IRS “Hurry up & Wait”steve
Thursday February 9, 2023 – As tax season begins, the IRS has yet to decide an important question: are state payments or refunds received in 2022 taxable? So, The IRS is asking people to hold off filing their Tax Returns.
The Internal Revenue Service (IRS) tells us they have been working for months with state tax officials about these special payments and refunds that were made available by some states in 2022.
“The IRS is aware of the complexity surrounding these payments and is doing its best to provide additional information that will help taxpayers make an informed decision.” In the meantime – Hurry up and Wait.
The Sixteenth Amendment to the Constitution proclaims, “Congress shall have power to lay and collect taxes on incomes, from whatever source derived.” There are, however, some statutory exceptions. Do these state rebate checks fit into the exceptions? The IRS doesn’t know yet.
The IRS tells taxpayers “the rules surrounding them are complex.” In the meantime “the IRS recommends [taxpayers] wait until additional guidance is available.” “[T}he best course of action is to wait for additional clarification on state payments rather than calling the IRS.”
Attorney Steven A. Leahy looks at the IRS February 3, 2023 Statement on Today’s Tax Talk.
Steven A. Leahy is a tax attorney in Illinois. He was the host of the long-running popular Radio Show “The IRS Radio Hour” heard every Sunday evening on AM 560 The Answer. Attorney Leahy is also the author of the book “Deal With Your IRS Problems Today!” You can get a FREE copy of this important book at FreeIRSBook.com. Or Call 24/7 (312)664-6649