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The IRS expects more than 128.7 million individual tax returns to be filed by the April 15, 2024 tax deadline. That’s significantly more than the 357,598 tax returns filed in 1913, the first filing year under our modern income tax system.
The tax code has only become more complex since that first filing season. That complexity creates real costs—and headaches—for taxpayers.
That’s where we come in. You can stay up to date with the latest tax news and information—including tax proposals—by signing up for our new free weekly tax newsletter, Tax Breaks.
Each week, we’ll share insights from our Forbes tax team on a wide range of issues, including IRS rulings, areas of tax compliance, and important industry news. We’ll drill down on digital assets, keep you apprised of notable tax dates, and alert you to tax developments that might impact your home or business. We’ll answer your tax questions, offer suggestions to maximize tax breaks and savings, keep you updated on tax laws and news, and hopefully, point you in the right direction to a successful tax year.
(Even though tax laws and policy changes can occasionally be a bit weighty, we promise we won’t take ourselves too seriously.)
Why Are U.S. Taxes So Complicated?
Each tax season, taxpayers grapple with new tax rates, adjustments to credits and deductions, and new reporting requirements. And laws keep changing as lawmakers use the tax code to administer many different areas of federal policy and social change from childcare to healthcare to energy.
It’s no wonder that, according to the National Taxpayers Union Foundation, U.S. taxpayers spent an estimated 6.55 billion hours and $104 billion in 2022 preparing and submitting tax forms complying with the tax laws. One reason? The enormity of the tax code. The 1913 tax code was just 27 pages long and about 11,000 words. As of last year—April 12, 2023—the tax law, not including regulations and supporting guidance, measured 4,138,788 words.
How did it get that big? From 2000 through 2022, Congress enacted, on average, 399 changes to the tax code each year.
What Are Some Proposed Changes To Tax Law In 2024?
Just this week, Senate Finance Committee Chair Ron Wyden (D-Ore.) and House Ways and Means Committee Chair Jason Smith (R-Mo.) pushed a bipartisan tax proposal through the House. Several of the proposed tax breaks, like restoring bonus depreciation, ending the Employee Retention Credit (ERC), and expanding the Child Tax Credit (CTC) are slated to be retroactive, which could require amending previous tax year returns. The bill now moves to the Senate.
That same week, Rep. Randy Feenstra (R-Iowa) introduced legislation to permanently repeal the federal estate tax.
Both proposals face uphill climbs—even as Congress struggles with spending bills, including funding measures that would benefit the IRS.
You get the picture. It can be overwhelming sorting out the facts from the noise, including which proposals might be serious and which might be for show.
For timely tax tips, need-to-know deadlines, and the latest tax-related news delivered to your inbox, subscribe to Tax Breaks now.