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52-552: TLH or tlh may mean: Tax loss harvesting , an investment technique The Loud House , a 2016 cartoon broadcast on Nickelodeon The Lutheran Hymnal TLH, the IATA code for Tallahassee International Airport in the state of Florida, US tlh, the ISO 639-3 code for the Klingon language , a fictional constructed language spoken in

104-534: A "substantially identical" security. Therefore, it is not clear whether or not the securities of different investment companies can be "substantially identical", even if their investment objectives are identical. As a result, if an investor trades in and out of Exchange-traded funds (ETFs)) or mutual funds with almost identical holdings, some have held that it does not trigger the wash sale rule. For example, State Street's SPDR S&P 500 ETF (NYSEARCA: SPY) and iShare's Core S&P 500 ETF (NYSEARCA: IVV) both track

156-499: A 2024 study, "an additional $ 1 spent auditing taxpayers above the 90th income percentile yields more than $ 12 in revenue, while audits of below-median income taxpayers yield $ 5." As of 2018, it saw a 15 percent reduction in its workforce , including a decline of more than 25 percent of its enforcement staff. Nevertheless, during the 2023 fiscal year, the agency processed more than 271.4 million tax returns including more than 163.1 million individual income tax returns. For FY 2023,

208-578: A courtroom via criminal prosecutions to curtail the activities of some of these groups, IRS can do by administrative action." By 1986, limited electronic filing of tax returns was possible. The Internal Revenue Service Restructuring and Reform Act of 1998 ("RRA 98") changed the organization from geographically oriented to an organization based on four operating divisions. It added "10 deadly sins" that require immediate termination of IRS employees found to have committed certain misconduct. Enforcement activities declined. The IRS Oversight Board noted that

260-523: A decision that contradicted Hylton v. United States . The federal government scrambled to raise money. In 1906, with the election of President Theodore Roosevelt , and later his successor William Howard Taft , the United States saw a populist movement for tax reform. This movement culminated during then-candidate Woodrow Wilson 's election of 1912 and in February 1913, the ratification of

312-461: A decline in the number of paper returns being processed each year. As a result, the IRS implemented a consolidation plan for its paper tax return processing centers, closing five of its ten processing centers between 2003 and 2011. The agency closed two more centers - one in 2019 and another in 2021 - as e-file use continued to expand. E-filed tax returns accounted for 90% of all returns submitted during

364-462: A government agency." Requard admitted that he saw the returns but denied that he leaked them. Reporter Jack White of The Providence Journal won the Pulitzer Prize for reporting about Nixon's tax returns. Nixon, with a salary of $ 200,000, paid $ 792.81 in federal income tax in 1970 and $ 878.03 in 1971, with deductions of $ 571,000 for donating "vice-presidential papers". This was one of

416-464: A higher ordinary income rate in one year in exchange for additional long term capital gains tax at a lower rate in a later year) or even a tax penalty (e.g., deducting at a lower capital gains tax rate in several years in exchange for a much larger gain in one later year that puts one in a higher capital gains tax and Medicare investment income tax bracket.) The practice of tax loss harvesting has been both praised and criticized by investors, as deferring

468-489: A messy tax season on several fronts. The email was sent by IRS Commissioner Koskinen to workers. Koskinen predicted the IRS would shut down operations for two days later that year which would result in unpaid furloughs for employees and service cuts for taxpayers . Koskinen also said delays to IT investments of more than $ 200   million may delay new taxpayer protections against identity theft . Also in January 2015,

520-409: A new login and ID verification process for several of its online tools, including general account access, Identity Protection (IP) PIN setup, and payment plan applications. As part of the agency's Identity, Credential, and Access Management (ICAM) initiative, the process included the use of third-party facial recognition technologies to confirm taxpayer identities. The facial recognition requirement

572-468: A report critical of the lack of protection of privacy in TAS, and the project was abandoned in 1978. In 1995, the IRS began to use the public Internet for electronic filing. Since the introduction of e-filing , self-paced online tax services have flourished, augmenting the work of tax accountants, who were sometimes replaced. By 2002, more than a third of all tax returns were filed electronically. This led to

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624-806: A result, the IRS now functions under four major operating divisions: The Large Business & International (LB&I) division was known as the Large and Mid-Size Business division prior to a name change on October 1, 2010. The IRS is headquartered in Washington, D.C. , and does most of its computer programming in Maryland. It processes paper tax returns sent by mail and e-filed tax returns at three IRS center locations: Austin, Texas; Kansas City, Missouri; and Ogden, Utah. The IRS also operates computer centers in three locations: Detroit, Michigan; Martinsburg, West Virginia; and Memphis, Tennessee. The IRS

676-564: A tax on income and leading to the creation of the Bureau of Internal Revenue . In 1953, the agency was renamed the Internal Revenue Service, and in subsequent decades underwent numerous reforms and reorganizations, most significantly in the 1990s. Since its establishment, the IRS has been largely responsible for collecting the revenue needed to fund the United States federal government, with the rest being funded either through

728-449: A year, that year they can use up to $ 3,000 as a deduction to "offset ordinary income", with the remainder carrying over into future years if unused. Loss harvesting defers taxes, but doesn't eliminate them, and is essentially receiving a loan without interest from the federal government, assuming marginal tax rates are the same. If marginal rates are different, then there can be additional tax savings (e.g., deducting excess losses against

780-657: Is a penalty term for excess tracking error and Σ {\displaystyle \Sigma } is the covariance matrix of asset returns. For each asset that is bought/sold, it is necessary to include the constraints: { w j ≥ w 0 , j , ( Buy Trades ) w j ≤ w 0 , j , ( Sell Trades ) {\displaystyle {\begin{cases}w_{j}\geq w_{0,j},\quad &({\text{Buy Trades}})\\w_{j}\leq w_{0,j},\quad &({\text{Sell Trades}})\end{cases}}} With this formulation,

832-473: Is blamed for $ 4   billion worth of fraudulent 2012 tax refunds by the IRS. Fraudulent claims were made with the use of stolen taxpayer identification and Social Security numbers, with returns sent to addresses both in the US and internationally. Following the release of the findings, the IRS stated that it resolved most of the identity theft cases of 2013 within 120 days, while the average time to resolve cases from

884-447: Is currently led by Daniel Werfel , who became Commissioner of Internal Revenue on March 13, 2023. He succeeded Douglas O'Donnell , who served as Acting Commissioner of Internal Revenue after Charles P. Rettig 's term as Commissioner ended on November 12, 2022. There have been 50 commissioners of Internal Revenue and 28 acting commissioners since the agency's creation in 1862. From May 22, 2013, to December 23, 2013, senior official at

936-521: Is different from Wikidata All article disambiguation pages All disambiguation pages Tax loss harvesting Tax loss harvesting can be done throughout the fiscal year but historically has been performed in December. Tax-loss harvesting is still most common in the year's fourth quarter. This allows investors to "offset capital gains with capital losses." Under United States tax rules, if an investor has more capital losses than gains in

988-805: Is possible to do TLH within the confines of mean-variance optimization by developing an objective function that maximizes the difference between tax alpha and the portfolio's tracking error : max w α T ( w − w 0 ) ⏟ Tax Alpha − λ 2 ( w − w B ) T Σ ( w − w B ) ⏟ Tracking Error {\displaystyle \max _{w}\;\underbrace {\alpha ^{T}(w-w_{0})} _{\text{Tax Alpha}}-\underbrace {{\lambda \over {2}}(w-w_{B})^{T}\Sigma (w-w_{B})} _{\text{Tracking Error}}} where λ {\displaystyle \lambda }

1040-744: The Affordable Care Act . The IRS originates from the Commissioner of Internal Revenue , a federal office created in 1862 to assess the nation's first income tax to fund the American Civil War . The temporary measure funded over a fifth of the Union's war expenses before being allowed to expire a decade later. In 1913, the Sixteenth Amendment to the U.S. Constitution was ratified, authorizing Congress to impose

1092-615: The Office of Management and Budget Daniel Werfel was acting Commissioner of Internal Revenue. Werfel, who attended law school at the University of North Carolina and attained a master's degree from Duke University , prepared the government for a potential shutdown in 2011 by determining which services that would remain in existence. No IRS commissioner has served more than five years and one month since Guy Helvering, who served 10 years until 1943. The most recent commissioner to serve

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1144-690: The S&;P 500 . If an investor purchases shares in SPY and the market price declines, the IRS has not provided guidance on whether the investor can sell their shares in SPY, purchase shares in IVV, and claim a capital loss without triggering the wash sale rule, despite the fact that the two ETFs have nearly identical returns. One method is to use an initial set of portfolio weights w 0 {\displaystyle w_{0}} and benchmark weights w B {\displaystyle w_{B}} , it

1196-507: The Sixteenth Amendment to the United States Constitution : The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration. This granted Congress the specific power to impose an income tax without regard to apportionment among the states by population. By February 1913, 36 states had ratified

1248-491: The U.S. Customs and Border Protection (collecting duties and tariffs ) or the Federal Reserve (purchasing U.S. treasuries ). The IRS faces periodic controversy and opposition over its methods, constitutionality, and the principle of taxation generally. In recent years, the agency has struggled with budget cuts, under-staffed workforce, outdated technology and reduced morale, all of which collectively result in

1300-456: The 2011/2012 tax period was 312 days. In September 2014, IRS Commissioner John Koskinen expressed concern over the organization's ability to handle Obamacare and administer premium tax credits that help people pay for health plans from the health law's insurance exchanges. It will also enforce the law's individual mandate , which requires most Americans to hold health insurance. In January 2015, Fox News obtained an email which predicted

1352-460: The 2021 filing season. In 2003, the IRS struck a deal with tax software vendors: The IRS would not develop online filing software and, in return, software vendors would provide free e-filing to most Americans. In 2009, 70% of filers qualified for free electronic filing of federal returns. According to an inspector general's report, released in November 2013, identity theft in the United States

1404-472: The IRS collected approximately $ 4.7 trillion, which is approximately 96 percent of the operational funding for the federal government; funding widely throughout to different aspects of American society , from education and healthcare to national defense and infrastructure. In July 1862, during the American Civil War , President Abraham Lincoln and Congress passed the Revenue Act of 1862 , creating

1456-485: The IRS was tasked with enforcement of laws relating to prohibition of alcohol sales and manufacture ; this was transferred to the jurisdiction of the Department of Justice in 1930. After repeal in 1933, the IRS resumed collection of taxes on beverage alcohol. The alcohol, tobacco and firearms activities of the bureau were segregated into the Bureau of Alcohol, Tobacco, Firearms and Explosives in 1972. A new tax act

1508-660: The Star Trek universe TLH, the National Rail code for Tilehurst railway station in the county of Berkshire, UK Total laparoscopic hysterectomy Transcendental law of homogeneity , in mathematics Trans-Labrador Highway , a highway in eastern Canada Tréfileries et Laminoirs du Havre (Le Havre Wire-Drawing and Rolling Mills), a French manufacturer of copper products See also [ edit ] All pages with titles containing TLH All pages with titles beginning with TLH Topics referred to by

1560-584: The TLH optimization may be applied within a mean-variance framework. The solution is readily computed using quadratic programming . Internal Revenue Service The Internal Revenue Service ( IRS ) is the revenue service for the United States federal government , which is responsible for collecting U.S. federal taxes and administering the Internal Revenue Code , the main body of

