Income Tax News

David C. Weiss, the federal prosecutor in Delaware who has led the criminal investigation of Hunter Biden, on Monday rebutted a key element of testimony to Congress by an Internal Revenue Service official who said that Mr. Weiss complained about being blocked from pursuing the case the way he wanted.

In a letter to the Senate Judiciary Committee, Mr. Weiss said that he had never asked Justice Department officials to give him special counsel status to pursue the case, contradicting testimony to the House Ways and Means Committee by the I.R.S. official, Gary Shapley, who said Mr. Weiss had sought that status and been turned down.

Mr. Weiss suggested that Mr. Shapley might have misunderstood him during an October 2022 meeting. Mr. Weiss, the U.S. attorney for Delaware, who was appointed to the role under President Donald J. Trump, said in the letter that he had approached a department higher-up about the possibility of requesting status as a special attorney, not as a special counsel.

Deputizing a federal prosecutor as a special attorney is distinct from making one a special counsel. The special attorney provision is, in essence, a workaround that allows an outsider to intervene in cases that span multiple jurisdictions or have special conditions. The special counsel regulations, by contrast, contain internal Justice Department reporting requirements and congressional oversight provisions.

“To clarify an apparent misperception and to avoid future confusion, I wish to make one point clear: In this case, I have not requested special counsel designation,” Mr. Weiss told Senator Lindsey Graham of South Carolina, the top Republican on the Senate Judiciary Committee.

Instead, Mr. Weiss said he “had discussions with departmental officials regarding potential appointment” as a special attorney, “which would have allowed me to file charges in a district outside my own without the partnership of the local U.S. attorney.”

Mr. Weiss added in the letter to Mr. Graham that he had “never been denied the authority to bring charges in any jurisdiction.”

Mr. Weiss has sought to defend the integrity of the five-year investigation after a plea deal announced last month under which Mr. Biden will plead guilty to two misdemeanor tax charges and accept terms that would allow him to avoid prosecution on a separate gun charge.

Republicans have assailed it as a “sweetheart deal” for the president’s son and have used Mr. Shapley’s testimony to promote the idea that political interference played a role in the outcome. Speaker Kevin McCarthy has left open the possibility of pursuing impeachment charges against Attorney General Merrick B. Garland.

In Monday’s letter — a follow-up to a less detailed response he sent to House Republicans in late June — Mr. Weiss backed up an earlier statement by Mr. Garland that he had been given full authority in the case. At the same time, Mr. Weiss acknowledged publicly for the first time that he had considered seeking a way to bring potentially more serious tax charges against Mr. Biden outside Delaware.

Mr. Weiss, who has described the Hunter Biden investigation as “ongoing,” did not say if he had followed through and requested to be appointed special attorney to the career official who served as his contact at Justice Department headquarters.

Nor did he explicitly address a key assertion made by Mr. Shapley: that Biden-appointed U.S. attorneys in California and Washington had discouraged Mr. Weiss from prosecuting Hunter Biden on felony tax charges stemming from a period when the president’s son was earning millions working with foreign-controlled businesses and investors.

The investigation was initiated by the Trump Justice Department in 2018 and eventually handed to Mr. Weiss, a Republican whose reputation for nonpartisanship had earned him the support of Delaware’s two Democratic senators during his confirmation a few months earlier.

After President Biden was elected, the department’s interim leadership kept Mr. Weiss in place and in charge of the inquiry. Mr. Garland, after being confirmed, continued that arrangement and was eager to avoid any suggestion of political meddling.

Mr. Shapley, testifying before the House Ways and Means Committee in May under what Republicans said were whistle-blower protections, said he and other investigators had witnessed Mr. Weiss saying last year that he would not be the “deciding official” regarding whether to prosecute Mr. Biden. Mr. Shapley said that Mr. Weiss had been turned down when he sought special counsel status after being told by local prosecutors that he could not bring charges. House Republicans released the testimony last month.

Mr. Shapley recounted arguing in meetings with Mr. Weiss and other prosecutors to aggressively pursue charges against Hunter Biden stemming from his failure to pay taxes in 2014 and 2015, two years not covered under Mr. Biden’s agreement to plead guilty on the misdemeanor tax charges. During those years, Mr. Biden was earning income from work for a Ukraine-based energy company and Chinese clients that Mr. Shapley suggested was being channeled through entities that had a presence in Washington and the Los Angeles area.

In mid-2022, Mr. Weiss reached out to the top federal prosecutor in Washington, Matthew Graves, to ask his office to pursue charges and was rebuffed, according to Mr. Shapley’s testimony. A similar request to prosecutors in the Central District of California, which includes Los Angeles, was also rejected, Mr. Shapley testified.

A second former I.R.S. official, who has not been identified, told House Republicans the same story. That episode was confirmed independently to The New York Times by a person with knowledge of the situation.

Mr. Shapley, who oversaw the agency’s role in the investigation of Mr. Biden’s taxes, also told House committee aides that his criticism of the Justice Department led to him being denied a promotion. In his testimony, he blamed Mr. Weiss for criticizing him to his superiors.

Mr. Weiss denied that charge in a June 30 letter to Representative Jim Jordan, Republican of Ohio and the chairman of the House Judiciary Committee, saying that he “did not retaliate” against Mr. Shapley.

Originally Appeared Here

EAST PALESTINE — State Rep. Monica Robb Blasdel, R-Columbiana, secured a deduction for taxpayers impacted by the East Palestine derailment from their state income tax and rail safety measures. Robb Blasdel pushed for these amendments into the state budget, which was approved by the General Assembly and signed into law.

“The people of East Palestine have remained strong and steadfast as their lives have been so heavily impacted during the last few months by the derailment,” Robb Blasdel said. “I hope this relief and increased rail safety shows that I am sincerely committed to finding solutions for them.”

The tax deduction will be for state income for residents, including for lost business, impacted by the train derailment in East Palestine. Additionally, Robb Blasdel supported provisions that will significantly fund rail safety crossings to enhance safety measures and help prevent accidents.

One measure establishes the Ohio Wayside Detector Expansion Program, which sets aside $10 million in grant funding for projects including installation, equipment, power sources and employee training. Another initiative under the Rail Safety Crossing Match provides $100 million for rail safety.

The budget bill was signed into law on Tuesday by Gov. Mike DeWine.

