The IRS collected half a billion dollars from wealthy tax cheats last year, in a continuing effort to prosecute high-income tax debts.

IRS Collects $482M in Back Taxes From Millionaires in 2023

  • February 14, 2024

Some millionaires were also sent to prison

The Internal Revenue Service says it collected almost half a billion dollars from wealthy tax cheats last year, in a continuing effort to step up their enforcement against high-income tax debts.

The IRS released its year-end progress report this month, saying it will continue to audit large corporations, high-income individuals, and complex partnerships that are not paying their fair share of U.S. taxes.

The agency says it pursued 1,600 millionaires to recoup the overdue tax payments and will not stop now.

The IRS is ramping up their pursuit of high-income tax debts

“The IRS continues to increase scrutiny on high-income taxpayers as we work to reverse the historic low audit rates that the wealthiest individuals and organizations faced,” said IRS Commissioner Danny Werfel, referring to previous White House administrations' minimal pursuit of high-income tax debts.

On their radar are the highest income tax debtors, including partnerships, large corporations, and high-wealth individuals

“We are adding staff and technology to ensure that the taxpayers with the highest income, including partnerships, large corporations, and millionaires and billionaires, pay what is legally owed under federal law,” Werfel said.

Some examples include:

  • In December, a Swiss Bank agreed to pay approximately $122.9 million to the U.S. Treasury for its role in assisting U.S. taxpayer-clients with evading their taxes by opening undeclared accounts to conceal money from the IRS. The bank held 1,637 accounts, with assets of $5.6 billion on behalf of clients who collectively evaded $50.6 million in U.S. taxes.
  • Also In December, an individual was sentenced to 28 months in federal prison and ordered to pay over $470,000 in restitution to the IRS for filing a false tax return while working as a money mule for romance scams. The individual maintained bank accounts to collect proceeds from the schemes and to send the money to himself and others overseas.
  • One individual was sentenced to 57 months in prison for failing to pay more than $1.35 million of taxes arising from their operation of several restaurants in the Washington, D.C. area. The individual evaded taxes by concealing assets and obscuring the large sums of money they took from the businesses by purchasing property in the name of a nominee entity and causing false entries in the businesses’ books and records to hide personal purchases using business bank accounts.

More money = more IRS agents

The Inflation Reduction Act passed in 2022 by the White House and Congress provided the additional money that paid for more IRS agents to do these audits on the wealthiest tax defrauders, and the agency says it is making a difference for law-abiding taxpayers.

“As the initiatives to improve compliance increase, the IRS continues its work to improve customer service and modernize core technology infrastructure."

“We focused on improving our taxpayer service for hard-working taxpayers, offering them more in-person and online resources in 2024.”

If you're not among the ultra-wealthy, don't let your guard down!

"Improved taxpayer service" means that you need to know what the IRS knows about your situation, especially if there's a liability. That's what my team and I are here for. If you find yourself looking at any worrisome tax matter, contact me or any member of my Tax Problem Solver team for help immediately. We'll start the ball rolling and take care of things for you. And you can rest assured you'll be in the best hands!

You can reach us by one of the contact methods below in the blue box, or email me at Larry@TaxProblemSolver.com and we can review your specific issues and solve them. You can also click here to book a free consultation.

Would You Like to Find Out What Your
Next Best Steps Should Be?

Choose one of the 3 FREE contact methods that is easiest for you.

Schedule a Call with Us

Click the calendar button below to view our appointment calendar, and choose a day & time, and we’ll call you then.

We look forward to your free consult!

Call Us Now

Click the phone button below to either "click to call" or direct dial a number to speak with us right now. 

We look forward to speaking with you!

9-Secrets You Need to Know

When the IRS is after you, you need to be informed. What you say to the IRS can be used against you.
Get My 9 Secrets email series now. I'll also add you to my newsletter.

About the Author Larry Heinkel J.D. LL.M

Larry Heinkel is a tax and bankruptcy attorney with more than 38 years experience helping businesses and individuals, solve their state and federal tax problems. Mr. Heinkel has been extremely successful in representing his clients before IRS and DOR, and is known throughout Florida as an expert in tax problem resolution.

Leave a Comment: