IRS Budget FY 2024 Tax Season 2023

Finance, The President’s Fiscal Year 2024 IRS Budget and the IRS’s 2023 Filing Season, April 19, 2023

WM: Hearing on Accountability and Transparency at the Internal Revenue Service with IRS Commissioner Werfel, April 27, 2023

It is a tradition to hold a hearing about this time of year concerning the IRS filing season. Perhaps this would be better done after most refund checks have been mailed and the number of taxpayers filing after an extension is known - including their income class.

On the IRS budget, as I mentioned last year, support contractors could be more widely used for customer and information technology services. This would identify the balance of spending to justify the budget request for FY 2024.

Additional analytical resources are required for tax reform initiatives such as Fair Tax initiative and exploration of options due to expiration of the Trump/Ryan/Brady tax cuts.

The repeal of Roe v. Wade makes returning to the Pandemic era child tax credit essential. Increased funding is included in the President’s Budget.

As we have said before, to end the “stink of welfare” that Senator Manchin so objects to, CTC payments should be included with wages for all employees - not just those with three or more children. They should also be distributed through other federal and state assistance programs - some of which can be reduced to do so.

For middle income taxpayers whose increased credits are less than their annual tax obligation, a simple change in withholding tables is adequate. Procedures are already in place to deliver refundable credits to larger families. For the coming year, they merely need to be expanded to all families with children. 

Employers can work with their bankers to increase funds for payroll throughout the year while requiring less money for their quarterly tax payments (or estimated taxes) to the IRS. The main issue is working out those situations where employers owe less than they pay out. This is especially true for labor intensive industries and even more so for low wage employers. 

A higher minimum wage would make negative quarterly tax bills less likely. Indeed, no one should have to subsist mainly on their child tax payments.

Please ask, either orally or in written form, how such a CTC proposal might work and how it would make things easier for taxpayers whose returns would be simpler - with fewer having to file at all.

As usual, we have attached the latest version of our tax reform plan, with a separate attachment on how implementation of this plan would affect IRS manpower. The answer is that the change would be drastic. It would also allow the Committee to focus more on how social welfare is being delivered in general, as well as eliminating current roadblocks to promptly filing for Social Security Disability Income.

Attachment: Tax Reform Videos included

Attachment: Tax Administration Video