Three news to start your week: September 11
IRS plans to crack down on 1,600 millionaires to collect millions of dollars in back taxes
(AP)
The IRS aims to aggressively seek 1,600 millionaires and 75 major business partnerships that owe hundreds of millions of dollars in past-due taxes.
IRS Commissioner Daniel Werfel stated that the agency now has new ways to go after affluent individuals who have "cut corners" on their taxes thanks to increased federal money and the use of artificial intelligence techniques.
During a call to preview the announcement, Werfel told reporters, "If you pay your taxes on time, it should be particularly frustrating when you see that wealthy filers are not." According to him, the new "compliance efforts" are aimed at 75 major business partnerships with assets of approximately $10 billion on average and 1,600 millionaires who owe at least $250,000 in unpaid taxes.
Finance hits back against US regulator's rulemaking spree
(Financial Times)
The financial industry is fiercely opposing Securities and Exchange Commission Chair Gary Gensler's ambitious regulatory agenda, arguing that the watchdog's legal authority has been overextended and should be reined down.
The US Chamber of Commerce, a business lobby, sued the SEC recently over a rule that expands stock buyback disclosures. Last week, a coalition of private equity, venture capital, and hedge fund groups filed a lawsuit to overturn comprehensive new rules that the SEC adopted for private fund managers last month.
Resistance to its crackdown on the cryptocurrency business has also been encountered; the company supporting the Ripple digital token is contesting a civil case brought by the SEC because it exceeds the agency's authority to regulate securities.
UK regulator to increase oversight of bank risk controls
(Wall Street Journal)
Amid challenging economic conditions and other pressures, the UK's financial regulator warned the nation's biggest banks not to reduce their risk controls, stating that it plans to increase its oversight.
The Financial Conduct Authority stated that although banks operate in a challenging climate with rising interest rates, sluggish growth, inflation, and geopolitical uncertainty, short-term revenue pressure shouldn't supersede regulatory requirements.
The regulator expressed its concerns about financial crime, market abuses, and conflicts of interest in a letter titled "Dear CEO" and targeted to the leadership of wholesale banks. Rather than lending to the general public, wholesale banks lend to other institutions and big enterprises.
The FCA expressed worry: "Our concern is that the external environment may impact the management of these risks through cuts in the control framework."
