Podcasts about treasury inspector general

This Day in Legal History: Colegrove v. GreenOn June 10, 1946, the U.S. Supreme Court decided Colegrove v. Green, upholding an Illinois congressional districting scheme that created dramatically uneven district populations. The plaintiffs argued the map diluted votes by packing more people into some districts than others, violating principles of equal representation. However, the Court, in a plurality opinion by Justice Felix Frankfurter, declined to intervene. Frankfurter emphasized that districting was a “political question” and not within the judiciary's purview to resolve.This ruling effectively insulated redistricting practices from federal judicial review and left voters in malapportioned districts without a constitutional remedy. Frankfurter's view was rooted in judicial restraint, warning against courts becoming embroiled in “political thickets.” But critics argued that this deference allowed entrenched political interests to ignore population shifts and disenfranchise urban voters.The decision stood until 1962, when the Court reversed course in Baker v. Carr. There, the justices held that federal courts could indeed hear redistricting cases under the Equal Protection Clause, ushering in the “one person, one vote” era. Colegrove thus marked the high-water mark of the political question doctrine's use in avoiding electoral oversight—a stance the Court ultimately abandoned.Mexico's antitrust regulator is poised to issue a ruling by June 17 on whether Google engaged in monopolistic practices in the country's digital advertising market. If found guilty, the tech giant could face a fine amounting to 8% of its annual Mexican revenue—potentially one of the largest ever imposed by the agency. The case began in 2020 and moved into a trial phase last year, with a key hearing held on May 20. Mexican regulators claim Google built an illegal monopoly, and has obtained financial data from the Mexican tax authority as part of its investigation.Google, which hasn't disclosed Mexico-specific revenue but reported $20.4 billion for the broader “other Americas” region in 2024, could seek an injunction to delay the ruling pending judicial review. This would parallel similar antitrust issues the company faces in the U.S., where courts have ruled against its dominance in search and advertising technologies.Adding to tensions, President Claudia Sheinbaum has sued Google for renaming the Gulf of Mexico to “Gulf of America” for U.S. users—a move she claims Google had no authority to make. The long-standing antitrust case has drawn political attention, with lawmakers urging Mexican officials to act.Google in Mexico faces major potential fine as antitrust ruling nears | ReutersTexas has taken a meaningful first step toward curbing abuse in its affordable housing tax system with HB 21, but the new law leaves major gaps that developers could still exploit. Signed by Governor Greg Abbott, HB 21 aims to end long-term tax breaks for projects that offer little true affordability. However, the bill's reliance on “area median income” (AMI) to define affordability creates a loophole: in wealthy areas, rent set at 80% of AMI can be as high as typical market rates, making the term “affordable” misleading.The law requires that half of all units be reserved for “low-income” tenants, but without adjusting for local wage realities, this standard fails to address the needs of those most burdened by housing costs. Worse still, enforcement is delayed—audits may take years, and there is no mechanism to reclaim tax benefits already received by developers who fall out of compliance. This makes upfront compliance optional in practice, not mandatory.While HB 21 mandates parity in amenities between market-rate and affordable units, this provision seems symbolic without robust inspection. The lack of a tax credit clawback—something present in federal programs like the Low-Income Housing Tax Credit—further weakens accountability.The bill's structure could dissuade honest developers, who face unclear or burdensome requirements, while allowing bad actors to benefit before facing any scrutiny. Texas risks ending exploitative deals without fostering enough viable new ones, exacerbating its housing shortage.Texas Housing Law Addresses Problem but Creates Major LoopholesAs the push for government efficiency grows, the IRS is considering using artificial intelligence to identify noncompliant taxpayers based on past audit outcomes. While this might sound like a smart upgrade, history offers a sobering warning. The Netherlands tried something similar, using AI to spot fraud in childcare benefits, and it ended in a national scandal—the algorithm disproportionately targeted minority families, human reviewers failed to intervene, and the fallout brought down the government.A recent Treasury Inspector General for Tax Administration (TIGTA) report suggests the IRS could “leverage examination results” to improve case selection algorithms. But this raises red flags. IRS audit history isn't neutral. A 2023 joint study by Stanford and the Treasury Department found that Black taxpayers were audited up to 4.7 times more than others, especially when claiming the Earned Income Tax Credit. That disparity likely came from algorithmic choices aimed at efficiency, not fairness.If the IRS trains AI on this unfiltered historical data, it risks cementing and expanding past biases into future audits. AI could be a powerful tool—but only if accompanied by key safeguards. First, training data must be rigorously reviewed to eliminate bias. Second, model decisions must be transparent so we understand how and why certain cases are flagged. And third, human reviewers must be actively trained and authorized to question and override algorithmic decisions.Week in Insights: TIGTA's AI Ambitions Risk Rerun of Dutch Fiasco This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit www.minimumcomp.com/subscribe

A top House Democrat wants an investigation into the Department of Government Efficiency's access to IRS systems. Oversight and Government Reform Committee Ranking Member Gerry Connolly requested the investigation in a May 15th letter to the Treasury Inspector General for Tax Administration. He raised concerns about DOGE plans to centralize IRS data. Connolly also highlighted potential issues with the IRS' data-sharing agreements with the Department of Homeland Security. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The National Labor Relations Board's inspector general is conducting an investigation into the Department of Government Efficiency's work at the agency. In April, an IT staffer named Daniel Berulis filed an official whistleblower disclosure with Congress highlighting concerns over DOGE's practices at the NLRB and data that may have been removed from the agency. In response to the disclosure, Rep. Gerry Connolly, D-Va., ranking member of the House Oversight Committee, requested an investigation in a letter to Luiz A. Santos, acting inspector general of the Labor Department, and Ruth Blevins, inspector general at the NLRB. Timothy Bearese, an attorney at the NLRB currently serving as its acting director of congressional and public affairs, told FedScoop that the agency has no comment but “can confirm that the OIG is conducting an investigation, as requested by Ranking Member Connolly.” Back In April, Bearese told NPR that the NLRB had not granted DOGE access to agency systems. At that time, he also said that there had been a past investigation based on Berulis' concerns that “determined that no breach of agency systems occurred.” A spokesperson for House Oversight Committee Democrats told FedScoop on Thursday that “there are multiple investigations into Elon Musk's violations of sensitive investigatory information at the NLRB.” House Oversight Democrats are asking a Treasury Department watchdog to open an investigation into DOGE's data and IT modernization dealings at the IRS following reports of an internal “hackathon” at the tax agency that may have involved Palantir. In a letter sent Thursday to Heather Hill, acting head of the Treasury Inspector General for Tax Administration, House Oversight ranking member Gerry Connolly, D-Va., cited “deep concern” over reporting in Wired last month that revealed plans for a 30-day sprint where DOGE engineers and a third-party vendor — potentially the data analytics giant Palantir — would create a new application programming interface connected to taxpayer data. That API, Wired reported, would essentially serve as a storage center for all IRS data and enable agency systems to interact with unknown cloud services. Building a “mega API” is likely connected to plans for a “master database” that also pulls in data from the Department of Homeland Security and the Social Security Administration, according to Wired, part of a Trump administration effort to track and surveil immigrants. “The reported data centralization and integration effort could undermine intentional compartmentalization of IRS systems,” which raises “serious privacy questions,” Connolly wrote. The Daily Scoop Podcast is available every Monday-Friday afternoon. If you want to hear more of the latest from Washington, subscribe to The Daily Scoop Podcast  on Apple Podcasts, Soundcloud, Spotify and YouTube.

A new report from the Treasury Inspector General reveals that the IRS has deployed 68 AI projects, 30 of which are already active, with a main focus on millionaire tax cases. The AI systems are now also targeting real estate investors, specifically those earning over $400,000 annually or with partnerships exceeding $10 million in assets. These systems detect discrepancies by cross-referencing tax returns with financial statements, identifying patterns, and focusing on partnership structures and rapid portfolio growth. The video highlights the importance of proper entity structuring, proactive documentation, and strategic tax planning to minimize audit risks. A guide for IRS Audit Defense is provided to help investors prepare and protect themselves from potential audits triggered by these AI systems. Alex's audit defense playbook: https://docs.google.com/document/d/1MTAdkD7IRcOtsMqeOaVAQXCWYiz1ZDhNuakgGZJw9Dc/edit?tab=t.0 Learn more about your ad choices. Visit megaphone.fm/adchoices

President-elect Donald Trump's plans to deconstruct the federal workforce would take a bite out of IRS efforts to answer taxpayer phone calls and enforce compliance for tax cheats. After getting billions in funding from the 2022 tax-and-climate law, the IRS started a long-needed rebuild, including bringing on more workers. Between Oct. 1, 2021 and Sept. 30, 2023, the IRS processed nearly 53,000 new hires, the Treasury Inspector General for Tax Administration said in a September report. But Trump's promises to end remote work for federal workers and reinstate a policy that would make it easier to fire certain employees are seen as ways to end the IRS's competitiveness in the job market and ability to keep employees who are flight risks. Bloomberg Tax reporter Erin Slowey spoke with Kelly Reyes, executive director of the Professional Managers Association that represents the interests of IRS managers, about what a presidential transition means for IRS employees and how agency managers are preparing for next tax filing season. Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.

