Taxes
There is a bit of political theater that plays out in Washington every few years—lawmakers from high-tax states storm the stage to defend the state and local tax (SALT) deduction, as though it were etched in the Constitution. The arguments run the gamut: from its ability to protect middle-class families, to its support for essential services, and the prevention of the dreaded “double taxation.” What they won’t say, however, is that it overwhelmingly benefits wealthy households, distorts federal tax equity, and props up state tax regimes that should have to answer to their own voters. So here is the relevant…
The IRS is on its third Commissioner in just over a month. Secretary of the Treasury Scott Bessent announced that IRS Chief Operating Officer Melanie Krause will become acting IRS Commissioner following the retirement announcement of Doug O’Donnell. O’Donnell had served as Acting Commissioner following former IRS Commissioner Danny Werfel’s departure on January 20, 2025 (one week before the tax season officially kicked off). His departure on February 28 marks a remarkable 39-day span of rotating Commissioners. Danny Werfel It is widely believed that Werfel was being pushed out early by the Trump administration and hoped to avoid a messy…
Selecting a 401k plan for your LLC or S Corporation can significantly impact your employees’ retirement savings and your company’s financial strategy. The various 401K plans offer retirement savings opportunities for employees and potential tax advantages for the company. Small businesses have several 401k options, including traditional 401k plans, Safe Harbor 401k plans, and Solo 401k plans. Traditional 401k Plans Traditional 401k plans offer a straightforward structure and significant tax benefits, making them an easy choice for small businesses. Employees can contribute part of their salary pre-tax, reducing their taxable income and providing substantial tax savings. For 2025, employees can…
IRS data from the fourth week of the tax filing season—the week ending February 21, 2025—continues to suggest that taxpayers are not excited about filing this tax season. Tax filing statistics are down in almost every area, except for tax refunds. Filing and Processing Dips Early filing data reflects a continued downturn in tax returns received compared to the prior year. The dip is 4.2% compared to last year (and 7% down from the same filing period in 2023). The IRS has apparently given up on excuses. After three weeks of offering an explanation for the lower numbers, explaining last…
It only takes a quick scan of any cable news network to realize that we have entered a whole new age of uncertainty. For many business leaders, it may be apropos to dub it the Age of Uncertainty. Tariffs, tax cuts, energy policy, interest rates – these are just a handful of the major variables in play right now that could have a massive impact on near- and longer-term macroeconomic activity. It begs the question: How can businesses that operate in this environment hope to accurately forecast growth when the core policies that will help determine that growth are in…
The Tax Cuts and Jobs Act of 2017 (TCJA) limited theft loss deductions, although tax professionals debate how far. I’ve commented on this issue in prior articles, including here, and therefore will not repeat those comments again. Rather, this article seeks to address questions I have received from tax professionals and taxpayers in recent weeks regarding whether taxpayers may claim theft losses post-TCJA under the “safe harbor” of Rev. Proc. 2009-20? Theft Losses Generally Prior to the TCJA, taxpayers could claim theft losses if they satisfied three primary requirements. First, they had to show the occurrence of a theft under…
In this episode of Tax Notes Talk, the second of a three-part series, Damien Martin and Tony Nitti of EY discuss their top tax cases from 2024, focusing on two S corp cases: Maggard v. Commissioner and Estate of Thomas Fry et al v. Commissioner. 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: top 2024 tax cases, part 2. We’re back this week with another set of top tax cases in…
U.S. businesses no longer have to comply with the beneficial ownership information (BOI) reporting filing requirements of the Corporate Transparency Act (CTA). The dramatic policy change was first announced on social medial by the Treasury Department, followed by a press release posted on its website and a Truth Social post by President Donald Trump celebrating the end of enforcement of what he branded an “outrageous and invasive” requirement. The CTA, which was passed on a bipartisan basis, was aimed at limiting the use of anonymous shell companies in drug trafficking, money laundering and other crimes. The beneficial ownership information for…
President Donald J. Trump is now the 47th president of the United States, and with his inauguration comes an expected new wave of tax policy changes. President Trump and the Republican-controlled Congress have committed to swift and sweeping action on a “must-pass” tax bill before the end of 2025. While work on new legislative actions is still in its infancy, it is important to be well-informed about potential tax policy changes and well-prepared to adapt to those changes this year. The central focus of tax policy changes for this year’s legislative session is the fate of the Tax Cuts and…
A recently leaked memorandum has revealed potential tax reform under discussion in the U.S. House of Representatives. These share some key elements with President Donald Trump’s tax reform proposals, reflecting a coordinated effort to implement significant change. The “leaked” information contains changes that could reshape the tax obligations of U.S. persons living abroad and those of multinational business owners. Aside from elimination of the U.S. estate tax or “death tax,” two key points stand out: (1) reducing U.S. taxes for those working overseas on their foreign-earned income and (2) lowering the corporate income tax rate. These proposals could have far-reaching…
The review of tax regulations by the Office of Management and Budget’s Office of Information and Regulatory Affairs is back. The regulatory budget is back. Consternation over midnight rules is back. These developments should have been expected from the second Trump administration and the current Congress, but they’ve come with notable new permutations. Importantly, the nondelegation doctrine is also back, along with increased talk of restoring the separation of powers. And Loper Bright Enterprises Inc. v. Raimondo, 603 U.S. 369 (2024), is set to be turbocharged by the new administration, which the Supreme Court might not have seen coming when…