Connect with us

CBS News

High-income earners who skipped out on filing tax returns believed to owe hundreds of millions of dollars to IRS

Avatar

Published

on


The IRS is going after high-income earners who skipped out on filing federal income tax returns in more than 125,000 instances since 2017, the agency said Thursday. 

They’re believed to owe, based on a conservative estimate, hundreds of millions of dollars, the IRS said. The number could be much higher – but the IRS said it can’t be sure of an exact amount since the agency doesn’t know what potential credits and deductions these people may have.

“At this time of year when millions of hard-working people are doing the right thing paying their taxes, we cannot tolerate those with higher incomes failing to do a basic civic duty of filing a tax return,” IRS Commissioner Danny Werfel said in a press release. “The IRS is taking this step to address this most basic form of non-compliance, which includes many who are engaged in tax evasion.”

The IRS will start sending out compliance letters this week. More than 25,000 letters will go out to people with more than $1 million in income and more than 100,000 letters will go out to people with incomes between $400,000 and $1 million between tax years 2017 and 2021. It’s not clear how many people will be impacted.

“Some of these non-filers have multiple years included in the case count so the number of taxpayers receiving letters will be smaller than the actual number of notices going out,” the IRS said.

IRS officials said they were able to identify the people who hadn’t filed using third-party information, such as W-2s and 1099s, indicating these individuals were making money, but not filing returns. 

The agency has been able to step up enforcement using funding from the Inflation Reduction Act, which became law in August 2022. Earlier this month, the Treasury Department and the IRS, estimated that tax revenues would rise by as much as $561 billion from 2024 to 2034, thanks to the stepped-up enforcement.

Treasury Secretary Janet Yellen recently told CBS Pittsburgh that the IRS has been “starved” for resources for decades. She said it’s led to bad customer service and very low levels of audits of wealthy individuals, complex partnerships and corporations.

Werfel noted the IRS had only been able to run audits sporadically for non-filers since 2016 because of severe budget and staff limitations. 

“This is one of the clearest examples of the need to have a properly funded IRS,” he said. “With the Inflation Reduction Act resources, the agency finally has the funding to identify non-filers, ensure they meet this core civic responsibility, and ultimately help ensure fairness for everyone who plays by the rules.”

The penalty for failure to file amounts to 5% of the amount owed every month – up to 25% of the tax bill, according to the IRS.

“If someone hasn’t filed a tax return for previous years, this is the time to review their situation and make it right,” Werfel said. “For those who owe, the risk will just grow over time as will the potential for penalties and interest.”



Read the original article

Leave your vote

CBS News

Former Trump national security adviser says next couple months are “really critical” for Ukraine

Avatar

Published

on


Washington — Lt. Gen. H.R. McMaster, a former national security adviser to Donald Trump, said Sunday that the upcoming months will be “really critical” in determining the “next phase” of the war in Ukraine as the president-elect is expected to work to force a negotiated settlement when he enters office.

McMaster, a CBS News contributor, said on “Face the Nation with Margaret Brennan” that Russia and Ukraine are both incentivized to make “as many gains on the battlefield as they can before the new Trump administration comes in” as the two countries seek leverage in negotiations.

With an eye toward strengthening Ukraine’s standing before President-elect Donald Trump returns to office in the new year, the Biden administration agreed in recent days to provide anti-personnel land mines for use, while lifting restrictions on Ukraine’s use of U.S.-made longer range missiles to strike within Russian territory. The moves come as Ukraine marked more than 1,000 days since Russia’s invasion in February 2022. 

Meanwhile, many of Trump’s key selection for top posts in his administration — Rep. Mike Waltz for national security adviser and Sens. Marco Rubio for secretary of state and JD Vance for Vice President — haven’t been supportive of providing continued assistance to Ukraine, or have advocated for a negotiated end to the war.

1732468274686.png
H.R. McMaster on “Face the Nation with Margaret Brennan,” Nov. 24, 2024.

CBS News


McMaster said the dynamic is “a real problem” and delivers a “psychological blow to the Ukrainians.”

“Ukrainians are struggling to generate the manpower that they need and to sustain their defensive efforts, and it’s important that they get the weapons they need and the training that they need, but also they have to have the confidence that they can prevail,” he said. “And any sort of messages that we might reduce our aid are quite damaging to them from a moral perspective.”

McMaster said he’s hopeful that Trump’s picks, and the president-elect himself, will “begin to see the quite obvious connections between the war in Ukraine and this axis of aggressors that are doing everything they can to tear down the existing international order.” He cited the North Korean soldiers fighting on European soil in the first major war in Europe since World War II, the efforts China is taking to “sustain Russia’s war-making machine,” and the drones and missiles Iran has provided as part of the broader picture.

“So I think what’s happened is so many people have taken such a myopic view of Ukraine, and they’ve misunderstood Putin’s intentions and how consequential the war is to our interests across the world,” McMaster said. 

On Trump’s selections for top national security and defense posts, McMaster stressed the importance of the Senate’s advice and consent role in making sure “the best people are in those positions.”

McMaster outlined that based on his experience, Trump listens to advice and learns from those around him. And he argued that the nominees for director of national intelligence and defense secretary should be asked key questions like how they will “reconcile peace through strength,” and what they think “motivates, drives and constrains” Russian President Vladimir Putin.

Trump has tapped former Rep. Tulsi Gabbard to be director of national intelligence, who has been criticized for her views on Russia and other U.S. adversaries. McMaster said Sunday that Gabbard has a “fundamental misunderstanding” about what motivates Putin.

More broadly, McMaster said he “can’t understand” the Republicans who “tend to parrot Vladimir Putin’s talking points,” saying “they’ve got to disabuse themselves of this strange affection for Vladimir Putin.” 

Meanwhile, when asked about Trump’s recent selection of Sebastian Gorka as senior director for counterterrorism and deputy assistant to the president, McMaster said he doesn’t think Gorka is a good person to advise the president-elect on national security. But he noted that “the president, others who are working with him, will probably determine that pretty quickly.”



Read the original article

Leave your vote

Continue Reading

CBS News

Sen. Van Hollen says Biden is “not fully complying with American law” on Israeli arms shipments

Avatar

Published

on


Sen. Van Hollen says Biden is “not fully complying with American law” on Israeli arms shipments – CBS News


Watch CBS News



Democratic Sen. Chris Van Hollen of Maryland, who last week backed Sen. Bernie Sanders’ bill to block U.S. sending arms to Israel, told “Face the Nation with Margaret Brennan” that President Biden ” is not fully complying with American law” on sending arms to Israel.

Be the first to know

Get browser notifications for breaking news, live events, and exclusive reporting.




Read the original article

Leave your vote

Continue Reading

CBS News

Rep.-elect Sarah McBride says “I didn’t run” for Congrees “to talk about what bathroom I use”

Avatar

Published

on


Rep.-elect Sarah McBride says “I didn’t run” for Congrees “to talk about what bathroom I use” – CBS News


Watch CBS News



Rep.-elect Sarah McBride, the first openly transgender person to be elected to Congress, tells “Face the Nation with Margaret Brennan” that as Republicans have sought to put forward a bathroom ban in the Capitol, she “didn’t run for the United States House of Representatives to talk about what bathroom I use.”

Be the first to know

Get browser notifications for breaking news, live events, and exclusive reporting.




Read the original article

Leave your vote

Continue Reading

Copyright © 2024 Breaking MN

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.