The Treasury Inspector General for Tax Administration flagged 1,800 contracted employees listed as active but were no longer assigned to an ongoing contract. Learn more about your ad choices. Visit podcastchoices.com/adchoices

The Treasury Inspector General for Tax Administration flagged 1,800 contracted employees listed as active but were no longer assigned to an ongoing contract. Learn more about your ad choices. Visit podcastchoices.com/adchoicesSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Taxpayers who can't resolve their issues with the I-R-S can turn to the Taxpayer Advocate Service. But phoning the service is likely to bring frustration of its own. That comes to light after a look-see by the Treasury Inspector General for Tax Administration. Details now from TIGTA's chief of staff for inspections and evaluations, Eleina Monroe. Learn more about your ad choices. Visit podcastchoices.com/adchoicesSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Taxpayers who can't resolve their issues with the I-R-S can turn to the Taxpayer Advocate Service. But phoning the service is likely to bring frustration of its own. That comes to light after a look-see by the Treasury Inspector General for Tax Administration. Details now from TIGTA's chief of staff for inspections and evaluations, Eleina Monroe. Learn more about your ad choices. Visit megaphone.fm/adchoices

This Day in Legal History: Province of Canada CreatedOn July 23, 1840, the British Parliament passed the Act of Union, a pivotal piece of legislation that led to the creation of the Province of Canada. This act merged the colonies of Upper Canada (present-day Ontario) and Lower Canada (present-day Quebec) into a single entity. The Act of Union was a response to the political unrest and demands for reform that had been growing in both colonies, particularly after the Rebellions of 1837-1838.The Act of Union aimed to unify the administrative structures of the two colonies, addressing inefficiencies and fostering a more cohesive government. It established a single legislative assembly, with equal representation from both regions, despite significant differences in their populations and cultural backgrounds. This structure was intended to assimilate the French-speaking population of Lower Canada into the English-speaking majority of Upper Canada, though it often led to tension and conflict.Taking effect on February 10, 1841, the Act marked the beginning of a new political era in Canadian history, laying foundational governance structures that would influence future developments leading up to Canadian Confederation in 1867. The Province of Canada would eventually split into the separate provinces of Ontario and Quebec, but the Act of Union remains a significant moment in the evolution of Canada's political landscape.The Ninth Circuit's updated case management system is being used as a model for the federal judiciary's administrative office to modernize its electronic filing program, according to Chief Judge Mary Murguia. The US Court of Appeals for the Ninth Circuit is collaborating with the Administrative Office of the US Courts to replace the CM/ECF system with a new cloud-based system by the end of 2025. This modernization effort aims to enhance the efficiency of filing legal documents and accessing case information.Since October, the Ninth Circuit has processed all new cases through its Appellate Case Management System, with older reopened cases still using the previous system. This development was a joint effort with the Second Circuit. Judge Murguia noted a significant decline in case filings over the past five years, with the Ninth Circuit now having fewer than 7,000 pending cases—a 23% reduction from 2019 and the lowest number in decades.Ninth Circuit's Case Filing System Used as Model for JudiciaryA New York appellate judge has affirmed that individuals who file complaints against attorneys in disciplinary cases have a First Amendment right to attend related hearings, view pertinent documents, and access some final decisions. This ruling emphasizes the importance of public scrutiny in holding judges accountable, particularly those serving fourteen-year terms appointed by elected governors. The decision, issued by Judge Victor Marrero of the US District Court for the Southern District of New York, specifically impacts the New York Supreme Court's Second Appellate Department, which disciplines attorneys based on recommendations from the Attorney Grievance Committee.Judge Marrero asserted that transparency is essential for public trust in the judicial process. However, he allowed an exception for dispositions made by the chief attorney, whose role involves preliminary investigations. These do not need to be public to maintain investigation flexibility and protect attorneys from baseless accusations.The case originated from complaints filed in 2021 against attorneys in the Queens County District Attorney's Office. Despite these complaints being publicized online, none resulted in public discipline. The plaintiffs argued that public access was necessary, while New York City's former corporation counsel claimed it was a misuse of the process for political gain.Marrero dismissed Presiding Justice Hector LaSalle's defense of legislative immunity, ruling that withholding information is not considered policymaking. He also refuted the state's claim that providing access to certain records would necessitate a substantial overhaul of court operations, stating that procedural adjustments, even if cumbersome, are not illegal.New York Judge Peels Back Curtain on Attorney Misconduct CasesThe First Circuit appears likely to uphold a noncompete agreement against a former DraftKings executive, Michael Hermalyn, who sought to join rival sports-betting firm Fanatics. During oral arguments, Judge O. Rogeriee Thompson questioned why California's worker-friendly policies should outweigh Massachusetts' business protections. Hermalyn, who relocated to California, argued for the state's ban on noncompete clauses to apply. However, the contract stipulates Massachusetts law, as DraftKings is based there.DraftKings accused Hermalyn of violating the agreement by joining a competitor and stealing company secrets. Hermalyn's legal team contended that California's interest in attracting workers should take precedence. Conversely, DraftKings' counsel argued that state laws are equal and California's stance should not override Massachusetts' policies.A federal district judge previously prohibited Hermalyn from working for competitors, dismissing his reliance on California law. This case arises amid the Federal Trade Commission's broader move to ban most noncompete agreements, although senior executives are currently exempt.Hermalyn's attempts to establish California residency involved leasing an apartment, buying a car, and other actions. Massachusetts law typically enforces contract terms unless they violate public policy. Hermalyn's counsel asserted California has the most substantial interest in this matter, urging respect for its policies. However, Judge William Kayatta expressed concerns about prioritizing one state's laws over others in similar circumstances.DraftKings' attorney warned that ruling in favor of Hermalyn could enable others to evade contractual obligations by relocating to California, stressing the need to protect Massachusetts businesses from such tactics. DraftKings also alleged Hermalyn's residency claim was a ploy and accused him of downloading sensitive files before departing.DraftKings' Noncompete Clause Meets Supportive First CircuitElon Musk's social media platform, X (formerly Twitter), is being sued by the PR firm Multiply for trademark infringement. Filed in a California federal court, the lawsuit claims that X's use of the "X" trademark for social-media marketing services causes consumer confusion and infringes on Multiply's established trademark rights. Multiply's spokesperson accused Musk of stealing their established identity and stated the necessity to protect their mark in court.X rebranded from Twitter to X last year under Musk's ownership. This rebranding has already resulted in confusion among Multiply's clients, who overlap with X Corp's clientele. Multiply, which has worked with brands like Arizona, Corona, and Liquid Death, adopted the "X" branding in 2019 and holds a federal trademark for its "X" logo. Multiply is seeking an injunction to stop X Corp from using the "X" trademark and is asking for monetary damages. This lawsuit is one among several, as other companies, including X Social Media, have also filed infringement claims against Musk's rebranded platform. The case is DB Communications LLC d/b/a Multiply v. X Corp, U.S. District Court for the Northern District of California, No. 3:24-cv-04402.X Corp hit with lawsuit from PR firm over 'X' trademark | ReutersIn my column this week, I discuss the pressing need for the IRS to bolster its cryptocurrency compliance measures to close the crypto tax gap and combat illicit activities. Cryptocurrencies are often used for illegal activities, and many tax evaders in the crypto space prefer to remain anonymous to distance themselves from their actions.A recent report from the Treasury Inspector General for Tax Administration (TIGTA) highlights significant gaps in the IRS's cryptocurrency tax enforcement. By improving compliance, the IRS can enhance transparency in financial transactions, address the crypto tax gap, and reduce illegal activities facilitated by digital currencies.Enforcing cryptocurrency taxes could yield substantial revenue and mitigate black market activities that harm the economy. Despite the potential benefits, the IRS's current efforts are inadequate. The TIGTA report notes that the IRS investigated only 390 cases involving digital currency between 2018 and 2023, with just 224 cases recommended for prosecution. The IRS's broader operation, “Hidden Treasure,” has focused more on training and tool acquisition than on actively pursuing crypto tax evaders.The use of digital currencies has exploded, with over 26,000 different types and a total market value exceeding $1.7 trillion. Estimates suggest that 21% to 40% of US adults have owned some form of virtual currency. Yet, auditing just 390 files is like pulling a few blades of grass from an acre and assuming a complete understanding of the field.Enhanced cryptocurrency compliance can significantly disrupt illicit activities reliant on digital currency anonymity. Cryptocurrencies are linked to crimes such as drug and human trafficking, ransomware, and terrorism. The IRS's $625,000 bounty for cracking the anonymity of Monero underscores the value of identifying cryptocurrency tax cheats.The IRS needs a coordinated approach to data sharing and analysis, leveraging artificial intelligence to handle vast data sets and uncover patterns. Financial or asset tracing, previously unfeasible on a large scale, becomes possible with advanced technology. Form 1040 already asks filers about digital assets; this data should be cross-referenced with information from exchanges and audits, focusing on high-income individuals for maximum audit returns.The TIGTA report emphasizes the urgency for the IRS to develop comprehensive compliance strategies, employing advanced data analytics and collaborating with blockchain analytics firms. The IRS must also work with other agencies to curb illegal cryptocurrency activities. While individual cryptocurrencies may remain untraceable, large transactions leave traces in the traditional banking system, providing crucial data points for analysis.The IRS has ample information on digital currency holders but may lack the context needed to connect taxes owed to individual taxpayers. Contextualizing existing data is key to closing the crypto tax gap and disrupting criminal enterprises reliant on cryptocurrency anonymity.To Improve Crypto Tax Gap, IRS Must Enhance Compliance Efforts This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit www.minimumcomp.com/subscribe

