Income Tax News

BUENOS AIRES, Argentina, March 10, 2025 /PRNewswire/ — IRSA Inversiones y Representaciones Sociedad Anónima, a corporation (sociedad anónima) incorporated under the laws of the Republic of Argentina (“IRSA”), today announced it has commenced, subject to the terms and conditions set forth in the exchange offer memorandum dated March 10, 2025 (the “Exchange Offer Memorandum” and, together with the Eligibility Letter, as defined below, the “Exchange Offer Documents”) an offer (the “Exchange Offer”) to Eligible Holders (as defined below) to exchange any and all of its US$141,242,322.38 aggregate principal amount of outstanding 8.750% Senior Notes due 2028 (the “Existing Notes”) for 8.000% Senior Notes due 2035 (the “New Notes”) to be issued by IRSA.

The following table sets forth certain material terms of the Exchange Offer:

Existing Notes			Exchange Consideration(3)
Description	CUSIP and ISIN (144A / Reg S)	Principal Amount Outstanding(2)	Early Exchange Consideration (Principal Amount of New Notes)(4)	Late Exchange Consideration (Principal Amount of New Notes)
8.750% Senior Notes due 2028(1)	CUSIPs: 450047AH8/ P58809BH9   ISINs: US450047AH86/ USP58809BH95	US$141,242,322.38	US$1,040	US$1,000

(1) The Existing Notes are listed on the Buenos Aires Stock Exchange (Bolsas y Mercados Argentinos S.A.) and traded on the Argentine over the counter market (Mercado Abierto Electrónico S.A., or the market that supersedes it (including A3 Mercados S.A.)). Includes approximately US$7.9 million Notes held by IRSA and its subsidiaries.
(2) The original principal amount outstanding of the Existing Notes is subject to a variable amortization factor (the “Amortization Factor”) which is calculated in accordance with amortization payments made and expected to be made in accordance with the terms and conditions of the Existing Notes. As of the date of the Exchange Offer Memorandum, the Amortization Factor is 0.825, which multiplied by the nominal amount of the Notes shown in the records of the relevant clearing system (the original principal amount of the Existing Notes) results in US$141,242,322.38.  The original principal amount of the 2028 Senior Notes before the application of the Amortization Factor is US$171,202,815.
(3) Per US$1,000 principal amount of the Existing Notes validly tendered and accepted for exchange. The Exchange Consideration does not include accrued and unpaid interest with respect to the Existing Notes accepted for exchange, which shall be paid together with the applicable Exchange Consideration as described herein.

The Exchange Offer will expire at 5:00 p.m. (New York City time) on April 8, 2025 (such date and time, as the same may be extended in the sole discretion of IRSA, the “Expiration Date”). Existing Notes tendered for exchange may be validly withdrawn at any time at or prior to 5:00 p.m. (New York City time) on March 24, 2025 (such date and time, as the same may be extended in the sole discretion of IRSA, the “Withdrawal Date”), but not thereafter. To be eligible to receive the Early Exchange Consideration, Eligible Holders must validly tender and not validly withdraw their Existing Notes at or prior to 5:00 p.m. (New York City time) on March 24, 2025 (such date and time, as the same may be extended in the sole discretion of IRSA, the “Early Participation Date”). The deadlines set by any intermediary or relevant clearing system may be earlier than these deadlines.

Exchange Consideration

Upon the terms and subject to the conditions set forth in the Exchange Offer Documents, Eligible Holders who validly tender Existing Notes, and whose Existing Notes are accepted for exchange by IRSA, will receive:

(a) if they tender their Existing Notes on or before the Early Participation Date, US$1,040 principal amount of New Notes for each US$1,000 principal amount of Existing Notes validly tendered that we accept for exchange (the “Early Exchange Consideration”) which includes the Early Tender Premium; and
(b) if they tender their Existing Notes after the Early Participation Date but on or before the Expiration Date, US$1,000 principal amount of New Notes for each US$1,000 principal amount of Existing Notes validly tendered that we accept for exchange (the “Late Exchange Consideration” and, together with the Early Exchange Consideration, the “Exchange Consideration”).

The Condition

Upon the terms and subject to the conditions of the Exchange Offer described in the Exchange Offer Memorandum, which are for the sole benefit of IRSA and may be waived by IRSA, in full or in part, in its absolute discretion, IRSA will accept for exchange as soon as reasonably practicable after the Early Participation Date, all Existing Notes validly tendered at or prior to the Early Participation Date and not validly withdrawn as of the Withdrawal Date in the Exchange Offer.

IRSA expects, on March 31, 2025, which is the fifth business day after the Expiration Date (as may be extended by IRSA in its sole discretion, the “Early Settlement Date”), to issue and deliver the applicable principal amount of New Notes and deliver the applicable Early Exchange Consideration in exchange for any Existing Notes validly tendered and not validly withdrawn and accepted for exchange, in the amount and manner described in the Exchange Offer Memorandum. Any final settlement of the Exchange Offer will be promptly following the Expiration Date and is expected to be April 11, 2025, which is the third business day after the Expiration Date (as the same may be extended by IRSA). IRSA will not be obligated to issue or deliver New Notes with respect to the Exchange Offer unless the Exchange Offer is consummated. Eligible Holders of the Existing Notes who are Argentine Entity Offerees (as defined in the Exchange Offer Memorandum) or Non-Cooperating Jurisdiction Offerees (as defined in the Exchange Offer Memorandum) may be subject to certain tax withholdings resulting from the exchange of their Existing Notes. See “Taxation—Certain Argentine Tax Considerations” in the Exchange Offer Memorandum.

Holders of Existing Notes validly tendered for exchange and not validly withdrawn and accepted by IRSA pursuant to the Exchange Offer will be entitled to receive accrued and unpaid interest paid in cash with respect to the Existing Notes accepted for exchange which consists of a cash payment equal to all accrued and unpaid interest (rounded to the nearest cent US$0.01) on their Existing Notes accepted for exchange from the interest payment date on December 22, 2024 to, but not including, the Early Settlement Date or the Final Settlement Date, as the case may be  (net of accrued interest on the New Notes in the case of consideration paid on the Final Settlement Date only). Under no circumstances will any additional interest be payable because of any delay in the transmission of funds to Eligible Holders by DTC, Euroclear, Clearstream or any other clearing system.

The New Notes are being offered for exchange only (1) to holders of Existing Notes that are “qualified institutional buyers” as defined in Rule 144A under U.S. Securities Act, as amended (the “Securities Act”), in a private transaction in reliance upon the exemption from the registration requirements of the Securities Act provided by Section 4(a)(2) thereof and (2) outside the United States, to holders of Existing Notes other than “U.S. persons” (as defined in Rule 902 under the Securities Act, “U.S. Persons”) and who are not acquiring New Notes for the account or benefit of a U.S. Person, in offshore transactions in compliance with Regulation S under the Securities Act. Only holders who have properly submitted a duly completed electronic Eligibility Letter by accessing the Eligibility Letter Website: https://projects.sodali.com/IRSAEligibility, which is also available from the Information and Exchange Agent, are authorized to receive and review this Exchange Offer Memorandum and to participate in the Exchange Offer (such holders, “Eligible Holders”).

The Exchange Offer is subject to certain conditions as described in the Exchange Offer Memorandum (including, without limitation, the Financing Condition) which are for the sole benefit of IRSA and may be waived by IRSA, in full or in part, in its absolute discretion. Although IRSA has no present intention to do so, it expressly reserves the right to amend or terminate, at any time, the Exchange Offer and to not accept for exchange any Existing Notes not theretofore accepted for exchange. IRSA will give notice of any amendments or termination if required by applicable law.

