Heated Rhetoric In Danger IRS Workforce

The IRS launched a security review after sharp criticism of its new funding. IRS Commissioner Charles Retigo announced last week The agency will conduct a risk assessment at each of its 600 facilities to determine whether increased security is necessary. This is the first such review since the 1995 bombing of the Alfred P. Murrah Building in Oklahoma City. IRS employees are increasingly concerned about their safety after baseless claims that the agency would use $80 billion in funding approved as part of the Inflation Reduction Act to hire thousands of armed agents.

administration pushes back, The Biden administration is aggressively pushing back against the GOP’s claims that the new IRS funding will be used to hire “87,000 armed agents.” A Treasury official tells wall street journal The first hiring priority will be for taxpayer services, although funding for that function is less than 5 percent of the new money. commissioner charles Rating Yahoo! Wrote an op-ed for finance Attempts to debunk some GOP allegations.

CBO lowers its revenue estimate for IRS funding, Congress Budget Office Projects The additional IRS funding will generate about $180 billion in new revenue over the next decade, which is about $23 billion less than estimates from a few weeks ago. The reduction came because of last-minute changes to the bill that would make hiring the IRS more difficult and because the Treasury wants the IRS to limit audits to those making $400,000 or less. The CBO recognizes that a very small number of additional taxpayers who make less than that limit will be audited.

Who will win the political battle to enact an Inflation Reduction Act? TPC’s Howard Glickman explores the message of both Democrats and Republicans. Will the new law reduce inflation, reduce health care costs, reduce the budget deficit, save the environment and raising taxes on large corporations, as the Democrats claim? Or is the law about funding IRS harassment of conscientious families, as Republicans claim? Howard concludes that “with so many different messages, Democrats run the risk of downplaying them all. Republicans are focusing all their criticism on just one target: the IRS.

Student loan forgiveness will be exempt from federal income tax. TPC’s John Buhl writes of President Biden’s $240 billion plan to have $10,000 of student loan debt forgiven, tax-free, if you make less than $125,000 (or $250,000 for couples). John explains why The federal government would lose $34 billion in income tax revenue as a result. Meanwhile, the Tax Foundation’s analysis shows that Some of those whose loans are forgiven may have to pay higher state income tax.Because their state tax codes are not fully compliant with the federal code.

The Corporate Book Income Tax of Inflation Reduction Act is just starting to put pressure on financial and tax accounting rules. TPC’s Jean Steerle says That the new tax reduces some tax distortions but raises other challenges. For future reform efforts, Jean argues that financial and tax accounting could treat tax credits—which are not hard to value and generally do not affect the measurement of corporate income—as a tax deduction. instead of as an outlay.

Congress is not in session. The daily cut will resume its regular schedule when Congress returns.

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