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The Internal Revenue Service (IRS) is set to intensify its scrutiny and auditing off high-income individuals who have not filed tax returns, focusing on 125,000 cases since 2017.

This enforcement resurgence, enabled by the 2022 Inflation Reduction Act’s provision of $80 billion over ten years, marks the revival of a non-filer program previously hindered by budget cuts. The IRS plans to issue notices to 25,000 individuals with incomes over $1 million and another 100,000 with incomes between $400,000 and $1 million, identified through third-party income documents.

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IRS Commissioner Danny Werfel emphasized the initiative’s significance, stating, “With Inflation Reduction Act resources, the agency finally has the funding to pursue this core responsibility and ensure fairness for everyone who played by the rules.” The effort aims to address over $100 billion in “financial activity” linked to these unfiled returns, with unpaid taxes potentially amounting to hundreds of millions of dollars.

In addition to targeting high earners, the IRS intends to reach out to non-filers with lower apparent incomes, promising not to increase audit rates for this group but rather to assist them in filing returns and claiming eligible tax benefits.


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