Latest news with #Werfel
Forbes
17-04-2025
- Business
- Forbes
Head Of Tech Latest To Leave The IRS As Concerns Grow About Cuts And Data Sharing
The Internal Revenue Service (IRS) logo is seen displayed on a smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images) The chief information officer at the IRS will leave his position at the end of the month. Rajiv Uppal's departure follows several high-profile defections from the tax agency since the beginning of the year. Uppal was named CIO at the end of December 2023 as part of restructuring at the IRS under former commissioner Danny Werfel. Before joining the IRS, Uppal served as the Director of the Office of Information Technology and Chief Information Officer for the Centers for Medicare and Medicaid Services (CMS), part of the U.S. Department of Health and Human Services (HHS), and brought over 25 years of information technology expertise to the IRS from both the public and private sectors. His portfolio included working with venture capital firms, government entities, and Fortune 500 companies. He holds a master's degree in Systems Science from Louisiana State University and a bachelor's degree from the Indian Institute of Technology. Uppal's position was created as part of Werfel's plans for a new leadership structure at the agency. As envisioned by Werfel, the organizational structure featured a single Deputy IRS Commissioner instead of two and four new IRS chief positions to oversee taxpayer service, tax compliance, information technology, and operations. The new organizational structure also included Doug O'Donnell as Deputy IRS Commissioner and Melanie Krause as Chief Operating Officer. Since Werfel's departure, O'Donnell has left the agency. Melanie Krause is slated to leave on April 28, 2025, the same day as Uppal. Krause stepped in as acting commissioner in early March following the retirement announcement of Doug O'Donnell. O'Donnell had served in the role for just a few short weeks following former IRS Commissioner Danny Werfel's departure on January 20, 2025 (one week before the tax season officially kicked off). O'Donnell's departure on February 28 marked a remarkable 39-day span of rotating commissioners. Krause becomes the third commissioner or acting commissioner to leave the agency in less than 80 days. Uppal's domain included the current IRS information technology division, a key area of focus for the agency. "Our work in the technology arena is critical to our current work on everything from filing season to our phone lines and our online tools," Werfel said at the time. "And we must continue to make foundational improvements in this area to ensure the success of our transformation work and bringing new tools to help taxpayers. Creating this position will be critical to making sure information technology works closely with our business units and our transformation teams to create successes for taxpayers and the tax system, now and in the future." The IT department at the agency has faced a series of recent challenges, including reduced funding. Republicans in Congress have clawed back roughly half—$40 billion out of the $80 billion—of the Inflation Reduction Act (IRA) funds. The extra money was intended to help the IRS hire 87,000 new workers, including customer service and IT workers, over the next decade. Werfel had previously estimated that, factoring in attrition, the IRS was approaching 90,000 full-time employees—the same as roughly a decade ago and far below staffing numbers in the 1990s. During the 2025 tax season, around 50 IT executives were placed on administrative leave as part of efforts to reduce the agency's workforce. Thousands more agency employees are expected to receive pink slips in mid-May, about a month after Tax Day, April 15, and it's unclear how many of them will be tech-focused. IRS technology has been at the center of controversy at the agency since the beginning of the year. In February, Elon Musk's Department of Government Efficiency (DOGE) raised eyebrows when it requested access to sensitive taxpayer data at the IRS. According to various reports, DOGE sought access to the Integrated Data Retrieval System (IDRS). You can think of the IDRS as a master file, which includes tax returns and other taxpayer information, including bank records. Taxpayers and tax professionals alike have expressed concerns about the safety of IRS data, especially since DOGE would not offer a reason why it needed to access the data. Unfettered access to that data isn't typically granted to anyone—even the IRS Commissioner. In a recent op-ed for Bloomberg Tax, Werfel wrote that if he, as the former IRS commissioner, had requested access to all the data in the IRS systems, "the agency's data security team would rightfully say "no." I would have no compelling need, and there was no legal basis for me to demand it." The request for access is even more concerning following