19 Sep 2023
Come Fly with Me! IRS Funding Boost Yields Ambitious 10-Year Plan
The Inflation Reduction Act, enacted in 2022, provided IRS with an $80 billion funding boost, since reduced by approximately $21 billion, through this year’s Fiscal Responsibility Act. Over the next decade the new law translates to about 200 projects for IRS improvements for taxpayers, tax professionals, and IRS employees. The IRS expects to dramatically improve taxpayer service as well as bolster its technology, data, and analytics. This will be accomplished partly by hiring the personnel needed to carry out enforcement work, including attorneys, accountants, and data scientists. Be ready!
Related Content
- Inflation Reduction Act of 2022: Tax Provisions
Reference this summary of the Inflation Reduction Act’s tax effects. Spending under the Inflation Reduction Act came from increased revenue from fixing some well-publicized inequities both within and outside the federal tax system. The most significant fixes were the introduction of the new corporate alternative minimum tax (AMT), the reform of Medicare drug purchases, and enhanced IRS enforcement. - Energy Tax Credits and Incentives
Review how the previously-owned clean vehicle credit was added by the Inflation Reduction Act which supplements the Clean Vehicle Credit under I.R.C. § 30D. Starting in 2024, a taxpayer can transfer the credit to the vehicle dealer if that dealer meets certain requirements. I.R.C. § 25E(f). The credit does not apply to vehicles purchased after 2032. I.R.C. § 25E(f).
Practical Guidance Updates
Featuring the latest updates from your Practical Guidance account.
- Tax Key Legal Developments Tracker (Federal)—keep up to date with key legal developments!
- Business Entities. IRS and Treasury propose regulations regarding information reporting, determining the amount realized and basis, and backup withholding, for certain digital asset sales and exchanges. Gross Proceeds and Basis Reporting by Brokers and Determination of Amount Realized and Basis for Digital Asset Transactions, 88 Fed. Reg. 59576 (Aug. 29. 2023).
- Practice, Procedure and Controversy. IRS announces sweeping effort to restore fairness to the tax system with Inflation Reduction Act funding. New compliance efforts are focused on increasing scrutiny on high-income, partnerships, corporations, and promoters that abuse tax rules. IR-2023-166 (Sept. 8, 2023).
- Practice, Procedure, and Controversy. IRS describes the rules it applies in determining the Federal income tax consequences of refunds of state or local taxes and certain other payments made by state or local governments to individuals, providing examples that illustrate application of these rules. Notice 2023-56.
- Document alertsallow you to stay current on legal developments that affect your practice. Find out how to set up your document alerts.
- Generative Artificial Intelligence (AI) Resource Kit is a collection of current guidance on generative AI, ChatGPT, and similar tools.
- Public Interest, Pro Bono, and Non-Profit Resource Kit offers valuable guidance for those providing pro bono legal services and assisting non-profit organizations and public interest groups. It includes useful content on topics including tenant's rights, fair housing and lending, discrimination, immigration, and general non-profit resources.
- Practical Guidance Journal Third Edition 2023 features Generative AI cautions and benefits, new trends in lending, environmental law considerations, market intelligence, and an offer to participate in our annual Private Market Data Surveys.
- Check out our Practical Guidance Author Center! Learn about the 1750+ leading attorney authors contributing to our 26 practice areas, and find out how you can Become a Practical Guidance Author. Practical Guidance is committed to amplifying diverse voices of attorneys across all differences, including gender and race.
- Legal Developments provide the latest updates and analyses of emerging topics impacting your practice area. Visit the Legal Developments page to see the latest topics, which also include breaking legal news and related Practical Guidance content.
- Listen Up! The Practical Guidance and Law360 Podcasts Resource Kit features interviews with industry-leading attorneys on innovative issues in the law: NFTs, Cannabis, COVID-19, and more.
- New and Recently Updated Practical Guidance Content
- Hiring Disability Credits and the Accommodation of Disabilities
- Tax Considerations and Pitfalls to Avoid for Fintech Startups
- Agencies Propose Overhaul of Fixed-Indemnity Plan Rules
- Biden Student Loan Plan May Ease Forgiven Debt 'Tax Bomb'
- Correcting Retirement Plan Overpayments under SECURE 2.0
- Partnerships and Related-Party Transactions
- Energy Credit 'Chaining' Carveout May Be Needed For Gov'ts
PRACTICAL GUIDANCE CUSTOMER EMAIL EDITION ON THE WEB
Experience results today with practical guidance, legal research, and data-driven insights—all in one place.
Experience Lexis+