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The Wealthy Beware: President Biden Plans to Give the IRS an Additional $1.2 billion to Target High-Income Earners

In an effort to raise revenues from wealthy individuals and corporations believed to be short changing the government on taxes, President Biden has proposed a budget that contains an increase in IRS funding of $1.2 billion, or 10.4 percent.

If adopted, the legislation would allow the IRS to increase the number of targeted examinations of tax returns the Service conducts of wealthy individuals and corporations.

The proposal comes on the heels of a report released in March by the Treasury Department’s Inspector General estimating that the Internal Revenue Service left nearly $50 billion in tax revenues on the table between 2014 and 2016 by failing to pursue high-income individuals who fail to comply with their tax filing obligations.

Over the past 10 years the IRS’s budget has been dramatically reduced, leaving the Service with aging technology and a significant reduction in its tax enforcement workforce. The President’s objective is to reverse that trend and start collecting more tax revenues from wealthy individuals and corporations.

High net worth individuals and corporate officers concerned about how Biden’s plans could impact them should reach out to their local Withum Tax Professional to discuss further.

Biden’s Tax Policy

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