The IRS Backlog Is Far Bigger Than Initially Reported

Nearly 24 million returns and other correspondence still are waiting at the IRS. The Washington Post reported late last week that the IRS still is processing 23.7 million taxpayer communications from last year, far more than previous public estimates by the agency. The delayed paperwork  includes 9.7 million unprocessed paper returns, 4.1 million returns delayed because of stimulus payment or pandemic relief issues, 4.1 million amended returns, and 5.8 million pieces of correspondence.  

Super Bowl ads notwithstanding, crypto tax compliance challenges keep growing. None of those commercials talked about the tax issues surrounding cryptocurrencies but they are real and growing. TPC’s John Buhl reviews many of the compliance gaps. Key questions include: How should the IRS treat certain investment losses? When do cryptocurrency transactions yield taxable income? With “decentralized autonomous investors” and “decentralized finance,” who is responsible for reporting transactions to the IRS and to the investors themselves? The answers are uncertain, which means less control and more headaches for Congress and the IRS. 

What are the tax implications if members of Congress are forced to sell stocks? Politico considers bipartisan proposals to ban stock trading by members of Congress. But most leave a key question unanswered: How would assets be taxed if members must sell their stock?

North Carolina’s tax collection exceeds expectations again. Halfway through the fiscal year, revenues are nearly $1.4 billion more than the state anticipated. Every major tax category had greater-than-expected revenues, though the greatest growth came from corporate and franchise taxes and from taxes on alcoholic beverages and real estate transactions. The Office of State Budget and Management now estimates “overcollections” will reach $2.4 billion by the end of the fiscal year on June 30. 

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