CCH Tax Briefing – February 1, 2024
Late on January 31, 2024, the House passed the Tax Relief for American Families and Workers Act of 2024 by a 357 – 70 vote. The bill provides for increases in the child tax credit, delays the requirement to deduct research and experimentation expenditures over a five-year period, extends 100-percent bonus depreciation through 2025, and increases the Code Sec. 179 deduction limitation, among other business-friendly provisions.
In a long-awaited ruling, the U.S. Supreme Court upheld a tax on unrealized gains, affirming the constitutionality of a mandatory repatriation tax introduced by the Tax Cuts and Jobs Act (TCJA).
The Internal Revenue Service isn’t doing enough to help victims of identity theft receive their tax refunds, according to a report Wednesday from National Taxpayer Advocate Erin Collins, and its statistics on answering phone calls are misleading.
Collins’ midyear report to Congress also highlighted problems with the IRS’s backlog on processing employee retention credit claims and the agency’s use of funds from the Inflation Reduction Act to improve taxpayer service and the agency’s technology.
Just because Congress failed to act on passing any significant legislation affecting taxes, although they did take some money away from the Internal Revenue Service, it does not mean there was not a lot going on in the tax world.
In fact, 2023 saw some significant actions taken by the IRS. Early in 2023, the agency got new leadership in the commissioner slot as Daniel Werfel, nominated in late 2022, was confirmed. That was followed by the much anticipated release of the Strategic Operating Plan that detailed how the additional funds provided by the Inflation Reduction Act would be spent.
We are kicking off a new
tax season
It’s hard to believe another year has come
and gone, and we are getting ready for the
new tax filing season to open.
While there have not been many changes
in the US Tax Code since last year, there
has been some major challenges to the
IRS’s administration of the Internal
Revenue Code in certain areas of
international taxation. We are watching
these developments closely and will make
you aware of any changes that may
impact the way we file your tax returns.
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Accounting Today
August 02, 2023, 4:32 p.m.
The IRS launched what it’s calling a “paperless processing” initiative Wednesday. Taxpayers would have the option to go paperless for IRS correspondence by the 2024 filing season, with the goal of achieving paperless processing for all tax returns by filing season 2025. The IRS is making the digital push as part of the extra funding it received under last year’s Inflation Reduction Act to improve taxpayer service and technology after experiencing a long backlog of unprocessed taxpayer correspondence during the pandemic.
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