Current:Home > reviewsIRS recovers $4.7 billion in back taxes and braces for cuts with Trump and GOP in power -FinanceMind
IRS recovers $4.7 billion in back taxes and braces for cuts with Trump and GOP in power
View
Date:2025-04-27 16:21:13
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Act though the 2023 debt ceiling and budget-cuts deal between Republicans and the White House resulted in $1.4 billion rescinded from the agency and a separate agreement to take $20 billion from the IRS over the next two years and divert those funds to other nondefense programs.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! (96)
Related
- Meet the volunteers risking their lives to deliver Christmas gifts to children in Haiti
- Trump ordered to pay legal fees after failed lawsuit over ‘shocking and scandalous’ Steele dossier
- Explosions, controlled burn in East Palestine train derailment were unnecessary, NTSB official head says
- Alabama Senate begins debating lottery, gambling bill
- Israel lets Palestinians go back to northern Gaza for first time in over a year as cease
- LinkedIn users say they can't access site amid outage reports
- Woman Details How Botox Left Her Paralyzed From Rare Complication
- Britt Reid is enjoying early prison release: Remember what he did, not just his privilege
- Federal hiring is about to get the Trump treatment
- NBA announces the Phoenix Suns will host the 2027 All-Star game
Ranking
- Warm inflation data keep S&P 500, Dow, Nasdaq under wraps before Fed meeting next week
- Inter Miami vs. Nashville SC in Champions Cup: Will Messi play? Live updates, how to watch.
- Customers blast Five Guys prices after receipt goes viral. Here's how much items cost.
- Three men arrested at Singapore Eras Tour accused of distracting security to sneak fans in
- Sonya Massey's father decries possible release of former deputy charged with her death
- Indiana man pleads guilty to assaulting police with baton and makeshift weapons during Capitol riot
- Amy Schumer's Parenting Milestone With 4-Year-Old Son Gene Will Have You Exhausted
- Activist to foundation leader: JPB’s Deepak Bhargava to deliver ‘lightning bolt’ to philanthropy
Recommendation
Cincinnati Bengals quarterback Joe Burrow owns a $3 million Batmobile Tumbler
Massachusetts bill aims to make child care more accessible and affordable
Investigators say tenant garage below collapsed Florida condo tower had many faulty support columns
What to know about abortion provider Dr. Caitlin Bernard, a guest at State of the Union
Louvre will undergo expansion and restoration project, Macron says
United Airlines plane makes a safe emergency landing in LA after losing a tire during takeoff
US applications for jobless claims hold at healthy levels
Stolen Oscars: The unbelievable true stories behind these infamous trophy heists