IRS Set to Use AI to Target Tax Cheats, Say They Will Limit to ‘High Income Earners’ and ‘Large Corporations’

The Internal Revenue Service (IRS) announced new enforcement initiatives Friday to crack down on 1,600 millionaires and 75 large companies it said owe hundreds of millions in unpaid taxes.  

IRS Commissioner Daniel Werfel said the agency will use Inflation Reduction Act funding to focus on high-income earners, partnerships, large corporations and promoters. He said the IRS won’t increase audit rates for those earning less than $400,000 a year.

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Number of U.S. Millionaires Increased by 41 Percent in 2022

New figures from the Internal Revenue Service (IRS) show that the number of American citizens who report more than $1 million in income have jumped by a staggering 41 percent this year alone.

As reported by Politico, the IRS claims to have processed up to 387,840 returns reporting seven-figure incomes by mid-July; at the same time last year, the agency only found 274,879. The increase has been attributed to a strong performance on Wall Street last year, before the inflation crisis hit; in 2022 thus far, millionaires reported a collective total of $252.5 billion in capital gains, 80 percent higher compared to the previous year. In addition, millionaires’ salaries and wages rose by 45 percent.

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