One of the most significant impacts of SB1337 is its restriction on the IRS's ability to conduct tax audits, particularly concerning taxpayers with incomes below $400,000. Under the bill, there will also be limits on the rate of audits to ensure they do not exceed the levels seen in the previous tax year. These provisions aim to alleviate concerns among lower-income taxpayers regarding aggressive auditing practices and to foster a sense of fairness in how tax compliance is handled.
Summary
SB1337, also known as the Increase Reliable Services Now Act, seeks to temporarily halt the hiring of additional employees for the Internal Revenue Service (IRS) until certain taxpayer service metrics are improved. Specifically, the bill requires that the IRS must maintain a service level where at least 90% of calls to taxpayer assistance lines are answered, with an average wait time of no more than four minutes. Additionally, at least 90% of IRS employees must work on-site. This bill introduces strict measures aimed at ensuring that the IRS prioritizes improving service delivery before expanding its workforce.
Conclusion
Through its specifications, SB1337 aims not only to enhance taxpayer services but also to create a more transparent framework for how the IRS operates amidst concerns over efficiency and accountability. The ongoing debates around the bill highlight the challenges in balancing adequate resources for tax administration while fostering a fair compliance environment for all taxpayers.
Contention
Notable points of contention surrounding SB1337 stem from differing perspectives on IRS efficiency and accountability. Proponents argue that stricter controls on hiring and auditing will help restore taxpayer trust in the IRS by affirming that the agency's primary focus is improving service quality. Conversely, opponents express concerns that these restrictions could lead to under-resourced enforcement capabilities, thereby undermining tax compliance and potential government revenues. They argue that limiting IRS operations could hinder efforts to effectively tackle tax evasion.
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).