Railroad industry sues to block crew rule

Claiming that one-person crews “have been used safely for decades,” the Association of American Railroads sued to block a two-person crew mandate that was part of the Ohio Rail Safety Bill included in the state transportation budget signed by DeWine in March.

Oversight was to fall under the Ohio Department of Transportation and the Public Utilities Commission of Ohio.

A day before the mandate was to take effect, the railroad industry filed a lawsuit, arguing that Ohio doesn’t have the authority to enforce such a rule, arguing that federal agencies have exclusive jurisdiction to regulate railways.

Biden called out for not visiting EP

Days after DeWine made a request for a disaster declaration for East Palestine from President Joe Biden, Ronna McDaniel, chairwoman of the Republican National Committee, called the president out on Twitter for failing to visit the village.

“It’s been 126 days since Biden promised he’d visit East Palestine ‘at some point’ and he still hasn’t. He has, however, attended multiple fundraisers,” McDaniel posted on Twitter.

Biden has said a month after the derailment that he planned to visit East Palestine, but nothing has been announced nor has he mentioned a pending trip since March.

Funds from golf outing disbursed

On Wednesday, the United Way announced the recipients of the Annika Fore East Palestine Golf Outing — which raised $400,000.

The outing was put on by Annika Sorenstam and her husband, Mike McGee, an East Palestine native.

Receiving proceeds were the Little Bulldogs Football & Cheerleading ($20,000), East Palestine Youth Girls Softball ($20,000), East Palestine Youth Golf program ($25,000), Rotary Soccer ($10,000) East Palestine Youth Sports Association ($20,000), Fellowship of Christian Athletes ($10,000), East Palestine High School Athletics ($50,000), East Palestine Teachers Union ($25,000) East Palestine Fine & Performing Arts ($15,000), East Palestine Robotics & STEM ($20,000) Bulldog Bucks for EP Businesses ($25,000) and Camp Hope for first responders ($35,000).

The remaining funds will go to the Way Station in East Palestine.

Another round of Bulldog Bucks sent out

The East Palestine Revitalization organization announced another round of Bulldog Bucks are expected to show up in village mailboxes in the next few days. The $10 vouchers can be redeemed at any participating East Palestine business.

According to eprivitalization.com, the vouchers “are as good as cash at more than 25 local businesses and the intent behind Bulldog Bucks is to “distribute the financial resources available through East Palestine Revitalization yet keep the money in our local economy to assist businesses that may be struggling due to the recent circumstances.”

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Originally Appeared Here

In May 2023, President Biden posted a tweet taking aim at tax policies that benefit ‘wealthy crypto investors’.

While many in the crypto ecosystem criticized President Biden’s statement for being misleading, the tweet is indicative of a wider phenomenon: the federal government cracking down on crypto tax evasion.

Cryptocurrency is no longer a niche ecosystem under the radar of legislators and tax authorities. Crypto is more mainstream than ever — which means the IRS is paying closer attention to crypto transactions.

In this article, we’ll explore the different ways in which crypto tax fraud is increasingly becoming a focus for regulators — and how investors can stay proactive when it comes to reporting taxes and avoiding future trouble with the IRS.

The end of ‘gray area’ tax policies

Cryptocurrency transactions often reside in a ‘gray area’ of the tax code. Because the IRS has not released complete guidance on NFT and DeFi transactions, many investors have for years taken aggressive approaches to tax reporting to minimize their tax liability.

Recently, the IRS has taken steps towards providing more clear guidelines for these transactions. In March 2023, the IRS issued guidance for NFTs for the first time — detailing the circumstances when NFTs are considered collectibles and taxed accordingly.

It’s likely that more cryptocurrency guidance is due in the months ahead. According to Julie Foerster, the IRS’s digital assets director, the agency is set to implement a new operating plan for dealing with cryptocurrencies in the next 12 months.

In addition, the federal government is looking to close ‘loopholes’ that have been available for cryptocurrency investors through legislation. The Biden Administration’s latest budget package would expand the wash sale rule to cryptocurrencies — restricting crypto investors’ ability to claim capital losses.

How the IRS is cracking down on pseudo-anonymous transactions

In addition to publishing more guidance for cryptocurrency, the IRS has been cracking down on crypto tax fraud taking place on exchanges and on the blockchain.

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As early as 2016, the IRS issued Coinbase a John Doe Summons — requiring the exchange to turn over customer records to the federal government.

Tax regulations on centralized exchanges are only set to tighten in the years to come. The 2021 Build Back Better Act requires cryptocurrency exchanges to issue mandatory 1099 forms reporting capital gains and losses to both customers and the IRS.

Of course, the IRS is not limiting its focus to centralized exchanges. In recent years, the tax agency has paid closer attention to on-chain tax fraud.

Currently, the IRS works with contractors like Chainalysis to analyze the blockchain and match ‘anonymous’ wallets to known investors. It’s been estimated that these partnerships have helped the IRS seize more than $10 billion in Bitcoin.

In addition, the federal government is taking active steps to deter investors from using privacy coins that could potentially be used for tax evasion. In 2022, the Treasury Department sanctioned the privacy-focused Tornado Coin — making it illegal for Americans to use.

An increase in funding for the IRS

It’s likely that the IRS will only be focusing more attention on the cryptocurrency industry in the years to come. While the IRS has been called an ‘underfunded’ institution in years past, this is changing as the agency has recently picked up meaningful funding from the Biden Administration. The Inflation Reduction Act of 2022 gave $80 billion in new funding to the organization over the next ten years.

While it’s unknown how much of this funding will go towards fighting crypto tax fraud specifically, IRS commissioners have singled out cryptocurrency as a major contributor to America’s annual tax gap. Because of this, it’s reasonable to assume that increased funding for the IRS will lead to increased scrutiny on cryptocurrency investors.

What steps should I take to accurately report my taxes?

With the increased attention on the cryptocurrency ecosystem, investors should be proactive in reporting their capital gains and income. Here are a few steps you can take to make sure that you’re staying compliant with tax law.

1. Keep track of your transactions: To accurately report your capital gains and losses, it’s important to keep a detailed record of all of your cryptocurrency transactions. This includes a complete history of all your trades and transfers across all of your wallets and exchanges — including the date the transaction took place and the fair market value of your crypto at receipt and disposal.

2. Find the right resources: To simplify the process of reporting your cryptocurrency taxes, it’s important to find the right tools. Crypto tax software can automatically sync to your wallets and exchanges — helping you keep track of your gains, losses, and income! If you feel uncomfortable reporting your taxes yourself, you can reach out to a tax professional with expertise in cryptocurrency.

