Paul L. Caron
Dean
Pepperdine Caruso
School of Law
Gov’t Reports
-
IRS Not Pursuing 18% of Taxpayers Who Owe >$1m in Taxes
The Treasury Inspector General for Tax Administration has released a report, Collection Actions Could Be Accelerated on Some Large Dollar Balance Due Accounts (2009-30-090): On December 22, 2007, there were 2,454 individual taxpayers in the IRS’ potentially collectible inventory who each owed more than $1 million in taxes, penalties, and interest. While the vast majority of…
-
Treasury Department Releases Updated Tax Gap Report
The Treasury Department yesterday delivered an Update on Reducing the Federal Tax Gap and Improving Voluntary Compliance to Senate Finance Committee Chair Max Baucus: Building on reports previously released, this report is intended to provide a comprehensive overview of efforts to close the tax gap. This report is also intended to serve as a baseline…
-
IRS Oversight Board Recommends IRS Funding Increase
The IRS Oversight Board yesterday released its FY2010 IRS Budget Recommendation Special Report. From the press release: The IRS Oversight Board recommends an FY2010 IRS budget of $12.489 billion, an increase of $966 million over the enacted FY2009 amount of $11.523 billion. This recommendation is $363 million above the President’s request of $12.126 billion. As…
-
GAO: IRS Should Reevaluate Tax Penalties
The Government Accountability Office today released IRS Should Evaluate Penalties and Develop a Plan to Focus Its Efforts (GAO-09-567): Why GAO Did This Study: Civil tax penalties are an important tool for encouraging compliance with tax laws. It is important that the IRS administers penalties properly and determines the effectiveness of penalties in encouraging compliance. In…
-
National Taxpayer Advocate Releases Mid-Year Report to Congress
National Taxpayer Advocate Nina E. Olson submitted her Mid-Year Report to Congress that identifies the priority issues the Office of the Taxpayer Advocate will address in the coming fiscal year. From the IRS press release: Among the key areas of focus will be working with the IRS to improve taxpayer services, enhancing IRS oversight of federal…
-
GAO Recommends Improvements to IRS Internal Controls
The Government Accountability Office yesterday issued a management report recommending sixteen improvements to the IRS's internal controls: The purpose of this report is to discuss issues identified during our audit of IRS’s financial statements as of, and for the fiscal year ending, September 30, 2008, regarding internal controls that could be improved for which we…
-
GAO: Information Reporting for Charitable Cash Contributions Won’t Close Tax Gap
The Government Accountability Office has relased Requiring Information Reporting for Charitable Cash Contributions May Not Be an Effective Way to Improve Compliance (GAO-09-555). Here is the Summary: Individual taxpayers who misreport charitable cash contributions they deduct on their tax returns contribute to the tax gap. … One approach that tends to result in high levels of…
-
Why Are Tax Forms Blue?
From Web CPA: Changes should be made in the layout and typeface of 1040 individual tax forms, including more use of boldface, colors and explanations, to help reduce taxpayer errors, recommends a new government report. The Treasury Department’s Inspector General for Tax Administration noted in the report that each year, the IRS sends out more…
-
GAO Releases Study of Real Estate Tax Deduction
The Government Accountability Office today released Real Estate Tax Deduction: Taxpayers Face Challenges in Determining What Qualifies; Better Information Could Improve Compliance (GAO-09-521): The Joint Committee on Taxation identified improved taxpayer compliance with the real-estate tax deduction as a way to reduce the federal tax gap. … GAO was asked to examine (1) factors that contribute…
-
Joint Tax Committee: Obama’s Tax Plan Falls $50b Short
The Joint Committee on Taxation today released Estimated Budget Effects of the Revenue Provisions Contained in the President’s Fiscal Year 2010 Budget Proposal as Described by the Department of the Treasury (JCX-28-09). For press coverage, see: Associated Press: New Estimate Trims Obama Plan to Increase Taxes Bloomberg: Panel Says Obama Tax Proposal Falls $55 Billion Short…
-
CBO: Did the 2008 Tax Rebates Stimulate Short-Term Growth?
