IRS Targets High-Income Non-Filers in New Compliance Effort
In a significant move to enhance tax compliance and uphold fairness, the IRS has unveiled a new initiative focusing on high-income individuals who have not filed their federal income tax returns. This effort zeroes in on over 125,000 instances of non-filing by high earners, including millionaires, from tax years 2017 to 2021, with financial activity surpassing $100 billion.
Leveraging funding from the Inflation Reduction Act, the IRS is sending compliance letters to those with incomes ranging from $400,000 to over $1 million who have failed to file their returns. These letters are the first step in a series of actions intended to encourage tax compliance and address tax evasion among high-income earners.
The failure to file a tax return can lead to substantial penalties, interest charges, and more severe enforcement measures, including potential criminal prosecution. The IRS emphasizes the importance of filing overdue returns to mitigate these risks and ensure fairness in the tax system.
If you're among those who have not filed your tax returns, now is the time to act. Ignoring IRS notices can escalate the situation, leading to increased penalties and enforcement actions. However, it's important to remember that some non-filers might be due refunds or could reduce their liabilities by filing.
Don't let the stress of unresolved tax issues weigh you down. Contact Tax Resolution 1st at info@taxresolution1st.com.
