The rapidly expanding landscape of not-for-profit, donor-backed collectives paying college athletes to promote charities has been hit with a potentially seismic disruption.
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Democrats and government watchdogs immediately pledged to fight what they called a “corrupt” and unprecedented resolution.
The IRS had assessed more than 120 million penalties against tens of millions of taxpayers for filing late returns, failing to pay taxes or failing to make required estimated tax payments between January 2020 and July 11, 2023.
The bigger refund checks reflect the major tax cut passed by Congress in July, which reduced many households’ tax bills.
A Trump administration official said the increase in refunds is due to tax breaks and spending cuts that impact taxpayers across income brackets.
The tax agency’s chief risk and control officer wrote in a sworn declaration that the IRS provided confidential taxpayer information even when DHS officials could not provide sufficient data to positively identify a specific individual.
The changes, among others announced by the IRS, make it easier for retirement savers to set aside more of their income toward building their nest egg.
The president of the National Treasury Employees Union said taxpayers should expect increased wait times, backlogs and delays implementing tax law changes as the shutdown continues.
Banning nonprofits—including congregations—from participating in political campaigns violates the First Amendment’s protection of the right to the free exercise of religion and freedom of speech, IRS Commissioner Billy Long said in a court filing Monday.
Long will take over an IRS undergoing massive change, including layoffs and voluntary retirements of tens of thousands of workers.
The IRS downsizing is due to a series of moves, spurred by Elon Musk’s Department of Government Efficiency, to cut the agency’s workforce.
The program developed during Joe Biden’s presidency was credited by some with making tax filing easy, fast and economical, while others said it was frequently difficult to use.
Acting IRS commissioner Melanie Krause—the tax agency’s third leader since President Donald Trump’s inauguration—will participate in the deferred resignation program the Trump administration offered to agency employees in recent days, sources said.
The Taxpayer Advocate Service is part of the IRS but operates independently as its internal watchdog. It identifies major problems facing taxpayers, recommends fixes and assists people with individual problems.
The layoffs are part of the Trump administration’s efforts to shrink the size of the federal workforce through billionaire Elon Musk’s Department of Government Efficiency.
The news comes as roughly 150 million taxpayers prepare to file returns by the April 15 deadline.
Daniel Werfel early departure will be unusual, since IRS commissioners’ terms typically extend from one presidential administration into another.
The IRS is distributing about $2.4 billion to taxpayers who didn’t receive their COVID stimulus payments. By the end of January, about 1 million taxpayers will receive special payments of up to $1,400 from the IRS.
IRS Commissioner Daniel Werfel said the agency is seeing higher numbers of theft victims overall since before the pandemic, in part because scammers are increasingly moving to online schemes.
The Internal Revenue Service detailed the increases in its annual inflation adjustments announced Tuesday.
Businesses have filed at least 3.6 million claims for the Employee Retention Credit since the program’s debut. It has distributed at least $232 billion, far exceeding Congress’s initial expectations.
