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Posts by Samantha Jacoby

GAO: 2017 Tax Law Creating New Compliance Challenges for IRS

March 11, 2020

The already overburdened IRS “may face challenges ensuring compliance” with certain parts of the 2017 tax law, a Government Accountability Office (GAO) report finds, particularly the 20 percent deduction for certain “pass-through” business income. That’s one more reason why policymakers should boost funding for IRS enforcement and...

Form 1040 And Refund Check

Final Opportunity Zone Rules Could Raise Tax Break’s Cost

February 3, 2020

In finalizing its regulations on the 2017 tax law’s “opportunity zones,” the Treasury Department took some questionable business giveaways that were included in its proposed regulations and actually expanded them.

The Joint Committee on Taxation (JCT) has nearly doubled its estimate of the zones’ cost in lost federal revenue, and the new regulations could raise those costs even more....

Projections of Lost Revenue From Opportunity Zones Have Nearly Doubled

Policymakers Should Ensure Pass-Throughs Pay More of Taxes They Owe

November 22, 2019

High-income taxpayers drive much of the “tax gap” — the gap between what taxpayers owe and what they voluntarily pay on time — finds a new paper from Professor Natasha Sarin and former Treasury Secretary Lawrence Summers, citing new...

Pass-Throughs Make Up Largest Portion of Tax Gap

Bills Aim to Curb Opportunity Zone Abuses

November 18, 2019

Companion bills from Senate Finance Committee Ranking Member Ron Wyden and House Majority Whip James Clyburn would impose significant, and welcome, new guardrails on investments in “opportunity zones,” or low-income areas designated for special tax breaks.

Created by the 2017 tax law, the opportunity zone (OZ) provision lets investors defer taxes on capital gains (profits from the sale...

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Taxing High Incomes, Large Fortunes More Effectively

November 13, 2019

Policymakers who seek to raise more revenue from the nation’s wealthiest individuals could, for instance, strengthen the estate tax, raise the top personal income tax rate, end preferential treatment of capital gains and dividends, or impose new taxes on very wealthy households, our...

1040 Form

Opportunity Zones Exemplify 2017 Tax Law’s Fundamental Flaws

October 31, 2019

Update, November 1: we’ve updated this post.

The New York Times and ProPublica have highlighted major flaws in the 2017 tax law’s “opportunity zone” tax...

Form 1040 And Refund Check

High Cost of IRS Cuts: Weakened Tax Enforcement

October 7, 2019

The IRS didn’t collect billions of unpaid employment taxes due to inadequate funding for a key compliance program, a new report by the Treasury Inspector General for Tax Administration (TIGTA) finds. It shows that deep IRS funding cuts over the last decade have weakened the agency’s ability to perform its...

In Focus: Funding for IRS Enforcement and Operations Support Has Eroded

Opportunity Zone Regulations Favor Investor Flexibility Over Community Protection

May 1, 2019

The Treasury Department’s latest proposed regulations on investments in opportunity zones (OZs) — low-income areas designated for special federal tax breaks — state that the program’s purpose is to “increase business activity and economic investment in qualified opportunity zones,” not to improve the economic well-being of those who live there. Indeed, the...

Stack of Bills

Pass-Through Deduction Regulations Reflect Industry Lobbying

January 30, 2019

In finalizing its regulations governing the 2017 tax law’s 20 percent deduction for “pass-through” income recently, the Treasury Department retained, and in some cases expanded, the overly generous business giveaways of its draft regulations.

The hastily crafted 2017 law made arbitrary,...

Money Flying Away

Industry Groups Lobby to Broaden Pass-Through Deduction

October 19, 2018

Realtors, veterinarians, and a range of other industry groups are pushing to dramatically expand the scope of the 2017 tax law’s “pass-through” deduction to allow their businesses to qualify. The wide range of requests, on full display at a recent IRS hearing, shows the creative ways that business owners and their tax planners will seek to stretch the deduction, which is essentially a giveaway...

Form 1040 And Refund Check

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