IRS Archive

RSC Budget for FY 2023
June 9, 2022
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TweetShareSharePin0 Shares The Republican Study Committee (RSC) released its FY 2023 budget today, led by Budget and Spending Task Force Chair Rep. Kevin Hern (R-OK) and RSC Chairman Jim Banks (R-IN), and prescribes several pro-growth tax reforms that would simplify the tax code and encourage business investment. Among the most impactful reforms are permanence for

Tax Filing Season: Options for Improvement
April 27, 2022
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TweetShareSharePin0 Shares Tax Day came and went on April 18th with the regular tax filing deadline, and the Internal Revenue Service (IRS) is facing difficulties. It struggled to manage a deluge of 282 million calls made in fiscal year 2021, only answering 11 percent, and a backlog of several million returns from 2021 were left

Chaotic 2022 IRS Filing Season Shows Flaws in IRS Benefits Distribution
March 24, 2022
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TweetShareSharePin0 Shares As the deadline for the 2022 tax filing season nears, the IRS faces scrutiny for its backlog of returns, inaccessible taxpayer service, and delays in issuing certain refunds. As of January 28th, the Internal Revenue Service (IRS) had 23.7 million returns awaiting action, compared to a typical backlog at that point of roughly

Business Tax Refunds Must Be Provided Quickly During Future Downturns
February 1, 2022
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TweetShareSharePin0 Shares During the pandemic, policymakers relied on the Internal Revenue Service (IRS) to administer business relief through the tax code. The emergency relief, including business tax refunds for net operating losses (NOLs), was intended to quickly help businesses that lost their source of income during the pandemic. A new report from the Government Accountability

IRS Backlog, Pandemic Tax Relief
January 13, 2022
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TweetShareSharePin0 Shares Taxpayers and the Internal Revenue Service (IRS) are set to face a bumpy 2022 tax filing season, which the IRS announced will begin January 24th and run through April 18th. Two major challenges await taxpayers: a second year of navigating pandemic-related tax relief on their returns and IRS backlogs that may delay processing

IRS Reporting Proposal Misses the Mark
October 20, 2021
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TweetShareSharePin0 Shares The Biden administration’s proposal to require financial institutions to report inflows and outflows of more than $600 from bank accounts has attracted significant attention. The Treasury Department believes it could generate $463 billion in revenue over 10 years by giving the IRS more insight into certain types of income that members of the

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