an NPR report that staff members at the National Labor Relations Board were alarmed about a spike in data leaving the agency following DOGE access to agency systems—data that might have included sensitive information on unions, ongoing legal cases, and corporate secrets. According to NPR, "members of the DOGE team asked that their activities not be logged on the system and then appeared to try to cover their tracks behind them, turning off monitoring tools and manually deleting records of their access — evasive behavior that several cybersecurity experts interviewed by NPR compared to what criminal or state-sponsored hackers might do." Closer to Tax Day, taxpayers and tax professionals reported mistakes on the IRS website. One such problem? The extension payment date for taxpayers logged into the IRS website was incorrect. While payment should be made by April 15, 2025, taxpayers who logged in to pay see an April 22, 2025, due date. The site says, "Your payment is due on April 22, 2025, regradless of filing for an extension." (Yes, the 'regradless' typo was on the IRS site, too). Errors appeared in other spots on the website, too, including misidentifying the amended tax form as Form 104X (it's Form 1040X) that was recently "filled" instead of "filed." Both errors have since been fixed, but other errors remain on the site, including processing updates and problems with the installment agreement option. Additionally, the tab for searching for charities has been removed altogether from the home page—if you're looking to confirm charitable status, you'll have to perform a search to find the page first. Just before the reports, Elon Musk tweeted on X (formerly Twitter) that the Department of Government Efficiency (DOGE) had made a fix to the IRS website. It's not clear whether the changes and the errors are related or whether DOGE had access to other parts of the IRS website. A request made to the IRS asking for more information, including information about the scope of changes made by DOGE, was not answered. More recently, the Trump administration plans to eliminate the IRS Direct File program. While Republican lawmakers had previously targeted the program, the free tax software program had been marked as safe for the 2025 season, with now Treasury Secretary Scott Bessent committing to the program during his confirmation hearing. "I will commit that for this tax season … Direct File will be operative," Bessent said. However, less than 48 hours after the end of the regular tax filing season, AP News reported that the program will be axed. Earlier in the filing season, Musk posted on X (formerly Twitter) that he had "deleted" 18F, the group responsible for creating the technology behind the program. The tweet was in response to a post suggesting that "the far left government wide computer office" was recently taken over by Musk allies. That caused some users on social media to incorrectly report that the program itself had been axed in February (it remained open). 18F was not a group inside the IRS but a team of designers, software engineers, strategists, and product managers within the General Services Administration (GSA). The team collaborated with other agencies to fix technical problems, build products, and improve public services through technology. On March 1, 2025, the group was officially shut down. The changes—including the data sharing—have directly contributed to a flurry of high-level departures. In addition to Uppal, former commissioners or acting commissioners Werfel, Krause, and O'Donnell have all left or made plans to leave the agency since January. And weeks after O'Donnell departed, acting IRS chief counsel William Paul was removed. Paul was reportedly demoted because he refused to cooperate with Elon Musk's Department of Government Efficiency, as DOGE representatives allegedly sought to share taxpayer information with other federal agencies. The agency is reportedly taking advantage of the departures to review a number of recent technology initiatives. Details, to date, have been sparse.
CNN
28-03-2025
- Business
- CNN
So far, IRS upheaval has not tripped up tax filing and refund issuance, tax pros say
The Internal Revenue Service has been in a state of turmoil ever since members of the Department of Government Efficiency embedded in the agency during tax filing season — aka the IRS' busiest time of the year. But so far at least, the upheaval has not tripped up tax filing and refund issuance, tax professionals told CNN. But it has delayed other critical issues for taxpayers and may end up hurting US coffers. In the past seven weeks key top executives have left the IRS, including Commissioner Danny Werfel and the acting commissioner who replaced him. Roughly 6,700 probationary employees were fired in February (although they may soon get their jobs back as a result of a federal judge's preliminary injunction Thursday). Close to 5,000 