IRS Archives - Chicago IRS Tax Attorney

$80 Billion – Where Will The IRS Spend It?

March 16, 2023 by admin

Thursday March 16, 2023 – The Inflation Reduction Act was passed in August 2022. The Act provided $80 Billion over 10 years. The vast majority of those funds are directed to enforcement almost 60%. Only $3.2 billion – under 4% – is going to taxpayer services – like answering the phone.

Today the Taxpayer Advocate, Erin Collins, wrote “The IRA allocated the funds in a manner that does not address the needs of U.S. taxpayers, including individuals, families, and businesses,” Collins continued, “The additional funding provided by the IRA, while appreciated and welcomed, is disproportionately allocated for enforcement activities and should be reallocated to achieve a better balance with taxpayer service needs and IT modernization. We need to put taxpayers first.”

This space recently reported the IRS missed the 6 month deadline, imposed by Treasury Secretary Janet Yellen, to provide a plan on how the IRS intends to spend the IRA money. The IRS reported that it “expects to deliver the plan to the Secretary in [the] coming weeks.” That doesn’t mean they aren’t already spending

Attorney Steven A. Leahy looks at the IRS’ progress on this episode of Today’s Tax Talk.

https://www.pgpf.org/blog/2023/03/would-increased-funding-for-the-irs-narrow-the-tax-gap

Taxpayer advocate urges Congress to reconsider $80 billion IRS funding boost

https://www.irs.gov/pub/image/21dbmainchart.png

https://www.boropark24.com/news/irs-hires-5-000-customer-service-agents

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

Yellen: 90% Of New Audits On Small Business

March 14, 2023 by admin

Monday March 13, 2023 – The Administration has been clear (??) the Inflation Reduction Act funding to the IRS, almost $80 billion, will not be used to Audit those making less than $400,000 per year. Or will it.

Last week the new Commissioner of the IRS said, I think unequivocally, that the Inflation Reduction Act money will not be used to audit those taxpayers. But, on Friday March 10th, Treasury Secretary Yellen appeared before the House Ways and Means Committee and admitted that more than 90% of any new audits supported by that money will be used to audit small businesses and individuals making less than $400,000 per year.

If you listened closely over these past months, you knew this was the case. There was always some “wiggle room,” as Senator Crapo put it. And trying to get a straight answer was always met with obfuscation.

Now, I think the truth is out. Will it make a difference?

Attorney Steven A. Leahy goes over this new information on Today’s Tax Talk.

https://www.cnn.com/2022/08/10/politics/yellen-new-irs-funding-audits/index.html

https://finance.yahoo.com/video/yellen-appears-admit-90-irs-201955117.html

FairTax Act of 2023

March 10, 2023 by admin

Thursday March 9, 2023 – Did you hear about H.R. 25, the Fair Tax Act of 2023. This bill was introduced in House of Representatives in January 2023, right after the Republicans took over.

Supporters claim the bill will simplify the current tax code and reduce federal spending. The act would replace the existing income, payroll, estate and gift taxes with a 23% national sales tax on consumable goods and services. The Family Consumption Allowance would ensure that low-income and middle-class families are not unfairly burdened by the sales tax. Additionally, it would reduce federal spending by over $71 billion in 2023 and eliminate the need for the Internal Revenue Service completely.

Democratic Reps. Wiley Nickel of North Carolina, Eric Sorensen of Illinois and Brittany Pettersen of Colorado called the measure “extremist.” Yesterday Nickel said he “was dismayed to hear about an extremist plan by my colleagues on the other side of the aisle that calls for a 30% national sales tax for working families,” He continued “[a] 30% sales tax would be a disaster for working families and individuals in North Carolina and around the country who are already dealing with high gas prices, exorbitant housing costs and the rising costs of goods and everyday services.”

Attorney Steven A. Leahy said “I find the proposal interesting and worth investigating. Anything is better than the current system. Isn’t it?” Catch his analysis on Today’s Tax Talk.

https://www.law.cornell.edu/constitution/amendmentxvi

https://www.congress.gov/bill/118th-congress/house-bill/25

https://www.forbes.com/sites/peterjreilly/2023/02/07/how-the-fair-tax-act-of-2023-might-work/?sh=2e4220e252ba

https://www.cnbc.com/2023/03/08/taxes-house-democrats-push-back-on-gop-bill-to-abolish-irs-impose-national-sales-tax.html

https://fairtax.org/active-legislation/h-r-25-the-fairtax-act-of-2023

Manchin To Vote “NO” on Werfel Confirmation

March 9, 2023 by admin

Wednesday March 8, 2023 – Sen. Joe Manchin (D-WV) has announced that he will vote against, President Biden’s choice for head of the Internal Revenue Service (IRS), Daniel Werfel. Manchin is dissatisfied with the way the Inflation Reduction Act (IRA) is being implemented.

