The IRS’s Global High Wealth unit, responsible for auditing the ultrawealthy, has suffered a 38% employee loss this year, significantly impacting ongoing audits. This drastic reduction, exceeding overall IRS losses, stems from the Trump administration’s workforce cuts, including terminations and buyouts. The unit’s diminished capacity hinders efforts to recover substantial tax revenue from high-net-worth individuals, reversing recent initiatives to increase tax enforcement among this group. These losses, affecting a unit specializing in complex tax schemes, leave numerous investigations incomplete or stalled.
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Dual US-UK citizens Andrew and Tristan Tate, facing multiple charges of human trafficking, rape, and tax evasion in Romania and the UK, have returned to Romania after a brief period in the US. Despite the ongoing investigations and a Romanian court order requiring their presence, the brothers claim their departure is not an evasion of justice. They maintain their innocence against all allegations, and a court hearing is scheduled for Monday. The brothers’ departure has raised concerns about potential political influence, though the US president denies any involvement.
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The mass firing of 6,700 IRS employees under the Trump administration’s government-wide cuts presents a significant problem. This isn’t simply a matter of downsizing; it’s a targeted dismantling of a crucial revenue-generating arm of the government. The timing is particularly suspect, occurring at a period when the IRS is already heavily burdened with processing tax returns.
The stated aim is cost-cutting, but the impact appears far more insidious. Focusing the layoffs on workers hired under the Biden administration, specifically those tasked with pursuing tax evasion amongst high-income earners, suggests a deliberate effort to weaken enforcement against wealthy individuals and corporations. This raises concerns about widespread corruption and the potential for increased tax fraud.… Continue reading
During a Las Vegas rally, President Trump threatened to fire or reassign thousands of IRS agents, echoing false claims of 88,000 new hires targeting taxpayers. This action, if implemented, could severely curtail the IRS’s tax collection capabilities, potentially leading to increased tax evasion and reduced government revenue. The move follows a 90-day federal hiring freeze, with exceptions for national security and public safety. Trump’s proposed reassignment of IRS agents to the border reflects his ongoing focus on immigration enforcement.
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Prominent Supreme Court attorney and SCOTUSblog co-founder Tom Goldstein was indicted on federal tax evasion charges, accused of failing to declare millions in poker winnings from 2016 to 2021. The indictment alleges he used his law firm’s funds to pay gambling debts and made false statements to mortgage lenders, totaling over $5.3 million in unpaid taxes. Goldstein, who has a notable legal career including representing Al Gore in *Bush v. Gore*, pleads not guilty and plans to vigorously contest the charges. The indictment also details alleged misuse of firm funds for personal expenses, including the payment of expenses for multiple women.
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A British court ordered the seizure of over £2.6 million ($3.3 million) from Andrew and Tristan Tate to cover unpaid taxes, citing their deliberate evasion of tax obligations. Chief Magistrate Paul Goldspring ruled that the brothers engaged in “a straightforward cheat” of the tax authorities, based on evidence of substantial financial transactions and a history of non-payment. The court found that the Tates failed to pay taxes on £21 million in revenue from their online businesses between 2014 and 2022. The Tates, who deny all wrongdoing, plan to appeal the decision.
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Charles Littlejohn, an IRS contractor, was sentenced to five years in prison for releasing the tax information of wealthy individuals, a sentence far exceeding sentencing guidelines and harsher than those given for comparable crimes. This disproportionate punishment, influenced by Republican lobbying, highlights the undue influence of the wealthy on the justice system. Littlejohn’s actions, which exposed significant tax avoidance by billionaires, were intended to serve the public interest. A presidential commutation is urged to rectify this injustice and protect Littlejohn from potential retribution from President-elect Trump.
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Since receiving increased funding in 2022, the IRS has recovered $4.7 billion in back taxes and criminal proceeds, including $1.3 billion from wealthy tax evaders and $2.9 billion from criminal investigations. These collections, which also benefited from whistleblower information, come as Republicans, who will control Congress, plan to revisit tax laws and potentially reduce IRS funding. Despite facing future budget uncertainty, including $20 billion in potentially rescinded funds, IRS Commissioner Danny Werfel expressed confidence in the agency’s ability to adapt to any upcoming legislative changes. The future of the IRS’s funding and leadership remains uncertain with a potential new commissioner nominated by Donald Trump.
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The news of the Treasury recovering $1.3 billion in unpaid taxes from high wealth tax dodgers is both encouraging and concerning. On one hand, it is a step in the right direction towards holding the ultra-rich accountable for their fair share of taxes. It is about time that those who have been living lavishly while evading taxes are being made to pay up. The fact that almost 80% of the 1,600 millionaires targeted by the IRS have now made payments shows that these individuals were well aware of their tax obligations but chose to dodge them until they were caught.
This recovery of unpaid taxes sheds light on the extent of tax evasion among the wealthy and the need for stricter enforcement and consequences for such actions.… Continue reading