The IRS plan for $80 billion in new funding needs some more detail. While thorough, the report does not say how many employees the agency would hire long-term for enforcement or how the IRS will assure no increase in audits on those making less than $400,000. “That’s a real challenge — first to determine who is safe from the pledge without actually doing an audit to determine if their true (actual) income is below $400,000 and then second, to determine the appropriate ‘historical’ audit rate to apply to taxpayers with income below $400,000,” TPC’s Janet Holtzblatt told Politico.
Tune in or attend TPC’s annual Donald C. Lubick Symposium to learn more about the IRS plan. Will the IRS plan improve both tax enforcement and customer service, while treating all taxpayers fairly? Join the Urban-Brookings Tax Policy Center in person or virtually for the annual Donald C. Lubick Symposium on April 17, for a discussion of the proposal. Treasury Deputy Secretary Wally Adeyemo will participate in a fireside chat with Urban Instititute President Sarah Rosen Wartell, followed by a conversation with former IRS commissioner Charles Rossotti and an expert panel discussing their views on the IRS’s proposal. Learn more and register here.
Will AI beat tax accountants in the hunt for tax loopholes? Tech researchers at Johns Hopkins University are working with tax law experts to develop an artificial intelligence software program called Shelter Check. Still in its early stages, Shelter Check would read proposed changes in the law and alert policymakers about ramifications for the tax code or warn of unintended impacts. But could a corporate-funded effort find more tax law gray areas? The race is on.
Tennessee lawmaker wants to nix the state sales tax on baby essentials. A state senator has introduced a bill to eliminate Tennessee’s sales and use tax on infant diapers, wipes, and formula. The pro-life Republican says he wants to reduce the costs associated with caring for children. The bill would cost $23 million annually in state and local revenue.
Alabama lawmakers advance bills for $82 million in income tax cuts. The state’s House Ways and Means Education Committee approved two bills that adjust the state tax code’s lowest and highest tax brackets. The bills, costing a total of $82 million annually, now move to the full House for consideration. More tax cut efforts are on the horizon as lawmakers decide what to do with the state’s record budget surplus.
In case you missed the latest from TPC’s TaxVox… Howard Gleckman points out where $4 trillion in US wealth is stashed. Thomas Brosy offers a rundown of President Biden’s proposed changes to the taxation of foreign income. Elaine Maag outlines the administrative challenges raised by Biden’s child tax proposal. Gene Steuerle and Nikhita Airi show that Biden’s budget plan and priorities keep the nation on a fiscal path determined by Social Security, Medicare, and interest on the debt, crowding out other priorities. And TPC’s Tax Hound Renu Zaretsky contemplates the decisions facing taxpayers with the new $600 reporting threshold for third-party payment platforms like Venmo.
The Daily Deduction will resume its regular schedule when Congress returns.
For the latest tax news, subscribe to the Tax Policy Center’s Daily Deduction. Sign up here to have it delivered to your inbox weekdays at 8:00 am (Mondays only when Congress is in recess). We welcome tips on new research or other news. Email Renu Zaretsky at [email protected].
