Tax News Update - 6th Edition
IRS processing of backlogged tax returns nearly complete
The IRS recently announced that it was close to completing the processing of 2020 tax returns filed in 2021.
Due to issues related to the pandemic and staffing limitations, the IRS began 2022 with a larger-than-usual inventory of paper tax returns and correspondence filed during 2021. The IRS took several steps to address this, with the agency on track to complete by the beginning of July the processing of originally-filed 2020 individual tax returns received in 2021.
As of June 10th, the IRS had processed more than 4.5 million of the more than 4.7 million individual paper tax returns received in 2021. The IRS has also processed the vast majority of tax returns filed in 2022: More than 143 million returns have been processed overall, with almost 98 million refunds worth more than $298 billion being issued.
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.
Energy Efficiency for Affordable Housing Act (Senate Bill 4422): This bill, introduced June 16, proposes to amend the Internal Revenue Code of 1986 to increase the low-income housing credit for rehabilitation expenditures for buildings achieving enhanced energy performance.
Community Development Investment Tax Credit Act of 2022 (Senate Bill 4418): This bill, introduced June 16, proposes to amend the Internal Revenue Code of 1986 to provide a credit for investment in Community Development Financial Institutions.
Educational Choice for Children Act (Senate Bill 4416): This bill, introduced June 16, proposes to amend the Internal Revenue Code of 1986 to allow a credit against tax for charitable donations to nonprofit organizations providing education scholarships to qualified elementary and secondary students.
Stop Taxes Against Menstrual Products Act of 2022 (House of Representatives Bill 8107): This bill, introduced June 16, proposes to prohibit states from imposing a tax on the retail sale of menstrual products.
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