IRS Targets Wealthy Non-Filers Exploiting Tax Return Loophole

The IRS is tackling wealthy individuals who have failed to file tax returns, with tens of thousands still non-compliant despite increased efforts. The tax law loophole, which only penalizes failure to file as a misdemeanor, combined with limited IRS resources, means many are unlikely to face the consequences. The IRS has already collected over $290 million from non-filers as part of a new initiative. Treasury Department proposals suggest increasing penalties for chronic offenders to improve compliance and close the tax gap.