[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-1-en-105":3,"doc-seo-301913-105":53,"doc-detail-301913-en":126},{"code":4,"msg":5,"data":6},0,"success",[7,14,19,24,29,34,39,44,49],{"id":8,"doc_module":9,"doc_module_name":10,"category_name":11,"show_sort_weight":12,"slug":13},11,1,"Template","Presentations",90,"presentations",{"id":15,"doc_module":9,"doc_module_name":10,"category_name":16,"show_sort_weight":17,"slug":18},12,"Resumes",80,"resumes",{"id":20,"doc_module":9,"doc_module_name":10,"category_name":21,"show_sort_weight":22,"slug":23},14,"Invoices",70,"invoices",{"id":25,"doc_module":9,"doc_module_name":10,"category_name":26,"show_sort_weight":27,"slug":28},15,"Posters",60,"posters",{"id":30,"doc_module":9,"doc_module_name":10,"category_name":31,"show_sort_weight":32,"slug":33},16,"Social Media",50,"social-media",{"id":35,"doc_module":9,"doc_module_name":10,"category_name":36,"show_sort_weight":37,"slug":38},17,"Forms",40,"forms",{"id":40,"doc_module":9,"doc_module_name":10,"category_name":41,"show_sort_weight":42,"slug":43},18,"Letters",30,"letters",{"id":45,"doc_module":9,"doc_module_name":10,"category_name":46,"show_sort_weight":47,"slug":48},21,"Paper Templates",5,"papers-templates",{"id":50,"doc_module":9,"doc_module_name":10,"category_name":51,"show_sort_weight":4,"slug":52},158,"General","general-158",{"code":4,"msg":54,"data":55},"ok",{"site_id":56,"language":57,"slug":58,"title":59,"keywords":60,"description":61,"schema_data":62,"social_meta":119,"head_meta":121,"extra_data":123,"updated_unix":125},105,"en","improving-categorical-non-enforcement-in-the-tax-system","Improving Categorical Non-Enforcement in the Tax System","","Improving Categorical Non-Enforcement in the Tax System examines recent Treasury and IRS decisions to delay or not strictly enforce specific tax provisions on a categorical basis. It reviews examples affecting state payments, 1099-K reporting, broker digital asset reporting, and Roth-designated catch-up contributions, and evaluates scrutiny over insufficient legal citations, unclear processes, and late-breaking implementation that can disadvantage compliant filers. It also outlines congressional concerns and discusses sources, limits, and factors for using enforcement discretion effectively across the federal tax system.",{"@graph":63,"@context":118},[64,80,101],{"@type":65,"itemListElement":66},"BreadcrumbList",[67,71,74,77],{"item":68,"name":69,"@type":70,"position":9},"https://docshare.wps.com","Home","ListItem",{"item":72,"name":10,"@type":70,"position":73},"https://docshare.wps.com/template/",2,{"item":75,"name":51,"@type":70,"position":76},"https://docshare.wps.com/template/general/",3,{"item":78,"name":59,"@type":70,"position":79},"https://docshare.wps.com/template/improving-categorical-non-enforcement-in-the-tax-system/301913/",4,{"url":78,"name":59,"@type":81,"image":82,"author":87,"headline":59,"publisher":90,"fileFormat":93,"inLanguage":57,"description":61,"dateModified":94,"datePublished":95,"encodingFormat":93,"isAccessibleForFree":96,"interactionStatistic":97},"DigitalDocument",{"url":83,"@type":84,"width":85,"height":86},"https://docshare.wps.com/thumbnails/improving-categorical-non-enforcement-in-the-tax-system/301913.png","ImageObject",442,249,{"name":88,"@type":89},"Aurelia","Person",{"url":68,"name":91,"@type":92},"DocShare","Organization","application/pdf","2026-09-24","2026-09-19",true,{"@type":98,"interactionType":99,"userInteractionCount":9},"InteractionCounter",{"@type":100},"ViewAction",{"@type":102,"mainEntity":103},"FAQPage",[104,110,114],{"name":105,"@type":106,"acceptedAnswer":107},"What does the report mean by “categorical non-enforcement” in the tax system?","Question",{"text":108,"@type":109},"It refers to decisions to delay implementation or not strictly enforce certain statutory provisions for broad categories of filers or defined situations, instead of applying enforcement uniformly.","Answer",{"name":111,"@type":106,"acceptedAnswer":112},"Which recent non-enforcement or delay actions does the report highlight?",{"text":113,"@type":109},"It cites delays/non-enforcement involving certain state payment taxes and reporting (2022), changes to section 1099-K reporting requirements, broker digital asset reporting, and catch-up contributions designated as Roth contributions effective January 1, 2024.",{"name":115,"@type":106,"acceptedAnswer":116},"Why have Treasury and IRS non-enforcement decisions drawn scrutiny?",{"text":117,"@type":109},"The report notes that authorities were sometimes not clearly cited, the process and considerations were not transparently explained, and decisions were late-breaking—penalizing good-faith compliance while rewarding deliberate delay and creating confusion.","https://schema.org",{"og:url":78,"og:type":120,"og:title":59,"og:site_name":91,"og:description":61},"article",{"robots":122,"canonical":78},"index,follow",{"doc_id":124,"site_id":56},301913,1790211786,{"code":4,"msg":5,"data":127},{"doc_id":124,"user_id":128,"nickname":88,"user_avatar":129,"doc_module":9,"category_id":50,"category_name":51,"doc_title":59,"doc_description":61,"doc_content":130,"file_id":131,"file_url":132,"file_type":133,"file_size":134,"view_count":73,"is_deleted":4,"is_public":9,"is_downloadable":9,"audit_status":9,"page_count":135,"language":136,"language_code":57,"site_id":56,"html_lang":57,"table_of_contents":137,"faqs":138,"seo_title":139,"seo_description":61,"update_tm":140,"read_time":141},1099514068365,"https://ap-avatar.wpscdn.com/avatar/10000253d8d9f28188e?