The IRS and Treasury Department have announced a pilot program to allow some taxpayers to electronically file and pay their taxes directly to the IRS, set to launch in early 2024. The program is a result of the Inflation Reduction Act of last year and could mark a major change in the way U.S. taxpayers deal with the revenue service. The IRS has built a prototype system and will invite some taxpayers to test it out next year, with the goal of making the filing process easier and more efficient.
Posts tagged as “the Internal Revenue Service”
Intuit, the parent company of TurboTax, has agreed to pay $141 million to settle a multistate lawsuit over deceptive advertising practices. Consumers who were eligible for the IRS Free File program but were instead charged a fee to file their tax returns with TurboTax will receive restitution and relief as part of the settlement. Intuit must also suspend its "free, free, free" ad campaign and pay $11 million to the states that participated in the lawsuit.
Senate Finance Committee Chairman Ron Wyden (D-OR) has requested documents from Harlan Crow, a Texas billionaire who has donated millions to conservative causes, to investigate whether his gifts to Supreme Court Justice Clarence Thomas violated federal tax law. Chief Justice John Roberts has responded to a request from Senator Dick Durbin (D-IL) for Roberts to testify about Thomas’s relationship with Crow by providing a statement of ethics principles and practices to which all current Supreme Court members subscribe. Wyden's letter to Crow requests documents and communications related to the gifts, as well as any records of payments made to Thomas or his wife, to investigate whether the gifts violated federal tax law.
On Tax Day, President Joe Biden and First Lady Jill Biden released their tax returns for 2022, showing a total income of $579,514 and total federal and state taxes paid of $169,820. The couple donated $20,180 to 20 charities, and the IRS recommends filing electronically and using direct deposit to receive refunds quickly. Taxpayers can also use their refund to pay down debt, save for the future, or donate to charity.
The Internal Revenue Service (IRS) has released its plan to spend $80 billion in funding over the next decade, with Commissioner Danny Werfel reassuring taxpayers that they don't need to worry about an increase in audits. The money is meant to support the agency in cracking down on tax cheats and providing better service to taxpayers, with the IRS expected to collect more than $100 billion in new revenue over a 10-year period. The agency plans to use the money to improve customer service, update outdated technology, and hire additional staff to help with enforcement and compliance.
The White House has issued its first veto threat of the new Congress, targeting a House Republican bill that would rescind funding allotted to the…