This Day in Legal History: Carlin's Seven Dirty Words Get to SCOTUSOn July 3, 1978, the US Supreme Court delivered a landmark decision in FCC v. Pacifica Foundation, affirming the Federal Communications Commission's (FCC) authority to reprimand New York radio station WBAI for airing George Carlin's "Seven Dirty Words" comedy routine. The 5-4 ruling centered on Carlin's sketch, which listed words inappropriate for public broadcast. The Court held that the FCC could regulate indecent material on public airwaves during times when children might be listening. Justice John Paul Stevens, writing for the majority, emphasized that broadcast media have unique accessibility to children and thus require special considerations. This ruling underscored the government's role in safeguarding public morality on airwaves, distinguishing broadcast media from other forms of communication due to its pervasive presence and accessibility. The decision sparked ongoing debates about free speech and government regulation, influencing policies on broadcasting standards and the permissible content on public airwaves.A federal district court in Kansas has preliminarily blocked an Education Department rule that protects children from discrimination based on gender identity in schools receiving federal funding. Judge John W. Broomes issued the injunction, affecting Alaska, Kansas, Utah, and Wyoming. This rule, which extends Title IX protections to include sexual orientation and gender identity, has now been blocked in 14 states, following similar injunctions last month.Judge Broomes, appointed by Trump, found that the states are likely to succeed in their claim that the Biden Administration exceeded its authority by expanding the definition of sex discrimination. The states argued that the regulation's definition of sexual harassment would suppress the speech of students who believe sex is immutable and binary, and who use biologically accurate pronouns. Broomes agreed, stating that the rule's definition of sex-based harassment is impermissibly vague under the Administrative Procedure Act.This decision is a setback for the Biden Administration's efforts to enhance LGBTQ rights. Since the Supreme Court's 2015 Obergefell v. Hodges decision, which guaranteed same-sex marriage, conservative legal efforts have focused on issues such as transgender bathroom bans, athlete bans, and restrictions on gender-affirming care for minors.The Department of Justice has not yet commented on the ruling. The case, Kansas v. Dep't of Education, is represented by the Kansas Attorney General's Office.Biden's Title IX Transgender Protections Blocked by Kansas JudgeIn light of a recent Supreme Court ruling narrowing a criminal obstruction law, lawyers for Jan. 6 Capitol rioters are preparing to challenge convictions and seek reduced sentences. The Supreme Court's decision requires prosecutors to prove that defendants destroyed or altered documents to convict them under the obstruction statute, impacting over 200 cases related to the Capitol riot.Attorneys have indicated plans to file motions in the US District Court for the District of Columbia to dismiss charges or seek resentencing for clients who did not handle documents, particularly those linked to the Oath Keepers. This move will significantly affect cases where the obstruction charge was the sole felony. Carmen Hernandez, a criminal defense lawyer, anticipates various creative legal arguments in response to the ruling.The Supreme Court's 6-3 decision on June 28, which favored Capitol rioter Joseph Fischer, has set a new precedent for interpreting the obstruction statute, originally enacted to address evidence destruction post-Enron scandal. This ruling is a setback for federal prosecutors who had heavily relied on the statute to charge participants in the Capitol attack. Elizabeth Franklin-Best, appealing for Oath Keepers' leader Stewart Rhodes, expects the ruling to substantially impact his sentence, as he was also convicted of seditious conspiracy.Several attorneys for other Jan. 6 defendants have indicated intentions to seek relief based on the Fischer ruling. The DC courts will likely face an influx of filings for years. The broader immediate impact is somewhat limited as only 249 out of over 1,400 charged individuals were affected by the statute, with 52 cases having obstruction as the only felony.The Justice Department is still evaluating the ruling's implications, and early signals suggest prosecutors might not concede in all cases. Some defense lawyers are preparing to argue that the initial indictments were flawed under the new interpretation. However, outcomes will likely vary, with hurdles for those who pled guilty before the ruling, and effectiveness depending on individual judges and defendants.The Supreme Court's re-interpretation of the obstruction statute, requiring proof of document destruction or alteration, is critical. This change affects the foundation of many convictions and challenges the prosecutorial approach, necessitating a reassessment of cases and potentially leading to significant legal revisions and reductions in sentences.Jan. 6 Rioters to Request Relief After Supreme Court RulingUS law firms are quickly capitalizing on recent Supreme Court decisions that limit federal agency powers. Within hours of these rulings, firms began sending updates and hosting webinars to explain the implications to their clients. The Supreme Court's decisions, made over three days, restrict agencies' use of internal judges, overturn the Chevron deference principle (which required courts to defer to agency interpretations of ambiguous laws), and revive challenges related to statute limitations, potentially leading to more lawsuits over old regulations.Experts believe these rulings will significantly boost administrative law challenges, particularly benefiting firms that frequently contest federal regulations. Many lawyers have reported a surge in client inquiries, noting that the end of Chevron deference might lead businesses to pursue more litigation due to increased chances of success. The statute of limitations decision is also expected to result in more legal actions, though some attorneys predict a gradual increase rather than an immediate surge in new cases.Some attorneys highlight that the post-Chevron landscape is creating uncertainty and questions among clients across various industries. There is an expectation that while some companies may adopt a more aggressive litigation strategy, others might prefer lobbying to challenge regulations, as many corporate clients are cautious about escalating legal expenses.Overall, the Supreme Court's rulings are reshaping the legal environment, prompting law firms to guide clients through this evolving landscape and capitalize on emerging opportunities.US law firms smell opportunity as Supreme Court guts agency powers | ReutersIn my column, I argue that the IRS's shift to a broader audit mandate for all high-income taxpayers could undermine tax compliance improvements. The IRS needs to reassess and refine its audit strategies to optimize resources and maximize compliance, particularly among the wealthiest individuals. I propose a hybrid audit strategy that ensures nearly 100% audit coverage for the top 1% of income earners, with progressively lower rates for lower high-income brackets. This approach would be more effective than the current broad mandate, which lacks specific metrics for measuring success and could fail to capture significant non-compliance.Previously, the IRS had a directive to audit at least 8% of returns for individuals with incomes over $10 million, which was a focused and measurable effort. The new policy, however, aims for broader scrutiny without clear methods to gauge effectiveness, raising concerns about its impact on audit rates and overall compliance. My suggested hybrid approach would combine the precision of the former directive with a progressive audit threshold system, concentrating IRS resources where they can yield the highest return.Focusing on high-income taxpayers with the greatest potential for avoidance ensures better deterrence of tax evasion. The Treasury Inspector General for Tax Administration's report supports this, showing that audits of high-income individuals are more productive. By defining specific audit coverage thresholds for the highest income brackets, the IRS can optimize its efforts and expand compliance audits down the income brackets.The critical legal element here is the need for targeted and measurable audit strategies. Specific metrics are essential to ensure the IRS's audit efforts are efficient and effective, allowing the agency to allocate resources where they can achieve the greatest impact on revenue and compliance.IRS Hybrid Audit Approach Best Bet to Scrutinize Rich Taxpayers This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit www.minimumcomp.com/subscribe

The conversation with Damien Brady, Vice President of Research for the National Taxpayers Union Foundation, focused on the recent report by the Treasury Inspector General for the Tax Administration about the IRS's failure to effectively audit high net worth individuals. The report found that the examinations were unproductive and that the IRS was shifting its focus to individuals with $400,000 or more. The conversation also touched on the need for IRS reform, the impact of tax complexity, and the challenges of balancing the federal budget. Main Street Matters is part of the Salem Podcast Network - new episodes debut every Wednesday & Friday. For more visit JobCreatorsNetwork.com See omnystudio.com/listener for privacy information.

The IRS has made progress in customer service, especially for people calling its Taxpayer Assistance Centers (TACs). But the TACs still have issues, such as difficulty in dealing with calls to change appointments. In fact, the Treasury Inspector General for Tax Administration (TIGTA) has a few recommendations for the IRS in this regard. For details, Federal Drive Host Tom Temin talked with the Director of TIGTA's management and exempt organization audits, Carl Aley. Learn more about your ad choices. Visit megaphone.fm/adchoices

The IRS has made progress in customer service, especially for people calling its Taxpayer Assistance Centers (TACs). But the TACs still have issues, such as difficulty in dealing with calls to change appointments. In fact, the Treasury Inspector General for Tax Administration (TIGTA) has a few recommendations for the IRS in this regard. For details, Federal Drive Host Tom Temin talked with the Director of TIGTA's management and exempt organization audits, Carl Aley. Learn more about your ad choices. Visit podcastchoices.com/adchoicesSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

This Day in Legal History: House Un-American Activities Committee Probes HollywoodOn May 29, 1947, the House Un-American Activities Committee (HUAC) began its infamous investigation into communist influence in the Hollywood film industry. This marked the start of a series of public hearings aimed at identifying and eliminating alleged communist subversion in American cultural institutions. The HUAC's probe into Hollywood was driven by the fear that communist ideology was being subtly propagated through films and entertainment, which were seen as powerful tools for shaping public opinion.The investigation led to the subpoena of numerous writers, directors, and actors, many of whom were questioned about their political beliefs and associations. The most notable outcome of these hearings was the creation of the "Hollywood Ten," a group of screenwriters and directors who refused to answer the committee's questions, citing their First Amendment rights. These individuals were subsequently blacklisted by the industry, effectively ending their careers in Hollywood.The HUAC hearings had a chilling effect on the film industry, leading to widespread censorship and self-policing by studios to avoid further scrutiny. This period is often remembered as a dark chapter in American history, reflecting the intense paranoia and political repression of the early Cold War era. The Hollywood blacklist persisted for many years, and its repercussions were felt long after the initial hearings concluded.The HUAC's actions in 1947 set a precedent for future investigations into alleged subversive activities, influencing American political and cultural landscapes for decades. This event underscores the tension between national security concerns and the protection of civil liberties, a balance that continues to be a contentious issue in modern times. The Hollywood probe by HUAC remains a significant example of how fear and suspicion can lead to widespread violation of individual rights and freedoms.PwC has become the first reseller of OpenAI's ChatGPT Enterprise, aimed at business use, marking a significant step in the adoption of AI tools in the corporate world. This agreement will also make PwC the largest user of this AI product. The deal is part of a broader trend among Big Four accounting firms, which are increasingly incorporating AI into their services. PwC had previously announced a $1 billion investment over three years to integrate AI into its operations, enhancing the efficiency of tasks such as auditing and tax accounting.Joe Atkinson, PwC's chief products and technology officer, highlighted that the firm's experience with AI will help them effectively market these tools to clients, offering significant advantages over traditional methods. PwC's substantial deployment of ChatGPT Enterprise will set it apart in the market, as the firm aims to lead clients through their AI adoption journey. As of now, PwC's largest clients are already engaging with generative AI for various functions, including marketing and customer service, utilizing advanced AI capabilities that surpass traditional chatbots. The rest of the Big Four firms—Deloitte, Ernst & Young, and KPMG—are also making substantial investments in AI, forming partnerships with major tech companies like Microsoft, Google, and IBM to enhance their services.PwC First to Resell OpenAI's ChatGPT Enterprise to ClientsYesterday, May 28, 2024, a federal judge in Texas transferred a lawsuit challenging the Consumer Financial Protection Bureau's (CFPB) rule on credit card late fees to Washington, D.C. This decision marks the second time U.S. District Judge Mark Pittman has moved the case from his court in Fort Worth, following a federal appeals court's recent decision to relinquish jurisdiction. The CFPB seeks to defend a rule capping credit card late fees at $8, a key component of President Joe Biden's administration's effort to combat "junk fees."The transfer to Washington, D.C. could benefit the CFPB, as it is now in a jurisdiction where the agency is based. This case involves major plaintiffs, including the U.S. Chamber of Commerce and the American Bankers Association, who are challenging the rule. The CFPB has argued that the rule is necessary, citing that credit card issuers collected over $14 billion in late fees in 2022, with an average fee of $32.Judge Pittman, a Trump appointee, previously blocked the rule from taking effect, basing his decision on a 2022 ruling by the 5th U.S. Circuit Court of Appeals, which found the CFPB's funding structure unconstitutional. However, the Supreme Court overturned this ruling on May 16. The CFPB plans to seek the removal of Pittman's injunction, although the plaintiffs have other arguments to prevent the rule from being enforced. The transfer is seen as a strategic move to place the case in a more favorable venue for the CFPB.Texas judge again transfers lawsuit over card late fee rule to Washington, D.C. | ReutersIllinois is on the verge of implementing a progressive tax structure on sports wagering, which could see tax rates as high as 40%. The Illinois General Assembly has passed an amendment to a bill that introduces a graduated tax rate for sports wagering receipts. Businesses with sports wagering receipts between $30 million and $50 million will face a minimum tax rate of 20%, while those with receipts exceeding $200 million will be taxed at the maximum rate of 40%.This progressive tax structure is a pioneering approach in the sports betting industry and could serve as a model for other states considering the legalization and taxation of sports betting. Illinois aims to maximize state revenue from this rapidly growing industry without stifling its competitiveness. The state's approach balances the need for significant tax income with maintaining a healthy market.Illinois's model contrasts with other states like New York, which has a flat 51% tax on gross gaming revenues. Illinois's graduated system introduces a level of progressivity, that is higher rates for entities with higher revenues, potentially influencing other states to adopt similar frameworks. For instance, New Jersey is considering raising its sports betting taxes to a uniform 30%, it remains to be seen if the Garden State may consider an Illinois-style graduated rate system. Revenue from vice taxes, including those on gambling, is crucial for states facing budget deficits. However, it's essential that the revenue generated from such taxes be allocated effectively to offset the social costs associated with these activities. In the case of sports wagering, funds should support public health initiatives, addiction treatment programs, and educational campaigns.Illinois's progressive tax on sports wagering aims to balance industry growth with regulation. If the revenue is used appropriately, Illinois could become a comprehensive model for other states to follow, focusing not only on revenue potential but also on mitigating the larger social impacts of increased sports betting.Illinois Eyeing Sports Wagering Tax Up To 40%In my column this week, I address the urgent need for a proactive approach to combat biofuel tax credit fraud. A recent audit by the Treasury Inspector General for Tax Administration highlighted significant flaws in the administration of these credits, revealing that many are awarded without proper documentation. This system's reactive nature allows fraud to flourish, as the IRS can only issue deficiency notices after fraudulent claims are filed.Biofuel tax credits, intended to promote renewable fuel production and use, have been a cornerstone of U.S. energy policy since 2004. However, the current law's limitations prevent the IRS from denying credits at the time of filing, enabling schemes that exploit information delays. To combat this, the IRS should be given the authority to enforce registration requirements and deny non-compliant claims proactively.Implementing a track-and-trace system could also help by uniquely identifying and tracking each gallon of biofuel through its production and distribution journey. This would create multiple checkpoints, making it challenging for fraudsters to repeatedly claim credits on the same fuel.Past fraud cases, such as the Washakie biodiesel fraud and schemes involving Gen-X Energy Group, illustrate how easy it is to exploit the system. Fraudsters cycle biofuel between refineries and distribution points, claiming new credits each time, or recycle biodiesel back into feedstock to produce more biodiesel for additional credits.The IRS is currently hampered by Section 4101 of the tax code, which allows taxpayers to claim credits without meeting registration requirements. This loophole leaves the IRS to address fraud only after it has occurred, often too late to recover lost funds.A track-and-trace system, used successfully in other industries, could ensure that each gallon of biofuel is tracked from refinement to consumption, making it harder for fraudulent activities to go unnoticed. By assigning unique identifiers and logging each step in a database, this system would create an auditable chain of custody.Addressing these vulnerabilities requires legislative action to empower the IRS to deny fraudulent claims at the point of filing. Strengthening enforcement capabilities and closing existing loopholes will help safeguard the integrity of biofuel tax credits and ensure they serve their intended purpose.To Combat Biofuel Tax Credit Fraud, We Need a Proactive Approach Get full access to Minimum Competence - Daily Legal News Podcast at www.minimumcomp.com/subscribe

