Current:Home > MyIRS recovers $4.7 billion in back taxes and braces for cuts with Trump and GOP in power -Alpha Wealth Network
IRS recovers $4.7 billion in back taxes and braces for cuts with Trump and GOP in power
View
Date:2025-04-13 01:49:28
WASHINGTON (AP) — IRS leadership on Thursday announced that the agency has recovered $4.7 billion in back taxes and proceeds from a variety of crimes since the nation’s tax collector received a massive glut of funding through Democrats’ flagship tax, climate and health lawin 2022.
The announcement comes under the backdrop of a promised reckoning from Republicans who will hold a majority over both chambers of the next Congress and have long called for rescinding the tens of billions of dollars in funding provided to the agency by Democrats.
IRS leadership, meanwhile, is hoping to justify saving the funding the agency already has.
On a call with reporters to preview the announcement, IRS Commissioner Danny Werfel said improvements made to the agency during his term will help the incoming administration and new Republican majority congress achieve its goals of administering an extension of the 2017 Tax Cuts and Jobs Act.
Republicans plan to renew some $4 trillion in expiring GOP tax cuts, a signature domestic achievement of Trump’s first term and an issue that may define his return to the White House.
“We know there are serious discussions about a major tax bill coming out of the next Congress,” Werfel said, “and with the improvements we’ve made since I’ve been here, I’m quite confident the IRS will be well positioned to deliver on whatever new tax law that Congress passes.”
Tax collections announced Thursday include $1.3 billion from high-income taxpayers who did not pay overdue tax debts, $2.9 billion related to IRS Criminal Investigation work into crimes like drug trafficking and terrorist financing, and $475 million in proceeds from criminal and civil cases that came from to whistleblower information.
The IRS also announced Thursday that it has collected $292 million from more than 28,000 high-income non-filers who have not filed taxes since 2017, an increase of $120 million since September.
Despite its gains, the future of the agency’s funding is in limbo.
The IRS originally received an $80 billion infusion of funds under the Inflation Reduction Act though the 2023 debt ceiling and budget-cuts deal between Republicans and the White House resulted in $1.4 billion rescinded from the agency and a separate agreement to take $20 billion from the IRS over the next two years and divert those funds to other nondefense programs.
In November, U.S. Treasury officials called on Congress to unlock $20 billionin IRS enforcement money that is tied up in legislative language that has effectively rendered the money frozen.
The $20 billion in question is separate from another $20 billion rescinded from the agency last year. However, the legislative mechanism keeping the government afloat inadvertently duplicated the one-time cut.
Treasury officials warn of dire consequences if the funding is effectively rescinded through inaction.
Trump last week announced plans to nominate former Missouri congressman Billy Long, who worked as an auctioneer before serving six terms in the House of Representatives, to serve as the next commissioner of the IRS. Democrats like Sen. Ron Wyden (D-Ore.) have called Long’s nomination “a bizarre choice” since Long “jumped into the scam-plagued industry involving the Employee Retention Tax Credit.”
Trump said on his social media site that “Taxpayers and the wonderful employees of the IRS will love having Billy at the helm.”
Werfel’s term is set to end in 2027, and he has not indicated whether he plans to step down from his role before Trump’s inauguration. Trump is permitted to fire Werfelunder the law.
Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.
veryGood! (6)
Related
- The city of Chicago is ordered to pay nearly $80M for a police chase that killed a 10
- A deadly hurricane is the latest disruption for young athletes who already have endured a pandemic
- Garth Brooks Speaks Out on Rape Allegation From His and Trisha Yearwood's Makeup Artist
- Texas man sought in wounding of small town’s police chief
- Paris Hilton, Nicole Richie return for an 'Encore,' reminisce about 'The Simple Life'
- Photo shows U.S. Rep. Mike Lawler wearing blackface at college Halloween party in 2006
- Drew Barrymore Details Sexiest Kiss With Chloë Sevigny
- Halle Bailey and DDG announce split: 'The best path forward for both of us'
- EU countries double down on a halt to Syrian asylum claims but will not yet send people back
- Blake Shelton Shares Unseen Photos of “Favorite Girl” Gwen Stefani on Her Birthday
Ranking
- Realtor group picks top 10 housing hot spots for 2025: Did your city make the list?
- Senators ask Justice Department to take tougher action against Boeing executives over safety issues
- Week 5 NFL fantasy running back rankings: Top RB streamers, starts
- Amazon hiring 250,000 seasonal workers before holiday season: What to know about roles, pay
- Buckingham Palace staff under investigation for 'bar brawl'
- Drew Barrymore Details Sexiest Kiss With Chloë Sevigny
- Eminem Shares Emotional Reaction to Daughter Hailie Jade's Pregnancy
- Greening of Antarctica is Another Sign of Significant Climate Shift on the Frozen Continent
Recommendation
Toyota to invest $922 million to build a new paint facility at its Kentucky complex
Teen pleads guilty in shooting death of Southern Miss cornerback MJ Daniels
Eminem Shares Touching Behind-the-Scenes Look at Daughter Hailie Jade's Wedding
Off the Grid: Sally breaks down USA TODAY's daily crossword puzzle, Body Art
Federal appeals court upholds $14.25 million fine against Exxon for pollution in Texas
Halle Bailey and DDG Break Up Less Than a Year After Welcoming Baby Boy
For migrant women who land in Colorado looking for jobs, a common answer emerges: No
Wilmer Valderrama needs his sweatshirts, early morning runs and 'The Golden Bachelor'