Tax Day draws near; however, concerns arise as there’s a 1.7% decrease in individual income tax returns submitted by March 1, 2024. Many attribute this to the ongoing global economic uncertainties and new tax law implementation. Acknowledging the complexity, the IRS urges taxpayers to consider online platforms and e-filing while pledging enhanced resources for queries and concerns.
Interestingly, tax filings delay may be tied to the pending approval of the Tax Relief for American Families and Workers Act. The bill approved by the House in January 2024, aims to extend the child tax credit for the 2023 tax year. While this could lead to a surge in last-minute filings, the IRS is prepared to manage the influx pending the legislative update.
President Biden in his recent address sought to restore the expanded child tax credit.
Amid these, Mark W. Everson, ex-IRS Commissioner, advocated for a research and development (R&D) tax credit, underlining its significance in fostering American innovation and growth.
The President also detailed his tax plan, advocating for a tax rate increase for the wealthy from the current 8.2% average to a minimum of 25%. His plan also addresses the closing of loopholes related to carried interest, estate, and gift taxes, and life insurance. Further, a proposed 21% minimum corporate tax rate has sparked a debate, with critics suggesting it may hinder business growth, and supporters affirming the corporate sector needs to pay a fair share in taxes.
The Department of Justice and the Treasury Department’s Financial Crimes Enforcement Network currently defend the contested Corporate Transparency Act (CTA). Challenged for exceeding the constitutional limit on congressional authority, the Act aims to combat activities like money laundering and tax evasion. Although perceived as a burden by the National Small Business Association, supporters argue for the CTA’s potential role in promoting fair competition and transparency in business operations.
