President Biden’s budget proposal calls for increasing funding for the IRS by $80 billion, much of which would go toward hiring nearly 87,000 new workers over the next 10 years. If Congress adopts Biden’s plan, the size of the IRS would double, with its workforce increasing by about 15 percent every year.
According to the Biden administration, the primary reason behind the expansion is to help the IRS chase down individuals and families who cheat on their taxes. Apparently, the tens of thousands of people who already work at the IRS aren’t enough to get the job done.
In addition to Biden’s plan to expand the size of the staff at the IRS, the White House and congressional Democrats have also proposed substantially increasing disclosure requirements for groups that spend money on political advertising, a policy proposal contained in the For the People Act, legislation that is separate from Biden’s budget.
Under the For the People Act, also commonly referred to as H.R. 1, many organizations that spend money during election cycles would be forced to reveal donors who have given at least $10,000.
In 2007, Jeff Bezos, then a multibillionaire and now the world’s richest man, did not pay a penny in federal income taxes. He achieved the feat again in 2011. In 2018, Tesla founder Elon Musk, the second-richest person in the world, also paid no federal income taxes.
Michael Bloomberg managed to do the same in recent years. Billionaire investor Carl Icahn did it twice. George Soros paid no federal income tax three years in a row.
ProPublica has obtained a vast trove of Internal Revenue Service data on the tax returns of thousands of the nation’s wealthiest people, covering more than 15 years. The data provides an unprecedented look inside the financial lives of America’s titans, including Warren Buffett, Bill Gates, Rupert Murdoch and Mark Zuckerberg. It shows not just their income and taxes, but also their investments, stock trades, gambling winnings and even the results of audits.
AU.S. Tax Court judge has ordered the Internal Revenue Service to reveal if it criminally investigated the Clinton Foundation, directing the agency to cure a mysterious “gap” in its records in the case.
Most of the proceedings in the case involving the Clinton Foundation and the whistleblowers Lawrence W. Doyle and John F. Moynihan have been sealed, but U.S. Tax Court Judge David Gustafson authorized the release of an April 22 ruling to Just the News this week.
In it, Gustafson remanded the case back to the IRS Whistleblower Office (WO), saying the agency’s claim there was no criminal investigation against the Clinton Foundation “was not supported by the administrative record and thus constituted an abuse of discretion.”
“The WO must further investigate to determine whether CI [criminal investigative division] proceeded with an investigation based on petitioners’ information and collected proceeds,” the judge ruled. “… It seems clear we should remand the case to the WO so that it can explore this gap.”
The Internal Revenue Service is planning to ramp up audits of smaller businesses and their investors by about 50% next year, following years of persistently low examination rates, an agency official said Tuesday.
The result could be a surge in audits of companies ranging from mom-and-pop retail stores and technology startups to investment funds that have historically faced only infrequent checks thanks to the time and effort required at the IRS.
“The IRS is focusing our efforts to increase compliance activity in this area of not only partnerships, but also investor returns related to pass-throughs,” De Lon Harris, the IRS deputy commissioner of examination for small businesses, said at an American Institute of Certified Public Accountants event. For 2021 “we are planning for 50% more than we had in the previous year.”