“What exactly are the rules for filing taxes during a coup?” That’s just one of several questions I’ve been asked about this tax season. Taxpayers aren’t happy–some are angry with perceived waste in government, while others believe that their financial data isn’t secure now that Elon Musk and his Department of Government Efficiency (DOGE) has so much access to federal computer systems. Still others believe that if the IRS will be shut down, there’s no point in filing (more on that in a moment). Whatever the reason, the tax filing season is off to a bumpy start. IRS data from…

“Are you sure?” That was the question that Arlette Lee, a Special Agent with IRS Criminal Investigation (CI), was asked over and over—including by her boss—as she worked on a California fraud case. But the crime-fighting veteran was sure: Amanda Riley was running a scam by pretending to have cancer. Lee, now retired, remembers the exact moment she knew she would pursue a career in law enforcement: She was watching “Silence of the Lambs” and was fascinated by FBI Agent Clarice Starling, played by Jodie Foster in the film. Starling’s background was psychology, and Lee decided to follow that path…

IRS data from the second week of the tax filing season—the week ending February 7, 2025—suggests a result similar to last week: taxpayers aren’t rushing to file. Early filing data reflects a nearly 8% downturn in tax returns received compared to the prior year. That’s on top of a 14% dip last week. The IRS still appears unmoved, claiming on its website that “[h]istorically, filing season numbers even out as more tax returns come in” and noting that “the IRS expects the tax return filing numbers will level out in future weeks as the April filing deadline approaches.” As I…

After devastating losses, some fire victims will hopefully be receiving money soon from their insurance companies, even if any eventual lawsuit recoveries may be years away. The IRS and the California FTB gave tax extension and other relief to fire victims, but the number and complexity of the tax rules can be dizzying. Amounts received following a wildfire are not automatically tax-free, although there are mechanisms that can make them effectively tax-free in many cases. Take insurance proceeds, for example. Some types of insurance payments are treated as tax-free by the IRS. The tax code allows taxpayers to exclude from…

In this episode of Tax Notes Talk, Robert Kerr, formerly with the IRS and now with Kerr Consulting, discusses the recent federal hiring freeze and buyout offer and speculates how they may affect the IRS. 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: Order up. During President Trump’s first couple of weeks in office, his administration has worked to align the government and its agencies with his vision. Last week we…

The year 2024 was a record-breaking year for legal marijuana sales—but recent activity from the federal government suggests that 2025 may look a little different. Weeks after the U.S. Drug Enforcement Administration (DEA) signaled that it might be putting the brakes on efforts to reschedule cannabis, two Republican U.S. senators introduced a bill that would continue to ban tax deductions for cannabis businesses. Rescheduling Cannabis While still prohibited by federal law—possession can lead to fines and jail time—most states and the District of Columbia have legalized cannabis for medical or recreational use (or both). Under federal law, however, it’s classed…

Days ago, President Trump suggested that he might fire Internal Revenue Service employees—or send them to the border, telling a crowd at the Circa Resort & Casino in Las Vegas, “They hired, or tried to hire, 88,000 workers to go after you and we’re in the process of developing a plan to either terminate all of them, or maybe we’ll move them to the border.” Leaving aside the fact that the 88,000 figure is a myth, and that the IRS only has about 3,000 people working in the IRS-Criminal Investigation (CI) division, it now seems that at least some IRS…

The House Budget Committee is scheduled to consider a fiscal framework largely developed by House Speaker Mike Johnson (R-LA). It would make room for a net of about $4.5 trillion in tax cuts over the next 10 years, along with at least $1.5 trillion in spending reductions. But the House GOP’s efforts to draft “one big beautiful bill” would fall far short of the cost of President Trump’s ambitious revenue goals—making the expiring provisions of the Tax Cuts and Jobs Act (TCJA) permanent and enacting the additional tax cuts Trump has proposed. A $4.5 trillion tax cut limit sounds ambitious.…

The recent surge in Bitcoin’s value and growing investor interest in cryptocurrencies underscore the urgent need to address the environmental impact of proof-of-work (PoW) mining. As Bitcoin’s market cap soars, so does its energy consumption—so much so that mining now accounts for up to 2.6% of U.S. electricity use and rivals the carbon emissions and water consumption of entire nations. Given this reality, the Trump administration’s executive order promoting the “responsible growth and use” of digital assets presents a timely opportunity to address the sustainability of cryptocurrency—but will it? Proof-of-Work Energy Drain Bitcoin and other PoW cryptocurrencies rely on an…

To err is human, but some public companies are testing the limits of forgiveness. According to a new analysis from Ideagen Audit Analytics, the number of U.S. public companies with accounting errors so serious that they needed to withdraw their financial statements reached a nine-year high last year. All told, some 140 U.S. public companies had to withdraw and reissue their financials due to serious errors that were caught after the fact. The findings underscore some serious challenges confronting corporate finance departments as we make our way through 2025. While much of the news coverage of this phenomenon has focused…