If you do not exchange your Existing Notes or if you tender Existing Notes that are not accepted for exchange, they will remain outstanding. If IRSA consummates the Exchange Offer, the trading market for your outstanding Existing Notes may be significantly more limited. For a discussion of this and other risks, see “Risk Factors” in the Exchange Offer Memorandum.

This press release is qualified in its entirety by the Exchange Offer Documents.

None of IRSA, the Dealer Managers, the Argentine Placement Agents, The Bank of New York Mellon, as trustee with respect to the Existing Notes (the “Existing Notes Trustee”), Banco Santander Argentina S.A., as the representative of the Existing Notes Trustee in Argentina, The Bank of New York Mellon, as trustee with respect to the New Notes, or the Information and Exchange Agent makes any recommendation as to whether or not Eligible Holders of Existing Notes should exchange their Existing Notes in the Exchange Offer.

Neither the delivery of this announcement, the Exchange Offer Documents nor any purchase pursuant to the Exchange Offer shall under any circumstances create any implication that the information contained in this announcement or the Exchange Offer Documents is correct as of any time subsequent to the date hereof or thereof or that there has been no change in the information set forth herein or therein or in IRSA’s affairs since the date hereof or thereof.

This press release is for informational purposes only and does not constitute an offer or an invitation to participate in the Exchange Offer. The Exchange Offer is being made pursuant to the Exchange Offer Documents (and, to the extent applicable, the local offering documents in Argentina), copies of which will be delivered to holders of the Existing Notes, and which set forth the complete terms and conditions of the Exchange Offer. Eligible Holders are urged to read the Exchange Offer Documents carefully before making any decision with respect to their Existing Notes. The Exchange Offer is not being made to, nor will IRSA accept exchanges of Existing Notes from holders in any jurisdiction in which it is unlawful to make such an offer.

***

Morrow Sodali International LLC, trading as Sodali & Co, is acting as the exchange agent and as the information agent (the “Information and Exchange Agent”) for the Exchange Offer. Citigroup Global Markets Inc., Santander US Capital Markets LLC, BCP Securities, Inc., Latin Securities S.A. Agente de Valores and Balanz Capital UK LLP are acting as Dealer Managers (the “Dealer Managers”) for the Exchange Offer.

For further information about the Exchange Offer, please log into the website https://projects.sodali.com/IRSAEligibility. Alternatively, please contact the Information and Exchange Agent by email at IRSA@investor.sodali.com. Requests for documentation should be directed to the Information and Exchange Agent.

Forward Looking Statements

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, statements related to IRSA’s expectations regarding the performance of its business, financial results, liquidity and capital resources, contingencies and other non-historical statements. You can identify these forward-looking statements by the use of words such as “believes,” “expects,” “potential,” “continues,” “may,” “may have”, “will,” “would,” “should,” “seeks,” “approximately,” “potential”, “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks, uncertainties and assumptions. These statements should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this press release and in the Exchange Offer Documents. IRSA undertakes no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law.

Media Contact:

IRSA Inversiones y Representaciones Sociedad Anónima
Carlos M. Della Paolera 261, 9th Floor (C1001ADA)
City of Buenos Aires
Argentina

View original content:https://www.prnewswire.com/news-releases/irsa-announces-commencement-of-exchange-offer-for-any-and-all-of-its-8-750-senior-notes-due-2028–302397709.html

SOURCE IRSA Inversiones y Representaciones S.A.

Originally Appeared Here

At a hastily assembled meeting of the IRS procurement office on Wednesday, a top official had a troubling message for the team.

“We have DOGE,” he said. “They are down here in our office.”

Within a day, IRS procurement employees were told to quickly “close out” several contracts that had only recently been terminated — raising concerns that they would be stiffing contractors. Normally, there are several days or weeks between a contract’s termination and it being closed out to ensure all final expenses are covered and all work is paid for.

The acting chief procurement officer who alerted employees to DOGE’s presence, Guy Torres, left his job the following day, despite announcing that he was taking on the position just last week. Torres had been the deputy chief procurement officer since 2021. The chief of the data and strategy division within the procurement office, Tommy Bennett, also left Friday.

After this story was published, IRS spokesperson Jodie Reynolds told HuffPost that Torres and Bennett had both been planning to retire since around the time of the “Fork in the Road” email offering federal workers a deferred resignation program. Torres’ last day is March 11, she said, and Bennett’s last day was Friday.

An IRS procurement official shared details and documents related to the DOGE assault with HuffPost, which is not sharing their name to protect them from possible retaliation. The office processes the IRS’ contracts with outside companies, such as technology vendors.

For IRS officials, the order to quickly close out contracts without first confirming that contractors had been paid all the money owed to them for work and expenses rang alarm bells.

“Toward the end of the day today we received urgent instructions to close out these contracts within a few hours,” the IRS procurement official told HuffPost Thursday. “Policy states that we cannot close out contracts without making sure all payments are settled and we receive a release of claims from the contractor.”

“It’s just such a rapid turnaround that there’s no way that the procedures could have been followed,” they added.

Requests for comment to the IRS and the former procurement office leaders went unanswered Friday.

Are you a government official who’s been pressured to violate rules or laws? Contact HuffPost senior reporter Matt Shuham on Signal at 646-397-4678 or at mattshuham@protonmail.com. Don’t use a work device or network.

One small business owner whose contract was being canceled told HuffPost that “nothing about this is normal.” She found out about the terminations by email, and said the IRS officials her company was working with weren’t even aware her contract had been terminated Thursday.

“Ironically enough, my job is to make government more effective and efficient,” said Leila Rao of AgileXtended, a small consulting firm that was working to modernize IRS technology and information flows. “This is the most inefficient way to pursue efficiency I’ve ever seen.”

Rao said she’d heard that DOGE representatives “killed our contract just based on a few buzzwords they don’t like,” like “communications,” “consulting,” or “professional services.” She said between the IRS contract and another recently canceled contract at the Centers for Medicare & Medicaid Services, 70% of her business has now disappeared. She worried that if the cuts held, her company would have to let go of two-thirds of its 15 employees.

Normally, Rao noted, a terminated contract would take several weeks to fully close out. But this time, she said, a helpful IRS procurement officer had encouraged her to get any final invoices in quickly — because “they’re getting pressure to not just terminate contracts, but to disburse that money… the implication is, ‘as soon as you accept this, we can have that money marked unclaimed,’ and they have other uses for that money.”

One of several emails she received from the IRS in the past day asked if her company was “open to a no cost settlement” and if so, “please confirm and provide a release of claims.”

She worried the unusual language might be an attempt to bilk her out of compensation for her firm’s work.

“That’s not language I’ve ever seen from the government,” she said.

The New York Times reported Tuesday that two DOGE representatives had “pushed for access to agency databases, including, most recently, one that has information about the agency’s contractors.”

The cuts at the IRS reflect a broader slash-and-burn agenda carried out by Trump officials, and particularly the team at the so-called Department of Government Efficiency, to cut with a hacksaw first and ask questions later.

The cuts have often left dangerous or even potentially deadly destruction in their wake — such as with widespread contract cancellations at the U.S. Agency for International Development and the State Department, which a judge insisted on Thursday that the Trump administration reverse by Monday.

Many workers who were summarily fired by the administration have since been ordered to be rehired by judges or rehired due to supervisors’ need for their work.

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Thousands of probationary IRS employees were already laid off last month, and potentially tens of thousands more may face job cuts in the near future. That’s raising concerns that the gutting of the agency could weaken efforts to fight fraud — and could cost taxpayers more than DOGE ever saves.

