Washington, D.C. — Senate Finance Committee Chairman Ron Wyden, D-Ore., issued the following statement on IRS Commissioner Werfel’s letter regarding the ongoing efforts of the IRS to rebalance its enforcement activities:

“I’m pleased to see the IRS using the enforcement funding from the Inflation Reduction Act to help lower-income taxpayers catch mistakes from the start and identify credits they are eligible for, while reserving enforcement resources to crack down on wealthy tax cheats and those who prey on vulnerable filers. This is exactly why Congress boosted funding for the IRS.

“By revisiting the EITC audit selection process and focusing audit activity on the wealthiest taxpayers who are dodging taxes, rather than working people who are just trying to comply, the IRS is taking important steps to address the racial disparities in audit selection identified earlier this year. I am encouraged by the IRS’s pilot programs and look forward to continued updates on the IRS’s progress in addressing these racial disparities. I will continue to watchdog the agency in its work to overhaul its approach to tax enforcement and make sure that it fully eliminates racial bias from its audit selection methods.”

Article From U.S. Senate Committee On Finance

TaxConnections Podcast Feature

TaxConnections Membership means we are doing everything possible for our site members to connect with the millions of taxpayers who come to find a professional with a set of special skills. In the case of Addison Henry, CEO Of Vine Investment Partners in Lafayette, Louisiana he collaborates with companies to mitigate and lower their federal tax liability by acquiring and investing in federal tax credits. His firms meticulous underwriting process ensures that every opportunity is thoroughly evaluated, parameters are defined, and a diligently vetted tax credit prospect is presented to each of the firms valued partners. We give Addison the highest recommendation as a trusted advisor with specialized expertise in federal tax credits investments.

Take the time to listen to TaxConnections newest profile feature (Podcast Upload) that enables our members to upload their podcasts on their professional page:

Our new Podcast upload feature is a great way to listen and learn about Addison Henry. We know listening to his podcast is a great way to get to know him better.

We encourage all TaxConnections Members to upload a Podcast to their Profile Page. Simply Login; Click on “Welcome Your Name” in green in the upper righthand corner of your computer screen; Then click on Virtual Office where you can upload Podcasts or articles in public or private view. Keeping all your assets in one professional profile location makes it easy for people to learn more about you. All this information builds trust(i.e. Professional Profile Page, Podcasts, Blog Articles, Q&As, Easily Accessible Contact Information, References, etc.) Clients want to work with people they trust. Addison Henry is someone you can trust to do a great job.

If you would like to be interviewed by our Podcast Host, please contact Kat Jennings at kat@taxconnections.com.

Government Watchdog Says IRS Needs To Address Critical Safeguard Weaknesses

New report highlights security risks to taxpayer information

Washington, D.C.–A new report from the U.S. Government Accountability Office (GAO) highlights both new and longstanding unresolved security risks to the safety of confidential taxpayer information at the Internal Revenue Service (IRS). The report, requested by U.S. Senate Finance Committee Ranking Member Mike Crapo (R-Idaho) and U.S. House Ways and Means Committee Chair Jason Smith (R-Missouri), identifies dozens of security weaknesses at the agency, many of which have been known by the IRS for years, and makes recommendations aimed at safeguarding and protecting taxpayer information. The report was originally requested following the unauthorized disclosure of private, legally protected information from the IRS to ProPublica—an incident of which little has been revealed, despite it being more than two years since that leak.

“From serious breaches of confidential taxpayer data and document mismanagement to poor cybersecurity training and infrastructure vulnerabilities, the IRS has a decades-long and troubled history with adequately protecting American taxpayers’ information. Now, in addition to tax collector and enforcer, the agency wants to act as tax preparer, despite the evidence showing it is unprepared to be trusted with such responsibility,” said Crapo. “Instead of devoting time and resources to developing new federal programs that would collect and expose even more sensitive information from taxpayers, the IRS should instead focus on addressing the security weaknesses identified by the GAO and Treasury Inspector General for Tax Administration (TIGTA) and improving its woeful customer service.”
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IRS Hiring 3,700 New Agents To Go After Wealthy Taxpayers And Partnerships

According to an article in the Federal Tax Network, the IRS says it plans to fast-track the hiring of more than 3,700 internal revenue agents across the country. Agents will focus on complicated tax compliance issues, and are trained to audit large corporations and complex partnerships. The announcement marks the IRS’s second major hiring initiative under the Inflation Reduction Act. The agency through the legislation has roughly $60 billion to rebuild its workforce and modernize its legacy IT over the next decade.

A new hire may have significant corporate experience from working in a private company tax department but have very limited individual tax experience,and be salaried around $125,000 annually. The agency said the job is a mid-career position that pays about $125,000 a year. Total compensation – when factoring federal employee benefits like child care, paid parental leave and student loan repayment – is closer to $175,000.

According to the Treasury Inspector General For Tax Administration, the Inflation Reduction Act(IRS) funding was intended to increase examination of high income earners as stayed in its report. The IRA was enacted providing 46.5 Billion for enforcement activities.