more employees accepted the so-called deferred resignation offer from the Trump administration, and about 6,800 more employees may be laid off in May, according to a draft plan for a reduction in force. On top of personnel turnover, agency alums had worried that tax filing season, which officially runs from January 27 through April 15, could be disrupted by DOGE's efforts to get unprecedented access to IRS data systems. But based on CNN's discussions with certified public accountants and enrolled agents, it appears that the electronic filing process has been running well so far. Tax professionals said they've been able to get through to the IRS with questions, submit clients' returns electronically, and obtain those clients' refunds in a timely manner. To date, 'It seems to be business as usual,' said Mark Koziel, CEO of the American Institute of Certified Public Accountants. Illinois-based CPA Mark Gallegos agreed that in terms of the filing process 'it's been relatively smooth so far.' And tax preparation firm H&R Block told CNN that 'we continue to see the IRS process returns and issue refunds, and we expect that to continue going forward.' Former IRS Commissioner Werfel told CNN he isn't surprised to hear that. 'The IRS made critical investments with resources from the Inflation Reduction Act over the past two years to strengthen the agency's technology and electronic tools — and to staff up in calling centers and walk-in centers to meet demand,' he said. 'You're seeing a carryover from those investments.' But, tax professionals said, they are seeing delays in the handling of their clients' compliance disputes and audits. 'The layoffs so far have been more targeted on the collection side than on the taxpayer services side,' Werfel noted. Tax professionals CNN spoke with say they've experienced delays in matters where they are trying to resolve disputes for their clients with the agency, or to set up payment agreements pertaining to clients' prior year taxes. '(One area I've seen) significant challenge is for taxpayers who need to set up installment agreements,' said CPA Miklos Ringbauer, secretary of the California Society of CPAs, who noted there are long wait times to get through on the IRS practitioner hotline to address the issue. Wisconsin-based enrolled agent David Mellem said he has a client who recently filed an amended 2019 return and paid the back taxes he owed. 'But his 2024 refund is being held up, because the IRS records don't reflect the payment yet,' Mellem said. Meanwhile, CPA Jim Buttonow in North Carolina and enrolled agent Joshua Youngblood in Texas each said they have experienced delays in getting approval from the agency for their clients' power of attorney forms. Such approvals, which used to take fewer than five days, are now taking up to 30 days, Youngblood said. Without having power of attorney for their clients, they can't talk to the IRS to resolve cases in which the agency may assert that their clients underreported their income or owe back taxes. Such delays are likely to grow longer if the IRS makes even deeper staff cuts going forward, Mellem said. 'Fewer people means more delays.' Former IRS Commissioner Charles Rettig advised members of the AICPA in a recent town hall to keep copies of everything they've sent the IRS pertaining to their clients' audits. 'Some of the folks who are leaving the exam function of the IRS are being instructed to (mark the case) 'no change' and close down the particular examination. But if the matters are going to be reassigned — and some will be reassigned — you want to make sure that everything you've provided is there,' Rettig said. If there are further staff cuts, it could also start to hit taxpayer services — and affect your experience when you interact with the IRS on routine issues. 'Plans for large reductions in force, if they materialize, will inevitably impede the services side,' Werfel said. Coupled with cuts in enforcement, it could mean the IRS takes in less revenue overall. 'If you're trying to deal with the deficit, the last thing you want to do is mess around with the IRS. It is the government's revenue-producing arm,' said former IRS Commissioner John Koskinen. Money collected by the IRS during tax season is critical to the federal government's bottom line. As it is, Werfel said, relative to the same period a year ago, 'We are seeing early indications of reduced collections. And I'm concerned the trend will worsen by April 15,' he said. Through March 7, which marked the sixth week of filing season, the actual number of returns received and processed was down about 2% compared to the same period last year, according to the agency's weekly filing statistics. But the IRS also reported that it had issued just over 43.6 million refunds, or 1.5% more than it did at the same time last year. The average amount paid was $3,324, up nearly 6% from the comparable period in 2024.
