Senate Republicans push back on House budget bill. Politico reports on the cool reception from Senate Republicans, who are calling for significant changes to the House budget resolution before backing it. Among them: room for a permanent extension of the expiring provisions of the Tax Cuts and Jobs Act, which would exceed the revenue space set aside for tax cuts under the House plan. The Senate’s reluctance to approve a $4 trillion debt ceiling hike also complicates continued negotiations.
IRS leadership changes as O’Donnell retires. Melanie Krause has been named acting IRS Commissioner following Doug O’Donnell’s retirement. Krause, who has extensive experience in IRS operations and analytics, will lead the agency as tax season ramps up. Treasury Secretary Scott Bessent praised O’Donnell’s 38 years of public service, emphasizing confidence in Krause’s leadership. Her tenure will be critical as the IRS navigates taxpayer concerns and potential policy changes under the Trump administration.
IRS agents are best suited for tax enforcement, not immigration. TPC’s Elaine Maag and the Urban Institute’s Diana Guelespe review a new proposal to involve IRS special agents in immigration enforcement. The plan, proposed by the Department of Homeland Security, would redirect IRS Criminal Investigation agents from tax fraud probes to deportation efforts. Maag and Guelespe argue this shift could weaken current tax enforcement efforts, risking billions in lost revenue. Privacy laws also prevent IRS data from being used for immigration crackdowns. They warn that such a move could discourage undocumented immigrants from filing taxes, further reducing federal revenues.
IRS reminds taxpayers to track refunds online. The IRS is encouraging taxpayers to use the ‘Where’s My Refund?’ tool for real-time refund updates. Electronic filers can check their status within 24 hours, while paper filers must wait about four weeks. The tool also allows users to track refunds for multiple tax years. With tax season in full swing, the IRS is emphasizing digital resources to streamline the process for taxpayers.
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