IRS union objects to closing in-person taxpayer assistance offices in six states

Closed TAC offices could create filing obstacles for
some taxpayers. (Adobe Stock photo)

As the IRS moves to close nine taxpayer assistance center (TAC) offices in six states, rural and underserved areas may find it harder to file and pay their taxes. The National Treasury Employees Union asked the IRS to reconsider the closures, reports Sean Michael Newhouse of Government Executive. The IRS planned the closures to cut overhead costs.

While the agency promised its closures won't result in job losses, closing in-person tax offices will make it harder for some U.S. residents to handle their taxes. Doreen Greenwald, NTEU's president, issued a statement saying, "These communities will have to drive longer distances, possibly 100 miles or more to meet with the IRS and get their questions answered.”

TAC offices slated for closure on Nov. 30 are: Altoona and Wilkes-Barre, Pennsylvania; Cedar Rapids, Iowa; Elmira and West Nyack, New York; Owensboro and Paducah, Kentucky; Walnut Creek, California; and Wheeling, West Virginia.

The IRS also promised TAC closures won't reduce taxpayer services, which Rep. Mike Lawler, who represents West Nyack, N.Y., questioned in a letter to Scott Bessent, the acting IRS commissioner: "Closing this office without providing a suitable replacement will impose an undue burden on my constituents. . . .Forcing them to travel farther distances — often without reliable access to transportation — adds unnecessary barriers to fulfilling their obligations as taxpayers.”

The planned closures are a reversal of IRS outreach efforts. Newhouse writes, "The IRS had used funding from President Joe Biden’s 2022 Inflation Reduction Act to open or reopen 54 centers, bringing the total number to more than 360."

Particularly for rural populations, which often have few tax service options nearby or can lack reliable broadband for online communication, TAC offices serve as a way for rural folks to file correctly and on time. Greenwald said, “Reducing the number of customer service centers reverses the progress that the IRS has made when it comes to being accessible and helpful to the American people."

Montana small-business owner touts restoration, permanence of 2017 tax laws

Robert Majerus

Tax breaks and job reforms from President Donald Trump's first term helped jump-start and strengthen rural businesses, but many of those provisions already have expired or will end in 2025 unless Congress acts soon, writes Robert Majerus in his opinion for InsideSources. "Many of the 2017 tax law’s most essential cuts and deductions run out at the end of the year, and others already need to be restored."

Provisions that already have been phased out and need restoration include the "20% qualified business income deduction, which many small businesses have benefited from, as well as the immediate expensing of research and development and equipment," Majerus explains. "For farmers, the ability to expense these investments in the same year that they are made and brought online makes a huge difference, supporting innovation in the agricultural economy."

One of the most important changes the Tax Cuts and Jobs Act made was to reduce the "corporate tax rate from 35% to 21%, bringing the tax burden on U.S. businesses more in line with other countries," Majerus points out. "The TCJA provided more incentives for many small businesses to restructure themselves as C-corporations to take advantage of the lower tax rates."

To maintain profits and support continued small business growth, it is "critical for lawmakers to avoid calls to increase the corporate tax rate to help pay for the much-needed extensions of the Tax Cuts and Jobs Act’s economy-growing tax cuts," Majerus explains. "Reverting to a high corporate tax rate would be akin to raising taxes on Main Street and rural businesses that struggle to keep their doors open after years of high inflation."

Part of President Trump's presidential campaign included promises to "revitalize middle America," Majerus writes. "Now, these small businesses and communities that were helped in 2017 are the ones that will see the most gains wiped out if these tax cuts are not extended and made permanent."

The House has passed its support for reinstating and extending TCJA provisions. Majerus adds, "It’s time for the Senate to move forward while acknowledging the time limit businesses have before these expiring tax cuts go into effect at the end of the year. Time is short."

Robert Majerus is a member of the Community Business Alliance and a small-business owner in Montana.

Policy director for Rural Democracy Initiative warns of budget bill’s ‘devastating’ impacts

Members of the 119th House applaud the passage of the One Big Beautiful Bill Act. (The Hill video reel photo)

After weeks of wrangling, the U.S. House of Representatives passed President Donald Trump's "one big, beautiful bill" on May 22. The bill, which has moved to the U.S. Senate, includes massive spending cuts to support tax cut extensions and additional tax cuts.

