 100 high-income nonfilers during that time period that the IRS did not address or resolve had estimated taxes due totaling $9.9 billion. TIGTA says that the IRS failed to send out delinquency notices and shelved cases, missing the opportunity to bring these taxpayers back into compliance at a huge cost to the Treasury.
Here’s the damning evidence from the TIGTA report, High-Income Nonfilers Owing Billions Of Dollars Are Not Being Worked By The Internal Revenue Service:
The IRS did not work 369,180 high-income nonfilers, with estimated tax due of $20.8 billion. Of the 369,180 high-income nonfilers, 326,579 were not placed in inventory to be selected for work and 42,601 were closed out of the inventory without ever being worked. In addition, the remaining 510,235 high-income nonfilers, totaling estimated tax due of $24.9 billion, are sitting in one of the Collection function’s inventory streams and will likely not be pursued as resources decline.
more at link
…but they will go after the little guy who can’t afford a good tax lawyer.
June 10, 2020 at 6:20 PM #325221
June 10, 2020 at 6:42 PM #325224N2DocParticipant
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June 10, 2020 at 11:41 PM #325313Cold Mountain TrailParticipant
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June 11, 2020 at 12:26 AM #325324David the GnomeParticipant
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Like every other federal agency. It is not easy or cheap to go after all those rich pricks with their high priced accountants and lawyers – but this is fucking ridiculous.
If you are working or middle class, they still somehow manage to fuck you over everything they can. Somehow though, they cant do anything about this? Same way they supposedly couldn’t do anything about the hundreds of billions stashed offshore, or the same way they actually cut the corporate tax rate when the largest corporations were already not paying anything.
Seems to me, that when the President is well known for tax evasion in addition to being a supposed billionaire, the IRS has become pretty damn pathetic.
Tax those fuckers. Lock them up if need be, until they actually pay what they owe. This is the kind of money that can actually help fund organizations like the IRS.
I have no sympathy for them. If they have millions of dollars, there is no reason they should be able to get away with paying taxes like everyone else.
Shit, we should tax capital gains at a higher rate than labor income, yet it is, for some reason, the opposite.
Fuck veganism. Eat the rich.
June 11, 2020 at 12:40 AM #325325N2DocParticipant
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But somehow, can’t have it here. I think if you are suspected of owing large amounts of taxes, they should be able to, say, confiscate a yacht or 2 until the case is resolved, and use the funds from selling them if you are found guilty to pursue more cases. Sort of like how they confiscate people’s cars and money when they are stopped….
June 11, 2020 at 12:50 AM #325326Ohio BarbarianModerator
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With this year’s tax season set to start Monday, the National Treasury Employees Union has renewed concerns that the IRS, after a decade of budget cuts, has fewer resources to tackle a growing workload.
The filing season’s kickoff comes just a few weeks after the National Taxpayer Advocate’s annual report to Congress highlighted the IRS’s challenge to continue its mission due to legacy IT systems, a smaller workforce and an increasing workload.
Over the past 10 years, Congress has cut the agency’s budget by more than 20% after adjusting for inflation, according to acting National Taxpayer Advocate Bridget Roberts.
Those budget cuts, in turn, have led to a 20% reduction to the IRS workforce over that same period of time, while the number of tax returns has increased by 9%.
It is better to vote for what you want and not get it than to vote for what you don't want and get it.--Eugene Debs
Show me a man that gets rich by being a politician, and I'll show you a crook.--Harry Truman
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