Monthly Archives: November 2023

According to Law360, House Republican legislation that would rescind $14.3 billion in Inflation Reduction Act funding for the Internal Revenue Service to offset an aid package for Israel.

This Would Decrease Federal Revenue By $26.8 Billion Over The Next Decade, The Congressional Budget Office Said Wednesday, November 1, 2023.

The Israel Security Supplemental Appropriations Act, which would pay for aid to Israel by rescinding $14.3 billion in unobligated funding that the Inflation Reduction Act provided to the IRS, would impede the agency's ability to undertake enforcement actions, the CBO said in a report. 

The House of Representatives is expected to vote this week on the proposal. Senate Democrats have already said the legislation would be a nonstarter in that chamber.

"Republicans Never Miss A Chance To Protect 
Their Billionaire Donors," Whitehouse Said.

"As if conditioning aid to Israel on this gift to wealthy tax cheats wasn't bad enough, what they claim will 'pay for' the aid will actually add $12.5 billion to the deficit, nearly doubling the bill's total cost."

The House is also planning to vote on an IRS appropriations bill that aims to cut the agency's annual funding.

The IRS funding bill passed by the Republican-led House Appropriations Committee in July would give the agency $11.2 billion for fiscal 2024, a $1.1 billion drop compared with the agency's fiscal 2023 budget. 

It would also provide 

• $4.2 billion in enforcement funding — a $1.2 billion cut compared with the current fiscal year funding and 
• proposes clawing back $6.1 billion in unobligated funds for enforcement and $4.1 billion for operations support that the IRS received under the Inflation Reduction Act. 
• The 2022 law originally provided the IRS with $25.3 billion for operations support.

Lawmakers have submitted several amendments to the bill ahead of a House Rules Committee vote that could bring the proposal to the House floor next week.

Proposed Republican amendments would block funding for implementation of the Organization for Economic Cooperation and Development's global tax deal and funding for the IRS to enforce the American Rescue Plan Act's provision that requires peer-to-peer payment platforms such as Venmo and PayPal to report aggregate payments of $600 or more. The threshold was $20,000 under previous law.

Republicans also submitted amendments that would prohibit the IRS from hiring new agents and prevent the agency from purchasing and storing firearms and ammunition.

Democrats have introduced amendments to block the IRS from using funds to issue regulatory guidance or rulings that restrict state and local tax deduction workarounds and increase funding for the Taxpayer Advocate Service by $10 million.

Have An IRS Tax Problem?

Marini & Associates, P.A. 

Read more at: Tax Times blog

According to the DoJ, a federal grand jury in Alexandria, Virginia, returned an indictment, unsealed today, charging a Virginia man with income tax evasion and failure to pay employment taxes.

According to the indictment, Rick Tariq Rahim of Great Falls owned and operated two businesses, BV Management LLC, an Amazon reseller, and BusinessVentures.com LLC, an umbrella company over other businesses including laser tag facilities. 

Starting In At Least 2012, Rahim Allegedly Took Steps To
Evade IRS Efforts To Collect More Than $1 Million In Federal Income Taxes He Allegedly Owed For Tax Years 2004 And 2011.

The indictment charges that in November 2016, Rahim submitted a false form to the IRS that omitted valuable assets he owned, including:

• 

  a helicopter, 
  

• a 2006 Bentley, 
• a 2008 Lamborghini and 
• real property, the ownership of which he allegedly transferred to his wife two weeks after submitting the form. 

The indictment further alleges that Rahim also withdrew a total of more than $1.1 million in cash in amounts less than $10,000 to avoid triggering currency transaction reports from the bank and paid personal expenses from his businesses’ bank accounts, including more than $889,000 toward his mortgages and more than $669,000 to purchase or lease cars, including three different Lamborghinis. 

In addition, the indictment charges that from 2015 to 2021, Rahim also did not pay to the IRS the taxes that his businesses withheld from employee paychecks or file quarterly tax returns reporting those withholdings.

If convicted, Rahim faces a maximum penalty of five (5) years in prison for the tax evasion count and five (5) years in prison for each count of failing to pay over employment tax withholdings. 

Have An IRS Tax Problem?

Marini & Associates, P.A. 

Read more at: Tax Times blog