About ten years ago, news outlets began reporting on an outbreak of “Identity Theft” scams targeting the IRS and our tax returns. In that season the office of the Treasury Inspector General for Tax Administration released a report that “confirmed IRS identity theft cases, and these returns accounted for additional losses estimated to be more than $5.2 billion.” That was for just one year. While the IRS has gotten better at detecting and prosecuting these false tax returns, “Identity Theft” continues to be a growing problem. In April, AARP reported that, “American adults lost a total of $43 billion to identity fraud in 2023”. As disconcerting as those facts are, there is another, even more sinister kind of “Identity Theft” that has been happening for over two-thousand years. It is Satan's robbing followers of JESUS of the riches that come with our true “Identity in Christ”. JESUS warned His followers about this and promised to send the HOLY SPIRIT to “guide us into all truth” regarding Satan's destructive plans. In this meassage, Pastor Joe Still teaches how to live under the HOLY SPIRIT's Identity Theft Protection Plan.

(4/25/24) - In today's Federal Newscast: Assistant U.S. attorneys at DOJ are calling for more flexibility and consistency in their telework options. The Treasury Inspector General for Tax Administration helped stop a $3.5 billion fraud scheme targeting pandemic relief funds. And GSA will release a new buying guide this week to help agencies purchase generative AI capabilities. Learn more about your ad choices. Visit podcastchoices.com/adchoicesSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

(4/25/24) - In today's Federal Newscast: Assistant U.S. attorneys at DOJ are calling for more flexibility and consistency in their telework options. The Treasury Inspector General for Tax Administration helped stop a $3.5 billion fraud scheme targeting pandemic relief funds. And GSA will release a new buying guide this week to help agencies purchase generative AI capabilities. Learn more about your ad choices. Visit megaphone.fm/adchoices

Let's face it, the IRS is not necessarily the most popular agency. But while most just grouse about having to deal with it, some take it to an even more harmful level, by making and acting on threats of physically harming IRS agents. So what processes are in place for agents to report these people? A recent audit by the Treasury Inspector General for Tax Administration (TIGTA), looked to answer that question. To learn what it found, Federal Drive Executive Producer Eric White spoke with Kent Sagara, who is the Acting Manager of TIGTA's Office of Inspections and Evaluations. Learn more about your ad choices. Visit megaphone.fm/adchoices

Let's face it, the IRS is not necessarily the most popular agency. But while most just grouse about having to deal with it, some take it to an even more harmful level, by making and acting on threats of physically harming IRS agents. So what processes are in place for agents to report these people? A recent audit by the Treasury Inspector General for Tax Administration (TIGTA), looked to answer that question. To learn what it found, Federal Drive Executive Producer Eric White spoke with Kent Sagara, who is the Acting Manager of TIGTA's Office of Inspections and Evaluations. Learn more about your ad choices. Visit podcastchoices.com/adchoicesSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

An IRS watchdog is calling on the agency to make better use of pay incentives already available to stay on track with plans to build up its workforce. The IRS has more than a dozen pay incentives available to recruit and retain employees with skills that are essential to its operations. But the Treasury Inspector General for Tax Administration, in a recent report, found the IRS only used these pay incentives to recruit, retain or relocate about 1,400 employees between fiscal 2019 and 2022. The agency, during this period, made a total payout of $1.5 million through these incentives. Learn more about your ad choices. Visit megaphone.fm/adchoices

An IRS watchdog is calling on the agency to make better use of pay incentives already available to stay on track with plans to build up its workforce.The IRS has more than a dozen pay incentives available to recruit and retain employees with skills that are essential to its operations.But the Treasury Inspector General for Tax Administration, in a recent report, found the IRS only used these pay incentives to recruit, retain or relocate about 1,400 employees between fiscal 2019 and 2022.The agency, during this period, made a total payout of $1.5 million through these incentives. Learn more about your ad choices. Visit podcastchoices.com/adchoicesSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The IRS has a detailed plan for achieving a state of zero trust on its information technology networks, which is something all agencies are under obligation to do for cybersecurity. But the IRS needs to put the right people and money behind the plan, … according to an audit by the Treasury Inspector General for Tax Administration (TIGTA). For more, Federal Drive Host Tom Temin spoke with TIGTA's Director of Enterprise Services, Jena Whitley. Learn more about your ad choices. Visit megaphone.fm/adchoices

While the politicians debate how much money it should have, the IRS cranked dutifully away this past tax filing season. The agency says it operated on schedule for the first time since 2020, the advent of the pandemic. The Treasury Inspector General for Tax Administration tracked the season closely. With what it found, the deputy IG for audit, Diana Tengesdal. Learn more about your ad choices. Visit megaphone.fm/adchoices

While the politicians debate how much money it should have, the IRS cranked dutifully away this past tax filing season. The agency says it operated on schedule for the first time since 2020, the advent of the pandemic. The Treasury Inspector General for Tax Administration tracked the season closely. With what it found, the deputy IG for audit, Diana Tengesdal. Learn more about your ad choices. Visit podcastchoices.com/adchoicesSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

It's tax season and we want you to avoid being a victim of tax fraud. As we record this episode, we are a week away from tax day. However the information in this episode is good year round. So if you hear it in a best of episode, it still applies. Since 2018, more than 75,000 victims have lost $28 million to scammers impersonating the IRS over the phone, email, texts and more. That's what the FTC says (the Federal Trade Commission) which enforces consumer protection laws, including those against fraud. The true number is certainly higher because of victims who don't make reports. What the IRS won't do 1)The IRS won't call you. 2)The IRS won't text you. 3) The IRS won't email you. 4)The IRS won't call and threaten that the police are going to arrest you. 5) The IRS won't call and ask for an immediate payment on a prepaid debit card, gift card or wire transfer. 6) The IRS won't threaten to suspend your license. The IRS can't suspend your license. 7) The IRS won't say your account is on hold. 8)The IRS won't text with a message “Unusual Activity Report” with a link to click.  9) The IRS won't threaten deportation. Why? The IRS cannot revoke immigration status. 10)The IRS won't threaten to suspend your Social Security Number. They can't do that. 11)The IRS won't email you and say “We recalculated your tax return and you need to click this link to claim the higher refund.” Why? The IRS doesn't email. 12)The IRS will not email you, text you or call you saying 'This is the Bureau of Tax Enforcement, and we're putting a lien or levy on your assets'. Why? The IRS doesn't email , text or in general call.There is no Bureau of Tax Enforcement. 13) The IRS won't email or text you 'Click here to see some details about your tax refund'. Why? The IRS doesn't email or text. These emails or texts are intended to trick the reader into clicking on links that lead to a fake IRS-like website and expose the user to malware. The IRS does not use email, text messages or social media to discuss tax debts or refunds with taxpayers. How do I know this? I'm quoting the IRS website.  What you should know about these calls 1)Caller ID can be faked. Just because your Caller ID says IRS, it doesn't mean it's the IRS. 2)Ask anyone claiming to be the IRS for their name, badge number and callback number. 3)You can verify if someone is real by calling the Treasury Inspector General for Tax Administration at 800-366-4484. Link to report a scam here. .https://www.tigta.gov/reportcrime-misconduct How the IRS will contact you if they need to contact you 1)They will send a letter. 2)They will send another letter. 3) If several letters go unanswered, they might call or they could come to your house.4) BUT THE IRS WILL ONLY COME TO YOUR HOUSE AFTER THEY HAVE CALLED FIRST TO SET UP AN APPOINTMENT AND THEY WILL ONLY CALL AFTER SEVERAL ATTEMPTS BY MAIL.  Let's say you owe unpaid taxes 1)You can appeal if you think the IRS is wrong. 2)If you do owe money, you can work out a payment plan.  IRS at 800-829-1040.  IRS Dirty Dozen  List https://www.irs.gov/newsroom/irs-wraps-up-2023-dirty-dozen-list-reminds-taxpayers-and-tax-pros-to-be-wary-of-scams-and-schemes-even-after-tax-season Great article at Nerd Wallet https://www.nerdwallet.com/article/taxes/avoid-irs-scams#:~:text=IRS%20scams%20involve%20criminals%20impersonating,you%20don't%20actually%20owe. Episode 508 of Dads Daughters and Dollars (Don't Be Scared of the IRS, My Story) https://podcasts.apple.com/us/podcast/ep-508-dont-be-scared-of-the-irs-my-story/id1523622122?i=1000576371700

The IRS has been making progress toward eliminating a longstanding problem. Namely, companies who are delinquent in their federal taxes, but that nevertheless receive federal contracts. For the most recent figures, Federal Drive host Tom Temin talked with LaToya George, the director of the Office of Audits at the Treasury Inspector General for Tax Administration.

