Rettig: IRS will “absolutely” clear its backlog this year. IRS Commissioner Charles Rettig promised the House Ways and Means Committee yesterday that the agency will work through its backlog of prior year tax returns by the end of 2022.
IRS pushes Congress for resources to enforce sanctions against Russia. The agency has a growing role in federal efforts to prevent Russia and its oligarchs from evading US sanctions. Its criminal investigation unit has 3,000 employees but the IRS now wants to grow that number by 40 percent over the next five years at a cost of more than $5 billion.
A bipartisan effort to modernize the IRS. Roll Call takes a deep look at the proposal under development by Democratic Senator Bill Cardin and Republican Senator Rob Portman. Their plan could include dedicated funding — outside the appropriation process — for the perennially cash-strapped agency.
House votes to suspend Russian most favored trade status. The House overwhelmingly voted to suspend the trade arrangement, a move that would allow the Biden Administration to impose new tariffs on Russian imports. The measure, which also applies to Russian ally Belarus, is expected to be approved by the Senate in the coming days. The US already has banned most imports from the two countries.
In case you missed it: Steuerle on reforming the charitable deduction. TPC’s Gene Steuerle testified before the Senate Finance Committee yesterday. He outlined ways to create a more effective incentive for charitable donations and how to evaluate trade-offs of various reforms to the charitable deduction. He urged Congress to pay close attention to how to promote the societal value of giving. Making tax incentives for giving more visible, for example, can increase charitable giving.
Georgia makes it official. Gov. Brian Kemp signed a $1.1 billion income tax refund for Georgia taxpayers. Individual filers can now receive a $250 refund when they file; joint filers can receive $500. The refunds, available six to eight weeks after filing, are for tax years 2020 and 2021.
Oregon’s Secretary of State calls for reforming the state mortgage interest deduction. Auditors found the state’s near century-old policy disproportionately benefits white, wealthy homeowners in urban counties while thousands of low-income, rural, and residents of color struggle to secure housing assistance. Like the federal mortgage interest deduction, Oregon allows homeowners to deduct from taxable income mortgage interest payments up to $750,000, including on vacation homes. The subsidy has so far cost Oregon $1.1 billion this biennium.
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