Terry Savage: IRS identifies 125,000 tax cheats who owe $100 billion in taxes
Have you filed your 2023 income tax return yet? Millions already have. The rest of us are now officially procrastinators. But we’ll get it done. Except for the 125,000 high-income earners who did not even file tax returns going back to 2017 — and who owe roughly $100 billion in back taxes.
It boggles the mind. How did the IRS even find these 100,000 people with incomes between $400,000 and $1 million who failed to pay their taxes between 2017 and 2021? Were they part of the underground economy, dealing strictly in cash? Were they drug dealers or con men (and women) scamming your bank account?
Nope. The IRS finally got around to matching W-2 forms and 1099 forms filed by their employers or investment firms denoting interest or other payouts. So while you were scrambling to find your 1099-INT form, reporting the interest on your money market fund and fearing an audit if you omitted those few dollars from your reported income, some extremely wealthy people slipped through the clutches of the IRS.