A recent study found that the top 1% of taxpayers failed to report 20% of their income. The National Bureau of Economic Research found that these taxpayers failed to pay more than $175 billion in taxes owed. However, due to budget cuts, the IRS doesn’t have the resources to fully investigate this tax evasion. Audit rates on those making over $1 million a year have dropped drastically in recent years. President Biden is proposing to increase investment in the IRS, with additional resources going toward enforcement of high-income taxpayers. He also proposes requiring financial institutions to report more information on account flows of earnings from investments and business activities. Call or visit our website for more information! www.mjscpa.com/
