IRS Collects Over $1 Billion in Tax Debt from High-Income Individuals, Expands Scrutiny on Wealthy Americans with $250,000 in Tax Debt

The Treasury Department and IRS announced collecting over $1 billion in tax debt from high-income individuals over the past year. In September, the IRS announced plans to expand scrutiny of those earning over $1 million annually with over $250,000 in recognized tax debt. The IRS funding enacted via the 2022 Inflation Reduction Act allows it to pursue these plans, though some Republicans remain critical. Without recent funding increases, the IRS could not adequately pursue high-income earners known to owe taxes due to budget constraints. The audit rate for those earning over $1 million was below 1% in 2019 versus more than 7% in 2011 before more IRS funding.