Who doesn’t love taxes? Well, basically no one, but they are one of those things in life we have to get used to. While filling in your taxes might be no fun, reading about is a lot less painful and strenuous. Following, we would like to present you with a list we have compiled of the top tax stories of 2013. Wondering which tax stories made headlines in the US in the past year? Let’s take a look at the countdown.
NOTE: the following countdown only references tax stories pertaining to the US, which made headlines in 2013.
No. 6: United States vs. Windsor
United States v. Windsor is a milestone case in tax legislation. The case, which was decided in June 2013, forced the IRS to grant gay married couples the same tax rights as straight couples. Given this legal precedent, gay married couples can file for tax returns and claim their refunds just like any other married couple. IRS will take into account tax returns in cases where the couples were married in a state that allows for same-sex marriages, regardless of whether their current place of residence also does so or not.
No. 5: The IRS’ expensive spending
One of the biggest tax scandals in 2013 broke out in early summer, when the IRS faced scrutiny for its excessive spending. According to an audit performed by the Treasury Inspector General for Tax Administration, it was revealed that the IRS had spent close to $49 million during a span of 3 years, on traveling and conferences.
No. 4: Loving vs. the IRS
In September 2013, three independent tax professionals sued the IRS due to the latter’s plans of requiring tax prepares to attend professional education hours, earn a competency certificate, and pass a background check, regulations which were promulgated back in 2011. The plaintiffs, Loving, Gambino, and Kilian won the case which is now on appeal.
No. 3: The IRS shutdown
From October 1st to October 16th of 2013, the IRS was shut down, alongside all other agencies of the federal government. This shutdown came in the midst of the tax return season, when many people were trying to meet the October 15th deadline. In addition, the IRS had 3 additional shutdown days in 2013: May 24, June 14, July 5, for budget management considerations.
No. 2: Delays in the filing season
Due to new tax regulations enacted at the beginning of 2013, the IRS had to update its forms and software which led to a delay in the filing season of one week. However, it is reported that almost 12 million people had to wait until February and March to start filling in their taxes, due to the fact that they required specific tax forms.
No. 1: The American Taxpayer Relief Act
The 1st of 2013 marked the enactment of the American Taxpayer Relief Act, which was the Congress’ way of managing the fiscal cliff. For all of you that haven’t kept up with the headlines, the fiscal cliff referred to a period (the beginning of 2013 to be more exact) when several tax laws would expire at the same time. This law ensured that some of the exemptions enforced by previous laws would remain, as opposed to completely disappearing.
