Tag Archives: IRS

‘Shocking Breach’: Probe Shows Tax Prep Companies Shared Personal Data With Tech Giants

One expert called the new revelations “a five-alarm fire” for taxpayer privacy.

By Jake Johnson. Published 7-12-2023 by Common Dreams

Photo: QuoteInspector

After a seven-month investigation, a group of congressional Democrats and Independent Sen. Bernie Sanders released a bombshell report Wednesday showing that private tax prep firms have been secretly sharing U.S. taxpayers’ sensitive personal information with tech giants for years, a practice that the lawmakers condemned as outrageous and possibly illegal.

The report, spearheaded by Sen. Elizabeth Warren (D-Mass.) in the Senate and Rep. Katie Porter (D-Calif.) in the House, notes that TaxAct, H&R Block, and TaxSlayer “used computer code—known as pixels—to send data to Meta and Google.” The lawmakers’ investigation was sparked by recent reporting in The Markup.

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Regavim: The Israeli Faux Environmental Org Converting US Donations into Palestinian Evictions

Funded largely through tax-deductible donations from the United States, Regavim petitions the Israeli government to evict Palestinians under the guise of protecting the environment.

By Jessica Buxbaum  Published 5-5-2021 by MintPress News

Israel police guard a military bulldozer at it destroys a Palestinian home in the South Hebron Hills. Photo: International Solidarity Movement.

In the village of Khan al-Ahmar in the occupied West Bank, dozens of Bedouin families are at risk of losing their homes and becoming refugees again by July. While it is the Israeli government and military that are enacting the demolitions and evacuations, their efforts are largely driven by a pro-settler nonprofit supported by American charities.

While it is masked as an environmental organization, Regavim’s work involves petitioning the Israeli government to demolish structures and pursue evictions for Palestinians and Bedouins under the guise of protecting “Israel’s most precious and scarce resources: land reserves, water, air quality” — though much of the organization’s focus is on occupied Palestinian territory. Regavim’s most recent targets have been the villages of Khan al-Ahmar and Susya, located in Area C of the West Bank, which is under total Israeli military control. Israel rarely approves building permits for the indigenous people in Area C so the majority of Palestinian and Bedouin construction there is deemed illegal. Continue reading

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Trump Holdovers Accused of ‘Sabotaging’ Effort to Get Checks to 30 Million Social Security Recipients

“President Biden can’t stand for this any longer. He must protect Social Security beneficiaries by firing Saul and Black immediately.”

By Jake Johnson, staff writer for Common Dreams. Published 9-25-2021

Graphic: SocialSecurityWorks/Twitter

House Democrats and progressive activists are accusing the leadership of the Social Security Administration—currently headed by Trump holdover Andrew Saul—of slow-walking the Biden administration’s effort to distribute direct coronavirus relief payments to tens of millions of seniors and people with disabilities.

In a letter (pdf) to Saul on Wednesday, Democratic members of the House Ways and Means Committee raised alarm on behalf of “the nearly 30 million Social Security and Supplemental Security Income beneficiaries who are still awaiting their economic impact payments (EIPs)”—checks approved under the recently passed American Rescue Plan. Continue reading

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Millions of People Face Stimulus Check Delays for a Strange Reason: They Are Poor

The IRS has had trouble getting money to people quickly because millions of Americans pay for their tax preparation through a baroque system of middlemen.

By Paul KielJustin Elliott and Will Young. Published 4-24-2020 by ProPublica

Image: Jernej Furman/flickr/CC

Last week, a group of angry and desperate Citi Tax Financial customers gathered outside the company’s storefront in Augusta, Georgia. Millions of Americans had received a big deposit from the IRS in their bank accounts, but they had not. The IRS website told them their coronavirus stimulus checks were deposited in an account they didn’t recognize.

With an officer from the Richmond County Sheriff’s Office beside him and another officer shouting for people to be quiet, the tax preparation company’s owner told the crowd of about 60, only a few of whom wore masks, that he didn’t have their money. Continue reading

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‘Beyond Predatory’: Trump Treasury Department Gives Banks Green Light to Seize $1,200 Stimulus Checks to Pay Off Debts

“The Treasury Department is pointing out opportunities for banks and debt collectors to steal Americans’ relief checks out from under them.”

