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Posts on Federal Tax
September 14, 2020

Five million Americans who were hit hardest by the current health and economic crisis risk missing out on $6 billion in CARES Act stimulus payments if they don’t file the required online form before October 15. We all have a...

Parents looking unhappily at documents
August 13, 2020

President Trump’s executive action to allow the deferring of payroll tax payments will provide little or no near-term economic stimulus. Meanwhile, its potentially chaotic new rules will create significant compliance burdens for businesses, and workers may not see larger paychecks — and those who do could face surprise tax bills in a few months.

Moreover, permanently cutting payroll...

Person looking concernedly at paperwork
July 27, 2020

Bipartisan House and Senate bills would protect low- and moderate-income families from a financial hit at tax time next year by letting them base their Earned Income Tax Credit (EITC) and Child Tax Credit for tax year 2020 on their earnings in...

1040 Tax Form
July 16, 2020

In their next economic relief package, policymakers should include a modest but important measure that would temporarily expand the Earned Income Tax Credit (EITC) for tax year 2020 for adults not raising children in their home. This measure, which is in the House-passed Heroes Act, would (1) generate timely, effective fiscal stimulus to help the economy recover, (2) help avoid a poverty spike...

EITC Does Little to Offset Federal Taxes for Low-Income Childless Workers
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Senior Director of Federal Tax Policy

July 16, 2020

The next COVID-19 relief legislation should make the Child Tax Credit fully available for tax year 2020 to families that now receive only a partial credit or none at all because their earnings are too low. That would reduce financial hardship and racial income disparities — benefiting 3.4 million Latinas and 2.0 million Black women, among many others — while stimulating the economy.

The...

Health care worker takes patient's blood pressure
July 14, 2020

This Tax Day, delayed until July 15 to help taxpayers deal with the disruptions caused by COVID-19, should be a wake-up call for policymakers to invest in core government functions like the IRS. A decade of ill-advised funding cuts have constrained not just the IRS’ core function of enforcing taxpayer obligations, but also its capacity to deliver stimulus payments to struggling families during...

Distressed parent at kitchen table with child and pile of bills
June 30, 2020

Policymakers gave the IRS additional funds in the CARES Act of March, acknowledging that the agency is playing a critical role in responding to today’s economic crisis by delivering ...

Older person looking at document
June 29, 2020

Some policymakers are considering whether to make certain business tax credits temporarily refundable — that is, available to firms that don’t have enough taxable income to otherwise qualify — saying that would give cash to struggling small...

Research Credits Mainly Benefit Large Corporations
April 28, 2020

IRS workers deserve tremendous credit for delivering — in just weeks — 88 million stimulus payments during a pandemic. But the IRS’ challenges in doing so make clear that years of ill-advised funding cuts have left the agency understaffed and technologically out of date. Those challenges should serve as a wake-up call to policymakers on the importance of investing in core government functions...

IRS Has Far Fewer Resources Than in Responding to Great Recession
April 21, 2020

Roughly 1 million children may miss out this year on the $500 stimulus payment their parents or guardians are supposed to receive if the parents or guardians don’t complete an online IRS form under an unreasonable deadline, with 600,000 of these children at risk if the form is not filed by noon tomorrow, April 22. This deadline is unreasonable and unnecessary.

The Treasury Department...

Dollar Bill

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