He american government plans to end a practice in which wealthy people evade taxes, estimating that this will result in more than $50 billion in tax revenue over the next decade, the Department of the Treasury announced. Treasure of USA it’s a statement.
The IRS action, announced Monday, includes plans to end the practice in which a company or individual can transfer its assets to avoid having to pay taxes.
Government officials, after evaluating the practice, determined that there is no economic basis for it and Treasury Undersecretary Wally Adeyemo described it as “truly, a trick.” Officials highlighted that the additional funds for the IRS obtained through the Inflation Reduction Act in 2022 allowed the agency to increase its surveillance and better evaluate that practice.
“These tax shelters allow wealthy taxpayers to avoid paying the taxes they owe,” said IRS Commissioner Danny Werfel.
Due to lack of funds, the IRS had reduced audits of wealthy taxpayers and asset transfers became common.
The IRS notes that tax returns from companies that used this type of practice increased 70%from 174,100 in 2010 to 297,400 in 2019. However, audits of this type of corporations decreased 3.8% to 0.1% in that same period.
In its statement, the Treasury Department noted that there is an estimated gap of $160 billion between what it should pay, the 1% wealthiest of the population and what they really pay.
Monday’s announcement is part of a broader IRS strategy to target wealthy people who manipulate the tax code or simply don’t pay their taxes.
Initiatives announced in recent months include investigating people and companies that inappropriately deduct personal travel on corporate jets, and collecting back taxes from millionaires who haven’t paid.
The IRS plans to increase audit fees on companies with assets of more than $250 million, to 22.6% in 2026, compared to 8.8% for fiscal year 2019. It also plans to multiply by 10 the percentage of audits on complex partnerships with assets of more than $10 million.
It may interest you
- IRS, will it really pay US$8,700 stimulus check?
- Yellen says US is making great progress in reducing inflation
- What options would Yellen have if the Treasury runs out of cash?
Source: Gestion
Ricardo is a renowned author and journalist, known for his exceptional writing on top-news stories. He currently works as a writer at the 247 News Agency, where he is known for his ability to deliver breaking news and insightful analysis on the most pressing issues of the day.
