Vance criticizes IRS for delaying refunds to small businesses.

Sen. J.D.⁤ Vance Criticizes IRS for Failing Small Businesses

Sen. J.D. Vance (R-OH) ‌has​ voiced⁢ his criticism of the IRS for its failure to support small ‍businesses with delayed tax credits that were promised ​to boost operations during the pandemic.

“You would think that an agency with‍ an influx of new resources could process these forms and provide businesses with long-overdue tax relief,” Vance wrote in⁤ the Wall Street Journal. “You would be wrong. Progress has been slow. Rather⁤ than processing ‍claims​ and getting money out the door, the ‌IRS discouraged taxpayers from claiming the credit.”

Vance specifically highlighted the slow rollout of ⁢the ⁣employee retention tax credit⁣ (ERC), which was designed ⁣to help businesses keep employees on their payroll. However, the ERC has faced‌ fraud controversies due to questionable claims, posing a threat to businesses⁤ in need of tax relief.

Despite these challenges, Vance⁢ commended the Paycheck Protection Program (PPP), a ‌Small ‌Business Administration-backed initiative that provided funds to support small businesses’ payroll and benefits.

“The program was popular and effective not only in the eyes of business owners and lawmakers, but in ‌the ​eyes of my fellow conservatives,” Vance said, acknowledging that it wasn’t without⁢ flaws.

Vance also ​criticized the IRS’s renovation movement, referring ‍to the ⁣agency’s ⁢”Strategic Operating Plan”⁣ launched in April. This plan outlined various initiatives aimed at achieving the IRS’s 10-year vision. ‌While greater taxpayer customer service ‌has been demanded for decades, Vance questioned the ​effectiveness of the plan and its ​ability to address ⁤novel challenges.

Republicans and Democrats have differing views on how the allocated⁤ $80 billion for the ‍IRS should be‍ utilized. Republicans argue that it ⁤should ⁣be exclusively used to hire additional auditors, while Democrats point to⁢ a Treasury report suggesting a broader range of positions to be filled over a ⁢10-year ​period.

“Republican policymakers⁤ have long been fond of saying⁢ that government should be run more like a ‍business,” Vance stated. “However glib the ⁤remark, the lessons of COVID⁣ relief ⁢demonstrate that to meet novel challenges and devise effective programs, public policy should​ leverage⁢ the benefits of the market-based system, ‌not seek ⁣to tame them.”

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