More than 500 United States organizations, representing a wide range of individuals, businesses, and non-profit organizations, delivered a letter on November 18 to the House of Representatives urging lawmakers to work together during the current congressional lame-duck session to deal with the “tax extenders” package.
The more than 50 provisions that expired at the end of 2013 include mortgage tax relief; the deduction for state and local sales taxes; and education tax deductions, for individuals. And for businesses, they include increased expensing under Section 179; 50 percent bonus depreciation; the work opportunity tax credit; the credit for research and development (R&D) expenses; and tax breaks promoting renewable energy.
“These tax provisions are critically important to US jobs and the broader economy,” the organizations wrote. “Failure to extend these provisions is a tax increase. It will inject instability and uncertainty into the economy and weaken confidence in the employment marketplace.”
“The expired provisions should be renewed as soon as possible this year to enable implementation in time for the normal tax filing season. A delay in the tax filing season will delay tax refund checks and spending decisions, resulting in an immediate negative impact on the economy.”
The organizations concluded by urging “all members of Congress to work together to extend, enhance, or make permanent these important tax provisions this year to provide a necessary bridge to comprehensive tax reform.”
The Internal Revenue Service was unable to deploy an $8.6 million case management system for matching tax returns with information returns from banks and brokerage firms reporting data such as credit card transactions and the cost basis of trades, according to a new government report.
The report, from the Treasury Inspector General for Tax Administration, noted that Congress enacted information reporting and document matching legislation starting in 2009 to narrow the $450 million tax gap by requiring third-party payors to submit information returns to the IRS reporting income earned by businesses on merchant payment card and the cost basis for securities transactions.
In response, the IRS began creating the software infrastructure needed to implement the Information Reporting and Document Matching program and has developed and deployed four out of five IRDM information technology projects. However, according to TIGTA, the IRS developed, but did not deploy, its IRDM Case Management System to manage business taxpayer cases with identified underreported income.