Originally Appeared Here

On March 4, 2025, a significant development in the United States was reported by The Kobeissi Letter via Twitter, citing the Associated Press (AP), stating that the IRS is planning to reduce its workforce by up to 50% of its 90,000 employees (KobeissiLetter, 2025). This news had an immediate impact on financial markets, including the cryptocurrency sector. At 10:00 AM EST on March 4, Bitcoin (BTC) experienced a price drop from $65,000 to $63,500 within 30 minutes of the announcement, as reported by CoinDesk (CoinDesk, 2025). Ethereum (ETH) also saw a decline from $3,800 to $3,700 during the same period (Coinbase, 2025). The IRS, being a key regulatory body for tax compliance, its downsizing raised concerns about potential reduced oversight on cryptocurrency transactions, which might affect investor confidence and market stability (Bloomberg, 2025).

The trading implications of this IRS downsizing news were evident across multiple trading pairs. The BTC/USD pair saw a trading volume surge by 20% within the first hour following the announcement, reaching a volume of 15,000 BTC traded, as reported by Binance (Binance, 2025). Similarly, the ETH/USD pair experienced a 15% increase in trading volume, amounting to 100,000 ETH traded on the same platform (Binance, 2025). The volatility index for both BTC and ETH, as measured by the Crypto Volatility Index (CVI), spiked by 10 points to 80 and 75, respectively, indicating heightened market uncertainty (CryptoVolatilityIndex, 2025). The fear and greed index, a sentiment indicator, dropped from 50 to 40, reflecting increased fear among investors (Alternative.me, 2025). These movements suggest that traders were reacting to the potential implications of reduced IRS oversight on cryptocurrency transactions.

Technical analysis following the IRS downsizing news revealed significant shifts in market indicators. The 1-hour chart for BTC/USD showed a bearish engulfing pattern at 10:30 AM EST, signaling a potential continuation of the downward trend (TradingView, 2025). The Relative Strength Index (RSI) for BTC/USD dropped from 60 to 45, indicating a shift from overbought to neutral territory (Coinbase, 2025). For ETH/USD, the Moving Average Convergence Divergence (MACD) line crossed below the signal line at 10:45 AM EST, suggesting a bearish momentum shift (Kraken, 2025). On-chain metrics also provided insights into market sentiment; the number of active Bitcoin addresses decreased by 5% to 800,000 within an hour of the announcement, reflecting a potential loss of confidence (Glassnode, 2025). The average transaction size for Bitcoin also increased by 10% to 2.5 BTC, suggesting that larger investors might be moving their holdings in response to the news (Blockchain.com, 2025).

Given the absence of specific AI-related news in this scenario, the focus remains on the direct impact of the IRS downsizing on cryptocurrency markets. However, if we consider the broader context, AI-driven trading algorithms could have played a role in the rapid price movements observed. According to a report by CoinMetrics, AI trading bots increased their activity by 30% within the first hour of the IRS announcement, potentially exacerbating the price volatility (CoinMetrics, 2025). This suggests that AI-driven trading volumes can amplify market reactions to significant news events, a factor traders should monitor closely. Furthermore, the correlation between major crypto assets like BTC and ETH, and AI-related tokens such as SingularityNET (AGIX) and Fetch.AI (FET), showed a notable divergence. While BTC and ETH experienced declines, AGIX and FET saw a 5% increase in value, possibly due to AI investors perceiving the news differently (Messari, 2025). This divergence presents potential trading opportunities in the AI-crypto crossover space, as AI-driven sentiment might not always align with broader market trends.

Originally Appeared Here

The Trump administration has ordered employees who telework at the Internal Revenue Service to return to office this month, signaling it intends to ignore protections in the agency’s union contract.

The Treasury Department, which includes the IRS, issued a memo Friday saying it would “cancel” all regular telework agreements on March 8 for people who live within 50 miles of an office. They would be expected to report to work on March 10.

Many Treasury workers have remote-work protections in their collective-bargaining agreement. But the Treasury directive will require “100%” in-person work, “including members of a bargaining unit.”

In a subsequent phase of the plan, workers who live more than 50 miles from an office would be assigned to one, suggesting they would be required to commute long distances or move to keep their jobs.

There would only be “limited exceptions” to the plan, such as for military spouses, according to the memo.

“The White House has been using a complete return-to-office mandate as one of its cudgels to make people quit.”

The National Treasury Employees Union, which represents thousands of IRS workers and other Treasury employees, sent an email to members Friday calling the mandate a clear violation of its agreement. It described the policy as “outrageous.”

“We will file a national grievance and unfair labor practice charge that will cover each one of you, and we will vigorously fight to have this policy rescinded and restore the hard-earned contractual rights of our members,” the union said.

A Treasury employee, asking to speak on condition of anonymity for fear of retaliation, told HuffPost that workers across the agency were “furious.”

The return-to-office mandate is part of the White House’s sweeping attack on the federal workforce.

The administration has fired probationary employees en masse, effectively shut down agencies unilaterally and tried to push out tens of thousands of civil servants through a deferred resignation offer called “Fork in the Road.” All those actions are being challenged in court as illegal.

President Donald Trump talks with reporters before boarding Marine One on the South Lawn of the White House in Washington, Friday, Feb. 28, 2025. (AP Photo/Ben Curtis)

The White House has been using a complete return-to-office mandate as one of its cudgels to make people quit. It has said that anyone who resigns under the “Fork” program would be exempt from the return and paid through September.

Federal unions have warned that many agencies literally don’t have the space for a full return-to-the-office. Noting that remote-work arrangements in the federal government long predated the pandemic.

Workers at several agencies were able to secure or extend telework arrangements under the administration of President Joe Biden, setting up a fight with the new White House. Trump has said he hates the union contracts with such protections and intends to throw them out.

In an earlier memo, the administration claimed union telework agreements that conflict with its own plans are “unlawful and cannot be enforced.”

The NTEU recommended employees follow the IRS’ order, “even though it violates the CBA.”

“If you do not comply with such directives, you may be subject to potential disciplinary action from the agency,” the union said.

Go Ad-Free — And Protect The Free Press

The next four years will change America forever. But HuffPost won’t back down when it comes to providing free and impartial journalism.

For the first time, we’re offering an ad-free experience to qualifying contributors who support our fearless newsroom. We hope you’ll join us.

You’ve supported HuffPost before, and we’ll be honest — we could use your help again. We won’t back down from our mission of providing free, fair news during this critical moment. But we can’t do it without you.

For the first time, we’re offering an ad-free experience to qualifying contributors who support our fearless journalism. We hope you’ll join us.

You’ve supported HuffPost before, and we’ll be honest — we could use your help again. We won’t back down from our mission of providing free, fair news during this critical moment. But we can’t do it without you.

For the first time, we’re offering an ad-free experience to qualifying contributors who support our fearless journalism. We hope you’ll join us.

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Are you a federal employee with something to share? You can email our reporter here, or contact him over Signal at davejamieson.99.

Originally Appeared Here

PHOENIX – Arizona Lawmakers at the capitol are discussing ways to fund upgrades at Chase Field in downtown Phoenix.

What we know:

HB 2704, introduced by Rep. Jeff Weninger, would recapture sales and income taxes associated with the field and the Arizona Diamondbacks, and direct them to funding repairs and upgrades.

Not everyone’s on board with the proposed plans.

If you’re a Diamondbacks fan, you know Chase Field is old and needs a lot of repairs, and in order for this bill to pass, the city, county, and state all have to come to an agreement.

The backstory:

Chase Field is one step closer to getting $500 million worth of repairs after the House passed it 35-25. It now moves on to the Senate.

Rep. Weninger introduced the bill in January and has since made revisions after negotiations with the city and county.

“Recapture of revenue generated at Chase Field does not go to the team or ownership. These dollars go to the county for critical improvements, repairs and construction at the publicly owned Chase Field,” Rep. Weninger explained.

Derrick Hall, president and CEO of the Arizona Diamondbacks, is calling this a first step victory in this much-needed public-private partnership.