1612-753: The Union raised 21% of its war revenue through income taxes. After the Civil War, Reconstruction , railroads, and transforming the North and South war machines towards peacetime required public funding. However, in 1872, seven years after the war, lawmakers allowed the temporary Civil War income tax to expire. Income taxes evolved, but in 1894 the Supreme Court declared the Income Tax of 1894 unconstitutional in Pollock v. Farmers' Loan & Trust Co. ,

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1664-471: The change to the Constitution. It was further ratified by six more states by March. Of the 48 states at the time, 42 ratified it. Connecticut, Rhode Island, and Utah rejected the amendment; Pennsylvania, Virginia, and Florida did not take up the issue. Though the constitutional amendment to allow the federal government to collect income taxes was proposed by President Taft in 1909, the 16th Amendment

1716-576: The decline in enforcement activities has "rais[ed] questions about tax compliance and fairness to the vast majority of citizens who pay all their taxes". In June 2012, the IRS Oversight Board recommended to Treasury a fiscal year 2014 budget of $ 13.074   billion for the Internal Revenue Service. On December 20, 2017, Congress passed the Tax Cuts and Jobs Act of 2017 . It was signed into law by President Trump on December 22, 2017. In

1768-409: The editorial board of The New York Times called the IRS budget cuts penny-wise-and-pound-foolish, where for every dollar of cuts in the budget, six were lost in tax revenue. A 2020 Treasury Department audit found the IRS had improved its identity verification system offerings for taxpayers, but was still behind in fully meeting digital identity requirements. The following year, the IRS announced

1820-574: The federal statutory tax law. It is an agency of the Department of the Treasury and led by the Commissioner of Internal Revenue , who is appointed to a five-year term by the President of the United States. The duties of the IRS include providing tax assistance to taxpayers; pursuing and resolving instances of erroneous or fraudulent tax filings; and overseeing various benefits programs, including

1872-690: The filing deadline was moved from March 15 to April 15. The Tax Reform Act of 1969 created the Alternative Minimum Tax . In 1969, Richard Nixon directed the IRS to audit his political opponents, as well as opponents of US involvement in the Vietnam War . The IRS's Activist Organizations Committee, later renamed the Special Services Staff, created a target list of more than 1,000 organizations and 4,000 individuals. A White House memo said that "What we cannot do in

1924-428: The form and the IRS checked the form for accuracy. The IRS's workload jumped by ten-fold, triggering a massive restructuring. Professional tax collectors began to replace a system of "patronage" appointments. The IRS doubled its staff but was still processing 1917 returns in 1919. Income tax raised much of the money required to finance the war effort; in 1918 a new Revenue Act established a top tax rate of 77%. In 1919

1976-401: The inappropriate enforcement of tax laws against high earners and large corporations , reduced tax collection, rising deficits , lower spending on important priorities, or further tax increases on compliant taxpayers to compensate for lost revenue . Research shows that IRS audits raise revenue, both through the initial audit and indirectly by deterring future tax cheating. According to

2028-640: The longest term was Doug Shulman, who was appointed by President George W. Bush and served for five years. The Commissioner of Internal Revenue is assisted by two deputy commissioners. The Deputy Commissioner for Operations Support reports directly to the Commissioner and oversees the IRS's integrated support functions, working to facilitate economy of scale efficiencies and better business practices. The Deputy also administers and provides executive leadership for customer service, processing, tax law enforcement and financial management operations. Additionally,

2080-418: The office of Commissioner of Internal Revenue and enacting a temporary income tax to pay war expenses. The Revenue Act of 1862 was passed as an emergency and temporary war-time tax. It copied a relatively new British system of income taxation, instead of trade and property taxation. The first income tax was passed in 1862: By the end of the war, 10% of Union households had paid some form of income tax, and

2132-452: The public. His tax advisor, Edward L. Morgan, became the fourth law-enforcement official to be charged with a crime during Watergate . John Requard Jr., accused of leaking the Nixon tax returns, collected delinquent taxes in the slums of Washington. In his words: "We went after people for nickels and dimes, many of them poor and in many cases illiterate people who didn't know how to deal with

