In a noteworthy declaration, Commissioner Danny Werfel is urging taxpayers to promptly file their tax returns, regardless of the ongoing deliberations within Congress regarding potential tax bills. This proactive stance aims to foster a sense of financial control for taxpayers, emphasizing that the authorities will seamlessly address any legislative changes impacting returns.
The recommendation comes amid discussions within Congress, notably focusing on the proposed expansion of the child tax credit. A recent development saw the House Ways and Means Committee approving a tax bill, incorporating a proposal to elevate the maximum refundable amount per child to $1,800 in the tax year 2023, up from the present $1,600.
Commissioner Werfel underlined the Internal Revenue Service’s (IRS) ability to adapt to legislative amendments swiftly, citing the agency’s extensive experience in evaluating and implementing changes to the Internal Revenue Code. He assured that once a bill is published, the IRS stands ready to implement any necessary tax provisions within weeks of their enactment.
However, Commissioner Werfel emphasized the importance of taxpayers submitting complete and accurate original returns. Using the earned income tax credit (EITC) as an illustrative example, Werfel revealed that despite approximately 23 million eligible workers and families claiming the credit annually, nearly one in five still need to do so. This oversight results in unclaimed credits averaging $2,541. Due to statutory constraints, the IRS is barred from issuing refunds to EITC claimants until mid-February.
With an estimated 146 million households anticipated to file tax returns for the 2023 tax year, Commissioner Werfel strongly encourages taxpayers to adopt a proactive stance and not let uncertainties surrounding tax legislation hinder the timely submission of their returns.
This proactive approach aligns seamlessly with the IRS’s unwavering commitment to delivering efficient service. It ensures that taxpayers promptly receive any entitled refunds without unnecessary delays. Commissioner Werfel’s message resonates with the idea that taxpayers should assert control over their financial matters and not be held captive by legislative ambiguities.
As the IRS prepares for what could be a dynamic tax season, taxpayers are urged to stay ahead of the curve by submitting complete and accurate returns. The guarantee of automatic updates in response to legislative changes provides an additional layer of convenience, reinforcing that taxpayers need not postpone their filings in anticipation of congressional decisions.
Source ( Journal of Accountancy News).
