Oregon Makes History as First State to Join IRS Direct File Program
Oregon has made a groundbreaking move by becoming the inaugural state to participate in the IRS Direct File program. This initiative enables taxpayers to conveniently file their taxes online at no cost directly to the IRS. The Direct File program was previously piloted in various states, including Arizona, California, Florida, Massachusetts, New Hampshire, New York, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming. This year, the Oregon Department of Revenue introduced its own version of Direct File through its website, streamlining the tax filing process for its residents.
Key Updates in Tax Audits by TIGTA
The Treasury Inspector General for Tax Administration (TIGTA) recently released findings that the IRS will no longer target an audit rate of 8 percent for households with income exceeding $10 million. While the IRS had been following a Treasury directive to audit at least 8 percent of individual tax returns from high-income earners, this effort will cease by the end of 2023 due to lack of productivity. Additionally, the IRS is now adhering to a new directive from 2022, which prohibits the use of Inflation Reduction Act funding to increase audit rates for taxpayers with incomes below $400,000.
Tragic Events in Kenya Lead to Tax Protests
In a tragic turn of events, five individuals lost their lives during tax protests in Kenya. Following a demonstration where thousands of protesters invaded Kenya’s Parliament and set a part of it ablaze, the police responded with live ammunition on unarmed civilians, resulting in multiple injuries and fatalities. The ruling party, under the leadership of President William Ruto, introduced the Finance Bill 2024, proposing tax hikes on income, excise duties, and value-added taxes, along with the implementation of new income tax brackets.
G-20 Considers Billionaires’ Tax Proposal
Gabriel Zucman, from the Paris School of Economics and the University of California at Berkeley, has introduced a technical proposal for a coordinated minimum tax targeting the world’s wealthiest 3,000 individuals with over $1 billion in wealth. The proposal, commissioned by the Brazilian government, suggests a 2 percent minimum tax that could potentially generate up to $250 billion annually. Finance ministers from G-20 member nations will convene in Rio de Janeiro next month to discuss this innovative plan.
Denmark Takes a Bold Step with Carbon Tax on Farms
Denmark is set to implement a carbon tax on farms beginning in 2030, making it the first country to do so. The Danish government plans to levy taxes on livestock carbon dioxide emissions, starting at 300 Danish crowns (approximately $43.16) per ton in 2030. The tax rate will gradually increase to 750 crowns by 2035, as part of the country’s efforts to address climate change and reduce carbon footprint in the agricultural sector.
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