"For my friends, everything; for my enemies, the law" is what the latest report from the Treasury Inspector General for Tax Administration shows. Basically, you can be delinquent on taxes and still get government money if you're the right type - or else you get a dorky new hire IRS agent kicking down your door. Plus, the Supreme Court refuses to hear a challenge to the ATF bump stock ban - what dangerous precedent that sets. Finally, a noted historian explains the ancient hatred underlying the conflict between Armenia and Azerbaijan.

We've all heard the horror stories about the mess at the IRS. We've heard how many of their printers and copiers don't work because they're out of ink. We've heard about how old and unreliable their computer system is, and we've heard how multiplied thousands of refunds have been delayed as the agency deals with a massive backlog of unprocessed returns.What we didn't know until just recently is that one of the ways the IRS chose to deal with that backlog was simply to throw away thirty million unprocessed paper returns. In this edition of FAIRtax Power Radio, the Guys look at a report from the Treasury Inspector General for Tax Administration that details yet another reason why we need to put the IRS out of business by replacing the income tax with the FAIRtax.

Monday May 16, 2022 - The TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION recently conducted an audit and issued a report on May 4, 2022 - A Service-Wide Strategy Is Needed to Address Challenges Limiting Growth in Business Tax Return Electronic Filing. "This audit was initiated because the IRS's continued inability to process backlogs of paper-filed tax returns contributed to management's decision to destroy an estimated 30 million paper-filed information return documents in March 2021. The IRS uses these documents to conduct post-processing compliance matches to identify taxpayers who do not accurately report their income." The IRS destroyed 30 Million information return documents! These information returns are required documents - taxpayers shoulder the cost and burden of producing these documents in a timely fashion. And the IRS destroyed 30 million. Don't worry - says the IRS - “There were no negative taxpayer consequences as a result of this action,” “Taxpayers or payers have not been and will not be subject to penalties resulting from this action.” So, it is important that information returns are filed - and information returns should be expanded - but, if they are destroyed, there are no consequences. Attorney Steven A. Leahy reviews this latest TIGFTA report today on Today's Tax Talk. https://www.fool.com/the-ascent/taxes/articles/irs-destroyed-30-million-paper-tax-documents-due-to-backlog/ https://www.cnbc.com/2022/05/13/joe-biden-asked-to-replace-irs-chief-charles-rettig-over-tax-document-destruction.html https://www.accountingtoday.com/news/irs-blasted-for-destroying-millions-of-information-returns-due-to-backlog --- Send in a voice message: https://anchor.fm/steven-leahy1/message

According to the FBI, cybercrime has increased by 300% since the start of the COVID-19 pandemic. Now, more crucial than ever, tax practitioners need to remain vigilant and one step ahead of cybercriminals in the everchanging world of data security. Listen in to a frank discussion on cybersecurity with April Walker, CPA, CGMA, Lead Manager — AICPA Tax Section and special guest Byron Shinn, CPA, Partner — Carr, Riggs & Ingram, LLC, on this episode of The Tax Section Odyssey. What you'll learn in this episode Is a cyberattack a real threat? (0.43) What does a data security plan look like (3.15) How often should you review a data security plan (8.16) Cybersecurity insurance considerations (10.14) Attorney recommendations to help in the cybersecurity arena (13.55) Real-life examples of CPA firm concerns and data security plan insecurities (16.29) The why and how of independently testing network security (16.47) Example of encryption hack; ransomware and cryptocurrency (18.51) Lack of cyberattack reporting and high-profile cases (20.40) Important takeaways for cybersecurity (22.31) A page from Byron's travel journal (24.38) AICPA resources Cybersecurity resources — Access additional resources on our Cybersecurity Resource Center to help organizations and businesses, including CPA firms, assess risks. Best Practices for Keeping Client Data Secure — Learn about proactive data security tips for practitioners to implement to keep client data protected from identity theft. Gramm-Leach-Bliley Act Information Security Plan Template — The Gramm-Leach-Bliley Act requires financial institutions to have a written information security plan. Use this template to document your firm's policies. Identity Theft Checklist — Provide this checklist to clients to help them appropriately and efficiently address identity theft issues. Letter to Advise Client on Tax-Related Identity Theft — Notify a client of a potential tax-related identity theft and/or outline the steps that can be taken to address the issue. Letter to Client to Protect Against Tax-Related Identity Theft — Help clients take steps to secure their personal information and prevent identity theft. Tax Identity Theft Toolkit — CPA tax practitioners need to combat tax-related identity theft daily as it has become pervasive globally. Use this toolkit to tackle tax identity theft issues with your clients. Other resources Get An Identity Protection PIN (IP PIN) — An IP PIN is a six-digit number that prevents someone else from filing a tax return using your Social Security number or Individual Taxpayer Identification Number. PTIN Requirements for Tax Return Preparers — Anyone who prepares or assists in preparing federal tax returns for compensation must have a valid 2022 PTIN before preparing returns. Publication 1345, Handbook for Authorized IRS e-file Providers of Individual Income Tax Returns – This guide addresses the rules and requirements for participation in IRS e-file by authorized IRS e-file providers filing individual income tax returns and related forms and schedules. Publication 4557, Safeguarding Taxpayer Data — This guide seeks to help tax professionals to understand basic security steps and how to take them as well as recognize the signs of data theft, how to report data theft and understand and comply with the FTC Safeguards Rule. Tax Preparer Tips for Hiring a Cybersecurity Professional — The IRS provides tips for tax preparers to consider when evaluating and selecting a cybersecurity professional. Treasury Inspector General for Tax Administration (TIGTA), IRS Impersonation Scam — Fill out this online form to report an IRS impersonation scam. Note that a taxpayer may also call (800) 366-4484 to report the scam. What to Do After a Tax Professional Data Compromise — This IRS video gives steps tax professionals should take if they are the victim of a data compromise. Why Tax Professionals Need a Security Plan — In this IRS video, learn the importance of tax professionals establishing data security plan. Keep your finger on the pulse of the dynamic and evolving tax landscape with insights from tax thought leaders in the AICPA Tax Section. The Tax Section Odyssey podcast includes a digest of tax developments, trending issues and practice management tips that you need to be aware of to elevate your professional development and your firm practices. This resource is part of the robust tax resource library available from the AICPA Tax Section. The Tax Section is your go-to home base for staying up to date on the latest tax developments and providing the edge you need for upskilling your professional development. If you're not already a member, consider joining this prestigious community of your tax peers. You'll get free CPE, access to rich technical content such as our Annual Tax Compliance Kit, a weekly member newsletter and a digital subscription to The Tax Adviser.

The TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION (TIGTA) conducts a yearly audit to "assess the adequacy and security of the IRS's information technology." Problems were reported in the IRS's handling of the privacy of taxpayer data, access controls, system environment security, information system boundary components, network monitoring and audit logs, disaster recovery, roles and responsibilities, and separation of duties, as well as security policies, procedures, and documentation. Two of five function areas of the IRS's Cybersecurity Framework were rated “not effective,” namely its ability to identify its cybersecurity risks, and its ability to detect cybersecurity incidents. In both areas, TIGTA said that the IRS had defined policies, procedures and strategies, but that they were not consistently implemented, leaving taxpayer information at risk. Attorney Steven A. Leahy discusses the report and its impact on taxpayer data. --- Send in a voice message: https://anchor.fm/steven-leahy1/message

Today I'm talking to Special Agent David Renfro, a federal agent for the Treasury Department.  David's diverse career took him from being a Federal Air Marshal right after 9/11 to working on joint terrorism task forces and eventually as an investigator with the Treasury Inspector General for Tax Administration, a job he calls the best kept secret in Federal law enforcement.  All along the way he had opportunities to do a wide variety of training at FLETC in Glynco, Georgia, a federal training center he recently returned to  as a staff member and program manager.This episode gives you a lot of wisdom from David as he talks about the twists and turns of his career. He explains how he decided to make each move and how to prepare for the next step in his career.  And hang on to the end where David comments on how he timed his latest career move based on his family dynamics.Resources: Man Alive, by Patrick MorelyMusic is by Chris Haugen from the YouTube Audio Library and the KCKPD Pipes and Drums.Hey Chaplain Podcast Episode 016

In today's Federal Newscast, the Treasury Inspector General for Tax Administration says a high number of IT workers at the IRS are eligible to retirement.

The Treasury Inspector General for Tax Administration releasing a report covering information about the refunds for the $10,200 unemployment adjustment instituted by the American Rescue Plan Act.➡️ My Video on Who Has to Amend Their Return for the $10,200 Unemployment Compensation Adjustment: https://youtu.be/HyZCv9-1f38​IRS Tax Relief:➡️ Do you owe the IRS more than $10,000 in back taxes?  Email me at taxrelief@loganallec.com and let me know how much you owe by year.➡️ TIGTA Report (Interim Results of the 2021 Filing Season): https://www.treasury.gov/tigta/auditr...

