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The IRS plans to step up tax audits of wealthy small business owners 

The IRS plans to step up tax audits of wealthy small business owners 

| May 20, 2021 | White Collar Crimes |

The Internal Revenue Service (IRS) issued a stern warning to wealthy business owners in late April. He warned them to either pay up on the more than $1 trillion in back taxes that they owe or to get ready to face the consequences if they don’t.

Some political analysts aren’t surprised that the IRS has been ordered to step up their taxpayers’ audits. They note that the current presidential administration is likely doing so to fund the social programs that have recently rolled out.

How much in estimated unpaid tax debt is there?

The IRS commissioner announced how Americans failed to pay $441 billion in taxes each year between 2011 and 2013 at an April 13 meeting with senators. He said that his federal agency only recovered $60 billion of that, leaving $381 billion unpaid every year — which adds up to more than a trillion overall.

Tax analysts believe that most unpaid taxes are associated with cryptocurrencies and illegal or foreign source incomes. The tax commissioner noted that their audit detection software doesn’t often catch offshore assets or pass-through business issues either.

The IRS head noted that their reasoning behind stepping up audits of wealthier and corporate taxpayers is because they’re the ones least likely to have unpaid taxes. He noted that his research shows that at least 36% of this population fails to pay the right amount of taxes, causing billions of lost revenue.

Why you should take tax evasion charges seriously

It may scare you if you receive a letter from the IRS letting you know that you’re undergoing an audit. This happens quite often. While nothing may come of the audit if you’ve paid everything you owe, you could also eventually find yourself facing charges of tax evasion. 

Whatever the circumstances, you need to speak with an experienced attorney. Tax evasion charges are always serious, so a proactive approach to your situation is best.