The Internal Revenue Service (IRS) announced this week that it will extend this year’s tax filing deadline to April 17, giving taxpayers two extra days to file. In a separate announcement, the IRS says it plans to increase audits on the nation’s top earners to crack down on offshore tax evaders.
Tax Deadline Extended Due to Washington Holiday
This year, April 15, the standard tax deadline for U.S. taxpayers, falls on a Sunday. With the following day being a Washington holiday known as Emancipation Day–a day that celebrates the freeing of slaves in the district–the IRS won’t require filers to submit their documents until Tuesday, April 17.
Last year, the tax deadline was extended to April 18 thanks to the same holiday.
For those who don’t want to wait until April to submit their tax forms, the IRS says it will begin accepting returns submitted online through its e-filing system on Jan. 17. Also, individuals who are interested in requesting a tax extension will have until Oct. 15 of this year to file their tax returns.
IRS Cracks Down on High Earning Offshore Tax Evaders
In a separate announcement, the IRS says it audited one out of every eight millionaires last year in an effort to ramp up its enforcement of the nation’s top earners.
About 12.5 percent of all taxpayers earning one million dollars or more were handed audits last year in the highest enforcement rate since at least 2004. The agency found an increasing number of top earners were using offshore accounts to avoid paying taxes.
Last year, in an effort to lure taxpayers into admitting their crimes, the IRS offered evaders a reduction in penalties and no jail time if they confessed to storing their money in offshore accounts. This admission period under the Offshore Voluntary Disclosure Initiative (OVDI) lasted until Sept. 9, 2011.
The IRS says it plans to continue cracking down on high earners, making taxpayers who earn $200,000 a year or more at higher risk of an audit. Taxpayers earning less could also be audited, but according to the IRS, they are much less likely to hear from the agency regarding this issue.
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It makes perfect sense to me. going after peanuts is a waste of time. in going after larger sums at least the cost of tracking them down and obtaining the necessary evidence may be recovered.