Small Business Taxpayer Bill of Rights Act of 2023
Impact
If enacted, SB1177 would significantly modify the relationship between small businesses and the IRS by offering provisions for civil damages in cases of reckless or intentional disregard of tax laws by IRS employees. By expanding the scope for small businesses to claim damages and increasing penalties for unauthorized disclosures of information, the bill seeks to deter potential abuses by IRS officials and promote a more equitable treatment of small business taxpayers. The bill also proposes to allow for adjustments in penalties based on inflation, ensuring that the legislation remains relevant over time.
Summary
SB1177, titled the Small Business Taxpayer Bill of Rights Act of 2023, is designed to enhance protections and rights for small businesses when interacting with the IRS. The bill proposes several modifications to existing laws, primarily aimed at preventing issues arising from the negligence or misconduct of IRS employees. It emphasizes the need for accountability and fairness in tax administration procedures, particularly for small businesses which may not have the resources to navigate complex tax disputes effectively.
Contention
Some points of contention surrounding SB1177 include concerns about how the proposed changes might affect the efficiency and effectiveness of IRS operations. Critics argue that increasing protection and rights for small businesses could lead to greater challenges in tax enforcement and might hinder the IRS's ability to carry out its duties effectively. Additionally, the necessity of providing civil damages may lead to increased litigation and burden on the IRS, creating a balancing act between taxpayer rights and the agency’s operational capabilities.
Providing for Life Act of 2023 This bill revises various programs and supports for families and children related to taxes, health, and other benefits. First, the bill increases the child tax credit to a maximum of $3,500 per child ($4,500 per child under the age of six) and makes permanent the increased income threshold over which the credit phases out. The bill further eliminates the federal deduction for certain state and local taxes (SALT deduction) and makes the adoption tax credit refundable. The bill allows parents to use a portion of their Social Security benefits for up to three months of paid parental leave after the birth or adoption of a child. Additionally, the bill requires Supplemental Nutrition Assistance Program (SNAP) recipients to cooperate with states in establishing child support orders. It also provides additional workforce training for noncustodial parents with child support obligations. States must establish requirements for the biological father of a child to pay, at the mother's request, at least 50% of reasonable out-of-pocket medical expenses associated with the mother's pregnancy and delivery. The bill requires institutions of higher education to provide students with certain information about the resources and services (excluding abortion services) available to pregnant students. Additionally, the bill provides grants for community-based maternal mentoring programs and for pregnancy resource centers that do not provide abortions; requires the Department of Health and Human Services to publish a website with specified pregnancy-related information; and extends from one to two years the postpartum benefit eligibility period under the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC).