The big news this week was the stock market. U.S. stocks tumbled as traders grappled with the consequences of President Donald Trump’s tariffs. The S&P 500—a stock market index tracking the stock performance of 500 leading companies in the U.S.—which hit a record high on February 19, dropped quickly on Tuesday, the second-fastest such drop in history (lagging only behind the drop due to Covid). Stocks powered back after Trump announced a 90-day reprieve on most tariffs but dropped again. By the end of the week, investors felt like they had motion sickness after one of the most volatile periods…

IRS numbers from the tenth week of the tax filing season—the week ending April 4, 2025—suggest that taxpayers are finally ready to file their tax returns. The number of tax returns received dipped again, a trend that hasn’t changed since the season opened on January 27, 2025, but the gap is narrowing. Filing and Processing Dips The most recent tax season filing data from IRS shows that the agency still hasn’t received as many tax returns this year as last year. The data shows that the IRS received 101,422,000 individual income tax returns as of April 4, 2025, compared to…

President Trump’s decision to “pause” some of his tariffs while further raising import taxes on Chinese goods would cut in half the amount of revenue his April 2 levies could raise, according to a new analysis by the Tax Policy Center. TPC found Trump’s latest plan would raise about $1.7 trillion for the 10 years from 2026 through 2035, plus an additional $125 billion for the remainder of 2025. The analysis assumed Trump’s latest tariff policy would be permanent, although Trump said his newly announced delay would last only 90 days. It assumed the President would eliminate his “reciprocal” import…

With just a few days before Tax Day, cracks are showing at the IRS. Millions of taxpayers are expected to file their federal income tax returns by the end of the day on April 15, 2025, with millions more expected to file for an extension. It’s not the ideal time for mistakes to appear on the IRS website, but that’s precisely what is happening. Potentially confusing errors are popping up on the site, including one that impacts taxpayers filing for an extension. Taxpayers who need more time to file can apply for an extension. If you make the request on…

In today’s very tumultuous landscape day traders have to think about how they will report their gains and losses. Once exclusive to professional traders, day trading is now accessible to normal people due to online platforms such as Robinhood. This accessibility increased in day trading. “Day traders” generally purchase assets and make trades multiple times daily to sell at a higher price than bought. Understanding the tax filing options available for individuals participating in day trading and treating it as a business is essential. Qualification As A Trader For tax purposes, the qualification as a trader in securities is determined…

With the 2025 regular tax season deadline just days away, the IRS is already bracing for more cuts in its workforce. Thousands of agency employees are expected to receive pink slips in mid-May, about a month after Tax Day, April 15. Losses So Far Earlier this year, the IRS fired approximately 7,000 probationary employees in response to an executive order signed by President Trump on February 11, 2025. Following the order, the Office of Personnel Management advised various federal agencies, including the Department of the Treasury (which includes the IRS), to fire non-essential probationary employees. Several legal challenges followed, and…

Tax Court Judge Albert Lauber’s recent opinion in Ranch Springs 164 TC No 6 may be the beginning of the end of the long battle between syndicated conservation easement promoters and the IRS. In 2024 the IRS won a long string of cases and they continued that trend into 2025 with Capitol II Owners LLC, Seabrook Property LLC and Green Valley Investors LLC, which I covered here. So what is special about Ranch Springs? What is special is that it addresses an argument that the industry has been making in the court of public opinion, but, as far as I…

With the Senate passing a FY 2025 budget resolution on Saturday, April 5th and the House of Representatives passing a separate FY 2025 budget resolution on February 25th, some may anticipate federal tax reform legislation to move quickly. However, the distinction between the Senate and House budget resolution proposals are significant, and with Speaker Johnson only being able to lose three Republican votes, the path to federal tax reform remains unclear. The House and the Senate need to pass identical versions of a budget resolution process to start budget reconciliation, and ultimately complete federal tax reform. Certain members of the…

Melanie Krause, the acting commissioner of the IRS, is leaving her position after the tax agency reached an agreement to share immigrant tax data with Immigration and Customs Enforcement (ICE). The IRS agreed to provide information about undocumented immigrants who are facing deportation orders and under federal criminal investigation, according to court filings. Under the agreement, the IRS will verify the names and addresses of immigrants provided on tax records to ICE. It’s unclear what other information may be provided by the IRS. However, an initial lawsuit suggests it could include information about dependents and other personal information. IRS and…

President Donald Trump’s tariffs will generate far less tax revenue than the administration claims, according to a new Tax Policy Center estimate, even as import taxes disrupt stock markets and the world economy. Peter Navarro, a senior trade official in the White House, projected tariffs announced since January would generate about $6 trillion to $7 trillion over 10 years. A tax increase of that magnitude would generate enough revenue to fund an extension of the 2017 Tax Cuts and Jobs Act as well as some of Trump’s campaign promises, such as tax-free tips, overtime, and Social Security benefits. Falling Far…