Accounting
Yellen, IRS trumpet crackdown on wealthy tax cheats
In the first half year of Inflation Reduction Act-funded enforcement, the Internal Revenue Service has recovered over $1.3 billion, including $172 million from 21,000 wealthy taxpayers who hadn’t filed returns since 2017.
In February, the IRS began pursuing 125,000 high-income taxpayers who have not filed taxes in seven years. The agency used such third-party information as W-2s and 1099s to find people who’d received $400,000 or more but failed to file a tax return.
After collecting $38 million from more than 175 high-income, high-wealth individuals last year, the IRS expanded this effort to around 1,600 additional high-income, high-wealth individuals. Nearly 80% of these millionaires have now made a payment, leading to more $1.1 billion recovered, $100 million since July, the IRS said.
Al Drago/Bloomberg
Due to a previous lack of funding, “This hadn’t been happening,” said Secretary of the Treasury Janet Yellen, speaking at the IRS campus in Austin, Texas this week. “Between 2010 and 2018, the audit rate for millionaires fell by 80%. And during the previous administration, as audit rates on high-income taxpayers fell, the share of audits on taxpayers with incomes under $200,000 increased. In 2019, the top 1% of Americans was estimated to owe over one-fifth of unpaid taxes.”
The IRS has also launched
“It’s not right that everyday Americans pay taxes while struggling to make ends meet, but some of the wealthiest in this country have been able to evade payment,” she added.
IRS funding — so far earmarked for enforcement and improvements to technology and taxpayer service,
“We continue to face challenges from those in Congress who want to cut the funding that’s enabling [this enforcement]. This would be disastrous,” Yellen said.
The Governmental Accounting Standards Board issued guidance today that will require separate disclosures for certain types of capital assets for the purposes of note disclosures.
GASB Statement No. 104,
The statement requires certain types of assets to be disclosed separately in the note disclosures about capital assets. The intent is to allow users to make better informed decisions and to evaluate accountability. The requirements are effective for fiscal years beginning after June 15, 2025, and all reporting periods thereafter, though earlier application is encouraged.
The guidance requires separate disclosures for four types of capital assets:
- Lease assets reported under Statement 87, by major class of underlying asset;
- Intangible right-to-use assets recognized by an operator under Statement 94, by major class of underlying asset;
- Subscription assets reported under Statement 96; and,
- Intangible assets other than those listed in items 1-3, by major class of asset.
Under the guidance, a capital asset is a capital asset held for sale if the government has decided to pursue the sale of the asset, and it is probable the sale will be finalized within a year of the financial statement date. A government should disclose the historical cost and accumulated depreciation of capital assets held for sale, by major class of asset.
BRIAN BOUMAN MEMORY CREATIO
Suha Uddin was hired as a tax partner at RRBB Advisors, Somerset.
Sax, Paterson, announced that its annual run/walk event SAX 4 Miler, supporting the Child Life Department at St. Joseph’s Children’s Hospital in Paterson, has achieved $1 million in total funds raised since its inception in 2012.
Withum, Princeton, rolled out a new outsourcing service offering as part of its sustainability and ESG practice designed to help companies comply with the European Corporate Sustainability Reporting Directive, the mandate requires reporting of detailed sustainability performance as it pertains to the European Sustainability Reporting Standards , effective January 2023.
Key Factors to Select for Optimal Bookkeeping Software Solution
The Medicare scandal hiding in plain sight
This 401(k) lawsuit showcases the power of a 50-year-old law
Are American progressives making themselves sad?
U.S. Beneficial Ownership Information Registry Now Accepting Reports
CPA licensure program off to ‘promising’ start
-
Personal Finance1 week agoInvestors face delays moving certain assets from TreasuryDirect
-
Stock News1 week agoBeleaguered Stellantis ousts CFO, other top execs in bid to ‘redouble’ its focus
-
Economics1 week agoHurricane Milton inundates Florida
-
Economics1 week agoProducer price index September 2024:
-
Finance1 week agoWells Fargo WFC Q3 2024 earnings
-
Economics1 week agoThe Democrats will struggle to retain the Senate
-
Stock News1 week agoTilray’s stock gains after earnings and upbeat outlook on cannabis legalization
-
Economics1 week agoInflation rate at 2.4%, topping expectations