Some taxpayers like to hang on to every piece of tax-related paper, from receipts to returns, forever. Others do just the opposite: they shred and purge like nuts immediately. When it comes to tax records, which is better? For tax purposes, you need to find a middle ground. And that middle ground is more precise than somewhere between “forever” and “immediately.” While it’s true that you want to keep essential records, don’t be afraid to toss out what you don’t need. Here’s your quick guide to what to keep and what to throw out after Tax Day. The general rule…

Serving as the executor of an estate is not just an administrative duty. It involves significant legal responsibilities, particularly when it comes to ensuring that all tax obligations of the deceased are properly addressed. Executors must locate the estate’s assets, assess debts and liabilities, and make distributions to beneficiaries. Critically, they must do all this while complying with federal tax laws. Failure to satisfy estate tax for example, can result in personal liability for unpaid tax, even if the executor lacked bad faith. Executor’s Personal Liability For Unpaid Estate Taxes The U.S. estate tax is a separate and distinct tax…

The chief information officer at the IRS will leave his position at the end of the month. Rajiv Uppal’s departure follows several high-profile defections from the tax agency since the beginning of the year. Uppal was named CIO at the end of December 2023 as part of restructuring at the IRS under former commissioner Danny Werfel. Before joining the IRS, Uppal served as the Director of the Office of Information Technology and Chief Information Officer for the Centers for Medicare and Medicaid Services (CMS), part of the U.S. Department of Health and Human Services (HHS), and brought over 25 years…

Nearly every university in the United States is registered and files as a 501(c)(3) organization. This special status provides the university with preferential tax treatment that can be worth billions of dollars for a school like Harvard. CNN recently reported that Trump has requested that the IRS revokes Harvard’s tax-exempt status. This article discusses three key ways that losing the 501(c)(3) tax status could cost Harvard billions due to paying more in taxes. Endowment Earnings Are Not Subject To Income Taxation A financially advantageous attribute of a 501(c)(3) organization is that the money it earns from its endowment is not…

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…