Only 2 Percent of Millionaires Audited in 2020, Report Finds – Alexis Gravely, Tax Notes ($). “IRS audits of high-income taxpayers continue to decline, with the agency auditing only 11,331 returns from people reporting over $1 million in income in fiscal 2020, according to a new report.”
“With 637,212 returns filed showing income over $1 million, the Transactional Records Access Clearinghouse (TRAC) report found that 98 percent of millionaires weren’t audited by the IRS in 2020.
That’s a 72 percent decrease from fiscal 2012 — in which 40,965 millionaires were audited — even though the number of millionaires in the United States has almost doubled since then, the March 18 report said.”
IRS chief: Unemployment recipients shouldn't file amended tax returns – Naomi Jagoda, The Hill. “IRS Commissioner Charles Rettig said Thursday that recipients of unemployment benefits in 2020 should not be submitting amended federal tax returns during this filing season.”
In Switcheroo, IRS To Deliver Full Stimulus Payments To Those With Federal Tax Debts – Ashlea Ebeling, Forbes.
“There’s welcome news for financially struggling taxpayers with federal tax debts who didn’t get Round 1 and Round 2 economic impact payments, and were instructed to file 2020 tax returns to claim the payments as a recovery rebate credit. The Internal Revenue Service has now agreed to use its discretion to bypass offsets for federal tax debts for taxpayers who file 2020 returns that claim the recovery rebate credit, according to the Taxpayer Advocate Service, an independent voice at the IRS that fights to solve taxpayer problems.”
Sooner Or Later, The Supreme Court Will Be Forced To Decide The Tax Future Of 2 Million Workers – Liz Farmer, Forbes. “New Hampshire and Massachusetts are fighting over whether the Bay State still has the right to tax the incomes of 103,000 former commuters now working from home in New Hampshire. But this tax spat deals with issues that spread far beyond the Massachusetts border — it has national implications and could impact millions of Americans.”
COBRA Premium Subsidies Under the American Rescue Plan Act – Susan J Freed, Davis Brown Tax Law Blog. “The American Rescue Plan Act requires employers to subsidize 100% of the cost of COBRA and comparable state continuation coverage for “assistance eligible individuals” from April 1, 2021, through September 30, 2021.”
Senate Democrats reintroduce bill to create financial transaction tax – Naomi Jagoda, The Hill. “The bill would establish a tax of 0.1 percent on the sales of stocks, bonds and derivatives. Its reintroduction comes as stocks have seen record highs in recent weeks even as many families continue to face economic challenges as a result of the coronavirus pandemic.”
Roadblocks emerge for West Virginia income tax cut proposal – Cutneyt Dil, Ap News. “West Virginia business groups are opposing key parts of Republican Gov. Jim Justice’s proposal to cut the personal income tax because it includes other tax hikes. On top of those concerns, Republicans are worried that the federal stimulus package stymies their ability to enact tax reform this year.”
Montana tax filing deadline extended to May 17 – AP News.
Answers to some questions raised by the IRS move of Tax Day 2021 to May 17 – Kay Bell, Don’t Mess with Taxes.
Man waiting on final paycheck from ex-employer gets 500 pounds of oily pennies dumped in driveway – Frank O’Laughlin, 7 News Boston. “A man who was waiting on his final paycheck from his disgruntled ex-employer got quite the surprise when 500 pounds of oil-covered pennies were reportedly dumped in his driveway in the middle of the night.”
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