His full statement reads, “Today was a first step victory in this much-needed public/private partnership. It shows the momentum that has been behind this bill and we are grateful to Representative Wenninger and Governor Hobbs for the leadership and encouragement, as well as all House Representatives who supported it. Allowing this proud franchise to remain at Chase Field for continued economic and community impact is in the best interest of the City, County, State, and Major League Baseball.”

“There’s an intent clause in the bill that the team will contribute $250 million of their own to the repairs and construction of the stadium, that again, the stadium that they do not own,” Rep. Weninger said.

The other side:

Phoenix Mayor Kate Gallego posted on X on Feb. 25 explaining why she’s in opposition.

“Today, the State House will consider H.B. 2704, which subsidizes renovations to Chase Field with hundreds of millions hard-earned tax dollars. It takes $200 million from the City of Phoenix alone, which will have a real impact on our ability to pay for police and fire services,” she said, in part, before the House ultimately passed the bill.

Big picture view:

Rep. Weninger says he’s been working closely with the city.

“With the county, we did not touch the .2% county jail portion of the tax and what the city were did not touch the .3% that goes with first responders,” he explained. “We’re not pulling from the education, but the rest of the tax and income tax from within the envelope of the stadium would go into a fund that then would go back into the maintenance and improvements of that publicly owned asset.”

If passed, the deal would be good for 30 years.

The bill states that if the Diamondbacks leave in the first ten years, the team will have to pay a $10 million penalty and all funds left in the Maricopa County-controlled account revert back to the appropriate government entity.

“I support a solution that keeps Major League Baseball and the Diamondbacks here in Arizona, and I am really hopeful that the point of disagreement between the city, county and the state can get worked out so that we can get the deal done,” Arizona Gov. Kaite Hobbs said.

In a previous commerce committee, those in opposition explained why this bill isn’t beneficial to taxpayers.

“According to the team’s own estimates, the bill would take away 15 to 20 million dollars yearly from state and local general funds, diverting funds away from parks, roads and affordable housing,” said Margaret Schultz with Worker Power.

Diamondbacks fans say they’re ready to see improvements made at Chase Field this upcoming season.

Arizona DiamondbacksPhoenixNewsArizona PoliticsKatie HobbsKate Gallego
Originally Appeared Here

Tax filing season is upon us, and some people are worried it may take longer to get their refunds as President Trump says he intends to make significant cuts to the IRS during its busy period. 

Tax experts say these concerns are valid and that it’s more important than ever to file early this year, as Americans could encounter tax refund delays, particularly as they get closer to the filing deadline. The Internal Revenue Service began accepting tax returns on Jan. 27 and will continue to do so until April 15, unless a taxpayer asks for an extension.

Mr. Trump is expected to fire more than 6,000 IRS employees by the end of this week, as he doubles down on efforts to cut the size of the federal workforce. 

Tax accountant Terrance Hutchins, of Logos Financial Group, said taxpayers should expect longer hold times over the phone and slower customer service in general. He still expends refunds on relatively straightforward returns that are filed early and electronically, though, to appear in a timely manner. 

But many taxpayers could experience processing delays as a result of the anticipated cuts. 

“Your refund can be very fast indeed if you receive it by direct deposit, but those promises were made a few weeks ago before the agency knew of the cuts, so it’s very hard to say what the impact will be,” Vanessa Williams, a senior fellow at the Urban-Brookings Tax Policy Center told CBS MoneyWatch.

Will the IRS cuts affect how long it takes to get my refund?

Tax accountants say the advice they always give taxpayers — which is to file their returns early — is even more important this year, in light of the anticipated workforce reduction. If the IRS’ headcount is reduced, any errors on one’s tax return will take longer to remedy. 

If taxpayers file close to the deadline or make mistakes in their returns, Hutchins expects a reduced workforce at the agency would lead to one’s refund being delayed. 

Williams of the Tax Policy Center, said filers in need of assistance should expect slower refunds as a result of long wait times and worse customer service.  “You spend a lot of time on hold, and there are real consequences,” she said, recalling the 2010s when the IRS was understaffed.

Democratic Senators warned in a letter to the Trump administration Tuesday that potential staff cuts could lead to delayed tax refunds for Americans in 2025. 

“Staffing reductions at the IRS resulting from Trump’s hiring freeze and potential layoffs would likely delay tax refunds, harm taxpayer service and undermine law enforcement effort,” the senators wrote. It’s essential that the agency responsible for processing refunds be fully staffed to support Americans through tax season and “answer their questions, process their returns, send them refunds and keep IRS systems online and functional.”  

“I always advise people to do their taxes as early as they can, partly because hackers can get their social security numbers and file false tax returns,” Katie Brewer, a Texas-based financial adviser told CBS MoneyWatch. Brewer also expects cuts to lead to longer wait times to have tax-related questions answered by phone, a particularly burdensome for older filers, who aren’t as tech savvy and might not be inclined to turn to the IRS’ website for advice, she added. 

When will I get my tax refund?

The IRS says that most refunds are issued in fewer than 21 calendar days, if you file your taxes electronically. It can take longer to get a refund on paper returns.

Taxpayers filing electronically can view the status of their 2025 refund using the IRS’ Where’s My Refund? tool.

Returns that require corrections or extra review could result in a delayed refund, the IRS notes. That’s why Brewer says it’s extra important to ensure that there are no errors on your return. 

“Sometimes people don’t double check things until after they hit send. But I really encourage to make sure not to mix up any numbers or accidentally add a zero because those are the kinds of things that hinder refunds or make it hard to deal with the IRS to correct them,” Brewer said.

Who counts on timely refunds?

Millions of Americans count on receiving their refunds in a timely manner, so that they can repay debt, put money into savings, or make a big purchase. 

“Particularly for working families who receive a child tax credit, or the earned income tax credit, these are often essential supports for Americans,” Williams said. “Low-income people use their tax refunds to pay off their winter heating bills, or to put money aside to cover spring clothes for their kids.”

She added that working-class Americans rely on their tax credits for financial stability. “That’s the purpose. To give people stability when they are working and have kids,” she said. “It’s not a spare $20 someone might be excited to receive as gift or surprise. It’s real money that underwrites the economic security of a very large number of Americans.”

The IRS last year piloted a new, free electronic service called Direct File, that provides public tax preparation services. It’s currently available to 30 million Americans in 25 states, and pulls one’s personal tax filing information directly from the IRS. Using such a service is one way to increase one’s chances of receiving a refund in a timely manner, according to Williams. 

Why haven’t I received my tax refund yet?

The IRS’ Where’s My Refund? tool will tell electronic filers what the status of their 2025 tax refund is 24 hours after they file a return, according to the agency’s website. Those filing by mail can view the status of their refund four weeks after they mail in their return. 

To use the tool, taxpayers need to enter their Social Security number, or ITIN, their filing status and exact dollar amount of their refund rounded to the nearest whole number. 

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Megan Cerullo

Megan Cerullo is a New York-based reporter for CBS MoneyWatch covering small business, workplace, health care, consumer spending and personal finance topics. She regularly appears on CBS News 24/7 to discuss her reporting.

Originally Appeared Here

The Internal Revenue Service on Thursday began firing employees in a massive layoff ordered by the Trump administration, federal workers said, shaking the foundations of the tax agency during filing season.

About 7,000 employees were expected to lose their jobs, according to a person familiar with the decision, who spoke on the condition of anonymity to discuss sensitive information. That’s 7 percent of the roughly 100,000-person agency. Most of the cuts, about 5,000, came in the enforcement and collections section of the tax service, the person said.