3. Submit an amended tax return: If you haven’t reported your cryptocurrency taxes in prior years, you should file an amended tax return. You have three years from the date of filing to amend your tax return and ensure that your previous crypto transactions are reported accurately. Remember, the IRS is typically more lenient to investors who make a good faith effort to accurately report their taxes.

Remember, tax evasion is considered a felony. The maximum penalty for tax evasion in the United States is $250,000 and up to five years in prison. In addition, there’s no time limit to how far back the IRS can audit you in cases of outright tax fraud.

In conclusion

Cryptocurrency has entered the mainstream — which means the IRS is paying closer attention to the ecosystem than ever before. To avoid civil and criminal penalties, investors should be diligent in reporting their gains, losses, and income to the IRS.

Originally Appeared Here

Gov. Green Extends Family Tax Credit, Signs $37.2B Fiscal Biennium Operating Budget. PC: Office of the Governor (6.30.23)

Governor Josh Green, M.D., on Friday signed legislation to provide “sweeping income support” to Hawaiʻi’s working families, and to fund state operations for the coming fiscal biennium.

HB954 (Act 163) gives $104 million of income support to local taxpayers, “many of whom will receive tax refunds worth thousands of dollars that will flow back into their household budgets to help make ends meet,” according to the governor’s announcement.

The bill doubles the size of the Earned Income Tax Credit for five years, providing $50 million in additional support. The bill also doubles the amount of the Food Excise Tax Credit, benefitting an additional 90,000 of the most economically vulnerable residents in the state, according to the governor. “Working families who struggle to pay for child or dependent care will receive a refundable credit of up to $3,000 to help ease the high costs of living they face every day,” according to state officials.

“The people of Hawaiʻi honored me with this position in the hope that my administration would make their lives better. It is a top priority of mine, and it is thanks to the collaboration between my Administration and legislative leaders that our families will receive this relief,” said Governor Green said in a news release.

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“The budget and tax bills truly represent cooperation between the Administration, 76 legislators, and the general public,” said House Speaker Scott Saiki (District 25, Ala Moana Kakaʻako, Downtown). “They will deliver direct relief to over 200,000 families, our statewide parks and trails, our climate, and unsheltered individuals in need of mental health assistance.”

Senator Donovan Dela Cruz, chair of the Senate Ways and Means Committee, hailed the tax break bill as a positive financial benefit for struggling families.

“HB954 is a positive step towards addressing the financial challenges faced by the ALICE (Asset Limited, Income-Constrained, Employed) population in Hawaiʻi,” said Senator Dela Cruz (District 17, portion of Mililani, Mililani Mauka, portion of Waipi‘o Acres, Launani Valley, Wahiawā, Whitmore Village). “By increasing the tax credits for household and dependent care services, refundable income, and income threshold and credit amounts for refundable food and excise tax, HB954 aims to provide much-needed support to working families.”

Hawaiʻi Community Foundation CEO Micah Kāne said he believes the multi-faceted approach to relief for ALICE families will have a long-lasting impact.

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“It was important for the Governor and the legislature to allocate resources for immediate relief for the families that addresses major cost-drivers, like early learning and affordable housing,” Kāne said. “You can’t really do one without the other; you have to do both. I think the Governor’s investment in affordable housing and continued commitment to early learning will reduce the ALICE numbers in the long run,” Kāne said.

Governor Green today also signed HB300 (Act 164), the state budget for the fiscal biennium. 

The budget appropriates

• $10.7 billion in FY24 and $9.8 billion in FY25 for general funds; 
• $19 billion in FY24 and $18.2 billion in FY25 for Executive Branch departments and agencies for the operating budget.
• The budget also appropriates $2.9 billion in FY24 and $1.3 billion in FY25 for capital improvement projects. 

Governor Green on Thursday provided official notice to lawmakers, finalizing line-item reductions and vetoes.

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“When we received the Council on Revenues’ lowered revenue projections, it was clear that we had to right-fit the budget to align with the priorities of our Administration and legislature  ̶  housing, homelessness, health care services, education and the environment,” Governor Green said, noting that a balanced state budget is required by law.

“With the signing of HB300, the state budget bill, we can expect that the resources provided within it, coupled with the shared commitment of the legislature and the Governor, will allow for considerable progress to be made in addressing Hawaiʻi’s greatest challenges,” Senator Dela Cruz said. “Millions of dollars have been put forth to tackle homelessness, the housing crisis, mental health, and workforce shortages, to name a few.”

HB954 HD2 SD2 CD1, Relating to Taxation (Act 163): Increases the household and dependent care services tax credit for five years. Increases the refundable earned income tax credit for five years. Increases the income thresholds and credit amounts of the refundable food/excise tax credit for five years. (CD1) 

HB300 HD1 SD1 CD1, Relating to the State Budget (Act 164): Appropriates funds for the operating and capital improvement budget of the Executive Branch for fiscal years 2023-2024 and 2024-2025. (CD1) 

Originally Appeared Here

By Emily Goodin, Senior U.S. Political Reporter

01:39 29 Jun 2023, updated 02:03 29 Jun 2023

• IRS whistleblower Gary Shapley claimed Trump-appointed attorney Gary Weiss said he was not in charge of deciding if Hunter faced charges
• Said decision was made in DC by U.S. Attorney Matthew Graves, who was appointed by President Joe Biden
• AG Merrick Garland claims Weiss had authority on making charging decisions

An IRS whistleblower claimed Wednesday night Trump-appointed US attorney David Weiss told him he was not in charge of deciding whether or not Hunter Biden faced federal charges – and that a Joe Biden-appointed attorney made the call.

Gary Shapley, in an interview with Fox News, described an October 7, 2022, meeting with top IRS and FBI officials on the investigation into President Joe Biden’s son.

‘I was there, and I witnessed this personally,’ Shapley said, noting Weiss started by saying ‘he’s not the deciding person whether or not charges are filed or not.’

Shapley claimed the final decision was made by officials in Washington DC. He noted Weiss meet with the Matthew Graves, the US Attorney for the District of Columbia, who was appointed by President Joe Biden, in March 2022.

‘After that occurred, he was no longer looking to charge,’ Shapley said.

