IRS has spent $2.1 billion in IRA funds thus far. Tax Notes reports (paywall) that the agency has spent about six times the amount of funding for taxpayer services as it had for enforcement. It has used $697 million (22 percent) of Inflation Reduction Act (IRA) funds dedicated to taxpayer services. By the end of August the IRS had spent $115 million on enforcement, or 0.25 percent of the IRA enforcement funding.
Fighting fraudulent employee retention tax credit claims won’t be easy. The Wall Street Journal reports (paywall) on the challenges the IRS faces while it tries to claw back some of the $230 billion it paid in employee-retention credits, or ERCs. The terms of the law, which allowed tax credits up to $26,000 per worker for employers whose operations were partially suspended during the height of the COVID pandemic, are not well-defined and have been exploited by aggressive marketing tactics.
IRS tax brackets for 2023. The agency shares federal tax brackets and standard deduction amounts for 2023. In 2022, it increased income thresholds for each bracket in tax year 2023 and returns filed in 2024. The standard deduction climbed from $25,900 in 2022 to $27,700 in 2023 for married couples filing jointly. The standard deduction for single filers climbed from $12,950 to $13,850,
Pakistan needs more tax revenue. The World Bank claims Pakistan’s tax collections are insufficient to meet the nation’s fiscal need. It called for an increase in tax collection from the major sectors in Pakistan and the elimination of its exemptions for income tax, sales tax, and customs duties. It also proposed linking property tax rates to market values by connecting the land ownership records with national identity cards and national tax numbers.
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