Daily Tax Update - February 27, 2014: IRS Provides Update on Tax Filing Season

IRS PROVIDES UPDATE ON TAX FILING SEASON:  The IRS said that it has received about “one-third of the individual income tax returns that it expects to receive during 2014.”  The agency provided additional information: “The IRS has processed almost 98 percent of the 49.6 million returns received so far. Overall, 46.6 million returns have been e-filed this year, up one percent from the same time last year. As in prior years, the greatest increase is among individuals filing from their home computers. Almost 22 million returns have been e-filed from home computers this year, an increase of almost 7 percent compared to the same time last year.”

PRESIDENT’S FY 2015 BUDGET PROPOSAL TO BE RELEASED MARCH 4TH:  The Administration will release its fiscal year 2015 budget proposal on March 4th.  The Senate Finance Committee will hold a hearing on the President’s budget on March 5th

The House Ways and Means Committee’s hearing on the budget will occur on March 6th. Treasury Secretary Jacob Lew will testify at both hearings. In announcing this hearing, Chairman Dave Camp said, “A tax code that is simpler and fairer will make the economy stronger so there are more jobs and bigger paychecks.  It is important that any closing of special-interest loopholes be used to lower tax rates – not to pay for new spending – so employers can start hiring again, families can save more and wages can start to grow.  The Tax Reform Act of 2014, released last week, achieves these goals and includes ideas advanced by Democrats and Republicans in Congress, as well as those offered by the Obama Administration.  This hearing will provide the Committee an opportunity to review the President’s tax proposals and Treasury Secretary Lew the opportunity to share ideas in the President’s budget designed to meet those same goals.”

MISCELLANEOUS GUIDANCE RELEASED:
Notice 2014-15 extends the time period announced in Notice 2012-18 through December 31, 2014.Notice 2012-18, published in the Internal Revenue Bulletin on March 5, 2012, provided State housing finance agencies that participated in the Physical Inspections Pilot Program a temporary alternative method to satisfy the physical inspection and certification review requirements of § 1.42-5(c)(2) of the Income Tax Regulations.  The availability of this alternative method ended on December 31, 2012.   

TAX BILLS INTRODUCED FEBRUARY 26TH:

[113rd] S.2043 : A bill to prohibit the Internal Revenue Service from asking taxpayers questions regarding religious, political, or social beliefs. Sponsor: Sen Fischer, Deb [NE] (introduced 2/26/2014)      Cosponsors (2) Committees: Senate Finance Latest Major Action: 2/26/2014 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.


 [113rd] S.2044 : A bill to improve transparency and efficiency with respect to audits and communications between taxpayers and the Internal Revenue Service. Sponsor: Sen Fischer, Deb [NE] (introduced 2/26/2014)      Cosponsors (2) Committees: Senate Finance Latest Major Action: 2/26/2014 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.