Trump eyes private school expansion through tax breaks. President-elect Donald Trump is expected to push for a major expansion of school choice programs in 2024, likely through tax breaks that would help parents cover private school tuition. Supporters argue it would empower parents dissatisfied with public schools, while critics warn it could undermine the public education system that serves 50 million children.
Senators push IRS on nonprofit hospitals’ status. Bipartisan Senate tax writers are calling on the IRS to crack down on nonprofit hospitals that fail to provide sufficient charity care and community benefits to justify their tax-exempt status, reports TaxNotes (paywall). Sens. Elizabeth Warren (D-MA) and Chuck Grassley (R-IA) criticized these hospitals for receiving $25.7 billion more in tax breaks than they gave back to communities in 2021. Nonprofit hospitals are expected to receive $260 billion in tax exemptions over the next decade.
SALT standoff: GOP lawmakers demand relief for high-tax states. New York Republican Mike Lawler says lifting the $10,000 cap on state and local tax (SALT) deductions will be key to passing President-elect Donald Trump’s tax overhaul in the narrowly divided House. Lawler, joined by Republicans from high-tax states like New York, New Jersey, and California, says he won’t back any tax bill that fails to remove the SALT cap, set to expire next year.
Minding the gap: IRS Advisory Council calls for transparency boosts. The IRS Advisory Council (IRSAC) has urged the agency to enhance transparency around the $696 billion tax gap (the difference between what tax filers owe in a given year and what they pay on time). The council recommends creating a dedicated webpage to explain the tax gap’s calculations and broadening estimates to include corporate and estate tax non-filers. IRS Commissioner Daniel Werfel welcomed the recommendations.
New IRS rule aims to speed refunds and stop dependent disputes. Starting in 2025, the IRS will accept e-filed tax returns claiming dependents already listed on another taxpayer’s return if the second filer includes a valid Identity Protection PIN (IP PIN). This change will simplify filing for taxpayers claiming credits like the Earned Income Tax Credit and Child Tax Credit, cutting down refund delays and reducing reliance on slower paper returns.
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