A Syracuse University report found that the IRS has been targeting low-income taxpayers for audits at a much higher rate than high-income taxpayers. The report also found that the IRS has been using aggressive tactics to collect taxes from low-income taxpayers, such as levying bank accounts and garnishing wages.
Much of this is attributable to the fact that many low income individuals do not receive professional consultations when filing taxes.
Democrat Tax Happy Policies Placed On Backfoot
The U.S. House has voted 221-210 to rescind over $70 billion in funding to the IRS that would have gone toward hiring 87,000 new IRS agents. The move, which was largely supported by Republicans, has been met with criticism from Democrats who argue that the cuts will make it harder for the IRS to enforce the nation’s tax laws.
Many have felt relief when legislation connected to peer to peer payment apps was rescinded. The Internal Revenue Service (IRS) recently announced that it will not require individuals to report payments made through Venmo, a popular mobile payment app, on their tax returns.
The decision comes after the IRS proposed a rule in August that would have required individuals to report payments of $600 or more made through Venmo and other third-party payment networks. The proposed rule was met with criticism from both individuals and businesses, who argued that the additional reporting requirement would be too burdensome and costly.
The IRS ultimately decided to withdraw the proposed rule, citing the complexity of the reporting requirements and the potential for confusion among taxpayers. The decision is a welcome one for many individuals and businesses who use Venmo to make payments. Venmo is a popular payment app that allows users to quickly and easily send and receive money from friends and family. The app has become increasingly popular in recent years, with more than 40 million users in the United States alone.