The Trump administration is planning to eliminate the IRS Direct File program—that’s the word of out Washington, D.C. While Republican lawmakers had previously targeted the program, the free tax software program had been marked as safe for the 2025 season, with now Treasury Secretary Scott Bessent committing to the program during his confirmation hearing. “I will commit that for this tax season … Direct File will be operative,” Bessent said. However, less than 48 hours after the end of the regular tax filing season, AP News reported that the program will be axed. Direct File The controversial Direct File program…

April 15 is Tax Day for most of the country—some exceptions apply—but that hasn’t always been the case. The U.S. income tax system has changed quite a bit over the years—and that includes more than the due date for Form 1040. History With the advent of the Civil War in the late 1800s, the federal government found itself in need of cash. And as we know, wars are expensive. As a result, the first federal income tax in the U.S. was adopted as part of the Revenue Act of 1861. This tax was a flat 3% on annual income over…

House Democrats have sent a letter to Secretary of the Treasury Scott Bessent and Secretary of Homeland Security Kristi Noem seeking an unredacted copy of the memorandum of understanding allowing the IRS to share immigrant tax data with Immigration and Customs Enforcement (ICE). The IRS has agreed to provide information about undocumented immigrants who are facing deportation orders and under federal criminal investigation, according to court filings. The court filings included a redacted version of the memo. Under the agreement, the IRS will verify the names and addresses of immigrants provided on tax records to ICE. It’s unclear what other…

In this episode of Tax Notes Talk, Mat Mermigousis of BDO discusses the Trump administration’s ever-changing tariff policies and what they may mean for U.S. businesses. Tax Notes Talk is a podcast produced by Tax Notes. This transcript has been edited for clarity. David D. Stewart: Welcome to the podcast. I’m David Stewart, editor in chief of Tax Notes Today International. This week: operation reciprocity. On April 2 President Trump announced the official tariff rates affecting every country importing goods to the U.S., though they were later put on pause. But this wasn’t Trump’s first move on tariffs. Back in…

Ready to file your tax return? Nobody likes writing a big check on Tax Day, but there is some good news—April 15 also means specials, freebies, and deals. After you pop your return (or your extension) in the mail, kick back and take advantage of some promos and specials—everything from travel deals to discounted meals and cocktails. More deals will pop up, so check back (especially closer to lunch and again at happy hour on Tax Day). New additions will be noted with (NEW) to help you find them quickly. Here’s what’s on tap so far: FOOD AND DRINK Benihana.…

With taxpayers paying hundreds of dollars to complete and file their income tax returns each year, the IRS has rolled out a free program called IRS Direct File to taxpayers in 25 states. While this program could save taxpayers a lot of money, some taxpayers will not qualify. This article discusses the qualifications to help taxpayers determine if the IRS Direct File program can be used for the upcoming tax filing deadline. April 15th marks the deadline for individuals to submit their 2024 income tax returns and pay their tax bills. Unlike the majority of taxpayers filing 2023 income tax…

Your author is displeased with the state of global affairs, but I’m not here to discuss the concerns you might imagine. There are troubles in the Middle East and Eastern Europe, not to mention discord here at home. At times our world seems like a mess. Amid this strife, I choose to fixate on consumption taxes. There’s a problem with VAT, and it’s driving me nuts. Admittedly that’s a peculiar fascination, as I live in the sole industrialized nation that doesn’t have VAT. This is what happens when you spend too much time reading academic literature — and Tax Notes.…

Since 2014, the IRS focus on the tax treatment and tax reporting issues for crypto has grown and become more intensity. The IRS has been forced to confront digital assets and has introduced a number of reporting requirements for holders, exchanges and others. Now, President Trump has taken a step off the required and looming reporting by signing H.J. Res. 25. The new law repeals a set of regulations introduced by President Biden in 2024 that required decentralized finance brokers to report their gross proceeds from cryptocurrency sales to the IRS using a new variety of IRS Form 1099, the…

A recent decision reminds taxpayers and the tax compliance community of the importance of filing the Report of Foreign Bank and Financial Accounts. The U.S. District Court for the Southern District of New York in United States v. Hendler, 23 Civ. 3280 (Sept. 17, 2024) has clarified the enduring nature of penalties tied to FBAR. The court held that FBAR penalties “accrue” on the date the form is due (but fails to be filed) and not when the IRS assesses the penalties which might be years later and after the taxpayer has died. The court also determined that an individual’s…

The House of Representatives adopted the Senate Budget resolution in a razor thin vote on Thursday, April 10 after 30 members who identify themselves as fiscal hawks ultimately flipped for the promise by the Senate that they would look to cut $1.5 trillion. While the Senate and the House pledged their alignment at finding at least $1.5 trillion in spending cuts and savings, the Senate budget resolution agreed to by the House only requires $4 billion in spending cuts. The House originally passed a more fiscally responsible budget resolution on February 25. Under the House budget resolution, scored using the…