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Related: About this forumICIJ: Inside the IRS unit taking on America's millionaires and billionaires
https://www.icij.org/inside-icij/2024/02/inside-the-irs-unit-taking-on-americas-millionaires-and-billionaires/The U.S. Internal Revenue Service is seeking to use an infusion of funding to keep up with the ever-evolving tax maneuvers of the ultra-rich while staving off frequent political attacks.
A pair of U.S. Internal Revenue Service agents are attempting to interview a billionaire they suspect of cheating on his taxes. But across the table from the agents is a formidable entourage of esteemed tax professionals hired to defend the billionaire. They include white-shoe attorneys each of whom knows more about their own arcane corner of tax law than just about anyone on earth along with highly specialized accountants and economists.
Neither of the two IRS agents has a law degree. Complex arguments from the billionaires entourage fly over their heads. The IRS agents are outmatched by a team whose combined years of experience in tax law and accounting exceed their own by over a century.
This stark example, laid out by former IRS officials in interviews with the International Consortium of Investigative Journalists, isnt a hypothetical so much as a glimpse into the agencys regular challenges in auditing the United States highest earners. These battles often come down to experience and expertise. The IRS has been losing, former officials said.
The really experienced people tend to be on the outside [of the IRS], Charles Rettig, who ran the IRS under former president Donald Trump and left the agency in 2022, told ICIJ. Thats a major hurdle.
Neither of the two IRS agents has a law degree. Complex arguments from the billionaires entourage fly over their heads. The IRS agents are outmatched by a team whose combined years of experience in tax law and accounting exceed their own by over a century.
This stark example, laid out by former IRS officials in interviews with the International Consortium of Investigative Journalists, isnt a hypothetical so much as a glimpse into the agencys regular challenges in auditing the United States highest earners. These battles often come down to experience and expertise. The IRS has been losing, former officials said.
The really experienced people tend to be on the outside [of the IRS], Charles Rettig, who ran the IRS under former president Donald Trump and left the agency in 2022, told ICIJ. Thats a major hurdle.
A historic push is now underway to change this dynamic. In mid-2022, the Inflation Reduction Act delivered the IRS a historic $80 billion in part, to bulk up the agencys divisions that audit millionaires, billionaires and large corporations. After years of pitiful enforcement rates against wealthy taxpayers, the agency is embarking on an unprecedented push to step up its capabilities and hone its ability to take on the ultra-rich.
Hundreds of billions could be at stake. The Treasury Department, the IRSs parent agency, has estimated that wealthy people do an outsized share of tax dodging. As of 2019, the top 1% of Americans are responsible for 28% of the tax gap defined as the difference between taxes that are owed and collected. This number added up to an estimated $163 billion annually. In early February, the Treasury Department announced that if the increased funding levels remained intact, the IRS could collect more than a half-trillion dollars in additional unpaid taxes over the next decade.
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ICIJ: Inside the IRS unit taking on America's millionaires and billionaires (Original Post)
erronis
Feb 21
OP
Think. Again.
(8,169 posts)1. I guess that's why it was a good idea to increase the IRS funding.