Tag: Internal Revenue Service

Republicans open new line of attack on IRS

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The IRS is back in Republicans’ crosshairs following a ProPublica report based on the confidential tax records of the wealthiest Americans.

Republicans have long disliked the tax-collection agency, and have been critical of President Biden’s proposal to give the IRS significantly more resources. Now, GOP lawmakers are amplifying their attacks on the IRS in light of an unauthorized disclosure of tax data to ProPublica, arguing that it undermines taxpayers’ ability to have confidence in the agency.

“This is an astonishing breach of trust that should make taxpayers very concerned,” Rep. Kevin Brady (Texas), the top Republican on the House Ways and Means Committee, told reporters Friday. Continue reading.

House votes to reopen Treasury Dept., IRS

The Democratic-led House approved a bill Wednesday to reopen the Treasury Department, Internal Revenue Service and Small Business Administration, among other federal agencies.

The chamber voted 240-188 to advance the measure, with eight Republicans bucking party lines to back the bill, which is the first of four bills expected to be brought to the floor by Democrats.

The Republicans who voted to advance the measure Wednesday included Reps. Elise Stefanik (N.Y.), Will Hurd (Texas), Fred Upton (Mich.), John Katko (N.Y.), Brian Fitzpatrick (Pa.), Greg Walden (Ore.), Adam Kinzinger (Ill.) and Herrera Beutler (Wash.).

View the complete January 9 article by Juliegrade Brufke on The Hill website here.

White House rules IRS can issue tax refunds during shutdown, aims to bring back agency employees

The White House on Monday directed the Internal Revenue Service to pay tax refunds to millions of Americans during the federal shutdown, marking its most dramatic reversal yet of past legal precedent as officials scramble to contain public backlash from the funding lapse.

Last year, and during previous administrations, the IRS said it would not pay tax refunds during a government shutdown. But Trump administration lawyers ruled Monday that the refunds could be processed after all, a move that some Democrats called legally dubious.

The decision could prove extremely consequential for U.S. households and the U.S. economy. Last year, between Jan. 29 and March 2, the IRS paid more than $147 billion in tax refunds to 48.5 million households.

View the complete January 7 article by Damian Paletta, Jeff Stein and Juliet Eilperin on The Washington Post website here.

How the IRS Was Gutted

An eight-year campaign to slash the agency’s budget has left it understaffed, hamstrung and operating with archaic equipment. The result: billions less to fund the government. That’s good news for corporations and the wealthy.

In the summer of 2008, William Pfeil made a startling discovery: Hundreds of foreign companies that operated in the U.S. weren’t paying U.S. taxes, and his employer, the Internal Revenue Service, had no idea. Under U.S. law, companies that do business in the Gulf of Mexico owe the American government a piece of what they make drilling for oil there or helping those that do. But the vast majority of the foreign companies weren’t paying anything, and taxpaying American companies were upset, arguing that it unfairly allowed the foreign rivals to underbid for contracts.

Pfeil and the IRS started pursuing the non-U.S. entities. Ultimately, he figures he brought in more than $50 million in previously unpaid taxes over the course of about five years. It was an example of how the tax-collecting agency is supposed to work.

But then Congress began regularly reducing the IRS budget. After 43 years with the agency, Pfeil — who had hoped to reach his 50th anniversary — was angry about the “steady decrease in budget and resources” the agency had seen. He retired in 2013 at 68.

View the complete December 11 article by Paul Kiel and Jesse Eisinger on the ProPublica website here.

Trump’s IRS Nominee Failed to Disclose Trump-Linked Property Ownership

The following article by Aaron Lorenzo was posted on the Politico website June 27, 2018:

The revelation about the hotel seems certain to come up when Chuck Rettig testifies before the Senate Finance Committee on Thursday.

Pres. Trump’s pick to run the IRS, tax lawyer Chuck Rettig, owns properties at the Trump International Hotel Waikiki and Tower. Credit: Patrick Baz, AFP/Getty Images

President Donald Trump’s pick to run the IRS, tax lawyer Chuck Rettig, owns properties at the Trump International Hotel Waikiki and Tower.

He’d previously disclosed his 50 percent stake in a pair of Honolulu rental units, but not their specific location. That detail was discussed later, at a June 21 meeting with congressional staff, according to a memo obtained by POLITICO.

Trump typically gets fees on sales for licensing his name. Continue reading “Trump’s IRS Nominee Failed to Disclose Trump-Linked Property Ownership”