I get information each week on what is going on in Washington, D.C. and with the IRS. 90% of it is not very applicable (a lot is just political back and forth), but sometimes there is some interesting news to share.
I thought I would start sharing things that might be helpful to all of Credo’s client base. I will try to do this every couple months:
- The IRS is a mess. The IRS Commissioner is pleading with Congress for help. Budget cuts have put a huge dent in their enforcement effectiveness and employee turnover is a huge issue. The Commissioner is asking Congress for $2 billion. Congress seems to not be interested. Audits for both business and individual returns are continuing to decline rapidly. The exam rate is now below 1%. And, resulting delays in the IRS will continue to frustrate taxpayers.
- Small companies that reimburse workers for health coverage get a break: The IRS will waive the $100-a-day-per-employee excise tax for all of 2014 and the first six months of this year. Check out notice 2015-17 for details.
- Finally, some relief for the ridiculous process of setting up a 501©3 organization (non-profit). See this link if you want to set one up: http://www.irs.gov/uac/About-Form-1023EZ
- The new health reform law is causing filing glitches at the IRS. Thousands of refunds are being held up. The Service told its employees not to divulge the reason for the holdup. But not to worry, the Taxpayer Advocate has decided that they should tell taxpayers the truth, so the employees don’t need to follow the order. Nice, huh?