IRS whistleblower Gary Shapley claimed Trump-appointed US attorney David Weiss told him he was not in charge of deciding whether or not Hunter Biden faced federal charges – and that a Joe Biden-appointed attorney made the call

‘So that’s earth-shattering news,’ Fox News’ Bret Baier said. ‘It’s a Biden-appointed D.C. U.S. attorney, Matthew Graves, would not allow him to charge in his district?’

‘I didn’t learn that fact until October 7 of 2022, so looking back to March of 2022. And that’s when David Weiss, in October 7, 2022, said that the D.C. U.S. attorney’s office will not allow us to charge there,’ Shapley responded.

Shapley, who worked for the agency for 14 years, helped oversee the investigation into the president’s son. He is raising questions over alleged special treatment throughout the probe and how the charging decisions were made.

Shapley noted Weiss said he had requested special counsel authority and was denied. 

‘I even had him repeat that, because I knew how important that fact was, and I wanted to make sure I understood it,’ he noted.

Shapley said he even documented the details of the meeting in an email and noted that email was in the hands of House investigators.

The House Ways and Means Committee last week released testimony from two IRS whistleblowers who alleged officials at the Justice Department, the FBI, and the IRS interfered with Weiss’ investigation. 

Matthew Graves, the US Attorney for the District of Columbia, who was appointed by President Joe Biden

Shapley was one of those two whistleblowers. 

In response to the release of that information, Attorney General Merrick Garland denied interfering in the Hunter Biden probe. 

‘I don’t know how it would be possible for anybody to block him from bringing a prosecution,’ Garland said last week of Weiss.

The defense came a day after Shapley’s stunning allegations about the case were unsealed by House Republicans, and after both Hunter Biden and the AG were guests at a White House State Dinner. 

Asked about any directive not to bring charges against Hunter in 2022, Garland responded: ‘As I said at the outset, Mr. Weiss was appointed by President Trump as the U.S. attorney in Delaware and assigned this matter during the previous administration.’ 

Garland said Weiss ‘would be permitted to continue his investigation and to make a decision to prosecute any way in which he wanted to and in any district in which he wanted to. Mr. Weiss has since sent a letter to the House Judiciary confirming he had that authority. 

‘I don’t know how it would be possible for anybody to block him from bringing a prosecution, given that he has this authority,’ he said.

He claimed Weiss never asked to be appointed special prosecutor.

‘Mr. Weiss had, in fact, more authority than a special counsel would have.’ 

‘He was given complete authority to make all decisions on his own,’ he noted.

‘Some have chosen to attack the integrity of the Justice Department by claiming that we do not treat cases alike. This constitutes an attack on an institution that is essential to American democracy,’ Garland said.

President Joe Biden, son Hunter Biden and grandson Beau Biden Jr. arrive at Fort Lesley J. McNair on Sunday after spending the weekend at Camp David ‘I don’t know how it would be possible for anybody to block him from bringing a prosecution,’ Attorney General Merrick Garland said of US Attorney for Delaware David Weiss The testimony from an IRS whistleblower revealed that U.S. Attorney David Weiss – the Trump-era holdover who prosecuted the case against Hunter Biden – allegedly asked for special counsel status and was denied by the Department of Justice

Hunter Biden, in his plea deal with the US government, agreed to plead guilty to two counts of failing to pay timely tax payments on $1.5 million in income. Weiss announced that agreement along and noted he charged Hunter in connection with his purchase of a handgun in 2018 but said he would not prosecute the charge under a two-year pretrial diversion program.

Republicans are investigating Garland’s role in the case and whether or not Weiss truly had the authority to make charging decisions. 

‘If it comes true what the I.R.S. whistle-blower is saying, we’re going to start impeachment inquiries on the attorney general,’ Speaker Kevin McCarthy told Fox News. 

President Joe Biden has said repeatedly he had nothing to do with Hunter’s business dealings and the White House has emphasized they are staying out of any Justice Department investigations.  

Shapley also told CBS News on Tuesday that he was repeatedly prevented from taking the necessary – and routine – steps when it came to Hunter’s case.

He said conduct uncovered during the five-year investigation could have implicated President Joe Biden as well, and resulted in additional charges.

And he claimed the road blocks were happening even during the Trump years.

‘There were certain investigative steps that we weren’t allowed to take that could have led us to President Biden,’ Shapley said, adding that his team at the IRS ‘needed to take [those steps] and we weren’t allowed to take them.’

IRS whistleblower Gary Shapley (pictured) told CBS News that Hunter Biden did receive special treatment ¿ and said he was prevented from taking the routine steps during the investigation into the president’s son

In their congressional interviews, both Shapley and the other agent questioned whether the U.S. attorney overseeing Hunter’s case was even able to bring charges he saw fit.

Weiss said in a letter to the House Judiciary Committee weeks ago that he was granted ‘ultimate authority over this matter, including responsibility for deciding where, when, and whether to file charges.’

Originally Appeared Here

It’s almost tax time but there’s some bad news for Australians hoping to get a big return this July.

Will my tax return be less in 2023?

The Low to Middle Income Tax Offset, which expired on June 30, 2022, previously saw Aussies who earned up to $126,000 per year receive an offset in their tax return, as shown below. But with the offset no longer available, taxpayers who once received it could now be seeing their tax refunds cut by up to $1500.

How the LMITO worked:

Taxable income of $37,000 or less: $675 offset

Taxable income of $37,001 to $48,000: $675 offset plus 7.5 cents for every dollar above $37,000, up to a maximum of $1,500

Taxable income of $48,001 to $90,000: $1,500 offset

Taxable income of $90,001 to $126,000: $1,500 offset minus 3 cents for every dollar above $90,000

Founder of financial advice app Otivo, Paul Feeney said that “ultimately, more people will find they have less tax returns resulting from the offsets and so forth that the government had in place”.

Ex-financial advisor and founder of Otivo, Paul Feeney. Picture: Supplied.

How to get as much tax back as possible:

Mr Feeney advised that while there are “many things that people can deduct, there’s a fine line between what you can and can’t”.

He recommended using the ATO’s Deductions You Can Claim web page, to be sure that what you are deducting is acceptable, from education related to your job, to the cost of your tax agent.

What will the ATO be looking for in my tax return?

Accountant Coco Hou said work related expense claims, rental property deductions and cryptocurrency transactions are the ATO’s focus this year.

“(The ATO) are particularly focused on excessive or unsubstantiated claims, such as personal expenses disguised as work related expenses. And so it is very, very important for taxpayers to keep accurate records and only claim the legitimate expenses directly related to their employment.”