Los Angeles Times
22-03-2025
- Business
- Los Angeles Times
Haven't filed your 2021 tax return? You might be missing out on a COVID stimulus check
If you haven't filed your 2021 tax returns you might be missing out on a COVID stimulus payment. Taxpayers who haven't filed 2021 tax returns who may be eligible for the Recovery Rebate Credit must file it by April 15, 2025 to claim the credit. Earlier this year, the IRS announced that it's distributing about $2.4 billion to taxpayers who didn't receive their COVID stimulus payments. The agency said it's distributing these payments to taxpayers who failed to claim a Recovery Rebate Credit on their 2021 tax returns. The Recovery Rebate Credit is a refundable credit for individuals who did not receive one or more Economic Impact Payments (EIP), also known as stimulus payments. 'Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were actually eligible,' IRS Commissioner Danny Werfel said in a statement. Here's what you need to know: The special payments announced by the IRS are being sent to those taxpayers who filed a 2021 tax return but left the data field for the Recovery Rebate Credit blank or they filled it out as $0 when they were actually eligible for the credit. Payments will vary but the maximum amount will be $1,400 per individual. In total, the IRS will be distributing about $2.4 billion to taxpayers who failed to claim a Recovery Rebate Credit on their 2021 tax returns. The IRS has posted information online about eligibility and how the payment was calculated. The Recovery Rebate Credit is a refundable credit for individuals who didn't receive the Economic Impact Payments, also known as stimulus payments, during 2020 and 2021. A refundable tax credit is a credit you can get as a refund even if you don't owe any tax. The IRS announced this initiative after reviewing its internal data and finding that many eligible taxpayers who filed a 2021 tax return didn't claim the credit. 'To minimize headaches and get this money to eligible taxpayers, we're making these payments automatic, meaning these people will not be required to go through the extensive process of filing an amended return to receive it,' said Werfel. If you qualify for the Recovery Rebate Credit you don't have to take any action. The IRS plans sent letters to eligible taxpayers notifying them of the special payment. The payments went out automatically and should've arrived by direct deposit or check by late January. They'll are being sent to the bank account listed on the taxpayer's 2023 return or to the address IRS has on file. You still might be able to receive the money. However, taxpayers need to file a tax return and claim the Recovery Rebate Credit by the April 15, 2025 deadline, even if any income from a job, business or other source was minimal or nonexistent, according to the IRS. There were three rounds of payments to households impacted by the pandemic, totaling $814 billion. IRS based the amounts that taxpayers received on their income, tax filing status and number of children or qualifying dependents. In March 2020, eligible individuals received up to $1,200 per income tax filer and $500 per child under the CARES Act. In December 2020, eligible individuals received up to $600 per income tax filer and $600 per child under the Consolidated Appropriations Act. In March 2021, eligible individuals received up to $1,400 per income tax filer and $1,400 per child under the American Rescue Plan Act. Haigh and Morga write for the Associated Press.
Yahoo
21-03-2025
- Business
- Yahoo
Haven't filed your 2021 tax return? You might be missing out on a COVID stimulus check
If you haven't filed your 2021 tax returns you might be missing out on a COVID stimulus payment. Taxpayers who haven't filed 2021 tax returns who may be eligible for the Recovery Rebate Credit must file it by April 15, 2025 to claim the credit. Earlier this year, the IRS announced that it's distributing about $2.4 billion to taxpayers who didn't receive their COVID stimulus payments. The agency said it's distributing these payments to taxpayers who failed to claim a Recovery Rebate Credit on their 2021 tax returns. The Recovery Rebate Credit is a refundable credit for individuals who did not receive one or more Economic Impact Payments (EIP), also known as stimulus payments. 'Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were actually eligible,' IRS Commissioner Danny Werfel said in a statement. Here's what you need to know: Who is eligible to receive a check? The special payments announced by the IRS are being sent to those taxpayers who filed a 2021 tax return but left the data field for the Recovery Rebate Credit blank or they filled it out as $0 when they were actually eligible for the credit. How much money will eligible taxpayers receive? Payments will vary but the maximum amount will be $1,400 per individual. In total, the IRS will be distributing about $2.4 billion to taxpayers who failed to claim a Recovery Rebate Credit on their 2021 tax returns. The IRS has posted information online about eligibility and how the payment was calculated. Why is the IRS sending out stimulus checks? The Recovery Rebate Credit is a refundable credit for individuals who didn't receive the Economic Impact Payments, also known as stimulus payments, during 2020 and 2021. A refundable tax credit is a credit you can get as a refund even if you don't owe any tax. The IRS announced this initiative after reviewing its internal data and finding that many eligible taxpayers who filed a 2021 tax return didn't claim the credit. 'To minimize headaches and get this money to eligible taxpayers, we're making these payments automatic, meaning these people will not be required to go through the extensive process of filing an amended return to receive it,' said Werfel. If I qualify for a stimulus payment, how will I receive it? If you qualify for the Recovery Rebate Credit you don't have to take any action. The IRS plans sent letters to eligible taxpayers notifying them of the special payment. The payments went out automatically and should've arrived by direct deposit or check by late January. They'll are being sent to the bank account listed on the taxpayer's 2023 return or to the address IRS has on file. What if I haven't filed my 2021 tax return yet? You still might be able to receive the money. However, taxpayers need to file a tax return and claim the Recovery Rebate Credit by the April 15, 2025 deadline, even if any income from a job, business or other source was minimal or nonexistent, according to the IRS. How many rounds of COVID stimulus payments were there? There were three rounds of payments to households impacted by the pandemic, totaling $814 billion. IRS based the amounts that taxpayers received on their income, tax filing status and number of children or qualifying dependents. In March 2020, eligible individuals received up to $1,200 per income tax filer and $500 per child under the CARES Act. In December 2020, eligible individuals received up to $600 per income tax filer and $600 per child under the Consolidated Appropriations Act. In March 2021, eligible individuals received up to $1,400 per income tax filer and $1,400 per child under the American Rescue Plan Act. ___ The Associated Press receives support from Charles Schwab Foundation for educational and explanatory reporting to improve financial literacy. The independent foundation is separate from Charles Schwab and Co. Inc. The AP is solely responsible for its journalism.
