Not everyone files their taxes on time and some neglect (or outright refuse) to pay at all. The IRS’s ability to pursue those individuals and companies has been drastically hampered in recent years.
The Internal Revenue Service recently announced that it will be working with four private collection agencies for certain overdue federal debts.
In August, the IRS announced changes to the ITIN program that stem from the Protecting Americans from the Protecting Americans from Tax Hikes (PATH) Act that was signed into law in December of 2015. Renewals began in October for ITINs that have not been used on a federal tax return over the past three years, as well as ITINs that were issued prior to 2013.
“Hispanics represent about 17 percent of the nation’s total population, making them the nation’s largest ethnic or racial minority. According to the Federal Deposit Insurance Corporation, Spanish-only speaking households are five times less likely to use a bank or credit union.”
The Inspector General of the FDIC recently appeared in front of the Committee on Financial Services on March 16th. The hearing questioned the FDIC’s tactics in “targeting Refund Anticipation Loans through abusive and unfair regulatory practices.”
In December of 2015 the Protecting Americans from Tax Hikes Act (PATH Act) was signed into law. The PATH Act made a handful of tax extenders and incentives permanent, including the Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC).
A Tax Administration report from the Treasury Inspector General estimates that $15.6 billion in Earned Income Tax Credit payments were wrongfully paid out in fiscal year 2015.
The IRS announced in April that taxpayers can now pay their owed taxes at more than 7,000 7-Eleven stores across 34 states.
Many employers and employees find using a payroll card to be intimidating. According to CreditCards.com, “it pays to know these five things about payroll cards” before utilizing one:
Direct deposit has officially taken over the payroll market! According to the NACHA, 75% of all employees utilize direct deposit, whether it is to a traditional bank account or a payroll card account.
Over $200 billion in retail purchases were made with a prepaid card in 2014. Now, over five percent of all retail purchases are made using a prepaid card, whether it is a payroll card, a general reloadable card, or an incentive card.
New York Attorney General Shneiderman introduced the Payroll Card Act to state legislation in 2015 in response to the Attorney General Labor Bureau Report on payroll cards.