Quote:
Originally Posted by swarmee
Does the head of the IRS have the legal authority to ignore Federal Law? Since this clause was used to further spending, I'm not sure if anyone except Congress can amend the law. Coming soon to the Supreme Court?
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The IRS is not ignoring the federal law, they are simply using their discretion to delay the implementation of it due to the situation and issues it creates for taxpayers, those having to prepare and report/file these 1099s, and the IRS' epic work backlog and shortage of people right now. People can criticize the IRS all they want, but the truth is they are simply doing the best job they can with what is being handed to them by the government, from politicians that typically don't really have a clue when it comes to taxes and what they are doing to people and the IRS when they pass legislation. And I am not saying or accusing you personally of criticizing the IRS, just speaking of some people in general.
Despite the recently enacted budget boost the IRS is to receive over the next 10 years, about half the federal government seem to have politicized that, with some having accused the IRS of being on the verge of going out to attack and harass the lower- and middle-class taxpayers of this country with scores of new auditors. Basically, all unfounded lies. This same half of the government to my understanding also recently pushed through a current year drop in IRS funding as a tack-on to another bill that needed to be passed. Typical government crap, and therefore, this coming current year is even going to be more underfunded and understaffed for a bit yet. Additional reasoning possibly behind the IRS decision to delay this new law's enactment. To throw this additional reporting burden onto the IRS, taxpayers, and everyone else involved right now, is just too much given the current economy and what is happening. It seems to me the IRS is simply trying to be as realistic and manage the situation they were dealt, as best as possible.
This change in the reporting laws was actually passed back in the Spring of 2021, so it is not like there wasn't ample advance warning and notification for people and businesses to have the necessary time to get ready for the new reporting threshold. I am thinking part of the reasoning behind the IRS postponement announcement is that they themselves aren't fully prepared and able to be as ready for this change and increased workload they're going to face from it either.
Regardless, the delay of the lowered reporting threshold does NOT absolve any taxpayer from reporting and paying their proper tax due on any net income/gain they had during this past year, simply because they don't get a 1099 sent to them. As noted in this accompanying CBS story, taxpayers are still supposed to report their income for tax purposes, whether they receive a 1099 or not.
https://currently.att.yahoo.com/fina...190100084.html
12-23-2022, 03:39 PM
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