Christina Ho is joined by prominent government leaders Larry Koskinen and Michael Peckham to discuss how AI is being applied to improve $700B  worth of grantmaking. Listen as they discuss specific business challenges in grantmaking, opportunities in the grant space to leverage AI and other technology, and what some of their biggest lessons learned and motivators are after over 35 years in the government. Larry Koskinen has served the public interest for more than forty years through executive positions in the federal government, commercial professional services firms, and non-profit organizations—both within the United States and abroad. He is a member of the Federal Senior Executive Service, and is currently serving as Chief Risk Officer at the United States Department of Housing and Urban Development, where he leads HUD's departmental enterprise and fraud risk management programs. Prior to joining HUD, he served as an executive in the federal Inspector General community, managing data analytics, finance, human capital, information technology, strategic planning and support operations at the Treasury Inspector General for Tax Administration and the U.S. Postal Service Office of Inspector General. He was Management Officer for Peace Corps International Operations and also Chief Business Architect. He served as a Peace Corps Volunteer in the Philippines. Michael Peckham is the Chief Financial Officer and Director of the Financial Management Portfolio for the DHHS Program Support Center. He is a champion for positive change, creating new approaches to old problems through human-centered design, agile methodologies, microservices architecture, and applying emerging technology to promote data driven business decisions. Mr. Peckham has successfully led multiple agency-wide initiatives including the ReImagine HHS ReInvent Grants Management transformation and the HHS DATA Act initiatives.

Oyindamola Akinrinola, a 23-year-old Nigerian citizen has been convicted for her role in fraud schemes that targeted victims across the United States.According to the U.S. Attorney's Office, 23-year-old Oyindamola Akinrinola of Lawrence has pleaded guilty in federal court for her role“Akinrinola and her co-conspirator in Nigeria victimized individuals, several elderly, through a variety of online scams,” said U.S. Attorney Stephen McAllister. “She now faces time in federal prison for her crimes. We will continue to work with our law enforcement partners to prioritize the investigation and prosecution of fraud schemes like these, no matter where they originate. I also take this conviction as an opportunity to reiterate to all Kansans the vulnerability of our senior citizens to scams and con artists, who prey upon them. We must all be vigilant to protect our parents, grandparents, elderly relatives, friends and neighbors from such frauds and fraudsters.”“Scams such as lottery, online dating, and impersonating Internal Revenue Service (IRS) employees continue to be a major threat to taxpayers, especially senior citizens,” said J. Russell George, the Treasury Inspector General for Tax Administration. “Scammers will use a variety of techniques to cheat taxpayers. TIGTA will do everything within its power to ensure that those involved in the impersonation of IRS employees are prosecuted to the fullest extent of the law. We appreciate the assistance of the U.S. Department of Justice in this effort.”According to U.S. Attorney McAllister, the charges, and other information presented in court: Akinrinola, a Nigerian national who was granted legal permanent residency in the United States in 2018, was part of a scheme to defraud U.S.-based victims out of money and property. Akinrinola's co-conspirator in Nigeria orchestrated several scams, such as tricking victims into believing they were eligible for fictitious awards or establishing purported (but false) romantic relationships with victims and exploiting their affections.The co-conspirator in Nigeria directed victims to send money to Akinrinola. While in Kansas as a college student, she received funds from the scam victims—in amounts ranging from hundreds of dollars to as much $20,000—via wire transfers, money orders, financial applications, Wal-Mart money grams, Western Union, the United States Postal Service, and various other means. Akinrinola kept a portion for herself as her reward and sent the bulk of the funds to her co-conspirator in Nigeria. To do so, she generally used the Sendwave, WorldRemit, or Boss Revolution mobile applications.The following are just a few examples of the scams Akinrinola and her co-conspirator perpetrated:Victims 1 and 2 received Facebook messages from an individual who purported to be with FedEx. They were told they won a $130,000 grant and that FedEx would deliver the cash after Victim 2 paid a “case file fee.” Victim 2 then deposited $2,500 cash into a Bank of America account for the fee. Victim 2 was then told she needed to pay another $1,000 for a “winning certificate.” Because Victims 1 and 2 did not have $1,000, they allowed the purported Facebook account holder to purchase three iPhones through their Verizon account. Victims 1 and 2 were instructed to mail the iPhones to Akinrinola (in Kansas). Victim 2 then received an image from the Facebook account claiming to be from the IRS and requesting $15,000 before release of the grant funds.Victim 3 was the victim of an online dating scam and lost approximately $8,000, of which he sent $900 to Akinrinola via a kiosk at a Walgreens store.Victim 4 also was the victim of an online dating scam. Victim 4 lost approximately $3,815, and he sent $710 to Akinrinola. Victim 4 believed the money was for musical instruments for children in Nigeria.Victim 5 was the victim of a Facebook scam. A man on Facebook, known to Victim 5 as “Steven,” told Victim 5 that he was in the military and needed money, and Victim 5 sent $1,000 to Akinrinola in this scam.Sentencing is scheduled for June 15, 2021 at 9:00 am, before U.S. District Judge Holly L. Teeter.

Bob and Eric sit down with co-founder and owner of Dope CFO, Naomi Granger to discuss the importance of proper accounting for cannabis business, the recently released Treasury Inspector General tax guidance for the marijuana industry, and new developments on the SAFE Banking Act.  Hoban Law Group created The Hoban Minute to get closer to our network, highlight the many voices that make up this multifaceted global industry and provide a broader perspective on cannabis, hemp, and marijuana international markets.  Contact Hoban Law Group for all your cannabusiness legal needs.

Earlier this year the Treasury Inspector General published their 53-page report on how the IRS handles cash-based businesses and their findings for the cannabis industry. There was some pretty juicy info in there including that nearly 60% of California cannabis businesses (if audited) would be out of compliance with 280E.  Or that 26% of cannabis […] The post Inspector General Report on the IRS and Cannabis Businesses appeared first on GreenGrowth CPAs.

Earlier this year the Treasury Inspector General published their 53-page report on how the IRS handles cash-based businesses and their findings for the cannabis industry. There was some pretty juicy info in there including that nearly 60% of California cannabis businesses (if audited) would be out of compliance with 280E.  Or that 26% of cannabis […] The post Inspector General Report on the IRS and Cannabis Businesses appeared first on GreenGrowth CPAs.

**Click Here to Download Report Here** Earlier this year the Treasury Inspector General published their 53-page report on how the IRS handles cash-based businesses and their findings for the cannabis industry. There was some pretty juicy info in there including that nearly 60% of California cannabis businesses (if audited) would be out of compliance with […] The post Inspector General Report on the IRS and Cannabis Businesses appeared first on GreenGrowth CPAs.

In this episode I show you how to spot a FAKE stimulus check using information directly from the Secret Service.I cover:2:16 - the memo line and why you should NEVER see the word "stimulus" on your stimulus check3:39 - the Treasury Seal to the upper right of the Statue of Liberty4:22 - the special bleeding security ink used on the Seal4:58 - the watermark5:16 - the ultraviolet overprinting6:12 - microprinting on the back7:16 - what you should do if you think you received a fake stimulus checkWhere the Government Wants You to Report a Fake Stimulus Check:- Local Law Enforcement- A Secret Service Field Office: https://www.secretservice.gov/field_o...- Department of the Treasury: https://home.treasury.gov/- Office of Inspector General: https://oig.hhs.gov/- Treasury Inspector General for Tax Administration: https://www.treasury.gov/tigta/contac...- FBI Internet Crime Complaint Center: https://www.ic3.gov/- National Center for Disaster Fraud (NCDF): https://www.justice.gov/disaster-fraud- Internal Revenue Service (IRS): https://www.irs.gov/- Federal Trade Commission (FTC): https://www.ftccomplaintassistant.gov/Source: https://www.secretservice.gov/

They can't compare to piano-playing felines, but IRS videos do have their share of online followers. Yes, the IRS has a YouTube channel of short, highly formatted videos. The Treasury Inspector General for Tax Administration looked into the video program and found few problems, actually. Here with details, Acting Assistant Inspector General for Management Services Heather Hill joined Federal Drive with Tom Temin.

In today's Federal Newscast, the Treasury Inspector General for Tax Administration finds the I-R-S doesn't always follow its own procedures for reviewing and adjudicating cases of missed filings or under-reported income.

The Treasury Department might be losing out on billions in tax revenue legitimately owed by people who make their living in the fast growing gig economy. That's the main finding from a recent audit by the Treasury Inspector General for Tax Administration. Assistant IG Matt Weir joined Federal Drive with Tom Temin for the highlights.

-Trump sounds like a mafia guy, calls for Kim Jong Un to sign “protection” deal -Treasury Inspector General looking into report about missing Michael Cohen suspicious activity records -CFPB payday lending rule survives Congressional Review Act deregulation frenzy -Ajit Pai ripped on for celebrating hugely unpopular Net Neutrality repeal with some of the dumbest right-wingers online -Plus, some of our interview with Arielle Cohen and Adam Shuck, co-chairs of Pittsburgh DSA, on the chapter’s big wins Tuesday Broadcasted from Washington, DC Music courtesy of Adam Fligsten (adamfligsten.com/) Contribute to our Patreon: www.patreon.com/DistrictSentinel/ www.districtsentinel.com Facebook: www.facebook.com/DistrictSentinel/ Twitter: www.twitter.com/TheDCSentinel

Identity thieves are after more than money and credit card numbers. They're also using stolen identities to get a job and leave the real person with the tax bill. It was only recently that the IRS started notifying victims of employment-related identity theft. And a program glitch means many have yet to be told. Russ Martin, assistant inspector general for audit returns processing and account services with the Treasury Inspector General for Tax Administration, joined Federal News Radio's Eric White on Federal Drive with Tom Temin to dive deeper into the details.