The Congressional Budget Office has released Did the 2008 Tax Rebates Stimulate Short-Term Growth?: In preparing its economic forecast published in September 2008, CBO estimated that 40% of the tax rebates issued in the spring and summer under the Economic Stimulus Act of 2008 would be spent within six months––raising the growth of consumption in…
-
CRS: Constitutionality of Geographical Variations in Tax Benefits
The Congressional Research Service has conducted an Analysis of Whether Linking Tax Benefits to the Geographic Variations in the Cost of Living Violates the Uniformity Clause: Based upon an examination of the case law, it may be possible to identify scenarios in which geographical classifications in the exclusion of employer-provided health insurance would likely be permissible.…
-
House Holds Hearing on IRS Operations
The House Ways & Means Committee Subcommittee on Oversight held a hearing yesterday on Internal Revenue Service Operations and Fiscal Year 2010 Budget Proposals. In connection with the hearing, the Government Accountability Office released Interim Results of IRS’s 2009 Filing Season, which: Assess the IRS’s filing season performance in processing tax year 2008 individual income tax returns…
-
Details of Obama Tax Proposals
The Obama Administration today released documents amplifying the tax proposals contained in the President's FY 2010 budget: Treasury Department, Office of Tax Policy General Explanations of the Administration's Fiscal Year 2010 Revenue Proposals (2009 Green Book) Press Release and Summary Office of Management and Budget, Analytical Perspectives of Tax Portion of Budget (full document is here) Press and blogosphere coverage:…
-
Open CRS Releases Tax Reports
An Introduction to the Design of the Low-Income Housing Tax Credit (RS22389) Federal Taxation of the Drug Industry and Effects on New Drug Development (RL31511) The Alternative Minimum Tax for Individuals (RL30149)
-
CRS Issues Tax Reports
The Congressional Research Service has issued several tax reports: Business Tax Issues in 2009 (R40500) (Apr. 8, 2009) Retirement Savings and Household Wealth in 2007 (RL30922) (Apr. 8, 2009) Renewable Energy and Energy Efficiency Tax Incentive Resources (R40455) (Mar. 23, 2009)
-
TIGTA, DOJ Release Tax Reports
The Treasury Inspector General for Tax Administration has released these reports: Statistical Portrayal of the Criminal Investigation Division’s Enforcement Activities for Fiscal Years 2000 Through 2008 (2009-30-053) A Documented Comprehensive Strategy Is Needed to Focus Efforts on Ensuring Compliance by Tax-Exempt Non-Filers (2009-10-056) Reliance on New Procedures Allowed Some False Economic Stimulus Payments to Be Issued…
-
GAO: IRS Needs to Better Monitor Tax Software
The General Accountability Office has released Many Taxpayers Rely on Tax Software and IRS Needs to Assess Associated Risks (GAO-09-297): IRS provides some oversight of the tax software industry but does not fully monitor compliance with established security and privacy standards. Further, IRS has not developed a plan to monitor compliance with new standards, which…
-
Joint Tax Committee Releases IRS Disclosures of Tax Return Information, 2008
The Joint Committee on Taxation today released Disclosure Report for Public Inspection Pursuant to Internal Revenue Code Section 6103(p)(3)(C) for Calendar Year 2008 (JCX-24-09): Section 6103(p)(3)(C) of the Internal Revenue Code provides that the Secretary of the Treasury shall, within 90 days after the close of each calendar year, furnish to the Joint Committee on…
-
Joint Tax Committee Releases General Explanation of Recent Tax Legislation
The Joint Committee on Taxation today released General Explanation of Tax Legislation Enacted in the 110th Congress (642 pages) (JCS-1-09): The explanation follows the chronological order of the tax legislation as signed into law. For each provision, the document includes a description of present law, explanation of the provision, and effective date.
-
CRS: The Economic Effects of Capital Gains Taxation
The Congressional Research Service report, The Economic Effects of Capital Gains Taxation (R40411), is available on OpenCRS. Here is part of the summary: Some argue that reducing capital gains tax rates will increase tax revenues by dramatically increasing capital gains realizations. While the effect of changes in the capital gains tax rate continue to be debated and researched,…
-
CRS: The Carbon Tax
The Congressional Research Service report, Carbon Tax and Greenhouse Gas Control: Options and Considerations for Congress (R40242), is available on OpenCRS. Here is the summary: Market-based mechanisms that limit greenhouse gas (GHG) emissions can be divided into two types: quantity control (e.g., cap-and-trade) and price control (e.g., carbon tax or fee). To some extent, a carbon…
-
GAO: Make Payments to Corporations Subject to Form 1099-MISC Reporting Requirement
The General Accountability Office has released Tax Gap: IRS Could Do More to Promote Compliance by Third Parties with Miscellaneous Income Reporting Requirements: The IRS does not know to what extent payers fail to submit required 1099-MISCs, but various sources point to the possibility of a significant problem. For tax year 2005, 8 percent of the…
-
Tax Provisions in Obama’s Budget
Bloomberg: Buyout, Hedge-Fund Managers Could Pay $24 Billion More in Taxes, by Jason Kelly & Katherine Burton Obama Seeks $1 Trillion Tax Increase in Budget Plan, by Ryan J. Donmoyer Heritage Foundation: Obama Tax Proposals (Mostly) Bad News New York Times: In Uncertain Times, Donors Hold Back, by Jan M. Rosen Review Your Estate…
-
TIGTA: IRS’s $345b Tax Gap Estimate Ignores International Tax Evasion
The Treasury Inspector General for Tax Administration yesterday released A Combination of Legislative Actions and Increased IRS Capability and Capacity are Required to Reduce the Multibillion Dollar U.S. International Tax Gap, which reports that the IRS's $345 billion estimate of the tax gap does not comprehensively include the entire international tax gap,