Leading tax agent Coco Hou says there are three main ATO crackdowns to watch for this year. Picture: Supplied.

Ms Hou pointed out that with the 2022 floods in parts of Australia, things can “get tricky” with rental property deductions.

“A lot of taxpayers need to repair their rental properties … (But the ATO) are targeting the areas of excessive interest deductions, and incorrect apportionment of expenses, especially the repair and maintenance expenses.

“So say for example, if the roof got blown away, you put the roof back on and it could be the deductible but if you say, ‘hey, I want to change a whole new roof’, that’s not deductible, you have to capitalise it and claim depreciation over it.”

Landlords should beware of deducting their rental property claims correctly, Ms Hou warns. Picture: iStock.

The accountant adds that for the third area of focus, cryptocurrency, taxpayers should be very “careful”.

“When it comes to buying, selling and exchanging a cryptocurrency, the capital gain and loss need to be tracked properly.”

What about the HECS/HELP debt indexation?

With the increased HECS/HELP debt indexing having come into effect on 1 June, 2023, many Aussies with student debt have been considering making voluntary repayments to pay off their debt quicker.

While Ms Hou recommended paying down your debt “as early as possible” if cash flow allows, financial advisor Mr Feeney said he believes “it’s a lot to start paying off (HECS debt) quickly.”

“Some people who have got the cash and don’t need it for other goals, they should look at paying that down.

Aussies with student loans like HECS and FEE HELP will now be owing more, thanks to increased indexing. Picture: iStock.

“But my general advice … is to continue to pay it back through pre-tax dollars through the government. Because otherwise, you’re paying it off with post-tax dollars.

“And I’ve no doubt with the financial living costs and the pressures that people have right now, keeping that money for themselves as a buffer instead of paying the HECS is probably a better thing to do.”

How do Australians spend their tax refunds?

Ms Hou said she “can definitely see the state of conservatism already come into the picture,” as even those taxpayers with cash on hand are spending less.

“Simply because they still worry that the interest rates might still go up. And they always prioritise their mortgage repayment, and things like a school tuition fee.

“They’ve cut down their overseas travelling budget … it’s gonna take some time for the public confidence to be restored.”

Best thing to do with your tax return in 2023

Mr Feeney urges taxpayers to be “proactive” and get their tax returns in early, so you can have “money back in your pocket quickly”

The quicker you do your tax return, the sooner there’s cash in your pocket for a “buffer”, says Mr Feeney. Picture: iStock.

“Once you do that … look at if you have any expensive debt, like credit cards and loans that are the 10 to 20 per cent interest rate. Try to pay them off or pay them down.

“And build up that safety buffer … If you’re someone with a mortgage, try and put that money into your offset account, because that’s going to really decrease the interest that people are going to experience.’

Originally Appeared Here

CNN
 — 

Two whistleblowers told Congress that IRS investigators recommended charging Hunter Biden with attempted tax evasion and other felonies, which are far more serious crimes than what the president’s son has agreed to plead guilty to, according to transcripts of their private interviews with lawmakers.

The IRS whistleblowers said the recommendation called for Hunter Biden to be charged with tax evasion and filing a false tax return – both felonies – for 2014, 2018 and 2019. The IRS also recommended that prosecutors charge him with failing to pay taxes on time, a misdemeanor, for 2015, 2016, 2017, 2018 and 2019, according to the transcripts, which were released Thursday by House Republicans.

It appears that this 11-count charging recommendation also had the backing of some Justice Department prosecutors, but not from more senior attorneys, according to documents that the whistleblowers provided to House investigators.

In a deal with prosecutors announced earlier this week, Hunter Biden is pleading guilty to just two tax misdemeanors.

The allegations come from Gary Shapley, a 14-year IRS veteran, who oversaw parts of the Hunter Biden criminal probe, and an unnamed IRS agent who was on the case nearly from its inception. Shapley approached Congress this year with information that he claimed showed political interference in the investigation. He and the entire IRS team were later removed from the probe.

“I am alleging, with evidence, that DOJ provided preferential treatment, slow-walked the investigation, did nothing to avoid obvious conflicts of interest in this investigation,” Shapley told lawmakers.

David Weiss, the Trump-appointed US attorney in Delaware who oversaw the Hunter Biden criminal probe, eventually reached a plea deal where the president’s son will plead guilty to two misdemeanors for failing to pay taxes on time. The plea agreement will also resolve a separate felony gun charge, if Hunter Biden abides by certain court-imposed conditions for a period of time.

Hunter Biden isn’t pleading guilty to any felonies, and he wasn’t charged with any tax felonies. CNN reported that prosecutors are expected to recommend no jail time. He is scheduled to appear in federal court in Delaware on July 26.

It isn’t uncommon for there to be internal disagreements among investigators over which charges to file against the target of an investigation, much like the disagreements that the IRS whistleblowers described. CNN reported last year that some FBI and IRS investigators were at odds with other Justice Department officials over the strength of the case, and that there were discussions over which types of charges were appropriate and whether further investigation was needed.

Sources familiar with the criminal probe told CNN in April that prosecutors were still actively weighing a felony tax charge against Hunter Biden. And it is common for prosecutors to strike deals with defendants where they plead guilty to a small subset of the possible charges they could’ve faced.

The Justice Department probe into Hunter Biden was opened in November 2018, and was codenamed “Sportsman.” According to Shapley’s testimony, federal investigators knew as early as June 2021 that there were potential venue-related issues with charging Hunter Biden in Delaware. Under federal law, charges must be brought in the jurisdiction where the alleged crimes occurred.

If the potential charges couldn’t be brought in Delaware, then Weiss would need help from his fellow US attorneys. He looked to Washington, DC, where some of Hunter Biden’s tax returns were prepared, and the Central District of California, which includes the Los Angeles area where Hunter Biden lives.

But Shapley told the committee that the US attorneys in both districts wouldn’t seek an indictment.

A second whistleblower, an IRS case agent who also testified to the committee but hasn’t been publicly identified, also told lawmakers that this is what happened. He agreed that Weiss was “was told no” when he tried to get the cooperation of the US attorneys in in DC and Los Angeles, who are Biden appointees.

Hunter Biden’s eventual plea agreement was filed in Weiss’ jurisdiction, in Delaware.

Shapley contends in his interview that Attorney General Merrick Garland was not truthful when he told Congress that Weiss had full authority on the investigation.

