Washington— The IRS claims it has recovered $360 million in unpaid taxes from delinquent millionaires as its leadership promotes its newest modernization efforts with Inflation Reduction Act funds Republicans are threatening to cut.
Leadership from the federal tax collector called reporters Thursday to discuss how the agency has spent tens of billions of dollars from Democrats' Inflation Reduction Act, enacted into law in August 2022.
After collecting $122 million from delinquent billionaires in October, IRS executives said over half a billion dollars in unpaid taxes from affluent tax cheaters has been recovered. The announcement comes as the IRS prepares for more financial cuts.
The agency cuts agreed upon by the White House and congressional Republicans in the debt ceiling and budget cuts package passed by Congress last year, which included $20 billion rescinded from the IRS over two years, would be frontloaded as part of the current fiscal year spending package to avoid a partial government shutdown later this month.
IRS Commissioner Daniel Werfel stated “the impact of the rescission that’s being discussed as part of the current budget will not impact our efforts until the later years.”
He claimed the agency will spend its $60 billion allotment over the next decade and require extra cash thereafter. “Our intent is to spend the money to have maximum impact in helping taxpayers now and in the immediate future,” he added.
"My hope is that as we demonstrate the positive impact that IRA funding is having for all taxpayers, policymakers will need and want to restore IRS funding so we can continue the momentum," Werfel said.
The IRS started 76 investigations of the largest U.S. partnerships, including hedge funds, real estate investment partnerships, and law firms, in December. “It’s clear the Inflation Reduction Act funding is making a difference for taxpayers,” Werfel added. "For progress to continue, our agency needs reliable, consistent annual appropriations."