By Jake Johnson, staff writer for Common Dreams. Published 4-14-2020

Steve Mnuchin. Screenshot: CNN

President Donald Trump’s Treasury Department has given U.S. banks a green light to seize a portion or all of the one-time $1,200 coronavirus relief payments meant to help Americans cope with financial hardship and instead use the money to pay off individuals’ outstanding debts—a move consumer advocates decried as cruel and unacceptable.

“The Treasury Department effectively blessed this activity on a webinar with banking officials last Friday,” The American Prospect‘s David Dayen reported Tuesday. Continue reading

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Trump, Granting Lobbyist Demands, Quietly Handed Billions More in Tax Breaks to Huge Corporations: Report

“Trump is the most corrupt president in history, and here’s the latest example of how that corruption helps giant corporations.”

By Jake Johnson, staff writer for Common Dreams. Published 12-30-2019

Treasury Secretary Steven Mnuchin and President Donald Trump at a Tax reform press briefing October 31, 2017. Screenshot: YouTube

A “disturbing” New York Times story published Monday detailed how President Donald Trump’s Treasury Department, led by former Goldman Sachs banker Steve Mnuchin, has quietly weakened elements of the 2017 tax law in recent months to make it even friendlier to wealthy

individuals and massive corporations.

Lobbyists representing some of the largest corporations in the world, the Times reported, targeted two provisions in the original 2017 law designed to bring in hundreds of billions of dollars in revenue from companies that had been dodging U.S. taxes by stashing profits overseas. Continue reading

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IRS: Sorry, But It’s Just Easier and Cheaper to Audit the Poor

Congress asked the IRS to report on why it audits the poor more than the affluent. Its response is that it doesn’t have enough money and people to audit the wealthy properly. So it’s not going to.

By Paul Kiel. Published 10-2-2019 by ProPublica

Charles Rettig testifying at his confirmation hearing on June 28, 2018. Screenshot: C-SPAN

The IRS audits the working poor at about the same rate as the wealthiest 1%. Now, in response to questions from a U.S. senator, the IRS has acknowledged that’s true but professes it can’t change anything unless it is given more money.

ProPublica reported the disproportionate audit focus on lower-income families in April. Lawmakers confronted IRS Commissioner Charles Rettig about the emphasis, citing our stories, and Sen. Ron Wyden, D-Ore., asked Rettig for a plan to fix the imbalance. Rettig readily agreed. Continue reading

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How the tax package could blur the separation of church and politics

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If a House provision gets enacted, churches will be able to endorse – not just pray for – political candidates. Andrew Cline/Shutterstock.com

Susan Anderson, Elon University

The tax package pending in Congress includes a provision that would leave churches and other nonprofits, which by law must be nonpartisan, suddenly free to engage in political speech.

This measure, currently only in the House version of the bill, could potentially change charitable life as we know it.

As an accounting professor who teaches nonprofit taxation, I believe that this significant change deserves vigorous public debate and is too big to bury in tax legislation. Continue reading

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What if filing taxes wasn’t so… taxing?

By Gretschman for Occupy World Writes

[Public domain], via Wikimedia Commons

[Public domain], via Wikimedia Commons

There are at least 1,910 forms and supporting documents on the Internal Revenue Service (IRS) website. The tax form that most Americans fill out for the purpose of federal tax liability has a 206 page set of instructions that go with it. American citizens are taxed at varying rates: up to 39.6 percent of their income.

The IRS calculates a burden of 7 hours and $120 for the average taxpayer to complete a federal tax return (Form 1040). For businesses, the IRS calculates a burden of 24 hours and $430.

Can’t we simplify this ? What if the existing tax code with its page after page of additions and exclusions was thrown out so that all citizens and businesses would pay the same flat rate on their income? No more having multi-billion dollar corporations paying less taxes than the average citizen pays.

Instead of pages and pages of tax code that favor those who helped write the tax code, one flat tax rate would apply to all. If all income was subject to a 7 percent tax paid to the federal government and a 3 percent tax was paid to the state or local municipality where the citizen or business resided the federal, state and local governments would have enough money to provide the types of programs and services that are now at the mercy of political wrangling. Most, if not all, citizens would be overjoyed to bring home 90 percent of their gross wages.

How much money and time would be saved by having a simplified tax code? How much less would the government spend on implementation and enforcement of a simpler tax code? How much more money would the average citizen have to spend on education, entertainment, or just the basic necessities of daily living?

If the only things that are certain in this life are death and taxes, can’t we at least try to make the second one feel a little less like the first?

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