Shapley recounted a meeting on October 7, 2022, where, according to Shapley’s notes memorializing the meeting, Weiss said, “He is not the deciding person on whether charges are filed” against Hunter Biden. This undermines what Weiss and Garland have publicly said about Weiss’ independence on the matter.

Shapley also testified to committee investigators that it was during this October 2022 meeting that he learned for the first time that Weiss had requested to be named as a special counsel, but was denied.

In testimony to Congress in March, Garland said Weiss was advised “he is not to be denied anything he needs.”

Regarding the claims of political interference with the Hunter Biden criminal probe, Weiss told House Republicans in a recent letter that Garland granted him “ultimate authority over this matter, including responsibility for deciding where, when, and whether to file charges.”

After the transcripts were released Thursday, spokespeople for the US attorney’s offices in DC and Los Angeles issued near-identical statements reiterating that Weiss “was given full authority to bring charges in any jurisdiction he deemed appropriate.” The Justice Department echoed those comments in a statement saying Weiss “needs no further approval” to bring charges wherever he wants.

The whistleblowers also allege that at multiple key junctures, investigators were thwarted in their efforts because prosecutors were concerned about interfering in the 2020 presidential election.

In 2020, IRS investigators sought to conduct search warrants and take other overt steps. But according to Shapley, several weeks before the election, in September 2020, a Justice Department prosecutor questioned the optics of searching Hunter Biden’s residence and Joe Biden’s guest home.

Later that year, other planned searches were delayed because then-President Donald Trump was refusing to concede and was continuing to contest the results.

Republicans have slammed the plea agreement Hunter Biden struck as a “sweetheart deal,” and said it amounted to “a slap on the wrist.”

House Ways and Means Committee Chairman Jason Smith said earlier Thursday that the transcripts reveal “credible whistleblower testimony alleging misconduct and abuse” at the Justice Department that “resulted in preferential treatment for the president’s son.”

The Missouri Republican highlighted the whistleblowers’ allegations that the Justice Department “overstepped” in their efforts to intervene in the Hunter Biden criminal probe.

“The testimony … details a lack of US attorney independence, recurring unjustified delays, unusual actions outside the normal course of any investigation, a lack of transparency across the investigation and prosecution teams, and bullying and threats from the defense counsel,” Smith said.

Democrats on the committee said the transcripts were “a premature and incomplete record” of what happened with the Hunter Biden probe and accused the GOP of a “stunning abuse of power.”

Shapley, the IRS supervisor-turned-whistleblower, told House lawmakers that Justice Department prosecutors denied requests to look into messages allegedly from Hunter Biden where he used his father as leverage to pressure a Chinese company into paying him.

“I am sitting here with my father and we would like to understand why the commitment made has not been fulfilled,” according to a document Shapley gave to Congress, which quotes from texts that are allegedly from Hunter Biden to the CEO of a Chinese fund management company.

The message continues: “Tell the director that I would like to resolve this now before it gets out of hand. And now means tonight.” The message goes onto say, “I will make certain that between the man sitting next to me and every person he knows and my ability to forever hold a grudge that you will regret not following my direction. I am sitting here waiting for the call with my father.”

The second, unnamed IRS whistleblower also testified to lawmakers about this alleged WhatsApp message, saying prosecutors questioned whether they could be sure Hunter Biden was telling the truth that his father was actually in the room in the messages. The unnamed whistleblower testified that they did not know whether the FBI investigated the message.

Shapley told House investigators that a Justice Department attorney insisted that the FBI not ask directly about Joe Biden when doing interviews. But the FBI did manage to ask one key witness about Joe Biden, and Shapley said the witness told investigators that some suggestions of the president’s involvement were overstated.

An email sent among business partners of Hunter Biden said an equity stake should be held “for the big guy,” an apparent reference to Joe Biden, who was vice president at the time. But one of the associates told the FBI that it was probably just “wishful thinking or maybe he was just projecting” that Joe Biden would get involved if he did not run for president in 2016.

Joe Biden has repeatedly denied having any involvement in his son’s overseas business dealings, where he made millions of dollars from China, Ukraine and other countries. House Republicans have used their oversight probes to look for evidence that Joe Biden was actually involved.

This story has been updated with additional developments.

Originally Appeared Here

The due date for filing the Income Tax Return (ITR) is fast approaching and many salaried taxpayers are fretting over not receiving Form 16 from their employers.

Though employees expect to receive the form in their official email by June 15, some companies may take a day or two more considering how this form contains information about the tax deducted at source (TDS) by an employer on behalf of an employee.

In addition to TDS details, this form also includes a comprehensive summary of the salary paid to the employee by the employer.

Form 16 is indeed crucial for salaried individuals when filing their ITRs. It serves as a significant document as it provides detailed information about the salary paid to the employee, deductions claimed by the employee, and the tax deducted from the salary. This information is essential for accurately reporting income and claiming applicable tax benefits while filing the ITRs.

For the assessment year 2023-24, the due date for filing Income Tax Returns (ITR) is July 31. Before submitting your ITR, it is important to review the following key points in your Form 16:

Personal Details

Ensure that your personal information, such as your name, Permanent Account Number (PAN), and address, is correctly mentioned in Form 16.

This means that you must check if your name is correctly spelt and matches the name on your PAN card and other official documents. Apart, your PAN – a unique 10-digit alphanumeric identifier, is correctly mentioned in Form 16.

Any discrepancies could lead to issues during the filing process. Verify that your residential address is accurately stated in Form 16. This includes the correct house number, street name, locality, city, state, and PIN code.

Salary Details

Verify the salary details provided in Form 16, including the gross salary, allowances, perquisites, and any other income components. Cross-check these figures with your own records to ensure accuracy.

Confirm that the gross salary mentioned in Form 16 matches the salary credited to your bank account or as per your employment records. This includes your basic salary, allowances, and any other components. Also, the form must reflect details of the allowances you are entitled to such as House Rent Allowance (HRA), Travel Allowance, Medical Allowance, and others.

If you receive any perquisites or fringe benefits from your employer, ensure that these are accurately mentioned in Form 16. Common examples include rent-free accommodation, company car usage, or club memberships. Check if any other income components, such as bonuses, incentives, commissions, or any additional income sources, are properly accounted for in the form.

Deductions and Exemptions

Check if the deductions claimed by you, such as under Section 80C, Section 80D, and any other applicable sections, are correctly reflected in Form 16. Also, confirm if any exemptions, such as House Rent Allowance (HRA), are appropriately mentioned.

