Tax Refund


IRS Commissioner Werfel proposes legislative efforts to improve tax administration. Testifying before the Senate Finance Committee yesterday, IRS Commissioner Danny Werfel recommended that Congress consider legislative efforts to expand the IRS’s direct hire authority, enhance information reporting requirements, increase oversight for paid return preparers, and extend the authority to require e-filing. 

Election year dynamics are already setting the tone. The Hill reports that while Congress wants a “reset” on the government funding process after its tumultuous spring, “nothing of substance will come to fruition on spending ahead of November, a dynamic even top appropriators are acknowledging.” The first task is for the House GOP majority to advance their fiscal year 2025 spending bills through relevant committees.

Alabama House tax-writing committee advances bill to raise remote retailers online use tax. The bill would raise the simplified sellers’ use tax paid by out-of-state online retailers to 9.3 percent, an increase of 1.33 percentage points. That new rate would take effect Jan. 1, 2025 and reflect Alabama’s 4 percent sales tax, an average county sales tax rate of 2.39 percent, and an average municipal sales tax rate of 2.94 percent. The tax would raise an additional $121 million annually, reports TaxNotes (paywall). 

Portuguese authorities raid Uber Technologies in tax fraud investigation. Uber was among 65 locations raided by the Portuguese prosecutors investigating €28 million ($30 million) in tax fraud by fleet firms that carry out deliveries of food ordered on digital platforms. The firms may have used false invoices that did not match the services provided. Uber is not the target of the investigation and is cooperating with the authorities. 

 

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