You can thank Congress for passing this bill in the House of Representatives. Who in Congress voted for the inflation reduction act?

On August 12, 2022, the Inflation Reduction Act bill was passed by the House on a 220–207 vote, with all Democrats voting in favor and all Republicans voting against it.

Learn How Taxpayers Money Is Spent

If you ever wonder how the government spends your taxpayer money, you will learn alot looking at the site https://www.usaspending.gov/ and click on Start Conducting Search. As an example, I went to the site to conduct a search under Year 2023 and Award Type/ Contracts and this displays all the corporations who received US Government Contracts:

When we conducted a search on the government site https://www.usaspending.gov/ about Award Type/Loans this is what we discovered:

What is surprising are the millions of dollars in payments to Universities and the Ministry of Finance of Angola for 159M, and miscellaneous awards in Brazil for 487M through the US International Financial Development Corporation.

When you visit the https://www.usaspending.gov/ site about Award Type/ Direct Payments you see this:

If you have not been communicating to your Representatives, it is time to ask real questions. Here is the House of Representatives Directory.

Majority Whip Reintroduces Landmark CBDC Anti-Surveillance State Act Legislation To Safeguard Americans Financial Privacy

Majority Whip Tom Emmer (MN-06) reintroduced his flagship legislation, the CBDC Anti-Surveillance State Act, to halt the efforts of unelected bureaucrats in Washington, D.C. from issuing a central bank digital currency (CBDC) that dismantles Americans’ right to financial privacy. He is joined by 50 original cosponsors.

Unlike decentralized cryptocurrencies, like Bitcoin, a CBDC is a digital form of sovereign currency that is designed and issued by a government and transacts on a digital ledger that is controlled by that government. In short, a CBDC is government-controlled programmable money that, if not designed to emulate cash, could give the federal government the ability to surveil Americans’ transactions and choke out politically unpopular activity.

“The administration has made it clear: President Biden is willing to compromise the American people’s right to financial privacy for a surveillance-style CBDC. That’s why I’m reintroducing my landmark legislation to put a check on unelected bureaucrats and ensure the United States’ digital currency policy upholds our values of privacy, individual sovereignty, and free-market competitiveness,” Whip Emmer said.

“If not designed to be open, permissionless, and private – emulating cash – a government-issued CBDC is nothing more than a CCP-style surveillance tool that would be used to undermine the American way of life,” Whip Emmer concluded.

“Thorough anti-CBDC legislation is critical for safeguarding Americans’ financial privacy in the face of potential surveillance, control, and political intimidation. We commend Congressman Emmer’s sweeping bill to prohibit a CBDC issued both directly from the Fed to Americans and indirectly via banks or other intermediaries. All members of Congress should support this measure to protect individual liberty and prevent threats of government coercion through the financial sector.” – Ryan Walker, Acting Executive Director, Heritage Action
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Introduction To TRUST, ESTATE, and GIFT TAXES (Free Webinar With 1 IRS CE)

The transfer taxes are the gift tax, the estate tax, and the generation skipping transfer tax. While these are separate taxes from the income tax, some of the core concepts inform income tax issues as well. This webinar is a high-level overview of the gross estate and completed gifts, highlighting the intersection between estate inclusion and income tax issues.


Self-Study recording not available for NASBA CPE credit. However, you receive 1 IRS CE Credit.

As part of our strategic plan, we offer free courses to give back to the tax community by providing free CE. It is our way of thanking you for supporting us!


View Upcoming Webinars

Form 4797, Tax Planning, Sales Allocation And More (Free Webinar With 1 IRS CE Credit)

Simply put, IRS Form 4797 is a tax form that’s used specifically for reporting the gains or losses made from the sale or exchange of business and income producing property used in a trade or business. However, this form often generates countless amounts of uncertainty and anxiety.

This course will assist tax pros in determining whether a transaction is a capital gain or ordinary income and what tax consequences are associated with each. Furthermore, assist on allocation of sales price and provide tax planning overview. Join us in deciphering the mystery of Form 4797.

Learning Objectives REGISTER HERE

– Analysis of Tax Planning and difference between the Seller’s and Buyer’s tax treatment
– Analysis of Allocation of Sales Price on different classes of assets
– Discovery Basic choices regarding the Allocation of Sales Price
– Correctly identify § 1231 Property.
– Examine the difference between §§ 1245 and 1250 Property.
– Inspect issues surrounding de minimis safe harbor of repair regulations.
– Assess Form 8594 and the seven classes of assets
– Differentiate between depreciation recapture and capital gain.
– Identify Unrecapture Depreciation.

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How To Successfully Submit Forms 2848 & 8821

TaxConnections thanks CPE provider Tax Practice Pro for this complimentary On Demand webinar from TaxPracticePro.com with two IRS CE earned. This On Demand webinar is called “How to Successfully Submit Forms 2848 & 8821”. Tax Practice Pro is a nationwide provider of live and webinar based Continuing Education. We help tax professionals grow. REGISTER HERE

100% no charge. We do 25-30 CE each month, all based on a theme for the month. Tax Practice Pro kicks off each month with a free program, mostly to give back to the industry.

