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U.S. Treasury Department Receives Massive $7 Billion Tax Payment

U.S. Treasury Department Receives Massive $7 Billion Tax Payment

The United States Department of the Treasury received a $7 billion gift and estate tax payment on February 28, 2023. 

According to a recent report about the massive sum, Wharton University economist John Ricco was the first to notice the influx of cash. Ricco initially believed the amount was a reporting error but a Treasury Department spokesperson confirmed that the payment was, in fact, correctly notated. 

While neither the Treasury Department nor the Internal Revenue Service (IRS) can share details about the taxpayer in question due to privacy laws, some conclusions can be drawn from the sheer size of the payment.

Credit: Khaichuin Sim/Getty Images

A gift and estate tax of this magnitude would have been collected when someone inherited $17.5 billion from a decedent or was given a generous gift of the same amount. Per the aforementioned article, only the 100 richest people in the world have net worths in this range, including Amazon founder Jeff Bezos's ex-wife, philanthropist Mackenzie Scott.

In addition to an inheritance, there are several other situations that could lead to a large tax payment of this nature.  For example, the money could be a delayed payment from the estate of a billionaire who died several years ago. Or, the payment could be the result of a divorce involving one wealthy spouse who is not an American citizen.

Regardless of the exact reason for this huge tax payment, it is the largest single sum recorded since at least 2005 according to the previously cited article.

Credit: Douglas Sacha/Getty Images

As for average American families this tax season, the IRS has currently issued approximately $158 billion in refunds. A new report from the federal tax agency indicates that about 54 million households have gotten tax refunds so far in 2023. 

At this point last year, the average tax refund was $3,305. Now, taxpayers are getting back several hundred dollars less at an average of $2,933. It is worth noting that the average refund amount could change by 2023's April 18 tax filing deadline.

What do you think about this $7 billion tax payment?

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Rebekah Barton

Rebekah Barton

Rebekah's search engine optimization career began completely by accident as a college student. Over the course of her career so far, she has "grown up" with the SEO industry, from writing content while juggling classes to managing her own teams of writers and overseeing SEO strategy in subsequent roles. She is excited to bring her passion for high-quality content to CountingWorks, Inc.

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