Chicago Tribune
19-03-2025
- Business
- Chicago Tribune
Haven't filed your 2021 tax return? You might be missing out on a COVID stimulus check
If you haven't filed your 2021 tax returns you might be missing on a COVID stimulus payment. Taxpayers who haven't filed 2021 tax returns who may be eligible for the Recovery Rebate Credit must file it by April 15, 2025 to claim the credit. Earlier this year, the IRS announced that it's distributing about $2.4 billion to taxpayers who didn't receive their COVID stimulus payments. The agency said it's distributing these payments to taxpayers who failed to claim a Recovery Rebate Credit on their 2021 tax returns. The Recovery Rebate Credit is a refundable credit for individuals who did not receive one or more Economic Impact Payments (EIP), also known as stimulus payments. 'Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were actually eligible,' IRS Commissioner Danny Werfel said in a statement. Here's what you need to know: Who is eligible to receive a check? The special payments announced by the IRS are being sent to those taxpayers who filed a 2021 tax return but left the data field for the Recovery Rebate Credit blank or they filled it out as $0 when they were actually eligible for the credit. How much money will eligible taxpayers receive? Payments will vary but the maximum amount will be $1,400 per individual. In total, the IRS will be distributing about $2.4 billion to taxpayers who failed to claim a Recovery Rebate Credit on their 2021 tax returns. The IRS has posted information online about eligibility and how the payment was calculated. Why is the IRS sending out stimulus checks? The Recovery Rebate Credit is a refundable credit for individuals who didn't receive the Economic Impact Payments, also known as stimulus payments, during 2020 and 2021. A refundable tax credit is a credit you can get as a refund even if you don't owe any tax. The IRS announced this initiative after reviewing its internal data and finding that many eligible taxpayers who filed a 2021 tax return didn't claim the credit. 'To minimize headaches and get this money to eligible taxpayers, we're making these payments automatic, meaning these people will not be required to go through the extensive process of filing an amended return to receive it,' said Werfel. If I qualify for a stimulus payment, how will I receive it? If you qualify for the Recovery Rebate Credit you don't have to take any action. The IRS plans to send letters to eligible taxpayers notifying them of the special payment. The payments will go out automatically this month and should arrive by direct deposit or check by late January. They'll be sent to the bank account listed on the taxpayer's 2023 return or to the address IRS has on file. What if I haven't filed my 2021 tax return yet? You still might be able to receive the money. However, taxpayers need to file a tax return and claim the Recovery Rebate Credit by the April 15, 2025 deadline, even if any income from a job, business or other source was minimal or nonexistent, according to the IRS. How many rounds of COVID stimulus payments were there? There were three rounds of payments to households impacted by the pandemic, totaling $814 billion. IRS based the amounts that taxpayers received on their income, tax filing status and number of children or qualifying dependents. In March 2020, eligible individuals received up to $1,200 per income tax filer and $500 per child under the CARES Act. In December 2020, eligible individuals received up to $600 per income tax filer and $600 per child under the Consolidated Appropriations Act. In March 2021, eligible individuals received up to $1,400 per income tax filer and $1,400 per child under the American Rescue Plan Act.