Michael Chameides, the communications and policy director for the Rural Democracy Initiative, in an opinion piece published in Iowa's Times-Republican, points out six ways the bill could hurt rural residents. He writes, "I’ve been hearing from rural leaders across the country about the devastating impacts this bill would have. . . .The good news is it’s not too late. But there’s little time to spare." 

Here are the six concerns Chameides cited:

1. The bill "guts" rural health care. "It would take health care away from 13.8 million Americans and increase the cost for millions more. In some states, 50% of rural children get healthcare from Medicaid. Millions more rely on access to clinics and hospitals that would likely close because of these cuts."

2. It cuts federal Supplemental Nutrition Assistance Program spending. "More than 15% of families in small towns and rural areas rely on this support to feed their families."

(The Department of Agriculture canceled "about $660 million in funding this year for the Local Food for Schools program, which is active in 40 U.S. states," reports Aimee Picchi of CBS News. The cuts were announced in March and have left schools and farmers scrambling.)

3. The bill shifts more costs onto state and local governments. "Slashing federal funding to states would create new burdens for rural states that are already struggling to provide critical public services like health care, transportation, and emergency response services to local communities."

4. It takes away local land control. "Landowners have fought to stop the use of eminent domain for carbon pipelines by passing bans and moratoria. . . .This bill would overrule state and local laws and ordinances. . . and deprive residents of a fair opportunity to evaluate the adverse impacts of pipelines."

5. The bill phases out clean energy and infrastructure spending, including tax credits. "It would also take away $262 million in funding for energy efficiency and conservation grants as well as transportation infrastructure. . . .Ending these tax credits will increase household energy costs, which are already higher in many rural communities."

6. The bill favors bigger agribusiness companies and mega-farms. "Leaders in Congress are using the budget reconciliation process to give big farms a $50 billion windfall. Add the heightened pressures and instability caused by the Trump administration’s erratic trade policy and more family farmers would lose their farms — while Big Ag consolidates more of the market."

Chameides calls on rural residents and businesses to speak up: “Lawmakers have already heard from the giant corporations who helped write the bill. Now they need to hear from the rest of us. It’s up to us to alert our communities and tell our lawmakers: Don’t sell rural America out to big corporations and the wealthy.”

A longer version of the Times-Republican op-ed was originally published by Barn Raiser. To learn more about what could happen to the bill in the Senate, click here. 

The Republican tax break plan would give many Americans more money, but most cuts would end in early 2029

 Many lawmakers seek Medicaid cuts to pay for
the new tax legislation. (Adobe Stock photo)

The tax break plan currently being crafted by Republicans on Capitol Hill would put more cash in the hands of many Americans, but the strategy comes with a catch: Many of the cuts will end when President Trump's second term comes to a close. "Almost all of the cuts that Republicans hope to pass in the coming weeks will last only until President Trump is set to leave office," reports Andrew Duehren of The New York Times.

Despite the short-term gains, many Americans may see the cuts as a hard-earned respite from years of post-pandemic inflation. They include "a $500 increase to the child tax credit and a $1,000 bonus to the standard deduction, as well as Trump’s pledges to not tax tips or overtime pay," Duehren writes. "The effect would be to shower many Americans with hundreds of dollars per year, starting when they file taxes next year, a windfall that would dry up as Mr. Trump leaves office."

Not every tax break will be time-limited. "Much of the legislation is focused on preserving the architecture of the last Republican tax cut, passed during Trump’s first term," explains Duehren. For instance, the lower income rates for individual filers and the larger standard deduction would remain intact.

Tax policy experts do not see the new cuts substantially impacting the U.S. economy. Duehren reports, "The Tax Foundation, a think tank that is generally bullish on tax cuts’ ability to spur economic growth, estimated this week that the bill would increase gross domestic product by 0.6% in the long term."

Part of the money needed to pay for the tax cuts will come from Medicaid cuts. "More than eight million low-income Americans could lose their health insurance as a result of the Medicaid cuts that the G.O.P. has drafted," Duehren adds. "All while the biggest benefits of the tax cuts would flow to high-income Americans who owe the most in income tax . . . ."