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.

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.

1 IRS CE REGISTER HERE

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!

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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.

1 IRS CE
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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