IRS Hauls Back $1.3 Billion From High-Income Earners
Certain income and wealth levels can trigger an IRS audit. Here's what you need to know.


IRS audits aren’t new and recent news is no exception. Due to an influx of funding from the Inflation Reduction Act (IRA), the federal tax agency has been cracking down on high-income and wealthy individuals who owe tax debt.
The compliance initiative targeting high-earning non-filers comes after an IRS warning for wealthy, high earners earlier this year. As Kiplinger reported, the IRS foretold increases in audits, levied penalties, and encouraged taxpayers to file their back taxes before the agency filed for them.
Now, six months later, the IRS has made good on its promise: expanded efforts to reclaim tax debts from high-earning, non-filing taxpayers are on the horizon.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Is the IRS cracking down on high-income earners?
If you earn between $400,000 and $1 million and still need to file a tax return, you may be chosen by the IRS for audit. The tax agency has found thus far:
- 1,600 individuals when the initiative began last fall
- An additional 125,000 non-filers in February
The agency also said it has prioritized individuals owing $250,000 or more in tax debt.
The IRS is looking as far back as 2017 for overdue taxes.
Before the IRA, the IRS cited underfunding and a lack of resources as reasons the agency couldn’t follow up on its initiative to pursue back taxes. Now billions in funding have made this compliance initiative a reality. The IRS reports that nearly 80% of the initially identified non-filers have now made a payment to the tax agency.
Will the IRS audit everyone? Last week, In a press conference in Austin Texas, the U.S. Treasury Department announced the launch of audits of “the 60 largest corporate taxpayers, with average assets of $24 billion.” The IRS will also audit “76 of the largest partnerships” and crack down on the “abuse of corporate jets for personal travel.”
This comes nearly 18 months after a rumor, spurred by some Congressional lawmakers, claimed that 87,000 IRS agents would be coming for your tax dollars. But, it turns out, only some of that is true. Instead of thousands of agents, only dozens are coming. And they’re prioritizing the wealthy and those with higher incomes.
How does the IRS find people who don’t pay taxes?
The agency received third-party information to isolate individuals owing tax debt. This includes documents like Forms W-2 and 1099. These IRS forms can indicate when there is reportable income but no corresponding taxpayer return.
Additionally, the IRS has assigned dozens of senior employees to track back tax cases to recoup lost revenue.
How do you pay back IRS taxes?
If you still need to file an old federal tax return, there is still time. The IRS has mailed out compliance alerts for failure to file a tax form, known as a CP59 notice.
If you’ve received a CP59 notice, you might want to consult a tax professional on filing back taxes. The IRS has provided resources on how to file a back return.
You can also make payments on past due returns via bank account, credit or debit card, and apply for a payment plan through the IRS website or your IRS online account.
You may want to ask a qualified and trusted tax professional about these options as well.
Related Content
- IRS Employees Owe $50 Million in Unpaid Taxes
- Red Flags for IRS Audit
- Audit Reveals IRS Has No Plan to Replace Old Tech
- Why Some States Won’t Get Direct File
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Kate is a CPA with experience in audit and technology. As a Tax Writer at Kiplinger, Kate believes that tax and finance news should meet people where they are today, across cultural, educational, and disciplinary backgrounds.
-
April RMD? Five Tax Strategies to Manage Your 2025 Income
Taxable Income The April 1, 2025, deadline for required minimum distributions (RMDs) is fast approaching for retirees who turned 73 in 2024.
By Kelley R. Taylor Last updated
-
Rising AI Demand Stokes Undersea Investments
The Kiplinger Letter As demand soars for AI, there’s a need to transport huge amounts of data across oceans. Tech giants have big plans for new submarine cables, including the longest ever.
By John Miley Published
-
What Can a Donor-Advised Fund Do for You? (A Lot)
DAFs and private foundations go about helping charities (and those who donate) in different ways. Each comes with its own benefits and restrictions to navigate.
By Julia Chu Published
-
Estate Planning When You Have International Assets
Estate planning gets tricky when you have assets and/or beneficiaries outside the U.S. To avoid costly inheritance mistakes, it pays to understand the basics.
By Kelsey M. Simasko, Esq. Published
-
Retiring With a Pension? Four Things to Know
The road to a secure retirement is slightly more intricate for people with pensions. Here are four key issues to consider to make the most out of yours.
By Joe F. Schmitz Jr., CFP®, ChFC® Published
-
How to Teach Your Kids About the Tax Facts of Life
Taxes are unavoidable, so it's important to teach children what to expect. Also, does your child need to file a tax return for 2024? Find out here.
By Neale Godfrey, Financial Literacy Expert Published
-
IRS Layoffs Spark Delays, Doubt This Tax Season
Tax Season Tax experts say Trump’s downsizing of the IRS is already causing problems.
By Gabriella Cruz-Martínez Last updated
-
Tax Advantages of Oil and Gas Investments: What You Need to Know
Tax incentives allow for deductions and potential tax-free earnings — benefits accessible only to accredited investors in small producer projects.
By Daniel Goodwin Published
-
Charitable Contributions: Five Frequently Asked Questions
Make the most of your good intentions by understanding the ins and outs of charitable giving. A good starting point is knowing what's deductible and what isn't.
By Stephen B. Dunbar III, JD, CLU Published
-
Taxes in Retirement: What ESOP Participants Need to Know
Most Employee Stock Ownership Plans (ESOP) participants transfer company stock to an IRA starting around age 55, so taxes on that money have been deferred.
By Peter Newman, CFA Published