Tag Archives: CARES Act

Is There Anyone In Government Who Cares About The Taxpayers’ Money?

Posted on by

On Saturday, Just the News posted an article about the Internal Revenue Service’s issuance of improper pandemic tax credits.

The article reports:

This week’s Golden Horseshoe is awarded to the IRS for issuing almost $1 billion in improper pandemic tax credits — and rebuffing an inspector general’s recommendations to recover the erroneous payments.

The tax collectors issued potentially $898 million in improper Recovery Rebate Credits (RRCs) to ineligible individuals, including potential nonresident aliens, according to a final audit report by the Treasury Inspector General for Tax Administration (TIGTA).

The CARES Act authorized Economic Impact Payments in varying amounts depending on income and filing status. Any eligible individual who did not receive the stimulus payment could claim the missing amount on their tax return as an RRC on their taxes in 2020 and 2021.

“As of May 27, 2021, the IRS had processed 26.3 million tax returns with RRC claims totaling $39.2 billion,” according to the TIGTA final audit report. “Of these, the IRS issued potentially improper RRC payments totaling $898 million. These include $79.8 million in the RRC that should have been paid to eligible individuals and $818.5 million in the RRC that was paid to ineligible individuals.”   

The IRS declined to review or take steps to recover approximately two-thirds of the erroneously disbursed amounts, the inspector general revealed.

…Declining to review such ineligible claims processed after May 27, 2021, Corbin said the recovery effort “would require the IRS to divert limited resources to review these returns when such a small percentage, five one-hundredths of one percent, are projected to be affected by the issue.”

Democrats increased the IRS budget by 6% in the recent omnibus spending legislation, and an additional 10,000 agents were expected to be hired. 

How much money would taxpayers save if the additional agents were put to work tracking down erroneous pandemic payments rather than harassing ordinary Americans who might have made an honest mistake on their tax returns?

Standing Up For Those Who Helped In A Crisis

Posted on by

When the nightmare of lockdowns, masks, and hand sanitizer began in February, some of the small breweries stepped up and stopped making alcohol to drink and made hand sanitizer instead. Unfortunately, those who wrote the stimulus bill for Congress were ungrateful.

Today The Federalist is reporting the following:

The U.S. Department of Health and Human Services (HHS) is overriding the Food and Drug Administration (FDA), which made a surprise announcement Tuesday that any distillery that switched to producing hand sanitizer this year during the pandemic will owe thousands of dollars in fees and could be charged twice if they do not cease production immediately.

HHS Chief of Staff Brian Harrison announced Thursday: “Small businesses who stepped up to fight COVID-19 should be applauded by their government, not taxed for doing so. I’m pleased to announce we have directed FDA to cease enforcement of these arbitrary, surprise user fees. Happy New Year, distilleries, and cheers to you for helping keep us safe!”

The article explains the history of the fees:

The early and uncertain days of the pandemic created a high demand for hand sanitizer. Many craft-brewing distilleries, which found their regular operations at a standstill due to COVID shutdowns, pivoted to making sanitizer to stay financially afloat and help with the sudden shortage. More than 800 distilleries shifted from spirits to sanitizer, offering it for sale and even donating it to their communities.

How were the distilleries rewarded for their swift, resourceful, and admirable actions? The FDA slapped them with a notice that they owed an unexpected fee to the government of more than $14,000. Any facility described as an “over-the-counter drug monograph” facility would be subject to a $14,060 Monograph Drug Facility Fee.

The CARES Act, passed into law earlier this year as an initial round of COVID-19 spending defined all distilleries producing hand sanitizer as such facilities. Under the now-voided rule, distilleries would have been forced to shut down production of hand sanitizer and notify the federal government of their change in status in order to avoid having to pay the same fee in 2022.

For the blindsided distilleries, the unexpected fee would have been devastating in an already financially difficult year.

This is another example of things hidden in bills passed by Congress that hurt American businesses. It is time we limit Congressional bills to five pages and require that they deal with one subject only. Right now the lobbyists are writing the bills and hiding things in them that hurt Americans. It’s time to make some changes in the way Congress operates.