The voices of Tax Policy Center's researchers and staff
A transformative gift for TPC. The Urban-Brookings Tax Policy Center has established the Pozen Director’s Chair, thanks to a major gift from Robert C. Pozen. “I am glad to support… one of the few American organizations that consistently provides nonpartisan and thoughtful analysis of current tax issues.” He told The Boston Globe, “It sounds esoteric but it really has a huge impact on people’s lives.” TPC’s Len Burman will be the chair’s inaugural holder. Mr. Pozen will lead a newly-formed Tax Policy Center Leadership Council.
Why do taxpayers leave money on the table? By failing to file 1040s, many low-income taxpayers miss out on refunds. The Tax Hound tries to find out why and looks at ways to encourage them get their money back from the IRS.
The IRS may need to better manage education tax credits. The Treasury Inspector General for Tax Administration has found that in 2012, the IRS might have erroneously given out $5.6 billion in education incentives to about 3.6 million taxpayers. Over 2 million got the education credits without filing the required form, and 1.6 million attended schools ineligible for the tax subsidies. According to The Hill the IRS says TIGTA might be overstating the problem, but acknowledges it has taken steps to fix it.
Proposed new IRS restructuring rules won’t help some companies. Some paper companies wanted to turn their container-board processing businesses into master limited partnerships to lower their corporate tax. But proposed IRS regs would define timber processing as making sawdust, untreated lumber, and wood chips. Bloomberg explains that this rules out any process involving chemicals or foreign substances to make paper, pulp and plywood.
The European Union will wait to make a decision on multinational tax deals. The Wall Street Journal (paywall) reports that the EU is struggling to get the information it needs to prove that Amazon, Apple, Fiat and Starbucks benefited from illegal tax breaks in Ireland, Luxembourg, and the Netherlands.
In the Senate… A short-term highway funding bill is very likely, according to Nebraska’s GOP Senator Deb Fischer; federal highway funding expires May 31. The Senate passed the GOP joint House-Senate budget resolution yesterday.
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Posts and Comments are solely the opinion of the author and not that of the Tax Policy Center, Urban Institute, or Brookings Institution.