Lynn Nichols Federal Tax Update Podcast Feb. 26, 2018, edition   Listen as Lynn Nichols provides commentary on 6 Items pertaining to current developments in U.S. tax law. This week’s topics include: No Plans to Apply Reasonable Compensation Beyond S Corps There are no plans to apply the reasonable compensation exclusion to qualified business income under the new 20 percent passthrough business deduction to entities other than subchapter S corporations, according to a Treasury official. [Tax Notes Today; 2/12/2018]     Tax Equity Industry Struggling to Adapt to TCJA The new tax law’s corporate-friendly changes welcomed by most businesses have left investors and brokers involved in the tax credit financing industry spinning. [Tax Notes Today; 2/14/2018]     IRS to Close Carried Interest ‘Loophole’ Prompted by New Law Fund managers using shell companies to avoid stricter limits on the use of carried interest aren't likely to see the tax benefits they were expecting.   [Tax Notes Today; 2/15/2018]     Statute’s Clear Language Sinks Capital Asset Argument A nonrefundable deposit received as part of a failed real estate transaction can’t be treated as a capital gain, the U.S. Court of Appeals for the Eleventh Circuit held. [Tax Notes Today; 2/15/2018]    Forfeited Deposit From Failed Property Sale Is Not Capital Gain The Eleventh Circuit, affirming the Tax Court, held that a nonrefundable deposit a partnership received in a contract for the sale of property wasn’t entitled to capital gains treatment when the buyer defaulted, finding that the property wasn’t a capital asset under section 1221 because it was used in the partnership’s hotel and restaurant business. [CRI-Leslie LLC et al. v. Commissioner; CA 11; No. 16-17424; 2/15/2018]      TIGTA: IRS Failed to Notify Over 458,000 Identity Theft Victims The IRS did not notify most victims of employment identity theft that their identities were being used by others for employment in 2017 because an IRS programming error limited notification only to new victims, the Treasury Inspector General for Tax Administration said in a February 12 report. [ Treasury Report 2018-40-016; 2/12/2018]   First Circuit Upholds Deficiency Against Engine Parts Dealer The First Circuit, finding no error, affirmed a Tax Court decision that upheld an IRS deficiency determination that reduced a wholesale engine and engine parts dealer’s cost of goods sold, that reduced deductions for employee compensation paid to the company president’s sons, and that assessed an accuracy-related penalty. [ Transupport Inc. v. Commissioner; CA 1; No. 17-1265; 2/14/2018]

In today's Federal Newscast, a report from the Treasury Inspector General for Tax Administrations finds the Internal Revenue Service had many criteria for further investigating groups applying for tax exempt status.

Impeachment: A serious punishment for serious corruption. In this episode, learn why Congress has begun the process of impeaching IRS Commissioner John Koskinen and how his impeachment would prevent light from being shined upon dark money in politics. Please support Congressional Dish: Click here to contribute with PayPal or Bitcoin; click the PayPal "Make it Monthly" checkbox to create a monthly subscription Click here to support Congressional Dish for each episode via Patreon Mail Contributions to: 5753 Hwy 85 North #4576 Crestview, FL 32536 Thank you for supporting truly independent media! Bill Outlines H.R. 5253: Preventing IRS Abuse and Protecting Free Speech Act Prohibits tax exempt organizations from being required to disclose any information about their contributors, including the person's name, address, or the amount of their contribution or gift on their annual tax returns. Passed the House of Representatives 240-182 Author: Peter Roskam (IL-6) Statement of Administration Policy: H.R. 5053 – Preventing IRS Abuse and Protecting Free Speech Act By Representative Peter Roskam and 25 cosponsors, Executive Office of the President, June 13, 2016. H.Res. 737: Condemning and censuring John A. Koskinen, the Commissioner of Internal Revenue Suggests that John Koskinen should resign or be fired by the President Suggests that John Koskinen be denied his all of his retirement payments from the Federal government S. 1728: Access to Court Challenges for Exempt Status Seekers (ACCESS) Act of 2015 Allows the United States Tax Court, the United States Court of Federal Claims, or the district court of the United States for the District of Columbia to determine qualifications for 501(c)4 status if the IRS hasn't made the determination after 270 days. S. 1578: Taxpayer Bill of Rights Enhancement Act of 2015 Congress must be notified why the IRS Commissioner decides NOT to fire an employee Requires IRS employee emails to be stored for 15 years and then be stored in the National Archives Quadruples criminal penalties for unauthorized disclosures and inspections. Prohibits IRS employees from using personal email accounts for official business Gives organizations the ability to challenge their denials of tax exempt status in court S.942: Fair Treatment for All Gifts Act Expands the tax deduction for charitable giving to include gifts to 501(c)4 organizations S. 949: Small Business Taxpayer Bill of Rights Defines a "small business" as one that makes less than $50 million a year Increases fines for unauthorized inspection or disclosure of tax returns by 10 times the current penalties Institutes mandatory unpaid leave for at least 30 days for any IRS employee that reviews an application for tax exempt status "using any methodology that applies disproportionate scrutiny to any applicant based on the ideology expressed in the name or purpose of the organization". Allows the United States Tax Court, the United States Court of Federal Claims, or the district court of the United States for the District of Columbia to determine qualifications for 501(c)4 status if the IRS hasn't made the determination after 270 days. Orders the Treasury Inspector General to Investigate criteria used to evaluate applications for tax exempt status to determine whether the criteria discriminates against taxpayers on the basis of race, religion, or political ideology. S. 283: Stop Targeting of Political Beliefs by the IRS Act of 2015 The standard used to determine whether an organization is a 501(c)4 social welfare organization that was used on January 1, 2010 will be the standard used, and it cannot be changed before February 28, 2017. Speaker Paul Ryan's version of this bill prohibits the standard from changing before December 31, 2017. Sound Clip Sources Hearing: Examining the Allegations of Misconduct Against IRS Commissioner John Koskinen, Part II, House of Representatives Judiciary Committee, June 22, 2016. Hearing: Conduct of IRS Commissioner John Koskinen, House of Representatives Judiciary Committee, May 24, 2016. Hearing: Internal Revenue Service Targeting Investigation, Senate Finance Committee, October 27, 2015. Additional Reading Article: Freedom Caucus Ups Pressure to Impeach IRS Commissioner By Daniel Newhauser, Government Executive, June 30, 2016. Article: IRS Targeting Scandal: Citizens United, Lois Lerner And The $20M Tax Saga That Won't Go Away By Kelly Phillips Erb, Forbes, June 24, 2016. Article: The Show Trial of IRS Commissioner John Koskinen By Norm Ornstein, The Atlantic, June 22, 2016. Article: IRS Chief Koskinen Fights First Appointee Impeachment Since 1876 By Lynnley Browning, Chicago Tribune, June 21, 2016. Article: House Approves Koch-backed Bill to Shield Donors’ Names By Fredreka Schouten, USA Today, June 14, 2016. Article: Appropriations Bill ‘Handcuffs'IRS on Political Group Activities By Colleen Murphy, Bloomberg Bureau of National Affairs, June 13, 2016. Article: How Crossroads GPS Beat the IRS and Became a Social Welfare Group By Robert Maguire, Open Secrets, February 12, 2016. Article: Inside the Billion-Dollar Battle for Puerto Rico’s Future By Jonathan Mahler and Nicholas Confessore, The New York Times, December 19, 2015. Article: Exelon Amends Reports Concerning Contributions To Trade Groups By Michael Beckel, The Center for Public Integrity, January 29, 2014. Article: Follow the Corporate Cash Flow to Nonprofits By Chris Zubak-Skees, The Center for Public Integrity, January 16, 2014. Article: At Least 1 in 4 Dark Money Dollars in 2012 Had Koch Links By Robert Maguire, OpenSecrets, December 3, 2013. Article: The IRS Tea Party Scandal, Explained By Andy Kroll, Mother Jones, November 21, 2013. Additional Information SourceWatch: 60 Plus Association OpenSecrets: Political Nonprofits (Dark Money) Reports IRS Return Selection: Wage and Investment Division Should Define Audit Objectives and Refine Other Internal Controls, United States Government Accountability Office, December 2015. Finance Committee Releases Bipartisan IRS Report By Aaron Forbes and Julia Lawless, United States Senate Committee on Finance, August 5, 2015. Inappropriate Criteria Were Used to Identify Tax-Exempt Applications for Review By Treasury Inspector General For Tax Administration, May 14, 2013. The Internal Revenue Service's Processing Of 501(c)(3) And 501(c)(4) Applications For Tax-Exempt Status Submitted By ‘‘Political Advocacy’’ By The United States Senate Committee on Finance, August 5, 2015. Organizations From 2010–2013 Part 1 The Report Part 2 Letters Part 3 Emails Part 4 Documents Music Presented in This Episode Intro & Exit: Tired of Being Lied To by David Ippolito (found on Music Alley by mevio) Cover Art Design by Only Child Imaginations

In this week's Tax Credit Tuesday Podcast, Michael J. Novogradac, CPA, begins with the general news section, where he shares an invitation from the Treasury Department to comment on the Capital Magnet Fund application process and annual report. He also touches on what representatives from the IRS, Treasury and CDFI Fund had to say recently about the lowincome housing tax credit, new markets tax credit and historic tax credit. In the low-income housing tax credit section, he discusses the National Low Income Housing Coalition's report on some of the reasons why affordable housing is out of reach for a growing number of renter households. He then previews the State of the Nation's Housing report, which will be released by the Joint Center for Housing Studies this month. In state housing news, he discusses one California bill that could make the state low-income housing tax credit more attractive to investors. In new markets tax credit news, he shares the latest Qualified Equity Investment issuance report and how much allocation authority has been issued to investors in the past month. In the historic tax credit section, he discusses what one Treasury Inspector General for Tax Administration audit found about oversight of historic rehabilitation tax credit claims. And he closes out with renewable energy tax credit news, where he provides a leadership update from the Solar Energy Industries Association.

In this week's Tax Credit Tuesday Podcast, Michael J. Novogradac, CPA, begins with the general news section, where he shares an invitation from the Treasury Department to comment on the Capital Magnet Fund application process and annual report. He also touches on what representatives from the IRS, Treasury and CDFI Fund had to say recently about the lowincome housing tax credit, new markets tax credit and historic tax credit. In the low-income housing tax credit section, he discusses the National Low Income Housing Coalition's report on some of the reasons why affordable housing is out of reach for a growing number of renter households. He then previews the State of the Nation's Housing report, which will be released by the Joint Center for Housing Studies this month. In state housing news, he discusses one California bill that could make the state low-income housing tax credit more attractive to investors. In new markets tax credit news, he shares the latest Qualified Equity Investment issuance report and how much allocation authority has been issued to investors in the past month. In the historic tax credit section, he discusses what one Treasury Inspector General for Tax Administration audit found about oversight of historic rehabilitation tax credit claims. And he closes out with renewable energy tax credit news, where he provides a leadership update from the Solar Energy Industries Association.

This video from the Department of Treasury, Treasury Inspector General for Tax Administration (TIGTA) will cover the most recent telephone IRS Tax Scam.

Recently, the media and blogosphere has erupted with claims that another “IRS Scandal” is in the mix. The implication from many covering the new scandal is that the Treasury Inspector General for Tax Administration is basically in contempt of court, and is blatantly ignoring the order of a DC District Court judge to release certain… Read more → The post What happened? The Cause of Action v. TIGTA Lawsuit appeared first on Tax Machine Blog™.

