The Internal Revenue Service has said it’s hired enough staff to attempt to collect on unfiled high-income tax returns and will resume mailing non-filing notices to people in 125,000 cases. Around 25,000 of the non-filers earn more than $1 million annually, while another 100,000 earn between $400,000 and $1 million.
“With Inflation Reduction Act resources, the agency finally has the funding to pursue this core responsibility and ensure fairness for everyone who played by the rules,” said IRS Commissioner Danny Werfel said.
The total amount associated with these unfiled returns is above $100 billion, with unpaid tax liabilities potentially reaching hundreds of millions of dollars, Werfel said.
The IRS plans to send out notices to non-filers making less than $400,000 annual at a later date. However, Werfer said the IRS will not increase audit rates on lower earners, but rather focus on helping them file and tax advantage of potential tax breaks.
