Title: IRS Cracks Down on High-Wealth Tax Dodgers, Collecting $1.3 Billion Since Fall

In a significant milestone, the Internal Revenue Service (IRS) announced on Friday that it has successfully collected $1.3 billion from high-wealth tax dodgers since last fall. This achievement is attributed to the increased spending on collection enforcement through President Joe Biden's landmark climate, healthcare, and tax package, which was signed into law in 2022.

Treasury Secretary Janet Yellen and IRS Commissioner Danny Werfel traveled to Austin, Texas, where they toured an IRS campus to commemorate this accomplishment. The collection efforts come amidst Republican concerns about potential future budget cuts for the tax agency if they gain control of the White House and Congress.

Speaking at the event, Secretary Yellen highlighted the burden placed on ordinary Americans when the top one percent of wealthy individuals fail to pay their fair share of taxes. She emphasized the steps taken to address this issue, stating, "To fix this, we've channeled IRS funding toward significant investments to combat tax evasion."

The IRS embarked on a series of initiatives in 2023 and 2024, targeting high-wealth individuals with over $1 million in income and more than $250,000 in recognized tax debt. As a result of these efforts, nearly 80% of the 1,600 millionaires identified for delinquent tax payments have now made repayments, resulting in over $1.1 billion in recovered funds.

Furthermore, in the first six months of a February 2024 initiative, the IRS successfully collected $172 million from 21,000 wealthy taxpayers who had not filed their tax returns since 2017. These actions signify the agency's commitment to ensuring tax compliance among high-wealth individuals.

Despite these achievements, Republicans have called for funding cuts to the IRS. During his presidential campaign, Donald Trump pledged to reduce spending on federal agencies, including the IRS. In an unfounded claim, his campaign accused Democratic nominee Kamala Harris of supporting the hiring of 87,000 new IRS agents to target tip income. This claim stems from a 2021 Treasury Department proposal, which aimed to recruit that number of employees over the next decade, considering an anticipated retirement of 50,000 IRS employees within five years.

To further modernize its operations, the IRS launched a program called Direct File this year. This initiative allows taxpayers with straightforward W-2s to directly calculate and submit their returns to the agency. In April, the IRS reported that participants in the program claimed over $90 million in refunds. Initially available in 12 states for the 2024 tax filing season, the program has expanded its reach to include Maryland, Oregon, New Jersey, Pennsylvania, New Mexico, Connecticut, North Carolina, Wisconsin, and Maine for the upcoming 2025 tax season.

The IRS's recent success in reclaiming funds from high-wealth tax dodgers is a testament to its renewed focus on enforcement and collection efforts. These endeavors demonstrate the agency's commitment to addressing tax evasion and ensuring that all individuals pay their fair share.