Bloomberg News writes about how President Biden’s newest IRS proposal aims to increase surveillance on wealthy tax evaders while reducing the likelihood of audits for compliant taxpayers. The article begins as follows:
The U.S. Treasury Department estimated that wealthy taxpayers as a group are hiding billions of dollars of income, a conclusion that aims to bolster the Biden administration’s call for Congress to approve expanded IRS funding and broad new financial-transaction reporting requirements.
The department detailed in a report Thursday the administration’s proposed measures to raise $700 billion in additional revenue over a decade through Internal Revenue Service enforcement. The release follows criticism from Republican lawmakers and tax analysts that the estimate is unrealistically high.
The enforcement plan is a central component of President Joe Biden’s quest to fund his roughly $4 trillion in long-term economic proposals. The administration called for banks and cryptocurrency exchanges to report transactions to the Internal Revenue Service, which would also get new auditors and an upgraded information-technology system.
“The IRS will be able to deploy this new information to better target enforcement activities, increasing scrutiny of wealthy evaders and decreasing the likelihood that fully compliant taxpayers will be subject to costly audits,” the Treasury said of the proposed reporting requirements.
Posted by Marin Larkin, Associate Editor, Wealth Strategies Journal