IRS Needs To Be “Completely Redone”

January 24, 2023 by admin

Monday January 23, 2023 – U.S. Treasury Secretary Janet Yellen told Reuters “I’m excited about legislation that’s passed and I want to make sure that it makes the difference it should make, and that includes the IRS,” she said. “That agency needs to be completely redone, and it’s a big task.”

She also shot down the idea of minting a $1 Trillion Dollar coin to avoid negotiating the debt limit with Congress as a “gimmick.”

Yellen is looking to find ways to spend the $80 Billion Dollar boondoggle, and Congress is trying to find ways to eliminate it. Let’s hope Congress finally does something right.

Attorney Steven A. Leahy looks at both sides on Today’s Tax Talk.

https://www.dailymail.co.uk/news/article-11666579/Treasury-Sec-Yellen-says-IRS-needs-completely-redone-rules-1T-coin-debt-limit.html

https://www.yahoo.com/news/janet-yellen-says-not-given-165317435.html

https://nypost.com/2023/01/23/u-s-treasury-secretary-janet-yellen-says-irs-needs-to-be-completely-redone/

https://www.reuters.com/world/us/us-treasurys-yellen-says-irs-needs-be-completely-redone-2023-01-22/

Tax Return 2023 – What You Need To Know

January 20, 2023 by admin

Thursday January 19, 2023 – The 2023 tax season officially begins on January 23, 2023. This is the date when the Internal Revenue Service (IRS) begins accepting and processing individual tax returns for the 2022 tax year. Taxpayers who file early in the tax season are more likely to receive their refund sooner than those who file later.

One important thing to note for the 2023 tax season is the availability of the Free File program. The Free File program is a partnership between the IRS and several tax software companies, which allows taxpayers with an adjusted gross income (AGI) of $73,000 or less to file their federal tax return for free. http://www.tinyurl.com/t3freefile

This program is designed to help low- and moderate-income taxpayers prepare and file their taxes electronically, which can make the process faster and more accurate. Taxpayers can use the Free File program to file their federal tax return, schedule their payments, and check the status of their refund.

Taxpayers who are eligible for the Free File program can access it through the IRS website (see link below). They will be able to choose from a list of participating tax software companies, which offer various features and options depending on their needs.

It is important to note that the Free File program is only available for federal tax returns and does not cover state tax returns. Taxpayers who need to file a state tax return will need to use a separate service or software.

Attorney Steven A. Leahy reports on the Tax return 2023 tax season and the IRS Free File program.

https://en.as.com/latest_news/irs-tax-season-2023-when-to-expect-your-tax-refund-n/

https://www.irs.gov/newsroom/irs-free-file-launch-aims-to-save-taxpayers-hard-earned-dollars

https://www.tinyurl.com/t3freefile

Steven A. Leahy is a tax attorney in Illinois. He was the host of the long-running popular Radio Show “The IRS Radio Hour” heard every Sunday evening on AM 560 The Answer. Attorney Leahy is also the author of the book “Deal With Your IRS Problems Today!” You can get a FREE copy of this important book at FreeIRSBook.com. Or Call 24/7 (312)664-6649

Taxpayer Protection Act – DOA

January 17, 2023 by admin

Monday January 16, 2023 – The Biden Administration is pushing for 87,000 new Internal Revenue Service (IRS) agents in order to increase the amount of audits against families and small businesses.

This proposal would cost taxpayers an additional $80 billion on top of their already existing $14 billion annual IRS budget. Thankfully, Republicans in Congress are fighting back with the passage of the “Family and Small Business Taxpayer Protection” Act. This act will rescind all new IRS funding and protect middle-class families and small businesses from IRS audit harassment.

Unfortunately, this Act has Zero chance of passing. The Democrats still have control of the Senate, and President Biden would never sign such a bill.

In another story, the IRS has set a date of January 23, 2023 for tax season to open.

Attorney Steven A. Leahy looks at the effort to curb the power of the IRS.

https://thehill.com/opinion/3811279-irs-funding-dont-feed-the-mouth-that-bites-you/

https://www.nytimes.com/2023/01/11/business/irs-tax-returns-backlog.html

https://www.denver7.com/news/national/irs-sets-date-for-tax-season-but-taxpayers-can-begin-filing

Most Serious IRS Problem – Processing Delays

January 13, 2023 by admin

Thursday January 12, 2023 – The Taxpayer Advocate Service (TAS) is an independent organization within the Internal Revenue Service (IRS) that helps taxpayers resolve problems with the agency. Each year, by law, the TAS releases a report to Congress highlighting the most serious problems encountered by taxpayers. The report, known as the National Taxpayer Advocate’s (NTA) report, identifies systemic issues that impede taxpayers’ ability to exercise their rights and recommends solutions to those problems.

The 2022 National Taxpayer Advocate report identified ranked the ten most serious problems encountered by taxpayers:

Processing Delays
Complexity of the Tax Code
IRS Hiring & Training
Telephone & In-Person Service
Online Access for Taxpayers and Tax Professionals.
E-File & Free File
IRS Transparency
Return Preparer Oversight
Appeals
Overseas Taxpayers

The biggest issue identified in the report is Processing Delays. That finding isn’t news to any taxpayer. The processing delay has been reported since last year.

The recently replaced IRS Commissioner, Charles Rettig told a Congressional hearing last March the backlog would be cleared by the end of 2022.

In the just released report the National Taxpayer Advocate, Erin Collins, wrote to Congress, saying ““We have begun to see the light at the end of the tunnel, I am just not sure how much further we have to travel before we see sunlight.”

So, the IRS did not clear the backlog by the end of 2022, despite the additional funding to do so. The additional funding BEFORE the additional $80 billon.

Attorney Steven A. Leahy looks at the Number one problem according to this report – Processing Delays – on Today’s Tax Talk.

https://www.taxpayeradvocate.irs.gov/reports/2022-annual-report-to-congress/most-serious-problems/

https://www.washingtonpost.com/business/2023/01/11/irs-backlog-delays-refunds/

https://www.thinkadvisor.com/2023/01/11/taxpayer-service-expected-to-improve-in-2023-irs-says/

https://www.journalofaccountancy.com/news/2022/mar/commissioner-congress-irs-will-clear-backlog-years-end.html

New Congress First Target – IRS

January 12, 2023 by admin

Wednesday January 11, 2023 – With the new House Majority, Republicans are pledging to use their power to identify agencies at which to slash budgets. Their vote on Monday was the first step in this process, passing a repeal of $71 billion in IRS funding.

The Inflation Reduction Act was passed by Democrats in the last Congress – without a single Republican vote. It was designed to provide funding over 10 years to boost enforcement at the IRS after massive hiring surges.

It’s important that business owners stay informed about any changes related to taxes and filing procedures so they can comply with all requirements quickly and accurately. Keeping up-to-date on any news related to taxes is critical – especially as tax season approaches – so businesses can remain compliant while also taking advantage of any benefits they may be entitled to receive under current laws. Additionally, making sure you have accurate records and staying organized throughout the year can help reduce any potential issues down the line if you do get audited or need help with a specific issue related to your taxes or filing status.

Attorney Steven A. Leahy explores the details of this act and how it will affect you.

https://news.yahoo.com/heres-why-the-house-gop-made-defunding-the-irs-its-first-priority-123223299.html

https://www.govexec.com/workforce/2023/01/house-republicans-say-clawing-back-irs-funding-just-beginning-agency-spending-reductions/381647/