Posts Tagged ‘IRS’
In 2012, the IRS issued more than $11 billion in “improper payments” made through the Earned Income Tax Credit program. “Treasury Department deputy inspector general Michael McKenney found that the IRS has failed to comply for two consecutive years with the Improper Payments Elimination Act,” the report states, “which President Obama signed in 2010. The law requires federal agencies to reduce erroneous payments to a rate of less than 10 percent.”
At least 21% of EITC payments last year were faulty, according to the IRS’s conservative estimates.
Tax planners are developing to help well-to-do U.S. clients avoid the full impact of taxes set to take effect next year under President Barack Obama’s healthcare overhaul. And there are still some questions over the legality of the new levies which has advisors devising methods for high-income taxpayers to shelter investment and other forms of income.
In 2013, it is quite possible that could delay billions of dollar refunds, a move, that could deal a huge blow to the economy. This all because the tax code still hasn’t been fixed, and it must be done before the November 6 election. The political uncertainty about what Congress may do after the elections has tax officials foreseeing some potentially bad outcomes for the filing season next year that for most U.S. taxpayers runs from mid-to-late January until April 15.
The former Texas ACORN chapter now has a new name, and is scheming to collect donations and divert them to political use in a way that abuses tax laws governing charitable organizations, according to a Washington-based public interest group. Cause of Action, which is a nonprofit taxpayer watchdog group, charged in a letter to the Treasury Inspector General for Tax Administration that the tax-exempt Texas Organizing Project (TOP), formed from the ashes of scandal-ridden ACORN, is using money funneled to it by a closely associated group called the Texas Organizing Project Education Fund for political activity.
The US Supreme Court gave Obamacare the go ahead, and federal and state officials have begun implementing the law, which is a lengthy and massive undertaking still in its early stages, but already costing money and expanding the government. The Health and Human Services Department “was given a billion dollars implementation money,” Republican Rep. Denny Rehberg of Montana said. “That money is gone already on additional bureaucrats and IT programs, computerization for the implementation.” “Oh boy,” Stan Dorn of the Urban Institute said. “HHS has a huge amount of work to do and the states do, too. There will be new health insurance marketplaces in every state in the country, places you can go online, compare health plans.”