Tax News Update - 1st Edition
Updated: Jun 4
IRS apologizes for destroyed information returns
The IRS recently announced that it destroyed approximately 30 million unprocessed information returns because of "antiquated technology" that forced it to get rid of the documents. The federal agency promised to process all similar information return it has received so far in 2021 and 2022.
The COVID-19 pandemic contributed to a huge backlog of paper-filed tax returns that the federal agency was unable to work through. This backlog contributed to the IRS's decision to destroy the information returns in March 2021.
This destruction of documents was uncovered during an audit by the Treasury Inspector General for Tax Administration.
Proposed Tax Legislation
The following is an overview of several recent tax proposals discussed or introduced in Congress over the past several weeks. It is important that you not treat these proposals as passed legislation. Many hurdles remain before any of these legislative ideas become law. In the meantime, it is useful to see what types of tax laws may be affecting you in the future.
No Tax Breaks for Union Busting Act (Senate Bill 4192): This bill, introduced May 12, proposes to amend the Internal Revenue Code of 1986 to end the tax subsidy for employer efforts to influence their workers' exercise of their rights around labor organizations and engaging in collective action.
COVID-19 Commuter Benefits Distribution Act (Senate Bill 4207): This bill, introduced May 12, proposes to allow for one-time distributions from certain transportation fringe benefit accounts.
GOUGE Act (House of Representatives Bill 7751): This bill, introduced May 12, proposes to amend the Internal Revenue Code of 1986 to provide for a gasoline tax holiday.
No Tax Breaks for Radical Corporate Activism Act (House of Representatives Bill 7684): This bill, introduced May 6, proposes to amend the Internal Revenue Code of 1986 to deny the trade or business expense deduction for the reimbursement of employee costs of child gender transition procedure or travel to obtain an abortion.
The above are proposals. There are many steps each bill must go through before they are signed into law. Information retrieved from: GovTrack.us https://www.govtrack.us/congress/bills/subjects/taxation/6342