Section 80C deductions

Ensure that the deductions claimed under Section 80C for investments such as Employee Provident Fund (EPF), Public Provident Fund (PPF), life insurance premiums, etc., are correctly mentioned in Form 16. Confirm that the total deduction amount claimed aligns with your actual investments.

Section 80D deductions

Check if the deductions claimed under Section 80D for health insurance premiums are accurately reflected. Verify that the premium amounts paid for individual, family, or parents’ health insurance policies are correctly reported.

Other deductions

Review any other deductions claimed under applicable sections such as Section 80G (for donations), Section 80E (for education loan interest), or Section 80TTA (for interest on savings account). Ensure that the deductions claimed match your actual eligible expenses and investments.

Exemptions

If you are eligible for any exemptions, such as House Rent Allowance (HRA), confirm that the exempted amount is correctly mentioned in Form 16. Verify that the exemption has been calculated as per the applicable rules and based on the supporting documents provided.

Supporting documents

Keep in mind that while Form 16 provides a summary of your income and deductions, it is advisable to maintain supporting documents and proofs for the deductions claimed. These documents may be required for verification during the assessment by the tax authorities.

TDS details

Review the TDS details in Form 16, including the TDS amount deducted by your employer and the corresponding TDS certificates. Access your Form 26AS, which is the consolidated statement of TDS available on the Income Tax Department’s website.

Compare the TDS amount mentioned in Form 16 with the TDS details reflected in your Form 26AS. Ensure that the amounts match, indicating that the TDS has been correctly reported and deposited by your employer.

If you notice any discrepancies or mismatches between the TDS amount mentioned in Form 16 and the TDS details in Form 26AS, it is important to address them. Contact your employer or the concerned authority to rectify any errors and ensure that the TDS details are accurately reflected.

Verification and Certification

Check that Form 16 is properly signed and certified by your employer. A valid signature and certification indicate that the form is authenticated by your employer.

The certificate should bear the employer’s Tax Deduction and Collection Account Number (TAN) and other necessary details. Also, confirm that the form pertains to the relevant financial year for which you are filing your ITR. The relevant financial year should be clearly mentioned on the form, and it should align with the period for which you are filing your ITR.

The validity period of the form should align with the corresponding financial year. The form should cover the entire duration of your employment during that financial year, including any job changes or transfers within the same financial year.

Ensure that the format of Form 16 follows the guidelines specified by the Income Tax Department. It should include the required sections and information as per the prescribed format. This includes details of the employer, employee, salary components, deductions, exemptions, and TDS.

Additional Income

If you have any additional sources of income apart from your salary, ensure that these are properly declared in your ITR and reflected in your Form 16, if applicable.

Identify additional income sources: Determine if you have any other sources of income, such as income from house property, capital gains from the sale of assets, income from investments, rental income, or income from freelance or consulting work. It is important to include all such income sources while filing your ITR.

Declare the additional income: Make sure to declare these additional sources of income in the appropriate sections of your ITR form. Provide the necessary details, such as the nature of the income, the amount earned, and any applicable deductions or exemptions.

Cross-check with Form 16: If the additional income is reflected in your Form 16, verify that it accurately represents the income you have earned from those sources. Check if the deductions or exemptions related to the additional income are correctly accounted for in Form 16.

Maintain supporting documents: Keep all relevant documents, such as rental agreements, investment statements, capital gains calculations, or any other proofs of income, to substantiate the additional income declared in your ITR.

Taxable Income and Tax Liability

Calculate your taxable income based on the details provided in Form 16. Then, determine the applicable income tax slabs and rates based on your taxable income. Calculate the tax liability using the respective rates for each slab. Check if the tax liability computed matches your own calculations and the tax deducted by your employer.

Compare the tax liability calculated with your own calculations to verify if they match. Take into account the TDS by your employer, as mentioned in Form 16. Ensure that the TDS amount is appropriately accounted for and reflected in your tax liability calculations.

These are some key points to review in your Form 16 before filing your ITR to ensure accuracy and compliance with tax regulations. It is always advisable to consult a tax professional or chartered accountant for specific guidance tailored to your individual circumstances.

Accurate personal information in Form 16 is crucial to avoid any potential mismatches or errors in your ITR filing. If you notice any discrepancies, it is recommended to contact your employer or the relevant authority to rectify the information before submitting your ITR.

By calculating your taxable income based on the details provided in Form 16 and cross-checking the tax liability with your calculations, you can ensure accuracy in your ITR filing. If you identify any discrepancies, it is advisable to consult a tax professional or chartered accountant for assistance in resolving the issue.

Why should you file ITR even with no taxable income:

Originally Appeared Here

FLOWOOD, Miss. (AP) — Mississippi Lt. Gov. Delbert Hosemann and state Sen. Chris McDaniel, the fellow Republican trying to unseat him in a primary challenge, each sought to burnish their conservative credentials in speeches at the Mississippi Press Association convention on Friday.

Hosemann, of Jackson, is seeking reelection for a second term as the state’s second-highest-ranking official. Hosemann served three terms as secretary of state before winning the lieutenant governor’s race four years ago. McDaniel, of Ellisville, is a four-term Mississippi legislator who has lost two races for U.S. Senate in the past decade, including a bitter 2014 election that he refused to concede.

In Mississippi, the governor and lieutenant governor are elected separately.

Public education funding, the rate at which to lower the state’s income tax and efforts to shrink the size of government featured prominently in both Republicans’ speeches.

Hosemann portrayed himself as an austere steward of the state’s economy, saying that Mississippi’s Republican leadership has run the state like a business, a line he often deploys on the campaign trail. Hosemann said he oversaw a 12% reduction in the state’s debt and that the state has shed 2,300 state employees since he was elected in 2019.

“We’re in the best financial condition we’ve ever been since 1817,” Hosemann said. “We are poised for greatness. We are going to be competitive on every front, and I think we have laid the predicate for this.”

McDaniel, as he has since he launched his campaign in January, cast the primary race as an intraparty battle between a staunch conservative and an incumbent who has allowed Mississippi’s Republican-dominated Legislature to shift “too far to the left.” Accusing Hosemann of being “more inclined to be a Democrat than a Republican,” McDaniel vowed to push the Senate to the right if he were to preside over the chamber.

“I’m standing to fight for what I believe in one last time,” McDaniel said. “I’ve never understood why anybody would fear balanced budgets or the fact that people have to be empowered as opposed to collectives. That’s the conservatism I want.”

