Tax season is upon us, and for many folks that means loads of financial stress. But that only happens in the event you’re working on filing your taxes – and most don’t.
Over the past few years, thousands of people earning $400,000 or more have didn’t file tax returns, Washington Post. reported Thursday. That includes about 25,000 cases involving people earning greater than $1 million and 100,000 cases involving people earning between $400,000 and $1 million.
“They forget one year and then the next year they say, ‘Well, if I file now, I’ll be in trouble for last year’… Very soon, 15 or 20 years later, they’ll be in a difficult situation.” much greater problems,” said Robert Kovacev, a former Justice Department lawyer Lent.
While the IRS has previously remained silent on the difficulty, the agency said Thursday it should begin sending notices to people earning greater than $400,000 who didn’t file no less than one tax return between 2017 and 2022. Once someone receives the letter, “they’ll have about two months to file the missing return. If they fail to accomplish that, the IRS may take further motion, which can include filing a “substitute” return for them and taking any taxes owed from their paycheck or checking account.
“When people don’t file their taxes, they need to know there are consequences for doing so,” said Danny Werfel, IRS commissioner Washington Post..
The IRS will send a complete of 125,000 notices, but some may go to the identical person in the event that they haven’t filed a return for many years. Werfel said the missing refunds total tons of of hundreds of thousands of dollars in unpaid taxes and greater than $100 billion in income. However, few of them will result in any criminal cases related to tax evasion.
One reason the IRS hasn’t pursued those who haven’t filed returns over the past few years is since the agency did not have the cash or resources to accomplish that. However, in 2022, Congress authorized the IRS to receive an extra $80 billion over 10 years, although this amount was later reduced to $60 billion. Still, the influx of money has enabled the agency to extend staff and take motion to recoup hundreds of thousands of dollars in lost taxes.
For ultra-wealthy Americans, the bill eventually becomes due.
Credit : robbreport.com