This webinar teaches the most effective process of preparing and submitting form 8821 (Tax Information Authorization) and form 2848 (Power of Attorney) to the IRS CAF unit in order to successfully access your taxpayer’s IRS records.
(2 IRS CE)
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EA Prep Exam

The only live & interactive online EA course – get your questions answered and doubts clarified right away!
Includes these standalone study tools: Lambers, Gleim, and TheTaxBook*!
TaxMama® teaches tax law, practice and representation in live classes – from the ground up!
TaxMama® guides you through several tax return samples and forms to help you see how the tax laws and procedures work for real-world clients – not just for the exams!
TaxMama® teaches you how to read your clients minds, offers templates to help you start your own tax practice and screen clients, and gives you priceless tips to make your professional life easier after you become an EA!
TaxMama® students get additional test-taking coaching in twelve 4-hour Final Review sessions (four per exam part) in addition to the course lectures!
TaxMama® teaches you how to overcome your fear when facing exam questions!
TaxMama® students have unlimited access to a dedicated mentoring portal – even after they pass!
TaxMama’s® courses are all recorded, you have unlimited replays of all classes (video AND audio)
TaxMama’s® course is like a 3-year tax education in 6 months (or less)!
TaxMama® students can join lectures for free – every year (and can get CE for only a small fee)!
TaxMama’s® EA course provides up to 80 hours CE – including all 15 CE credits needed for the Reduced AFSP Certificate of Completion – helping you to improve your professional status before you get your EA credential!
TaxMama’s® EA course is easy to customize to fit your needs.


All Federal agencies are required to adopt electronic recordkeeping requirements by June 30, 2024. Due to delayed efforts to digitalize records, the IRS was not on track to meet the deadline, so it requested and was granted an extension until December 31, 2030. The IRS scans millions of pages of documents every filing season, including tax returns, checks, correspondence, and other original documents. However, scanning systems and capabilities vary widely across the organization. Current technology, such as optical character recognition and two-dimensional document bar coding, would enable the IRS to machine read paper tax returns, yet the IRS does not currently possess the capability to perform these functions on a large scale.

Digitalization is key to addressing challenges associated with large volumes of paper and achieving compliance with electronic recordkeeping mandates. While the IRS has developed high-level
strategies to help guide the transition to digitalized processes and electronic recordkeeping, these strategies have not been updated to reflect current priorities and the actions required to move forward. IRS efforts to digitalize records could be significantly enhanced by increasing the rate of electronically filed returns; however, the IRS has not developed a single Service-wide strategy to incorporate all forms for electronic filing. Paper-filed tax returns are more costly to process and are also more likely to contain errors and be subject to delays in processing, as seen during the Coronavirus Disease 2019 pandemic. As a result, the IRS must pay interest on any delayed refunds. In Fiscal Year 2022, the IRS paid $3.5 billion in total refund interest.

This is a 70 percent increase from the $2.06 billion paid in refund interest before the pandemic in Fiscal Year 2019. Delayed efforts to digitalize records have resulted in continued reliance on outside storage facilities. Access to IRS records stored in the Federal Records Centers has been problematic in the past and was significantly hampered by the Coronavirus Disease 2019 pandemic-related closures.

Read Full Report From Inspector General For Tax Administration

IRS Focused On On High-Income, Partnerships, Corporations And Promoters Abusing Tax Rules On The Books

IRS announces sweeping effort to restore fairness to tax system with Inflation Reduction Act funding; new compliance efforts focused on increasing scrutiny on high-income, partnerships, corporations and promoters abusing tax rules on the books.

Agency focus will shift attention to wealthy from working-class taxpayers; key changes coming to reduce burden on average taxpayers while using Artificial Intelligence and improved technology to identify sophisticated schemes to avoid taxes.
WASHINGTON — Capitalizing on Inflation Reduction Act funding and following a top-to-bottom review of enforcement efforts, the Internal Revenue Service announced today the start of a sweeping, historic effort to restore fairness in tax compliance by shifting more attention onto high-income earners, partnerships, large corporations and promoters abusing the nation’s tax laws.

The effort, building off work following last August’s IRA funding, will center on adding more attention on wealthy, partnerships and other high earners that have seen sharp drops in audit rates for these taxpayer segments during the past decade. The changes will be driven with the help of improved technology as well as Artificial Intelligence that will help IRS compliance teams better detect tax cheating, identify emerging compliance threats and improve case selection tools to avoid burdening taxpayers with needless “no-change” audits.

As part of the effort, the IRS will also ensure audit rates do not increase for those earning less than $400,000 a year as well as adding new fairness safeguards for those claiming the Earned Income Tax Credit. The EITC was designed to help workers with modest incomes. Audit rates of those receiving the EITC remain at high levels in recent years while rates dropped precipitously for those with higher income, partnerships and others with more complex tax situations. The IRS will also be working to ensure unscrupulous tax preparers do not exploit people claiming these important tax credits.
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