The Treasury Department has announced that they expect to collect at least $50 billion over the next decade from a new regulatory campaign targeting businesses that are structured as partnerships. This is just one of many strategies that the IRS is employing to increase tax enforcement and close the tax gap, with the agency receiving a significant increase in funding of $60 billion during the Biden administration.
With this additional funding, the IRS is now taking steps to tighten tax enforcement, focusing on partnerships as a common type of “pass-through” entity where taxes are passed along to individual owners who then pay them at the individual level. This new focus on partnerships is part of the IRS’s broader efforts to ensure tax compliance and crack down on tax evasion. By targeting these specific types of businesses, the agency aims to close potential loopholes and ensure that all taxes owed are properly paid.
The Biden administration has made tax enforcement a top priority, and this increased funding reflects their commitment. With more resources at their disposal, the IRS is ramping up efforts to go after tax evaders and ensure that everyone pays their fair share. The focus on partnerships is just the beginning of what promises to be a comprehensive crackdown on tax fraud and non-compliance. By targeting these businesses, the IRS hopes to recoup billions in unpaid taxes and send a clear message that tax evasion will not be tolerated.
