IRS Issues Statement About Special Tax Refund 1099's

IRS issues statement about 1099 for the special tax refunds or payments made by states in 2022:

• We are working with state tax officials as quickly as possible to provide additional information and clarity for taxpayers. 
• There are a variety of state programs that distributed these payments in 2022
• The rules surrounding them are complex.
• We expect to provide additional clarity for as many states and taxpayers as possible next week.

" For taxpayers and tax preparers with questions, the best course of action is to wait for additional clarification on state payments rather than calling the IRS. We also do not recommend amending a previously filed 2022 return."

  IRS Statement — Taxability of State Payments | Internal Revenue Service

Access Regulations.gov for a complete list of the proposed regulations still open for public comment and to read public comments submitted for recent proposed regulations.

Article 1 Section 8 of the Constitution gives Congress the power to tax.

"The Congress shall have Power to lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States."

The ratification of the 16th Amendment, in 1913, created a path to taxing income, it is now more than 3.7 million words long.

"The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration."

Congress typically enacts Federal tax law in the Internal Revenue Code of 1986 (IRC). The tax code is currently more than 3.7 million words long.  

The IRC is complex, and its sections must be read in the context of the entire Code, the Treasury Regulations, and the court decisions that interpret it.

 The sections of the IRC can be found in Title 26 of the United States Code (26 USC). An electronic version of the current United States Code is made available to the public by Congress.

• Browse "Title 26—Internal Revenue Code" to see the table of contents for the IRC.
• "Jump To" to a specific section of Title 26 to find the text for that IRC provision. For example, you can "Jump To" Title 26 Section 24 to find the provision for the child tax credit in the IRC.
• Use the Advanced Search feature to search only in Title 26 for a specific term. For example, you can search for "child tax credit" in Title 26 to find section 24 of the IRC, shown as 26 USC 24.

"......... Additionally, sometimes Congress enacts laws that are not part of the IRC but nonetheless impact Federal tax law." Tax Code, Regulations, and Official Guidance | Internal Revenue Service (irs.gov)

As required by law, all regulatory documents are published in the Federal Register (FR).

The Congressional Affairs Program is a coordinated effort by the IRS Office of Legislative Affairs and the Taxpayer Advocate Service to establish and maintain relationships with congressional offices as well as help provide service and information to taxpayers.

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