Earlier this year, the IRS Office of Chief Counsel released a memo (Memorandum Number 202511015) providing clarification on the deductibility of theft losses for scam victims. The memo made clear that relief is limited for taxpayers—those who can claim the deduction must meet a narrow set of criteria. The result is that many taxpayers impacted by popular scams like romance scams may not deduct the losses on their tax returns. Scams are increasingly becoming more sophisticated and widespread. The FBI’s Internet Crime Complaint Center (IC3) received 859,532 complaints in 2024, totaling $16.6 billion, a 33% increase from 2023—the lion’s share…

The April 15 tax deadline has now come and gone, and most small business owners have no plans to think about taxes again until this same time next year. Those taxpayers contribute to the hard truth that 93% of small businesses overpay in taxes. This statistic was reported nearly a decade ago by a Forbes analyst who supported small business owners. Serving in that same capacity, I’m disappointed to report that the statistic remains true today. The fact is, the IRS and state tax authorities are bill collectors. They are actively working to collect the maximum amount of tax revenue.…

Generally, the IRS has three years to select an income tax return for audit. But if the taxpayer never files an income tax return, the three-year statute of limitations period doesn’t start, providing the agency with unlimited time to make additional tax adjustments. Although many taxpayers are familiar with this rule, few taxpayers recognize that a similar rule applies to unfiled foreign information tax returns. Because there are numerous foreign information return obligations under federal tax law, it is fairly easy and even common for taxpayers to miss a filing deadline. In these instances, the statute of limitations for the…

As I write this post, the stock markets have dropped another 3% as Trump takes on Chairman Powell. This is on top of the markets dropping into correction territory after President Trump announced his draconian Tariffs on Liberation Day. While the news has been terrible for stock market investors recently, at least there may be a silver lining in some valuable tax planning strategies that are helping you save even more on taxes this year. When markets get crazy, a great fiduciary financial planner can help your business implement proactive strategies and capitalize on current tax laws and market conditions.…

While the United States has always been at the forefront of innovation, barriers continue to grow for it to continue its dominance. One of these barriers is the affordability of such projects, especially given the complicated nature of the R&D tax credit. According to a recent research study forthcoming in the Journal of Accounting & Economics, complex tax compliance requirements contribute to corporations passing on good R&D projects, suggesting that simplifying the requirements for the tax credit can be a path toward enhancing corporation innovation. Overview Of The R&D Tax Credit § 41 of the Internal Revenue Code provides a…

In this episode of Tax Notes Talk, Tax Notes chief correspondent Amanda Athanasiou discusses her recent investigation into the IRS’s handling of Freedom of Information Act requests and trends from two decades of agency data. 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: The waiting is the hardest part. The Freedom of Information Act grants individuals the right to request access to federal records, a transparency tool that has long been…

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…

On February 19, 2025, President Donald Trump issued Executive Order 14219, titled “Ensuring Lawful Governance and Implementing the President’s ‘Department of Government Efficiency’ Deregulatory Initiative.” The primary purpose of Executive Order 14219 is to direct federal agencies to review and rescind regulations that are deemed unconstitutional or that undermine national interests. The Executive Order also emphasizes the efficient use of the executive branch’s limited enforcement resources. The “limited enforcement resources” is particularly imp In response to Executive Order 14219, the Department of the Treasury and the Internal Revenue Service (IRS) issued IRS Notice 2025-23. This notice announces the intent to…

Earlier this month, stock prices tumbled worldwide as President Trump announced an unprecedented — and unexpectedly broad — suite of tariffs on imported goods. One tariff-related announcement was not a surprise: the Trump administration’s decision to close a duty-free exemption for low-value imports from China. In an April 2 executive order, Trump announced that beginning May 2, commercial packages worth $800 or less would be subject to a minimum level of tariffs, starting at either a flat fee of $25 per postal item or 30 percent of the postal item’s value; on June 1 the flat fee figure would increase…

That sound you heard earlier this week? It was the sound of millions of taxpayers and tax professionals breathing a sigh of relief now that Tax Day is over. 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. What we know as the modern income tax system began in 1913 after a four-year push to get enough states to ratify the Sixteenth Amendment. By law, a proposed…