Domestic Taxes

The Senate Finance Committee on Wednesday will examine the future of individual tax rates and their effect on economic growth.

The hearing comes as tax lobbyists seriously doubt that Congress will be able to extend any of the Bush tax cuts before adjourning for the August recess.

Healthcare and Senate delays prevented action on legislation that many Democratic leaders said would be completed by August.

Sen. Robert Menendez (D-N.J.) on Friday said he is working on a bill that would end billions of dollars in tax breaks for an oil industry that enjoyed record profits during the first quarter of the year. 

The chairman of the Senate Democratic Policy Committee left wiggle room for that threshold to be lowered.

The chairman of the Senate Democratic Policy Committee left wiggle room for that threshold to be lowered.

The Internal Revenue Service has created a dedicated telephone line for taxpayers affected by the Gulf of Mexico oil spill.

Individuals who have questions about damage claims payments made by BP or who are experiencing filing or payment hardships because of the oil spill should contact the IRS at 866-562-5227, the agency announced Friday.

The phone line will operate from 7 a.m. to 10 p.m. local time Monday through Friday. 

The IRS can assist oil spill victims by suspending collection and examination actions and by providing flexibility for missed payments for those who have previously paid on time, the agency said in a release.

The agency also can offer compromises based on the taxpayer’s current income and potential for future income. 

Taxpayers who need this assistance must request it, the agency stated. 

On July 17, the IRS will meet with taxpayers who need special assistance in Mobile, Ala.; Panama City and Pensacola, Fla.; New Orleans, Houma and Baton Rouge, La.; and Gulfport, Miss.

Times and locations will be announced soon. 

National Taxpayer Advocate Pam Olson on Wednesday raised concern in a report to Congress about requiring businesses to document most of its purchases to the IRS. 

To improve tax compliance, the recently enacted health reform bill mandates purchases of $600 or more by businesses, tax-exempt organizations, or federal, state and local governments be submitted to the agency using Form 1099. 

The new requirement will affect 40 million businesses, including 26 million sole proprietors, and more than 100,000 government entities and could overburden these organizations, she said. 

The Computer & Communications Industry Association is the latest group to oppose legislation by Rep. William Delahunt (D-Mass.) requiring Internet shops to collect sales taxes on purchases from their sites. 

Former Treasury Secretary Robert Rubin will join several others in calling on Congress to reinstate the estate tax before the August recess. 

The July 21 event will be hosted by United for a Fair Economy, which has been fighting to preserve the estate tax since 1999.

Rubin is expected to discuss his reasons for supporting a permanent estate tax fix.

A clear majority — 69 percent — of Americans are unwilling to pay more in taxes to save government workers from being laid off, according to the latest Rasmussen Reports poll. 

The survey also found that 63 percent of respondents oppose tax increases to prevent cuts in entitlement programs aimed at low-income Americans.