Wealthy Americans are still ducking the IRS crackdown on non-filers

[BumRushDaShow]

Source: msn/CNBC

12h


WASHINGTON — Tens of thousands of wealthy Americans are not complying with recently revamped Internal Revenue Service efforts to get them to file tax returns, according to data obtained exclusively by CNBC.

A quirk in federal tax law may be incentivizing wealthy people who want to avoid paying taxes to simply not file their returns. That’s because it’s a felony to file false tax returns but only a misdemeanor not to file a return at all.

And due to limited IRS and Department of Justice resources to pursue misdemeanor violations, a person who does not file a return is unlikely to face prosecution. As a result, many millionaires could simply be taking their chances, betting that they will face few consequences for not filing their tax returns.

In early 2024, the IRS began an effort to contact people it calls “high income non-filers” and urge them to file returns to the tax agency. “We have made progress,” an IRS official told CNBC, explaining that high net worth cases can take time to process. “That said, there still remains a lot of work. We continue to pursue these folks. This is not work that we will let go.”

Read more: https://www.msn.com/en-us/money/taxes/wealthy-americans-are-still-ducking-the-irs-crackdown-on-non-filers/ar-AA1vqnwS

[riversedge]

1. and once trump and his buddies are in charge-this IRS program will Vanish into thin air.

[Bengus81]

3. Yep...and those busted will have their lawyers delay the payment date until it does vanish

Be like finding money blowing down the street.

[stopdiggin]

2. I would speculate that this 'dodge' is probably not employed by a great deal

of the truly wealthy. Just an opinion - but I think most 'wealthy', by their very positions, are well advised and represented - and as such probably not counseled in such direction.

[BumRushDaShow]

5. They are "technically" supposed to pay quarterly "estimated taxes"

so something is being "paid" but obviously not what probably should be when it comes to the final amount owed.

[stopdiggin]

9. which is of course a different subject

than people just failing to file altogether.
But, yes - I'm assuming that about 98% of us are hoping that the IRS is making efforts on both ...

[Silent Type]

6. I agree. Even trump -- the biggest crook in the world -- filed.

[Puppyjive]

4. How do rich people?

Report very low incomes, yet own massive properties and assets? The numbers just don't add up for me.

[Mark.b2]

10. I'm not rich, but in 2014 and most of 2015, I lived off savings...

It was money from stock options from a previous employer I sold a couple years before. I paid capital gain taxes in the year I sold them and stuck part of the proceeds in an interest bearing savings account. When 2014 and 2015 rolled round, I would tap the account as i needed funds. My taxible in each year was only bout $25k, mostly from interest income and some dividends I took in cash.

My parents had a 900 acre cattle farm. In their later years, my dad no longer farmed and thus had no income. They kept all their cash in money market funds (which generated some income). They lived off their social security. They had a pretty nice balance sheet, but not huge income. Their income tax wasnt much, but they paid quite a bit in property tax. They eventually had to start selling off parcels to live on and pay taxes. They would then end up earning income on the gains and thus owing the tax man.

So…there are many rich and comfortable people who may have grown their assets quite large (paying income taxes along the way) who end up having little in the way of income.

[MichMan]

7. Shouldn't surprise anyone here

I saw dozens of posts here this fall stating that even the people that filed false tax returns are never prosecuted as long as they pay back taxes and penalties.

[boonecreek]

8. But they wanted to lock up

Hunter Biden even though he paid his
taxes and penalties. Seems like a bit
of a double standard.