The candidates’ approaches to lowering the state income tax emerged as a flashpoint in the speeches.

McDaniel said Hosemann has failed to fully eliminate the state income tax, which he said puts Mississippi at a competitive disadvantage against states like Florida and Texas. Hosemann said he supports an incremental approach to lowering the income tax so lawmakers wouldn’t have to raise the sales tax to compensate for lost revenue.

During the 2022 session, legislators enacted a plan to reduce the state income tax over four years — Mississippi’s largest tax cut ever. That reduction starts this year. Legislation favored by Republican Gov. Tate Reeves and House Speaker Philip Gunn to eliminate the income tax died during the 2023 legislative session.

In his speech, Hosemann touted a teacher pay raise and a $245 million investment in public education. McDaniel said he would fight against “woke culture” in schools by supporting a “parental bill of rights.”

The lieutenant governor presides over the 52-member Mississippi Senate, appoints senators to committees and names the committee leaders.

A third Republican running in the primary, Tiffany Longino, did not appear at the event Friday. The lone candidate running in the Democratic primary is D. Ryan Grover, whose campaign website describes him as a small business owner. He also did not speak Friday.

Party primaries are Aug. 8, with runoffs Aug. 29. The general election on Nov. 7, with runoffs Nov. 28.

___

Michael Goldberg is a corps member for the Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues. Follow him on Twitter at twitter.com/mikergoldberg.

Originally Appeared Here

Funding for the Internal Revenue Service proved to be one of the more contentious issues in the recent debt ceiling agreement. Republicans wanted to roll back some or all of the $80 billion in new funding that Democrats enacted in the 2022 Inflation Reduction Act, while Democrats claimed that less funding for tax law enforcement would mean more tax dodging and less revenue for the government. They settled on redirecting $20 billion of the new IRS funding to other domestic programs.

Scott Hodge – Courtesy Scott Hodge

What both parties ignore: The IRS does not need more money for enforcement; it needs fewer things to enforce.

Over the past two decades, both parties have increasingly turned to the tax code to deliver social and economic benefits, converting the IRS into a super-agency responsible for managing nearly 220 “tax expenditure” programs as diverse as the credit for geothermal energy production and the credit for child and dependent care.

Lawmakers have created 64 new tax breaks over the past 20 years alone, according to my own research and analysis.

No agency can competently manage such a vast array of programs. But Congress has set the IRS up for failure because of the way tax expenditures are designed.

Indeed, the IRS inspector general recently reported that the IRS paid out $26 billion in erroneous overpayments to taxpayers who claimed various tax credits, such as the Earned Income Tax Credit, Additional Child Tax Credit and American Opportunity Tax Credit. Overpayments for some of these credits and others were due to mistakes, fraud and insufficient documentation.

Despite the IRS’ best efforts, the amount of mistaken overpayments has grown in recent years, following decades of warnings by government auditors. According to PaymentAccuracy.gov, the government website that tracks the improper payments of federal agencies, the error rate for the Earned Income Tax Credit alone has averaged around 25% since 2004.

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In the IRS’ defense, these errors are not necessarily due to gross mismanagement or bad bookkeeping. Unlike traditional programs, such as Medicaid or the Supplemental Nutrition Assistance Program, tax breaks don’t require a lengthy application process or a face-to-face interview with a caseworker to verify a person’s eligibility.

On the contrary, tax credits and deductions are self-validating. The IRS cannot pre-screen people who claim a tax break. Taxpayers determine their own eligibility as they or their tax preparers complete their 1040 tax returns.

Only after the IRS receives a tax return can it try to validate a taxpayer’s eligibility for the credit or deduction. And the only tools the IRS has to verify a claim is to run tax returns through its computer verification software or through an audit. Both tools are costly and burdensome.

Moreover, unlike traditional spending programs, Congress often fails to require the IRS to measure the effectiveness of a tax credit or even collect the necessary data to determine its effectiveness.

Even if the IRS were required to perform such a review, how would the agency determine that the charitable deduction was the deciding factor in a taxpayer’s gift to the local homeless shelter?

What outsiders have found is that many of these tax programs don’t work very well.

For example, nearly 10 million taxpayers claimed some $15 billion in education tax credits in 2022. Education credits, such as the American Opportunity Tax Credit, are intended to make attending college more affordable and accessible by allowing taxpayers to reduce their taxes by up to $2,000 for college expenses. Yet a 2015 National Bureau of Economic Research study found that the credit “generated very little change in college attendance or other college-related outcomes.”

A 2017 study by the IZA Institute of Labor Economics reported that the “key insight from our study and others is that tax credits for college do not affect student outcomes — even when students receive information (on) them.” Education and economics scholars put it bluntly in 2018: “Evidence now clearly shows that these credits have zero effect on college attendance.”

Similarly, an estimated 13.6 million taxpayers claimed more than $27 billion in mortgage interest deductions in 2022. The mortgage interest deduction allows taxpayers who itemize deductions to write off the interest they pay on their home mortgage with the intent to make homeownership more accessible.

Yet 2020 research by the Congressional Research Service suggested that because wealthy taxpayers benefit most from the deduction, it “may have a larger effect on the size of homes purchased than on the decision to become a homeowner.” Another academic study from 2013 determined that the mortgage interest deduction “has no discernible impact on the level of US homeownership.”

The Inflation Reduction Act created or expanded 24 tax credits for green energy programs. Yet when the Government Accountability Office in 2015 examined two credits aimed at encouraging alternative energy production, it reported that since the IRS isn’t required to collect project-level data, “the total generating capacity they supported is unknown.”

In two recent reports, GAO complained about the lack of data to judge the effectiveness of the New Markets Tax Credit, or NMTC, and “opportunity zones,” tax programs intended to promote investment in low-income areas.

GAO found it was “difficult to establish causal links between NMTC-related financing and these reported project outcomes.” Another GAO report simply declared “there are insufficient data available to evaluate (opportunity zone) performance, including outcomes.”

Both parties have learned that “cutting taxes” through targeted tax breaks is more broadly popular than creating new spending programs. But the IRS’ job should be to collect taxes, not deliver benefits. It has all the money and auditors it needs to do that; it just needs a simpler tax code.

The path to a simpler tax code would start by eliminating many of these tax programs altogether through fundamental tax reform, or at least as a means of reducing the national debt.

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Originally Appeared Here