This week, the Internal Revenue Service (IRS) shared that they’ve successfully collected $1.3 billion from affluent individuals who have neglected their tax responsibilities over recent years.
On Friday, Treasury Secretary Janet Yellen and IRS Commissioner Danny Werfel highlighted this achievement as a “new milestone” under the Inflation Reduction Act, emphasizing their efforts to ensure the wealthy meet their tax obligations.
The IRS revealed, “In February 2024, we initiated a targeted program to pursue 125,000 high-income taxpayers who haven’t filed since 2017.” They’ve identified cases based on third-party information, like Forms W-2 and 1099, which show these individuals earned between $400,000 and over $1 million but did not submit tax returns. Before the Inflation Reduction Act, the IRS’s non-filer program had struggled to operate effectively due to tight budgets and staffing shortages.
Impressively, in just the first six months of this initiative, around 21,000 affluent non-filers have completed their tax filings, resulting in $172 million paid in taxes.
According to the IRS, about 80% of the 1,600 millionaires with overdue tax returns have settled their debts, leading to over $1.1 billion in recovery. Since July, they’ve brought in an additional $100 million.
Michael Bocchieri/Getty Images
This year, as part of its modernization efforts, the IRS also rolled out a program named Direct File. It allows taxpayers with simple W-2s to easily calculate and submit their returns online. By April, users had claimed over $90 million in refunds through this initiative.
The program started with 12 states for the 2024 tax filing season but is expanding to include states like Maryland, Oregon, New Jersey, Pennsylvania, New Mexico, Connecticut, North Carolina, Wisconsin, and Maine for 2025.
The IRS stated, “We’re committed to providing a modern online experience akin to what taxpayers receive with their banks. Thanks to resources from the Inflation Reduction Act, we’ve implemented and upgraded popular online tools that save taxpayers time and reduce the workload on our employees.”
However, some Republican representatives have recently proposed limiting IRS funding, with Donald Trump’s campaign asserting plans to cut federal agency spending. They have criticized Democratic nominee Kamala Harris for her role in approving the hiring of 87,000 new IRS agents suspected of targeting tips earned by Americans.
This article includes reporting from The Associated Press.