Tim’s Tax News on the Tenth – September 2024

Timothy M. Hughes • September 10, 2024

IRS IS SLOW IN HELPING TAXPAYERS ADDRESS IDENTITY THEFT BUT HAS MADE ADVANCES IN SCOFFLAWS 

Identity Theft


In two unrelated stories, the IRS was criticized by the National Taxpayer Advocate in her report to Congress that the IRS is failing to assist victims of identity theft with receiving their tax refunds. The National Taxpayer Advocate’s report highlighted significant delays that identity theft victims face when trying to resolve their cases and receive their refunds. As of April 2024, the IRS took over 22 months on average to resolve identity theft cases, leaving approximately 500,000 cases unresolved. This continues to be an ongoing issue, with last year's report showing similar delays. Despite efforts by the IRS to address these problems, the backlog remains substantial.


In response to the National Taxpayer Advocate’s comments, the IRS acknowledged the challenges but emphasized ongoing efforts to improve services, particularly in reducing the identity theft backlog and enhancing phone service capabilities. The IRS has been utilizing funds from the Inflation Reduction Act to address these issues and trying to improve overall taxpayer services.


Crackdown on Scofflaws


In a recent news release from the IRS, not related to the National Taxpayer Advocate’s report, the IRS announced that it had collected $1.3 billion from wealthy individuals who have avoided paying taxes for the past few years. IRS Commissioner Danny Werfel made the announcement, citing "new milestones" under the Inflation Reduction Act and how they have worked to ensure that wealthy individuals pay taxes.


"The IRS in February 2024 launched an initiative to pursue 125,000 high-income, high-wealth taxpayers who have not filed taxes since 2017," the IRS said in the announcement. "These are cases where the IRS has received third-party information—such as through Forms W-2 and 1099s—indicating these people received income between $400,000 and $1 million or more than $1 million but failed to file a tax return. Prior to the Inflation Reduction Act, the IRS non-filer program ran sporadically since 2016 due to severe budget and staff limitations that did not allow these cases to be pursued."

 


If you would like more details, please do not hesitate to call our office. Our office has been successful in helping taxpayers with IRS and IDOR collection problems for over 30 years. If you have a tax or debt problem, please contact me at 847-705-9698 or thughes@lavellelaw.com and find out how we can help you.



Are you receiving the Lavelle Law eNewsletter? Sign up today and receive valuable updates and perspectives on a wide range of legal issues: http://goo.gl/pjeJkm

More News & Resources

Lavelle Law News and Events

Saved or client $1 Million in Estate Tax
By Estate Administration July 30, 2025
Due to Lavelle’s extensive knowledge in estate and gift tax, we were able to generate a combined federal and Illinois estate tax savings of $1 million for the client.
Don’t record a conversation without knowing the law in Illinois!
By Nataly Kaiser July 29, 2025
Do you know it’s a felony in Illinois if you record a conversation without consent? The Illinois Eavesdropping Statute prohibits the secret recording of private conversations without the consent of all parties involved. Protect yourself – Get consent before you hit record! Nataly Kaiser explains.
Now through 10-1-25, Lavelle Law is offering a special discounted rate on powers of attorney for col
By Jackie R. Luthringshausen July 24, 2025
Summer Special! - Now through 10-1-25, Lavelle Law is offering a special discounted rate on powers of attorney for college-bound students and young adults. Don't send your child to college without POA docs in place! Contact Attorney Luthringshausen to start the process. jluthringshausen@lavellelaw.com or 847-705-7555
A summary of The One Big Beautiful Bill Act (OBBBA) and its tax implications.
By Steven A. Migala July 22, 2025
The One Big Beautiful Bill Act (OBBBA), enacted on July 4, 2025, as Pub. L. No. 119-21, permanently extends and modifies key provisions from the 2017 Tax Cuts and Jobs Act (TCJA) while introducing new tax benefits and limitations. The law affects individuals, seniors, children, businesses, and charitable organizations.
An in-depth discussion of the One Big Beautiful Bill Act and its tax implications.
By Steven A. Migala and guest Ed Brooks July 21, 2025
Lavelle Law Shareholder Steven Migala and DHJJ Financial Principal Ed Brooks join host Jim Mitchell for an in-depth look at the new U.S. tax legislation, the One Big Beautiful Bill Act, and discuss how it will impact both businesses and individuals.
An in-depth discussion of the One Big Beautiful Bill Act and its tax implications.
By Steven A. Migala and guest Ed Brooks July 21, 2025
Lavelle Law Shareholder Steven Migala and DHJJ Financial Principal Ed Brooks join host Jim Mitchell for an in-depth look at the new U.S. tax legislation, the One Big Beautiful Bill Act, and discuss how it will impact both businesses and individuals.
What is a fee-shifting provision?
By Sarah J. Reusché July 15, 2025
In the United States, the "American Rule" generally requires each party in a legal dispute to cover their own attorney's fees, regardless of the case's outcome. However, exceptions exist where a judge may order one party to pay the other's attorney’s fees in specific circumstances. Sarah Reusché explains.
The reconciliation process and the financial relationship between landlords and tenants.
By Theodore M. McGinn July 14, 2025
In commercial leases, particularly those involving retail or office spaces, tenants typically pay not only base rent but also a share of additional operating expenses. These include Common Area Maintenance (CAM) charges, property taxes, and insurance premiums. The reconciliation of these expenses is a key process.
Delaware Supreme Court’s Analysis of Indemnification Notices in Merger and Escrow Agreements
By Steven A. Migala July 11, 2025
Attorneys drafting or reviewing indemnification clauses and notice provisions in a sale or acquisition governed by Delaware law should be aware of the recent Delaware Supreme Court decision in Thompson Street Capital Partners IV L.P. v. Sonova U.S. Hearing Instruments, LLC.
Update on Illinois Tax Changes
By Timothy M. Hughes July 10, 2025
Beginning July 1, Illinois residents will face a series of tax increases related to the Fiscal Year 2026 budget, which takes effect from July 1, 2025, to June 30, 2026. These increases are from the $55+B state budget that is supposed to generate $700+M of new taxes ranging from gasoline, short-term rentals, and more.
More Posts