From the Star Ledger:
New Jersey Rep. Bill Pascrell Jr. and other Democrats on Monday accused the Internal Revenue Service of “naked political payback” for refusing to allow taxpayers to deduct their entire prepaid 2018 property taxes and threatening to step up enforcement of those who try to claim the tax break.
In a letter to acting IRS Commissioner David Kautter, Pascrell, D-9th Dist., and the other Democrats on the House Ways and Means Committee said there was no legal justification for the IRS to decide that only 2018 property taxes paid in response to an assessment — which would cover just the first half of 2018 in New Jersey — were deductible.
“We view this as a clear case of bureaucratic overreach, and now, as a result, many of our constituents are losing a valuable deduction — and consequently part of their hard-earned income,” the lawmakers said.
The ruling was issued Dec. 28, almost at the end of the year, though Kautter said he would revisit the decision following a meeting last month with Reps. Leonard Lance, R-7th Dist, and Josh Gottheimer, D-5th Dist.
The IRS had no immediate comment.
New Jersey homeowners, who pay the nation’s highest property taxes, rushed to prepay them once President Donald Trump signed a Republican tax bill that curbed the federal deduction for state and local income, property and sales taxes.