Congressional Budget Office

Last month we looked at the Joint Committee on Taxation. The Congressional Budget Office [CBO] also issues reports which have implications for the budget and which ultimately affect taxation. The Congressional Budget Control and Impoundment Act of 1974 created the CBO. The agency's primary job is to provide budget-related information to all committees of both Houses, with priority given to the needs of the Committees on the Budget and of the Committees on Appropriations, Ways and Means, and Finance.

The law also requires the CBO to prepare several budget projections each year and to perform studies of budgetary issues. In addition, CBO must prepare estimates of new budget authority, outlays, or revenues that would result from bills or joint resolutions reported from committees of either House, and of the costs that the government would incur in carrying out the provisions of the proposed legislation. Those cost estimates are usually included in the committee reports accompanying bills or resolutions before action by the House or Senate.

Yesterday the CBO released An Analysis of Health Insurance Premiums under the Patient Protection and Affordable Care Act which you can get at their website: http://www.cbo.gov .

IRS & Treasury Release Priority Guidance Plan

Yesterday (Nov. 24, 2009) the IRS released the 2009-2010 PRIORITY GUIDANCE PLAN. The plan identifies and prioritizes the tax issues that will be addressed through guidance in regulations, revenue rulings, revenue procedures, notices, and other published administrative sources during the year July 2009 through June 2010. This plan includes 315 projects on a variety of issues, including recent legislation, the current economic environment, and important international issues.

Examples of projects in the Priority Guidance Plan include the following:

1) Guidance under §3406 regarding abusive tax avoidance schemes
2) Guidance relating to distressed debt
3) Final regulations on the measurement of assets and liabilities under §430, as added by the Pension Protection Act of 2006
4) Guidance for the low-income housing credit under §42 relating to sections 1404 and
1602 of the American Recovery Reinvestment Tax Act of 2009


Copies are available at the IRS website at http://www.irs.gov/foia/article/0,,id=181687,00.html . Copies can also be obtained by calling Treasury’s Office of Public Affairs at (202) 622-2960.

Research Tip of the Week

We've all seen or heard about some of the crackpot schemes that tax protesters promote as ways to avoid paying taxes. Quatloos, which bills itself as The Cyber Museum of Scams & Frauds, has a list of some of the more creative ones complete with links. In fact there is an entire "room" devoted to the subject of tax scams.

But just in case you are ever tempted to avail yourself of any of these you might want to check the Truth About Frivolous Tax Arguments where the IRS has neatly compiled a clear explanation of the law refuting each of these arguments as well as the penalties that may be imposed as a result.

A Little Comic Relief

Learn by Volunteering

The IRS Volunteer Income Tax Assistance (VITA) program has been a great success since it was created in 1969. The program offers free tax help to low and moderate-income (generally, $49,000 and below) taxpayers who are not able to prepare their own tax returns. Last year more than 3 million tax returns were prepared at nearly 12,000 locations in the U.S. A great way to learn more about tax is to volunteer for this program. Volunteers sponsored by various organizations are trained and certified to help prepare basic tax returns. VITA sites are generally located at community and neighborhood centers, libraries, schools, shopping malls, and other convenient locations. Most locations also offer free electronic filing. You can sign up to volunteer at the VITA website. If, on the other hand you wish to avail yourself of this program you can call 1-800-829-1040 to locate the nearest one.

First-Time Homebuyer Credit Extended

Last Friday President Obama signed into law the Worker, Homeownership and Business Assistance Act of 2009 (Public Law 111-92). The law extends and expands the first-time homebuyer credit. It permits taxpayers with higher incomes to qualify for the credit. It also extends the credit to long-time homeowners who buy a replacement principal resident. The IRS website has already been updated with details. See http://www.irs.gov/newsroom/article/0,,id=204671,00.html .

The IRS is Trying to Give Away Money

WASHINGTON — The Internal Revenue Service is looking for taxpayers who are due to receive a combined $123.5 million in the form of 107,831 refund checks that were returned to the IRS by the U.S. Postal Service due to mailing address errors.

Watch Video: Undelivered Refunds
Watch Video: Track Your Refund