Although Manchin was the deciding vote on the IRA, he thinks Werfel would not be given autonomy to perform the job according to the law. “While Daniel Werfel is supremely qualified to serve as the IRS Commissioner, I have zero faith he will be given the autonomy to perform the job in accordance with the law and for that reason, I cannot support his nomination,” he said. “At every turn, this administration has ignored congressional intent when implementing the Inflation Reduction Act,”

Daniel Werfel is still expected to have enough support to be named the new Commissioner of the Internal Revenue Service when the vote reaches the Senate floor, even without Manchin’s vote, and two other absent Democrats, Senators Fetterman and Feinstein. Six Republicans voted to advance Werfel’s nomination on a procedural vote.

Manchin also said he would not vote for President Biden’s nominee to sit on the Federal Communications Commission, Gigi Sohn. Manchin cited her “unprecedented” and “bipartisan opposition” due to her past activist statements and alliances with far-left groups. Shortly after his statement, Sohn withdrew herself from consideration, citing the toll that the attacks had taken on her and her family.

So, look for Werfel to be the next Commissioner of the IRS, where he has vowed not to increase audits for households making under $400,000. We shall see.

Attorney Steven A. Leahy reports on the latest IRS news on Today’s Tax Talk.

https://news.yahoo.com/manchin-oppose-bidens-nominee-head-175103115.html

Manchin will vote against Biden’s pick to head IRS

https://www.freep.com/story/money/personal-finance/susan-tompor/2023/03/08/irs-paper-tax-return-backlog-digital-scanning/69984755007/

Are Federal Agencies Killing Crypto In US?

March 8, 2023 by admin

Crypto-Tuesday March 7. 2023 – Cryptocurrency has emerged as a popular form of investment and a means of trade. The US government has been increasingly cracking down on the use of cryptocurrencies, with various agencies taking steps to curb their use.

Today we will explore how US agencies are killing cryptocurrency in the US and the impact it may have on the future of digital currencies.

One of the most significant moves against cryptocurrencies in the US was made by the Internal Revenue Service (IRS) in 2014. The IRS declared that cryptocurrencies should be treated as property for tax purposes, which meant that any gains from the sale of cryptocurrencies would be subject to capital gains tax.

This was a major blow to cryptocurrency investors, who had previously enjoyed tax-free gains from their investments. The decision by the IRS to tax cryptocurrencies has made it more difficult and costly for individuals to trade in digital currencies.

The Securities and Exchange Commission (SEC), under Chairman Gensler, has taken legal action against cryptocurrency companies. Going so far as to say that “everything but Bitcoin” should be considered a security and regulated as such.

The ongoing legal battle between the SEC and Ripple may decide the fate of the entire crypto industry and whether many cryptocurrencies survive. Ripple CEO Brad Garlinghouse has said Crypto companies have “already started moving outside” the US to avoid the heavy hand of the SEC.

More recently, the US Treasury Secretary, Janet Yellen, said it was “critical to put in place a strong regulatory framework.“ While she stopped short of calling for a ban on Cryptocurrencies, there have been very powerful forces stating that banning crypto should be an option.

And today, Federal Reserve Chairman Jerome Powell, restated his heavy warnings to banks that the Federal Reserve are watching their Cryptocurrency moves closely. Saying, “We see in crypto activity lots of things that suggest that regulated financial institutions should be quite cautious in doing things in the crypto space.”

Some experts believe that cryptocurrencies will continue to thrive despite the increased scrutiny, while others believe that they will struggle to gain widespread adoption if they are subject to onerous regulations. In any case, the US government’s increased scrutiny of cryptocurrencies has had a significant impact on the industry.

The tax treatment of cryptocurrencies, along with proposed regulations from a host of United States Government Regulatory Agencies, including, the IRS, the SEC, the Department of Treasury, the Federal Reserve Board, and others, have made it more difficult and costly for individuals to trade in digital currencies. While some argue that this regulatory crackdown is necessary to prevent illicit activities, others worry that it will stifle innovation and prevent the growth of this possibly freedom enhancing technology.

Attorney Steven A. Leahy looks at the regulatory landscape in this Crypto-Tuesday episode of Today’s Tax Talk.

https://coinflip.tech/markets

https://cointelegraph.com/news/u-s-treasury-janet-yellen-calls-for-strong-regulatory-framework-for-crypto-activities

https://www.coindesk.com/policy/2023/03/07/federal-reserves-powell-we-dont-want-to-strangle-crypto-innovation-but-sector-is-a-mess/

https://www.thestreet.com/crypto/news/ripple-ceo-crypto-will-go-overseas-due-to-sec-regulations

https://www.nasdaq.com/articles/secs-gensler-warns-crypto-investors-but-differentiates-bitcoin

$80 Billion – Where Will The IRS Spend It?

Yellen: 90% Of New Audits On Small Business

FairTax Act of 2023

Manchin To Vote “NO” on Werfel Confirmation

Are Federal Agencies Killing Crypto In US?

Our Resources

Testimonials

Our Office