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The IRS has issued new guidance on the federal income tax consequences of certain state payments, adding to its previous guidance from earlier this year on state payments made in 2022.
Reacting to a recent government report that the IRS misplaced sensitive tax information, two Republican lawmakers have demanded explanations from IRS Commissioner Daniel Werfel.
IRS employees may have violated policies and procedures governing the direct contact of represented taxpayers, the Treasury Inspector General for Tax Administration (TIGTA) found. TIGTA also found that the agency has yet to develop a system to identify employee violations of the direct contact provisions,