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IRS to Collect Billions More in Unpaid Taxes Thanks to Increased Audits

A new Treasury Department report reveals that enhanced IRS enforcement could bring in up to $851 billion in additional revenue over the next decade.

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The word 'taxes' is seen on the Internal Revenue Service building in Washington, D.C., on April 5, 2022.
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Overview

  • The IRS is expected to collect up to $561 billion more in unpaid taxes from 2024 to 2034, thanks to the Democrats' Inflation Reduction Act.
  • The Congressional Budget Office initially estimated a revenue increase of $180.4 billion, but new analysis suggests it could be as high as $851 billion.
  • Increased audits on millionaires and large corporations are a key strategy in recovering unpaid taxes.
  • The Inflation Reduction Act provided the IRS with an $80 billion funding boost, although recent budget cuts have threatened this funding.
  • Treasury Secretary Janet Yellen has directed the IRS not to increase audit rates on individuals making less than $400,000 annually.