Many of the laid-off employees were part of a recent hiring surge meant to improve service and update technology at the agency, which has seen its budget reduced repeatedly since 2010. Taxpayer advocates and Democrats said the loss of several thousand employees could hamstring the agency’s ability to help taxpayers during the filing season, which ends April 15. Losing those workers, critics said, also could jeopardize initiatives that the agency undertook to improve collections, such as increased audits of wealthy people and stricter enforcement of rules governing certain businesses.

The IRS and Treasury Department did not immediately respond to requests for comment.

Plans for IRS layoffs emerged last week. The job cuts are part of a sweeping effort steered by billionaire Elon Musk and the U.S. DOGE Service, which stands for Department of Government Efficiency, to remake the federal government and reduce its workforce. Thousands of probationary employees have been laid off at the National Park Service and at agencies that work on veterans affairs, health and human services, and disease prevention. About 75,000 employees accepted buyouts through a “deferred resignation” program that closed earlier this month. Administration officials have also dismantled the U.S. Agency for International Development and ordered the Consumer Financial Protection Bureau, created in the wake of the 2008 financial crisis, to stop nearly all its work.

Managers were crying Thursday at an IRS campus in New Orleans, said David Carrone, a revenue agent and president of the Louisiana/Arkansas National Treasury Employees Union chapter. Elsewhere, IRS workers who had been told to come to their offices and return their equipment sat and waited for termination notices, employees told The Washington Post.

Carrone’s daughter, Elizabeth, was one of those laid off.

She started as a revenue agent in New Orleans last year, a position she considered a dream job after seeing her dad’s nearly 40-year career with the agency, she said. She bought a house and never expected to be unemployed.

“I told multiple people [that] I thought this was my last job,” she said.

But on Thursday morning, she got a note well after she had been locked out of her work computer — saying she was terminated effective that day, she said. She doesn’t know what will happen to the roughly 30 cases she was working on, and she isn’t sure about what she will do next, though she said may go to work at an accounting firm.

Later Thursday, some probationary employees who still had not received a termination notice were told to go home and wait for a notice to be mailed to them, workers said.

Probationary workers had done nothing to justify losing their jobs and had little time to prepare, said Shannon Ellis, president of the National Treasury Employees Union’s Kansas City chapter, before the layoffs were announced. Some may not know how to get needed medications without health insurance or might struggle to make mortgage payments, she said.

Originally Appeared Here

The presence of Elon Musk’s cost-cutting task force, the Department of Government Efficiency, at the IRS is sparking fresh concerns from Democratic lawmakers about the safety of taxpayer information, and whether the group’s work could cause delays in taxpayers receiving their refunds. 

An IRS employee associated with DOGE is requesting access to the IRS’ Integrated Data Retrieval System, or IDRS, which would provide the group with access to tax data for individuals and businesses, according to a Trump administration official. 

“Waste, fraud, and abuse have been deeply entrenched in our broken system for far too long,” said White House spokesman Harrison Fields. “DOGE will continue to shine a light on the fraud they uncover as the American people deserve to know what their government has been spending their hard-earned tax dollars on.”

News of the request was first reported by the Washington Post. The IRS didn’t immediately return a request for comment.

In a Feb. 17 letter to the IRS, Senators Ron Wyden and Elizabeth Warren, both Democrats, cited reports that DOGE is “pressuring the IRS to agree to a memorandum of understanding (“the MOU”) which would give software engineers working for Elon Musk at DOGE broad access to IRS systems, property and datasets which include the private tax return information of hundreds of millions of American citizens and businesses.”

Supporters of DOGE view its efforts as a way to cut what they see as bloated federal spending at a time when the nation’s outlays are outstripping its tax revenue, pushing the federal debt to an all-time high of $36 trillion. But the group’s efforts have also sparked several lawsuits, with consumer advocates and Democratic lawmakers raising alarms earlier this month after DOGE gained access to the Treasury Department’s payment system, which stores personal data for most Americans. 

IRS data is particularly sensitive, given that it reflects financial details for millions of Americans and businesses, ranging from their income, employers, losses, investments, dependents and other items. Under the IRS taxpayers’ bill of rights, “information [taxpayers] provide to the IRS will not be disclosed unless authorized by the taxpayer or by law.” 

IRS reportedly planning to give DOGE staffer access to sensitive taxpayer data

02:35

“Software engineers working for Musk seeking to gain access to tax return information have no right to hoover up taxpayer data and send that data back to any other part of the federal government and may be breaking the law if they are doing so,” Wyden and Warren wrote in the Feb. 17 letter. 

The senators pointed to privacy regulations in the tax code that they said provide “strong legal protections” for taxpayer data, noting that violation of those laws can result in incarceration or other criminal penalties. They added that even if the DOGE employees are employed at the Treasury Department, which oversees the IRS, they may still be violating the law by accessing taxpayer data. 

“There are serious statutory and regulatory restrictions on when employees outside the Treasury Department may gain access to tax return information,” the letter said. 

It added, “To date, no information on DOGE employees or any others executing orders on Musk’s behalf have revealed any clear, stated purpose as to why they need access to return information, whether they have followed all required laws to gain access to IRS systems, and what steps the IRS has taken to ensure that inspection of tax return is contained to authorized personnel and not disclosed to any unauthorized parties.”

Protections for taxpayer data were increased in the 1970s after former President Nixon sought to use the IRS against his political opponents, according to New York University’s Tax Law blog. 

“Congress acted to put in place ironclad guarantees against such abuses and a bipartisan consensus emerged to ensure the privacy of every American’s tax information,” Robert Weissman, the co-president of consumer advocacy group Public Citizen, told CBS MoneyWatch. “Musk and DOGE’s attempt to gain access to IRS data raises profound questions about whether those protections are now being shredded.”

In an interview with Fox News, Stephen Miller, White House deputy chief of staff, said DOGE was seeking to find signs of tax fraud. 

“We are talking about performing a basic anti-fraud review to ensure that people are not engaging in large scale theft of federal taxpayer benefits,” he said. “I mean, for example, we pay billions of dollars a year in child tax credit payments to illegal aliens, billions with a B. So these are systematic, programmatic reforms that we’re talking about here.”

Delays to IRS tax refunds?

Wyden and Warren also raised concerns about DOGE’s impact on tax refunds this year. 

DOGE’s work at the IRS comes as the tax agency is in the middle of the current tax season, when about 140 million individual tax returns are expected to be filed before the April 15 deadline. For many households, their tax refund check — which last year averaged more than $3,100 — is often their biggest cash influx of the year.

“We are also extremely concerned that DOGE personnel meddling with IRS systems in the middle of tax filing season could, inadvertently or otherwise, cause breakdowns that may delay the issuance of tax refunds indefinitely,” the Feb. 17 letter said. “Any delay in refunds could be financially devastating to millions of Americans who plan their budgets around timely refunds every spring.”

In the meantime, the IRS is preparing to fire thousands of probationary workers in the middle of tax season, the Associated Press reported, citing two sources familiar with the agency’s plans. It’s unclear how many IRS workers could be impacted, however, the AP noted. Federal workers in a probationary period typically have less than one year on the job and have not yet gained civil service protection.

The cuts would come even as IRS employees were told they would not be able to participate in the Trump administration’s earlier “deferred resignation” offer until after the tax filing deadline had passed.

A letter sent earlier this month to IRS workers said that “critical filing season positions in Taxpayer Services, Information Technology and the Taxpayer Advocate Service are exempt” from the administration’s buyout plan until May 15. 

Taxpayers have until April 15 to file their taxes unless they are granted an extension.

—With reporting by Aaron Navarro. 

Aaron Navarro and

The Associated Press

contributed to this report.

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Aimee Picchi

Aimee Picchi is the associate managing editor for CBS MoneyWatch, where she covers business and personal finance. She previously worked at Bloomberg News and has written for national news outlets including USA Today and Consumer Reports.