_k=1776742907772140068","February 9, 2024  \nImproving Categorical Non-Enforcement in the Tax System.1  \nBy: Chye-Ching Huang  \nIntroduction and Executive Summary  \nWithin the past year or so, Treasury and the IRS have announced several decisions to delay the implementation of new tax rules beyond statutory deadlines or to not strictly enforce certain statutory provisions on a “categorical” basis (for broad-based swaths of filers or defined situations) . These include (as described in more detail in the Appendix):  \n• non-enforcement of taxes on and reporting of certain state payments in 2022;  \n• delay in the implementation of changes to section 1099-K reporting requirements, which the statute generally required for transactions in 2022;  \n• delay in implementation of the requirement that brokers report on digital assets, which the statute generally required for transactions in 2023; 2 and  \n• delay of the requirement that plan sponsors designate certain catch-up contributions as Roth contributions, which has a statutory effective date of January 1, 2024.  \nCategorical non-enforcement decisions are not unprecedented, and this report does not claim that there has been an increase or expansion of this approach in tax (nor is it obvious how that could be measured) .3 Indeed, it is appropriate and important for Treasury and the IRS to have broad flexibility to determine how to implement and enforce the tax law, and there is authority for categorical non-enforcement in many circumstances.  \nRecent decisions, however, have drawn scrutiny for several reasons. In announcing these decisions, Treasury and the IRS often failed to cite specific authority and to explain why they believed the decisions came under that authority, and did not transparently set out the process and considerations that they use when they decide whether and how to exercise that authority. The decisions were also often late-breaking, effectively penalizing filers who had incurred costs when making good-faith attempts to come into compliance with new law, while rewarding those who had deliberately delayed and created confusion in the hope of undermining implementation. Estimates suggest that the recent decisions have cost some $8 billion4 which is small relative to  \n1 Thalia Spinrad, Tax Law and Policy Fellow, provided excellent and extensive research support. Thank you to Professor Daniel Hemel, Professor Leigh Osofsky, and others generous reviewers for helpful feedback. All positions and errors in this report are solely attributable to the Tax Law Center.  \n2 More recently, the reporting of transactions involving more than $10,000 in digital assets received in a trade or business was delayed until regulations are published. See Transitional Guidance Under Section 6050I with Respect to the Reporting of Information on the Receipt of Digital Assets, Announcement 2024-04 (Jan. 16, 2024) .  \n3 Categorical non-enforcement is certainly not a new phenomenon. See, e.g., Mark J. Mazur, Assistant Secretary for Tax Policy, Letter to the Honorable Fred Upton, Chairman, U.S. House of Representatives Committee on Energy and Commerce, at 2 (July 9, 2013); IRS Criminal Investigation Voluntary Disclosure Practice ; Treatment of Amounts Paid to Section 170(c) Organizations Under Employer Leave-Based Donation Programs to Aid Victims of the Hawaii Wildfires that Began on August 8, 2023 , Notice 2023-69, at 1 (Sept. 28, 2023) (invoking previous instance of similar relief) .  \n4 See Part II and note 45 for discussion of this figure.  \nthe scale of the federal tax system, but, absent a set of limiting principles and a transparent process, raises the risk of decisions of larger fiscal magnitude in the future.  \nLawmakers in both houses of Congress and of both parties have expressed concerns about Treasury’s and the IRS’s authority to make several of these non-enforcement decisions.5 For example, Senator Mike Crapo noted that the Administration “has resorted to unilaterally walking back and diluting” some of the","cbCaimepGDjqerIG","https://ap.wps.com/l/cbCaimepGDjqerIG","pdf",497130,20,"English","# Introduction and Executive Summary\n# Report Scope and Key Examples\n## Recent Categorical Non-Enforcement Decisions\n## Scrutiny and Congressional Concerns\n# Authority, Limits, and Decision Factors\n## Part I Overview","[{\"question\":\"What does the report mean by “categorical non-enforcement” in the tax system?\",\"answer\":\"It refers to decisions to delay implementation or not strictly enforce certain statutory provisions for broad categories of filers or defined situations, instead of applying enforcement uniformly.\"},{\"question\":\"Which recent non-enforcement or delay actions does the report highlight?\",\"answer\":\"It cites delays/non-enforcement involving certain state payment taxes and reporting (2022), changes to section 1099-K reporting requirements, broker digital asset reporting, and catch-up contributions designated as Roth contributions effective January 1, 2024.\"},{\"question\":\"Why have Treasury and IRS non-enforcement decisions drawn scrutiny?\",\"answer\":\"The report notes that authorities were sometimes not clearly cited, the process and considerations were not transparently explained, and decisions were late-breaking—penalizing good-faith compliance while rewarding deliberate delay and creating confusion.\"}]","Improving Categorical Non-Enforcement in the Tax System | PDF",1789786732,7]