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2184-652: The reasons for his famous statement: "Well, I'm not a crook. I've earned everything I've got." So controversial was this leak, that most later US presidents released their tax returns (though sometimes only partially). These returns can be found online at the Tax History Project. By the end of the Second World War, the IRS was handling sixty million tax returns each year, using a combination of mechanical desk calculators, accounting machines , and pencil and paper forms. In 1948 punch card equipment

2236-403: The same term [REDACTED] This disambiguation page lists articles associated with the title TLH . If an internal link led you here, you may wish to change the link to point directly to the intended article. Retrieved from " https://en.wikipedia.org/w/index.php?title=TLH&oldid=1053861942 " Category : Disambiguation pages Hidden categories: Short description

2288-423: The taxes can result in higher rates later on relating to capital gains. Most simply, if "tax-loss harvesting is not done properly, it will create a wash-sale that will eliminate the tax benefits of the buying and selling". The investor can employ a number of techniques to avoid triggering the wash sale rule. The United States Internal Revenue Service (IRS) has published no exact definition of what constitutes

2340-420: The three decades since 1991, the IRS had a substantial decrease in the number of employees per million residents, decreasing from 451 (in 1991) to 237 (in 2021). A decrease of 47.5 percent. From the 1950s through the 1970s, the IRS began using technology such as microfilm to keep and organize records. Access to this information proved controversial, when President Richard Nixon's tax returns were leaked to

2392-478: Was dropped in 2022, however, following privacy concerns from government officials and the public. Alternative ID verification options have since been introduced with the goal of making IRS online tools accessible to more people. As early as the year 1918, the Bureau of Internal Revenue began using the name "Internal Revenue Service" on at least one tax form. In 1953, the name change to the "Internal Revenue Service"

2444-604: Was formalized in Treasury Decision 6038. The 1980s saw a reorganization of the IRS. A bipartisan commission was created with several mandates, among them to increase customer service and improve collections. Congress later enacted the Internal Revenue Service Restructuring and Reform Act of 1998 , which mandated that the agency replace its geographic regional divisions with units that serve particular categories of taxpayers. As

2496-528: Was not ratified until 1913, just before the start of the First World War . That same year, the first edition of the 1040 form was introduced. A copy of the 1913 form can be viewed online and shows that only those with annual incomes of at least $ 3,000 (equivalent to $ 92,500 in 2023) were instructed to file an income tax return. In the first year after the ratification of the 16th Amendment, no taxes were collected. Instead, taxpayers simply completed

2548-465: Was passed in 1942 as the United States entered the Second World War . This act included a special wartime surcharge. The number of American citizens who paid income tax increased from about four million in 1939 to more than forty-two million by 1945. In 1952, after a series of politically damaging incidents of tax evasion and bribery among its own employees, the Bureau of Internal Revenue

2600-506: Was phased out. Information processing in the IRS systems of the late 1960s was in batch mode; microfilm records were updated weekly and distributed to regional centers for handling tax inquiries. A project to implement an interactive, realtime system, the "Tax Administration System", was launched, that would provide thousands of local interactive terminals at IRS offices. However, the General Accounting Office prepared

2652-408: Was reorganized under a plan put forward by President Truman , with the approval of Congress. The reorganization decentralized many functions to new district offices which replaced the collector's offices. Civil service directors were appointed to replace the politically appointed collectors of the Bureau of Internal Revenue. Not long after, the bureau was renamed the Internal Revenue Service. In 1954

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2704-480: Was used. The first trial of a computer system for income tax processing was in 1955, when an IBM 650 installed at Kansas City processed 1.1 million returns. The IRS was authorized to proceed with computerization in 1959 and purchased IBM 1401 and IBM 7070 systems for local and regional data processing centers. The Social Security number was used for taxpayer identification starting in 1965. By 1967, all returns were processed by computer and punched card data entry

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