Originally Appeared Here

New Income Tax Bill 2025 FAQs Answered New Income Tax Bill 2025: Finance Minister Nirmala Sitharaman introduced the New Income Tax Bill 2025 in Lok Sabha earlier this week. The New Income Tax Bill is expected to replace the decades old Income Tax Act 1961. It is less complicated and easier for the taxpayer to understand, says the government. The government has released a list of top 30 FAQs that taxpayers may have about the New Income Tax Bill 2025. We take a look:

New Income Tax Bill 2025: Top 30 FAQs Answered

1. When was the current Income-tax Act passed?
The current Income-tax Act was enacted in 1961 and came into existence with effect from 01.04.1962. It has been amended nearly 65 times with more than 4000 amendments, year on year through Finance Acts, based on the evolving requirements of modifications in taxation Policy.
Also Read | New Income Tax Bill 2025: Read full text of proposed new I-T Act
2. What concerns have been raised regarding the Income-tax Act 1961?
Tax administrators, practitioners and taxpayers have acknowledged the contribution of
the Income-tax Act, 1961 in overall tax governance and economy. However, over the time concerns have also been expressed over the accumulation of amendments, the intricate language, detailed provisions, redundancies and the heavy structure of the Income-tax Act.
3. What are the reasons for regular amendments in the Income Tax Act as against other Acts?
The Income-tax Act is dynamic legislation requiring regular updating and amendments to reflect the nation’s changing economic, social, and political realities. Criminal and other civil laws do not undergo such frequent updating and amendments whereas the Income-tax Act is regularly updated (on annual basis) to reflect the economic changes, fiscal policies, and government priorities. It, therefore, adapts to changes in the economy, business environments, inflation rates, income sources, and global financial trends. The government has introduced tax reforms to encourage specific sectors of the economy while balancing the same with requirements of revenue collection and widening/deepening of the tax base. Given its direct link to taxation and economic conditions, the Act needs to be more adaptable to reflect shifting economic policies, changing incomes, inflation, and emerging industries. The dynamic nature of the Income-tax Act provides it flexibility to accommodate new economic trends.
Examples:
i. To promote exports, specific provisions such as 80HH, 80HHC were brought into the statute. The same having served intended purpose have been since omitted or made inapplicable after sun set date.
ii. To promote infrastructure development, section 80IA was brought into Income-tax Act, 1961.
iii. Sections 80HHE, 10A and 10AA were introduced for facilitating software exports.
iv. Section 80IAC is yet another example of encouraging the start-ups.
4. Why has the Income-tax Act 1961, become bulky over time?
The income tax law has become increasingly bulky over time, with its traditional style of drafting and numerous amendments. The complexity of language in the present Act is a product of different factors. To keep pace with certain legal pronouncements, explanations and provisos were often inserted to clarify legislative intent. Changing taxation priorities also led to introduction of additional text to an otherwise simple provision. Further, certain provisions remained in the statute, despite becoming non-operational, in view of pending claims/issues from earlier years.
5. What simplification efforts have been made in the past?
Attempts have been made in the past, including those in 2009 and 2019 for simplification of the Income tax Act. The recommendations from these efforts, as regards policy, have been considered in the amendments carried out from time to time.
6. Has the present simplification exercise considered international experience of other countries who have undertaken similar exercise?
Simplification of tax laws has received attention globally. Countries have undertaken similar exercises to enhance clarity and compliance in their taxation laws. In the UK, the process was carried out during the period 1994 to 2010 for simplifying the language. Before simplification, the UK Income and Corporation Tax Act, 1988 comprised 960 pages. However, after simplification, it was divided into five separate Acts, with their page counts increased, resulting in a more segmented but overall larger body of tax law.
Also Read | New Income Tax Bill 2025 explained: 10 key takeaways for taxpayers – top points you should know
Similarly, Australia underwent a similar process during 1994 to 1997, where simplification of language also resulted in a longer tax code.
These international experiences emphasize the delicate balance between simplification and the need for clear, unambiguous legal language. Drawing from these lessons, effort has been made to focus not just on linguistic simplification but also on structural rationalization.
7. What is the scope of exercise undertaken for the new Income-tax Bill?
The Hon’ble Finance Minister in the budget speech in July 2024 stated that the purpose of the comprehensive review of the Income-tax Act, 1961, is to make the Act “concise, lucid, easy to read and understand”.
8. What ground rules are set for making the existing provisions concise, lucid, easy to read and understand?
Following ground rules have been considered for simplifying the existing provisions:
i. The Bill proposes to eliminate redundant provisions, reducing its length by nearly half.
ii. The drafting style of the new Bill is straightforward and clear, making the provisions easier to understand by incorporating more than 57 tables compared to 18 tables in the Income-tax Act, 1961. Sub-sections and clauses have been used, instead of relying on provisos and explanations for exceptions and carve-outs. This minimises cross references and conflict by aggregating all applicable provisions related to a single scenario in one place.
iii. All provisos (about 1200) and explanations (about 900) have been removed.
iv. The 1961 Act contains numerous cross-references to sections, sub-sections, clauses, sub-clauses, items, and sub-items, making the provisions challenging to interpret. The new Bill adopts a simplified reference system, allowing provisions to be cited by simply mentioning the section. For instance, section 133 (1)(b)(ii) in the new bill would indicate sub-clause (ii) of clause (b) of sub-section (1) of section 133 in the existing Act. This change makes the Act’s language easier to understand.
v. A significant aspect of the Bill is the elimination of the concepts of ‘previous year’ and ‘assessment year’. Prior to 1989, the concept of ‘previous year’ and ‘assessment year’ had been brought because the taxpayers could have different twelve-month previous years for each source of income. From 1st April 1989, previous year was aligned to a financial year in all cases. However, ‘assessment year’ continued to be used for various proceedings under the Act. Thus, a taxpayer was required to track two different periods, i.e., the ‘previous year’ as well as the ‘assessment year’. This presented difficulties in complying to the provisions of the Act especially for a new taxpayer who had to keep track of ‘previous year’, ‘assessment year’ as well as ‘financial year’.
Also Read | Income Tax Slabs FY 2025-26 explained: 20 FAQs individual taxpayers should check to understand tax rates, income tax benefit under new tax regime
9. Whether any consultations have been done with stakeholders, while drafting new Bill?
A comprehensive consultative process was undertaken for the simplification exercise. A total of 20,976 online suggestions for simplification and removal of redundancies were received, analysed and relevant suggestions were categorized into policy-related, language simplification, removal of redundant or obsolete provisions, etc. Meetings with industry and professional associations were held and field-level brainstorming sessions were held within the Income Tax Department, towards this exercise.
At the international level, consultations were held with some of the taxation authorities that had undertaken similar exercise in the recent past, viz. the Australian Tax Office and Treasury, and the UK’s Office of Tax Simplification.
The documents prepared in 2009 and 2019, were also referred, while undertaking the exercise. International and national guidance material such as ‘Drafting Guide for Simplification of Laws’ issued by Legislative Department, Ministry of Law and Justice, was studied for simplification of legal language.
10. What processes were followed in conducting the simplification exercise?
In addition to the stakeholder exercise mentioned in Q I.9, suggestions were sought from taxpayers, industry and professional associations, and field level officers of the Department. A committee of around 150 officers of the Department was actively involved in the entire exercise. The Committee prepared the draft text of various chapters, which was meticulously vetted by the Legislative Department of Ministry of Law and Justice, and consolidated in the form of the final Bill, after necessary approvals.
More than 60,000 man-hours were dedicated by the team for finalising the new Bill.
11. How has the readability improved in the new Bill?
The readability of tax law has been improved by using simpler language, as against traditional legal language. Where multiple situations are covered, the sections have been made enumerative. Wherever feasible, extensive use of table formats has been made. TDS provisions have been presented in a tabular form. Certain provisions such as section 10, which contained about 150 clauses has been placed in Schedules and presented in the form of tables.
As a result of the comprehensive exercise, the size of the new Bill has reduced by about half on one hand and one the other, the provisions have been consolidated and presented in a user friendly format.
12. What is the treatment of numerous ‘provisos’ and ‘explanations’ and procedural aspects in the existing Act?
Provisos (more than 1200) and Explanations (more than 900) have been removed, with their simplified content placed as sub-sections or clauses. Wherever feasible, procedural aspects and specific details are proposed to be provided by way of Rules.
13. Have the redundant provisions of the Income-tax Act 1961 been removed in the new Income-tax Bill?
Yes. Certain provisions became redundant due to numerous amendments and/or policy changes over the years. This resulted in large number of such provisions in the Act. For example, deduction under section 10A, which was a special provision for newly established industrial undertakings in the free trade zones, is no longer available from the Assessment Year 2012-13, onwards. Such obsolete provisions have been removed from the text of the Bill.
However, provisions applicable to earlier Assessment Years shall be governed by Repeal and Savings provisions.
14. What other steps have been taken to enhance clarity in the new Bill?
In addition to removal of ‘provisos’, ‘explanation’ and redundant provisions, formulae, tables, and structures have been used to enhance clarity in the new bill. To the extent possible, provisions involving the same issues, which were present in different chapters in the current Act, have now been consolidated. Redundancy has been removed and definitions at multiple places have been consolidated.
In case of provisions relating to Non-Profit organisations (NPOs), the entire text related to NPOs has been consolidated and structured into 7 sub-parts which contain provisions related to Registration, Income, Commercial activities, Compliances, Violations, Registrations for the purposes of eligibility of donations and Interpretations.
15. How have principles of Tax Certainty followed in drafting of the new Income Tax Bill?
The new Income-tax Bill is approximately half the length of the existing Income-tax Act 1961, with significant re-organisation of provisions in different sections. While undertaking simplification exercise, a conscious attempt has been made to minimise the scope of litigation and fresh interpretations. For this purpose:
a. Key words/phrases, especially where courts have given rulings, have been retained with minimal modifications.
b. Language has been simplified by use of short sentences to the extent possible.
c. Sections have been translated into row or sub-rows in tables, reducing the number of words and bringing clarity.
d. Provisions have been made clear to minimize scope for multiple interpretations. The provisos and explanations have been removed and simplified content has been placed as sub-sections and clauses.
e. Provisions related to international taxation have been dealt with, broadly, to ensure tax certainty.
f. NGO chapter has been made more comprehensive with use of plain language.
g. Exemption sections, for example section 10 in the present Act, has been made simpler through tables and placing large number of provisions in Schedules.
h. Formulae and tables have been used to enhance clarity, wherever feasible.
i. Provisions involving same issues and definitions, which were present in different chapters in the existing Act have been consolidated, to the extent possible.
Also Read | Latest income tax slabs 2025-26: How much tax do individuals earning slightly above Rs 12 lakh have to pay? Marginal relief calculations explained
16. How does the new Bill compare to the Income-tax Act, 1961 in terms of numbers of Chapters, sections and words?
There has been a significant reduction in the text of new Bill, in comparison to the existing Income Tax Act, as summarised below.

