The Impact of the Earned Income Tax Credit (EITC) on IRS audits

The Congressional Research Service (CRS) has issued a report (https://bit.ly/3MVTXb7 ) that examines the impact of the Earned Income Tax Credit (EITC) on IRS audits. The report was spurred by concern that the IRS is auditing low-income taxpayers, particularly taxpayers who claim the EITC, at disproportionately high rates compared with higher-income taxpayers. “These higher audit rates […]

Report on IRS Whistleblower Office

In a report to Congress, the IRS’s Whistleblower Office said that in 2021 the agency collected more than $245 million from noncompliant taxpayers as a result of whistleblowers’ tips. The IRS made 179 awards totaling more than $36 million to the whistleblowers. Since the whistleblower program began in 2007, the number and amounts of awards […]

IRS impersonator scams

You can help fight IRS impersonator scams. The Treasury Inspector General for Tax Administration (TIGTA) is alerting taxpayers about scammers claiming to be from the IRS. These criminals tell victims they owe unpaid tax and threaten them with arrest or other consequences if the victims don’t send money. Scammers may also ask for personal information, […]

Federal Revenue collections up

U.S. revenues for fiscal year 2022 so far have exceeded predictions, according to the Congressional Budget Office (CBO). The CBO reports that FY 2022 revenues outpaced the same period in FY 2021 by 29%, due to increases in individual taxes, payroll taxes and corporate income tax collections. The estimated federal budget deficit for FY 2022 […]

American Rescue Plan Act sunset coming soon

The American Rescue Plan Act of 2021 expanded tax benefits to reduce the cost of health insurance premiums. But these benefits are scheduled to expire at the end of 2022. Colorado Democratic Senators Bennet and Hickenlooper have proposed that the advanced premium tax credit (APTC) be made permanent. According to the senators, the APTC helped […]

EV credits

The electric vehicle (EV) tax credit begins to phase out when 200,000 of a manufacturer’s qualifying vehicles have been sold. But automakers are telling Congress, not so fast! In a letter, GM, Ford, Chrysler and Toyota asked Congressional leaders to give all electric car and light truck buyers a tax credit of up to $7,500. […]

Guidance coming on tax aspects of cryptocurrencies

Congress is getting serious about addressing the confusion surrounding the tax treatment of digital assets such as cryptocurrencies. A bipartisan bill dubbed the Responsible Financial Innovation Act was recently introduced in the U.S. Senate. The bill would establish a regulatory framework for digital assets. The first-of-its-kind proposed legislation would attempt to validate the mainstream use […]

A walk thru of the new IRS voice bot

A short video explaining how the new automated system works. IRS Authenticated Collection Voice Bot https://bit.ly/3O32vyz

Invasion of the bots?

IRS rolls out artificial intelligence to help callers make payments, resolve simple tasks – ABC News https://abcn.ws/3tJvWNM

Real ID deadline approaching

The deadline for the Real ID is under a year away: Here’s how to upgrade while dodging the DMV – Grow from Acorns + CNBC https://bit.ly/3O4jqkf