IRS Archive
Tax Compliance Costs Among Things to Consider in Tax Gap Discussion
August 27, 2021
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TweetShareSharePin0 Shares Increasing tax compliance is a major part of the Biden administration proposal to raise revenue for physical and social infrastructure. Reducing the tax gap—the difference between taxes owed and taxes paid—is a good way to raise revenue, but it doesn’t come without trade-offs, and it’s important to go about it in the right
Truckers must pay heavy highway vehicle use tax by Aug. 31
August 19, 2021
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All taxpayers can file electronically for faster processing. The advantage of e-filing Form 2290 is the IRS provides a watermarked Form 2290 Schedule 1 to the taxpayer within minutes of receiving the e-filed return. Paper filers receive their Schedule 1 within 6 weeks after the IRS receives the return. Taxpayers who are reporting 25 or
Sources of Personal Income in the US, 2021
August 19, 2021
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TweetShareSharePin0 Shares Key Findings Taxpayers reported nearly $11.8 trillion of total income on their 2018 tax returns. About 67 percent ($7.9 trillion) of the total income reported on Form 1040 consisted of wages and salaries, and 82 percent of all tax filers reported earning wage income. Retirement accounts such as 401(k)s and pensions are important
State Tax Limitations Inhibit Public School Funding And Educational Equity
August 19, 2021
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TweetShareSharePin0 Shares As the first day of school approaches, remember that the quality of a child’s education is largely determined by where their public school is located. And in many cases, the roots of educational inequities lie within state and local tax policy. While school districts get revenues from multiple sources, state and local money
U.S. Global Minimum Tax Revenue Analysis
August 19, 2021
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TweetShareSharePin0 Shares The Biden administration has proposed significant changes to the tax rules that govern how much U.S. companies owe on their foreign profits while working to negotiate a global minimum tax. However, the global minimum tax and the Biden administration’s proposals are quite different. A recent Tax Foundation report dug into the details on
Houston First Mortgages
August 19, 2021
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TweetShareSharePin0 SharesHouston First Mortgages Planning for a new home, new property and other finances for the first time is not only a question of gathering money– it is a building a dream to create heaven for you and your loved ones. Though it is a hard fact that getting a mortgage loan is always a
The Tax Policy Charade
August 18, 2021
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TweetShareSharePin0 SharesThe Tax Policy Charade Tax policy discussions are meant to do what? Arrive at a rational policy, or garner votes. I think it is the latter. What is lost in all the debate over tax increases versus tax cuts, is science. Contrary to what most people may think, there is some scientific study of
Biden Tax Compliance & Tax Enforcement Plan to Improve Tax Collection
August 18, 2021
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TweetShareSharePin0 Shares Recent Biden administration proposals rely heavily on revenue from better Internal Revenue Service (IRS) tax collections to fund spending initiatives. The American Families Plan uses several avenues to reduce the tax gap (or the difference between taxes paid and taxes owed), from increasing the IRS’s tax enforcement budget to improving information technology and
Does Your State Have an Individual Alternative Minimum Tax (AMT)?
August 18, 2021
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TweetShareSharePin0 Shares This week’s map shows the five states that have an Alternative Minimum Tax (AMT) in their individual income tax codes: California, Colorado, Connecticut, Iowa, and Minnesota. Under an individual alternative minimum tax, many taxpayers are required to calculate their income tax liability under two systems and pay the higher amount. The federal AMT was created in 1963,
Cities with Highest Sales Tax | Sales Tax Rates by City
August 18, 2021
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TweetShareSharePin0 Shares Key Findings There are over 11,000 sales tax jurisdictions in the United States, with widely varying rates. Among major cities, Tacoma, Washington imposes the highest combined state and local sales tax rate, at 10.30 percent. Five other cities—Fremont, Los Angeles, and Oakland, California; Chicago, Illinois; and Seattle, Washington—are tied for the second highest
