The IRS said it is preparing a tax-enforcement crackdown after a Treasury Inspector General for Tax Administration (TIGTA) audit revealed that more than $1.4 billion in taxes may have gone uncollected from individuals who won large sums in gambling.
The report from TIGTA’s audit, released on Sept. 30, found that nearly 150,000 Americans with gambling winnings exceeding $15,000 between 2018 and 2020 failed to file tax returns, leaving potentially significant amounts of unpaid taxes.
The watchdog’s report identified more than $13.2 billion in gambling winnings during the period in question, while estimating that the IRS “could potentially increase tax revenue by approximately $1.4 billion through addressing the 139,045 individual nonfilers with gambling winnings.”…