All articles tagged with #high income taxpayers
U.S. House Republicans approved a bill that temporarily raises the SALT deduction limit to $40,000 starting in 2025, benefiting primarily high-income taxpayers in high-tax states, with the cap phasing out for those earning over $500,000 and reverting to $10,000 in 2030.
The IRS has collected over $520 million in back taxes from delinquent millionaires and large corporations, attributing its success to the Inflation Reduction Act, which allocated $80 billion over 10 years to enhance enforcement capabilities. The agency has focused on high-income taxpayers, including those with more than $1 million in income and more than $250,000 in tax debt, as well as large corporate partnerships with compliance risks. This initiative, supported by the Biden administration, aims to ensure that the wealthiest individuals and organizations pay what is legally owed under federal law.
The IRS is intensifying its efforts to target high-income individuals, partnerships, and large corporations in order to close the tax gap, which is estimated to be $688 billion. The agency has identified thousands of taxpayers who owe hundreds of millions of dollars in taxes and has collected $122 million in 100 of these cases. The IRS is also focusing on compliance efforts for U.S. subsidiaries of foreign companies, particularly in relation to transfer pricing. Additionally, the agency is cracking down on section 199 abuse and working on improving taxpayer service through expanded in-person assistance and enhanced online functionality.