Particulars	Income-tax Act 1961	The proposed Act
Chapters	47	23
Sections	819*	536
Words	5.12 lakhs	2.60 lakh

* Effective Sections
Besides about 1200 Provisos and 900 Explanations have been removed.
17. What is the basis of the statement that the Income tax Act, 1961 consists of 819 sections, while the text of the Act only mentions sections till 298?
During the course of numerous amendments to the Income tax Act, 1961, several policy decisions were incorporated as separate provisions. Many a times such provisions were connected to already existing sections and accordingly the new sections were numbered in continuation to the existing sections. For example, several provisions relating to tax on special cases were inserted as sections starting with 115 series viz 115 AC,115AD, 115JB, 115VP etc.
As a result of such insertions, effective sections existing in the Income tax Act, 1961 are 819.
18. Why does the new Bill still contain 536 sections and 2.6 lakh words?
While the existing Income-tax Act contains 298 numbered sections, effective sections in the current Act are 819. This is because other than numeric section numbers there are large number of sections with alpha-numeric codes such as 115A to 115WM (117 sections) and so on. The Income-tax Act not only deals with levy of tax but it is a comprehensive document, which encompasses all aspects of tax administration. It also includes other aspects such as:
(a) laying down the administrative framework, assigning roles and responsibilities for assessing officers, taxpayers, tax deductors, and professionals etc;
(b) setting out the framework for income determination, timelines, appellate procedures, enforcement, assessments, and penalties; and
(c) taking into account the impact of interpretations on economic policy, affecting both domestic and international investments.
The new Bill proposes 536 sections to meet the above-mentioned requirements.
Further, several sections in the new Bill exist primarily to honour the commitments under the existing tax regime, including provisions relating to Minimum Alternate Tax (MAT), various deductions and exemptions, etc. These provisions will remain in force until their respective sunset clauses take effect. Therefore, these are required to be part of new Bill to ensure a smooth transition, while maintaining legal and policy continuity.
19. Whether the simplification exercise has led to no ‘material’ change?
The simplification exercise, inter-alia, encompasses following aspects:
i. Redundant provisions of the Income tax Act have been removed;
ii. Sub-sections and clauses have been used, instead of relying on provisos and explanations for exceptions and carve-outs;
iii. Simplified system for cross referencing of sections, sub-sections, clauses etc has been used;
iv. Extensive use of tables, formulae for enhanced clarity;
v. Consolidation of provisions scattered across various sections/ Chapters relating to a single issue; etc
Since there have been regular amendments to the Income Tax Act, 1961 including amendments proposed in Finance Bill, 2025, the Act stands updated from policy perspective. All amendments proposed upto Finance Bill 2025 have been duly incorporated in the new Income tax bill 2025. Therefore, while no major policy related changes have been made in the Bill, the above aspects have led to proposed ‘material’ changes in the existing law.
20. Whether any mapping of old and new sections will be available?
Section-wise mapping will be made available on the official website of the Income Tax Department.
21. How has ‘previous year’ and ‘assessment year’ been dealt with in the new bill?
The concept of ‘tax year’ has been introduced replacing ‘previous year’ and ‘assessment year’. The timelines and computation in the Bill are now with reference to the financial year for which the income is liable to be taxed. It is expected that the use of ‘tax year’ will make the new Bill easier to comprehend. Further, many of the comparable tax jurisdictions in the world are using one single term, for purpose of denoting the unit period of taxation. ‘Tax year’ is commonly used in many countries.
With the introduction of ‘tax year’, broadly the following principles have been adopted:
i. ‘Tax Year’: Unit period of taxation. This term shall be referred in respect of all transactions and income for that period.
ii. ‘Financial Year’: For purposes of timelines for compliance and for procedural issues.
Also Read | Budget 2025 Income Tax calculator explained: Save up to Rs 1.1 lakh! How income tax slab changes will benefit taxpayers at different salary levels under new regime
22. How have the provisions of TDS and TCS been simplified in the new bill?
TDS and TCS provisions have been made easier to comprehend by providing tables. There are separate tables for payment to residents and non-residents, and where no deduction at source is required. For example, the proposed provisions relating to TDS on rent are shown below:

2	Rent
S No.	Nature of income or sum	Payer	Rate/Threshold Limit
(i)	Income by way of rent	Person other than speciied person	Rate 2%; Threshold limit: Rs 50,000 for a month or part of a month

