For anyone wondering how this will “make high earners play by the same rules”:
Seemingly not everyone will be stoked to see the IRS go totally paperless. The Treasury Department said that combining paperless processing with “an improved data platform” will make it easier for data scientists to extract and analyze data—potentially detecting tax evasion that the IRS has long overlooked due to a lack of resources.
“When combined with an improved data platform, digitization and data extraction will enable data scientists to implement advanced analytics and pattern recognition methods to pursue cases that can help address the tax gap, including wealthy individuals and large corporations using complex structures to evade taxes they owe,” the Treasury Department said.
In April, the Treasury Department said that “improving enforcement among high-income and high-wealth individuals, complex partnerships, and large corporations that are not paying the taxes they owe” could end up flagging $160 billion owed but evaded annually.
“Due to a lack of resources and loss of top talent, audits of the wealthy and large corporations have plummeted over the last decade, and the amount of taxes evaded by the top 1 percent has exploded to $160 billion per year,” the Treasury Department reported in April. “Audit rates for millionaires fell by 77 percent, audit rates for large corporations fell by 44 percent, and audit rates for partnerships fell by 80 percent between 2010 and 2017.”
Treasury Secretary Janet Yellen said that updating the IRS technology was crucial to reduce the tax gap and ensure that “high earners play by the same rules as working and middle-class families.”
Anyone taking bets on Congress shutting this down?
This is a direct result of congress intentionally giving greater funding to the IRS with the explicit goal of increasing revenue by decreasing tax evasion by the wealthy. https://en.wikipedia.org/wiki/Inflation_Reduction_Act
The chances of congress shutting it down comes down to if republicans gain control over government in next year’s elections.
For anyone wondering how this will “make high earners play by the same rules”:
Anyone taking bets on Congress shutting this down?
This is a direct result of congress intentionally giving greater funding to the IRS with the explicit goal of increasing revenue by decreasing tax evasion by the wealthy. https://en.wikipedia.org/wiki/Inflation_Reduction_Act
The chances of congress shutting it down comes down to if republicans gain control over government in next year’s elections.