RULES for taxpayers who owe more than $100 million to the Internal Revenue Service (IRS) have changed: in 2016, the agency will no longer accept checks with amounts greater than $99,999,999, the Associated Press reported.
For those who owe such amounts, tax payments will have to be sent electronically or in multiple checks with amounts less than $100 million each.
Memos from the IRS and Treasury Department state that checks worth $100 million or more must be processed by hand, which heightens the risk of errors, fraud and theft. Furthermore, Federal Reserve banks in America are unable to process checks with such amounts.
This change, however, is likely only to affect a miniscule percentage of American taxpayers. This year, the IRS reported that it accepted 14 checks worth more than $99,999,999.
The agency did not indicate whether these checks were issued by individuals or businesses due to confidentiality laws. However, the Treasury Department has noted a rise in federal agencies trying to deposit checks worth $100 million or more, according to the AP.
In 2012, America’s highest taxpayers took in an average income of about $336 million; their average tax bill was $56 million.
Conservatives have long been critical of President Barack Obama, saying he has repeatedly proposed to increase their taxes. Now, the new rules make it even more difficult for the wealthy to pay their taxes, they say.
“If Obama gets really mean, he’s going to make them bring in pennies or nickels,” said Grover Norquist, president of Americans for Tax Reform.
Peter Sepp, president of the National Taxpayers Union, said that such an action by the federal government in fear of errors indicates that “it’s time to revise processing procedures and security rather than inconveniencing or deterring taxpayers,” according to the AP.
Among lawmakers, the change was hardly viewed as an inconvenience for taxpayers who owe such amounts.
“It sounds to me like these people could afford to pay electronically,” said. Rep. Chris Van Hollen (D-Md.).
Rep. Joe Crowley (D-NY) also expressed little sympathy for these taxpayers.
“I have a lot of envy,” he said. “I don’t know if I have sympathy for someone who’s required to pay that kind of taxes.”
Although the number of taxpayers who will be impacted by the rules is small, the IRS memo called on officials to disseminate the information “in as many media forms as possible between now and Dec. 31, 2015.”
