Current:Home > NewsIRS recovers $4.7 billion in back taxes and braces for cuts with Trump and GOP in power -Zenith Investment School
IRS recovers $4.7 billion in back taxes and braces for cuts with Trump and GOP in power
View
Date:2025-04-12 17:03:58
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Act though the 2023 debt ceiling and budget-cuts deal between Republicans and the White House resulted in $1.4 billion rescinded from the agency and a separate agreement to take $20 billion from the IRS over the next two years and divert those funds to other nondefense programs.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! (57134)
Related
- The Daily Money: Spending more on holiday travel?
- The Excerpt podcast: 12 more hostages held by Hamas freed in Gaza
- Why is my hair falling out? Here’s how to treat excessive hair shedding.
- Jessica Simpson Reveals the Beauty Lesson She's Learned From Daughter Maxwell
- Biden administration makes final diplomatic push for stability across a turbulent Mideast
- Sweden’s economy shrinks in the third quarter to signal that a recession may have hit the country
- Vehicle wanted in Chicago homicide crashes into Milwaukee school bus during police pursuit
- Daryl Hall accuses John Oates of ‘ultimate partnership betrayal’ in plan to sell stake in business
- Gen. Mark Milley's security detail and security clearance revoked, Pentagon says
- Chemical firms to pay $110 million to Ohio to settle claims over releases of ‘forever chemicals’
Ranking
- Pregnant Kylie Kelce Shares Hilarious Question Her Daughter Asked Jason Kelce Amid Rising Fame
- Families of Palestinian students shot in Vermont say attack was targeted: 'Unfathomable'
- Wyoming coal mine is shedding jobs ahead of the power plant’s coal-to-gas conversion
- U.S. military Osprey aircraft crashes into ocean off Japan's coast killing at least 1, official says
- Could Bill Belichick, Robert Kraft reunite? Maybe in Pro Football Hall of Fame's 2026 class
- New data collection system shows overall reported crimes were largely unchanged in Maine
- Truce in Gaza extended at last minute as talks over dwindling number of Hamas captives get tougher
- Ukraine spy chief's wife undergoes treatment for suspected poisoning
Recommendation
Travis Hunter, the 2
Canned water company Liquid Death rebrands 'Armless Palmer' drink after lawsuit threat
Retro role-playing video games are all the rage — here's why
Peaches, plums and nectarines recalled over listeria risk sold at major retailers: FDA
Who are the most valuable sports franchises? Forbes releases new list of top 50 teams
Sweden’s economy shrinks in the third quarter to signal that a recession may have hit the country
Police officers in Maryland face lawsuit after they shoot dog who was later euthanized
K9 trainer loses 17 dogs in house fire on Thanksgiving Day; community raises money