IRA Compliance Initiatives Yield More Than $1 Billion – IRS, IR-2024-185

Compliance initiatives using supplemental Inflation Reduction Act funding have resulted in the Internal Revenue Service collecting more than $1 billion from millionaires, the agency stated.

In a July 11, 2024, statement, the IRS noted that the collection of these past-due taxes is the result of targeting 1,600 individuals with more than $1 million per year in income and a past due balance of more than $250,000 in recognized debt.

The IRS assigned 1,500 revenue officers to these cases. They were able to collect the more than $1 billion in past due payments from more than 1,200 individuals. The agency expects more money to be collected from this group in the months ahead as the compliance initiative in this area continues.

“Our increased work in this area means these past-due tax bills from high-end taxpayers are no longer being left on the table, like they were too often in the past,” IRS Commissioner Daniel Werfel said in a statement.

Werfel added that the supplemental funding the agency received in the IRA “is reversing a decade-long decline in our compliance work, including increasing our compliance work involving the wealthiest individuals and groups with tax issues. The collection results achieved in less than a year reveal the magnitude of what can be achieved over the long run as our Inflation Reduction enforcement continues to ramp up in the months ahead.”