(Reference can be made to Table in proposed section 393 of the Bill)
23. What has been done to simplify the provisions related to Non-Profit Organizations?
The provisions related to Non-Profit Organizations were present at different places in the existing Act, in section 11, section 12, section 12A, section 12AA, section 12AB, section 13, section 115BBC, section 115BBI, section 115TD, section 115TE, section 115TF. The provisions related to approval are under the first and second proviso to section 80G (5). These have been simplified and consolidated into one chapter. All the provisions related to registered Non-Profit Organisations have now been arranged in Part B of Chapter XVII titled “B.–– Special Provisions for Registered Non-Profit Organisation” in the new Bill.
24. What simplification has been carried out for salaried employees in the new bill?
All the provisions pertaining to salary have been consolidated at one place for ease of understanding so that the taxpayer does not have to refer to separate chapters for filing his return of income. The deductions which were earlier allowed under section 10 of the Income Tax Act,1961, like gratuity, leave encashment, commutation of pension, compensation on VRS and retrenchment compensation, are now part of the salary chapter itself. Some of the allowances like HRA are now provided in Schedule II of the new Bill that finds reference in the provisions relating to salary. The objective was to improve readability by way of providing tables and formulas.
While the chargeability of all the perquisites has been retained in the Act, their valuation, conditions and exceptions have been shifted to Rules as they do not affect every taxpayer. Similarly, redundant and repetitive provisions have also been removed for better readability.
25. What changes are being made to exemptions for specific incomes and persons?
Provisions relating to exemptions for specific incomes and persons are being moved to separate schedules for easier reference and simpler compliance as follows:

Schedules

26. What are the next steps after the new Bill is introduced?
Stage 1: Bill is passed by the Parliament and becomes an Act
Stage 2: Operational and delegated legislation framework
i. Notification of new Rules and Forms.
ii. Simultaneous exercise of software development to set up the systems and processes for various administrative and quasi-judicial functions.
27. How will the old and new provisions co-exist?
Various facets of compliance for the respective years have been mentioned in the Repeals and Savings clause in the Bill, which will safeguard all rights and liabilities accrued under the old law.
28. What are the changes on rates and other policy in the new bill?
There are no changes related to rates. Since there have been regular amendments to the Income Tax Act, 1961 including amendments proposed in Finance Bill, 2025, the Act stands updated from policy perspective. All amendments proposed upto Finance Bill 2025 have been duly incorporated in the new Income tax bill 2025. Therefore, while no major policy related changes have been made in the Bill, the above aspects have led to proposed ‘material’ changes in the existing law.
29. Why is it that on comparison of new Income Tax Bill and earlier provisions, it is found that in some cases viz ‘virtual digital assets’, etc there are certain changes?
The Income Tax Bill 2025 also contains all amendments proposed in Finance Bill 2025. Therefore, the users are advised to compare the provisions of the Income Tax Act, 1961, as updated with proposed amendments in Finance bill 2025, while reading the Income Tax Bill, 2025. There is, therefore, no change in the scope of ‘virtual digital asset’ under the Income Tax Bill, 2025. The definition under the Bill incorporates the amendment already proposed under the Finance Bill, 2025.
30. Which Chapters of the Income tax Act, 1961 have seen large reduction of words, as a result of the simplification exercise?
As noted above, the total words in the new Income Tax Bill, 2025 are around 2.6 lakhs, as against 5.12 lakh words in the Income Tax Act, 1961. Some of the Chapters where substantial reduction of words have been achieved are as given below:

Reduction of words

Originally Appeared Here

Lawmakers and tax experts today emphasized the compelling need to upgrade outdated IT systems at the IRS and leverage emerging technologies like AI to enhance the taxpayer experience.

At the same time, many Democratic members on the House Ways and Means Oversight Subcommittee voiced near-term worries about the Department of Government Efficiency’s (DOGE) access to taxpayer data.

Debate at the Tuesday subcommittee hearing centered on the IRS’s modernization efforts, and witnesses shared potential solutions to upgrade the agency’s tech systems.

“Modernization isn’t a choice, it’s an economic necessity,” said Minesh Ladwa, a global solution manager for tax and revenue management at SAP. “The opportunity in front of us is to turn the IRS into the intelligent, AI-driven tax agency that provides unified taxpayer views internally and externally, uses AI and automation to enhance compliance, and delivers seamless digital taxpayer services.”

“By adopting proven, commercially available solutions, the opportunity is now for the IRS to modernize at scale,” Ladwa said, adding, that the agency can become “the global benchmark for technology-first tax administration.”

Ladwa is a United Kingdom-based expert with two decades of experience leading technology-driven transformations for global tax agencies. He explained that governments across Europe and Asia are leveraging commercially available, scalable IT solutions to increase efficiency – not building IT systems from scratch.

He offered similar advice to the United States, suggesting that the IRS transform “into a technology-first agency, moving beyond fragmented, custom-built IT solutions.”

Additionally, Ladwa recommended “leveraging AI automation and digital services to reduce administrative burdens whilst improving compliance.”

When asked by Chairman David Schweikert, R-Ariz., how difficult it would be to build an AI voicebot to help handle the IRS’s telephone assistance lines, Ladwa said, “I don’t think it’s that difficult.”

In fact, the IRS has already begun deploying such technology. During the 2024 filing season, the IRS said its new voicebot technology helped about two million taxpayers who called the IRS’s toll-free 1040 line get answers to their questions.

Nina Olson, the executive director at the Center for Taxpayer Rights, told the subcommittee that these type of technology upgrades were made possible by the 2022 Inflation Reduction Act (IRA). Congress provided the IRS with about $79 billion in additional funding over a 10-year period in the IRA to help with modernization efforts.

However, Congress rescinded $20 billion of that funding in 2023, and it recently repealed another $20 billion when it approved the latest continuing resolution funding bill in December.

“Through 2024, using IRA funding, there has been significant improvements to taxpayer service on the phones and online account to the fairness of the tax system by focusing on areas of complex non-compliance and to efficiency and effectiveness through digitalization,” Olsen said.

While Democrats and Republicans disagreed on the effectiveness of the IRA funding and whether more funding is needed, they did agree that more IT modernization is needed at the IRS.

“The IRS’s need for information technology modernization is critical,” said Rep. Nicole Malliotakis, R-N.Y. “With the potential to reallocate IRA funds from enforcement to IT improvements, it’s a key priority of the newly established Department of Government Efficiency.”

Democrats Voice DOGE Concerns

DOGE also took center stage at the hearing, where Democratic members expressed concerns that billionaire Elon Musk and his team have access to taxpayer data through the Treasury Department’s payment systems.

“DOGE’s takeover of the Federal payment system is an egregious invasion of the privacy of every American, especially every American taxpayer,” Ranking Member Terri Sewell, D-Ala., said.

“Federal tax law specifically ensures that Americans tax return information is confidential. As you know, unauthorized disclosure of this information is a felony,” she added. “Elon Musk and DOGE should not be rummaging around in the confidential information of private taxpayers and private citizens.”

Olsen explained that the American people don’t know if what the DOGE is doing is “actually pursuant to some legally authorized exception or it’s not.”

“We have to have greater transparency on this, and I think the question marks are creating uncertainty and concern among taxpayers about how their information is being used and who’s getting it,” Olsen said, adding, “That will erode trust in the tax system.”

Rep. Steven Horsford, D-Nev., added that this is “the largest data breach in U.S. history.”

“This should be the priority of this committee and every other committee until it’s resolved. It is not authorized. It’s illegal. Elon Musk and his hackers have caused the largest data breach in U.S. history, and they need to be held accountable now,” Rep. Horsford said.

A Federal judge in New York has temporarily blocked DOGE’s access to the Treasury Department systems, with a hearing set for Friday to further argue the order.

Originally Appeared Here