In this week's Tax Credit Tuesday podcast, Michael J. Novogradac, CPA, discusses the latest about the debt limit and the confirmation of Sen. Max Baucus as the next U.S. ambassador to China and what it might mean for tax reform. In new markets tax credit news, he shares news about legislation that would permanently extend the New Markets Tax Credit program, a report on the Community Development Financial Institutions Fund's release of comments on its Community Investment Impact System and compliance reporting, and February's Qualified Equity Investment Issuance Report. In our low-income housing tax credit news, he covers the passage of the Agriculture Act of 2014 and an additional co-sponsor of the Low-Income Housing Tax Credit Rate Act. In renewable energy tax credit news, he shares the results of a report from the Treasury Inspector General for Tax Administration about potential double dipping in the Section 1603 grant program and a report from the American Wind Energy Association about activity in the wind industry in the last quarter of 2013. On our historic tax credit news, has two state-level updates: one from Indiana and one from Kentucky.

In this week's Tax Credit Tuesday podcast, Michael J. Novogradac, CPA, discusses the latest about the debt limit and the confirmation of Sen. Max Baucus as the next U.S. ambassador to China and what it might mean for tax reform. In new markets tax credit news, he shares news about legislation that would permanently extend the New Markets Tax Credit program, a report on the Community Development Financial Institutions Fund's release of comments on its Community Investment Impact System and compliance reporting, and February's Qualified Equity Investment Issuance Report. In our low-income housing tax credit news, he covers the passage of the Agriculture Act of 2014 and an additional co-sponsor of the Low-Income Housing Tax Credit Rate Act. In renewable energy tax credit news, he shares the results of a report from the Treasury Inspector General for Tax Administration about potential double dipping in the Section 1603 grant program and a report from the American Wind Energy Association about activity in the wind industry in the last quarter of 2013. On our historic tax credit news, has two state-level updates: one from Indiana and one from Kentucky.

In this week's Tax Credit Tuesday podcast, Michael J. Novogradac, CPA, discusses an update on the federal fiscal year 2014 and 2015 budgets and the looming debt ceiling. In low-income housing tax credit news, he alerts listeners to a 2014 audit from the Treasury Inspector General for Tax Administration Office of Inspections and Evaluations on the Tax Credit Assistance program (TCAP). In historic tax credit news, he informs listeners about an update to Revenue Procedure 2014-12, the safe harbor guidance for historic tax credit partnerships, and he shares state level news from Alabama and a summary of a recent U.S. Tax Court decision about the transfer of state historic tax credits between partners. In new markets tax credit news, he shares information about a bill that would extend the New Markets Tax Credit program and provide additional allocation for communities affected by the loss of manufacturing jobs and discusses the retirement of long-time new markets tax credit supporter Rep. Jim Gerlach.

In this week's Tax Credit Tuesday podcast, Michael J. Novogradac, CPA, discusses an update on the federal fiscal year 2014 and 2015 budgets and the looming debt ceiling. In low-income housing tax credit news, he alerts listeners to a 2014 audit from the Treasury Inspector General for Tax Administration Office of Inspections and Evaluations on the Tax Credit Assistance program (TCAP). In historic tax credit news, he informs listeners about an update to Revenue Procedure 2014-12, the safe harbor guidance for historic tax credit partnerships, and he shares state level news from Alabama and a summary of a recent U.S. Tax Court decision about the transfer of state historic tax credits between partners. In new markets tax credit news, he shares information about a bill that would extend the New Markets Tax Credit program and provide additional allocation for communities affected by the loss of manufacturing jobs and discusses the retirement of long-time new markets tax credit supporter Rep. Jim Gerlach.

In this week's Tax Credit Tuesday podcast, Michael J. Novogradac, CPA, discusses lawmakers' responses to Sens. Max Baucus and Orrin Hatch's request for tax reform proposals, a Treasury Inspector General for Tax Administration audit of the potential for improper or fraudulent bond tax credit claims and upcoming legislative deadlines. In low-income housing tax credit news, he alerts listeners to legislation introduced to make permanent a fixed floor for the 9 percent and 4 percent tax credits and to increase LIHTC allocations to tribal areas, as well as the U.S. Department of Housing and Urban Development's release of its proposed fiscal year 2014 fair market rents. In historic tax credit news, he reveals the results of the National Park Service and Rutgers University's 2012 report on the use of HTCs and Vermont's award of its 2014 Downtown Historic Tax Credits. In new markets tax credit news, he encourages listeners to sign on to the New Markets Tax Credit Coalition's advocacy letter to support the NMTC program, to participate in a user survey on the Community Development Financial Institutions Fund website and to submit the paperwork necessary to participate in the 2013 and 2014 allocation rounds. In renewable energy tax credit news, he shares the Interstate Renewable Energy Council's sixth annual report on solar installation trends.

In this week's Tax Credit Tuesday podcast, Michael J. Novogradac, CPA, discusses lawmakers' responses to Sens. Max Baucus and Orrin Hatch's request for tax reform proposals, a Treasury Inspector General for Tax Administration audit of the potential for improper or fraudulent bond tax credit claims and upcoming legislative deadlines. In low-income housing tax credit news, he alerts listeners to legislation introduced to make permanent a fixed floor for the 9 percent and 4 percent tax credits and to increase LIHTC allocations to tribal areas, as well as the U.S. Department of Housing and Urban Development's release of its proposed fiscal year 2014 fair market rents. In historic tax credit news, he reveals the results of the National Park Service and Rutgers University's 2012 report on the use of HTCs and Vermont's award of its 2014 Downtown Historic Tax Credits. In new markets tax credit news, he encourages listeners to sign on to the New Markets Tax Credit Coalition's advocacy letter to support the NMTC program, to participate in a user survey on the Community Development Financial Institutions Fund website and to submit the paperwork necessary to participate in the 2013 and 2014 allocation rounds. In renewable energy tax credit news, he shares the Interstate Renewable Energy Council's sixth annual report on solar installation trends.

In this episode, highlights from the House Ways and Means Committee IRS scandal hearing. IRS staffers made a list of keywords including Tea Party, 9-12, Patriot, etc. to help them find social welfare groups applying for tax exempt status that were actually political in nature. This is the scandal you've been told about; the real scandal is how many of them have been approved. Background How IRS "streamlining" in the 1990s led to mismanagement In January of 2010, the Supreme Court ruled in the infamous Citizen's United case that corporations count as people and that corporation donations count as speech, making them protected by the Constitution. This opened the floodgates to large amounts of corporate money making its way into U.S. elections. At the same time, the IRS saw a sharp increase in the number of groups claiming tax-exempt status under section 501(c)(4) of the U.S. tax code. Groups that qualify do not have to pay taxes to the U.S. government and, more importantly to political groups, do not have to disclose their donors. The law for 501(c)(4) groups says that they must exist "exclusively" for social welfare purposes, but an IRS regulation from 1959 says that they must exist "primarily" for social welfare purposes. That wiggle room has been applied broadly, to put it mildly, and we now have clearly political groups claiming tax-exempt status as 501(c)(4) organizations. In March of 2010, the division of the IRS charged with making sure that groups claiming tax-exempt status under section 501(c)(4) of the U.S. tax code were "primarily" social welfare groups, not political groups, made a list of keywords to look for in the names of groups that might indicate the groups were political in nature. The keywords they looked for include: "Tea Party" "Patriots" "9/12 Project" References to government spending, government debt, or taxes "Make America a better place" Statements criticizing how the country is being run. View the Inspector General report on the IRS scandal The IRS employees also asked questions that were considered unnecessary when they were finally analyzed by IRS management. Although the list was inappropriate, most of the groups analyzed during the same time period had names unrelated to the list. In the end, the IRS Inspector General found no evidence of corruption at the IRS; instead, they concluded the problems arouse out of mismanagement. However, the real problem as far as us American citizens are concerned, is that clearly political groups are being given tax-exempt status, allowing them to keep their donors secret. Out of the 298 applications the IRS Inspector General reviewed, 0 had been denied. Here are some examples of groups that enjoy tax-exempt status as social welfare groups: Crossroads GPS, the group co-founded by Karl Rove Priorities USA, the group that worked on behalf of the Obama campaign. Americans for Prosperity and Freedomworks, front groups for the billionaire Koch brothers' interests MoveOn.org, the group that focuses on "building the progressive movement". Further Reading How Real Disclosure Laws Could Help Fix the IRS Problem Also in This Episode Bills that passed the House of Representatives this week: Congressional Dish summary of H.R. 45, the Repeal ObamaCare Act Congressional Dish summary of H.R. 1062, the Prevent Wall Street Regulations Act People Quoted in This Episode Steve Miller, acting Commission of the IRS (has since resigned) Russel George, Treasury Inspector General for Tax Administration Rep. Dave Camp of Michigan Rep. Lloyd Doggett of Texas Rep. Adrian Smith of Nebraska

Michael J. Novogradac, CPA, discusses the Family and Business Tax Cut Certainty Act, a recent article about tax reform and the Sequestration Transparency Act of 2012 in general tax credit news. In new markets tax credit news, he reminds listeners about the approaching 2012 application deadline and alerts community development corporations in Hurricane Isaacaffected areas about a potential deadline extension. The historic tax credit news segment features a reminder about this week's National Historic Tax Credit Conference and the upcoming Historic Boardwalk Hall webinar as well as a request for comment from the National Park Service historic preservation certification application and the revival of the Missouri's tax credit review commission. Low-income housing tax credit news includes a California bond issuing agency review and a Treasury Inspector General for Tax Administration municipal bond review. Mr. Novogradac wraps up the podcast with renewable energy tax credit news and a Section 1603 program audit of Moraine Wind II in Minnesota.

Michael J. Novogradac, CPA, discusses the Family and Business Tax Cut Certainty Act, a recent article about tax reform and the Sequestration Transparency Act of 2012 in general tax credit news. In new markets tax credit news, he reminds listeners about the approaching 2012 application deadline and alerts community development corporations in Hurricane Isaacaffected areas about a potential deadline extension. The historic tax credit news segment features a reminder about this week's National Historic Tax Credit Conference and the upcoming Historic Boardwalk Hall webinar as well as a request for comment from the National Park Service historic preservation certification application and the revival of the Missouri's tax credit review commission. Low-income housing tax credit news includes a California bond issuing agency review and a Treasury Inspector General for Tax Administration municipal bond review. Mr. Novogradac wraps up the podcast with renewable energy tax credit news and a Section 1603 program audit of Moraine Wind II in Minnesota.