IRS Targets High-Income Non-Filers in Major Crackdown

The IRS is sending non-compliance letters to 125,000 Americans who earned between $400,000 and $1 million but did not file tax returns between 2017 and 2021.

The IRS initiative focuses on high-earning Americans, with 25,000 earning over $1 million annually and 100,000 earning between $400,000 and $1 million.
Non-compliance letters are being sent as part of efforts to recoup hundreds of millions in unpaid taxes, starting with the highest-income categories.
The crackdown is enabled by the Inflation Reduction Act, which provided $80 billion in additional funding to the IRS.
Tax evasion is a felony in the US, with potential penalties including prison sentences and fines up to $20,000 in some states.
The IRS's efforts also include audits on businesses’ private jets and large partnerships, using artificial intelligence to identify discrepancies.