I don’t hate dehydrated lasagna. That was the most recent lesson I’ve learned as I prepare to go to Alaska. Earlier this year, I announced that I would be heading to Alaska to prepare tax returns as part of the Alaska Volunteer Income Tax Assistance (VITA) Project. The project partners with the Alaska Business Development Center (ABDC) and trains volunteers to prepare tax returns for residents in remote villages who rely on VITA to prepare free income tax returns. These are small towns (something I’m used to, having grown up in rural North Carolina) which have few—if any—restaurants or food…

A few weeks before the IRS began accepting tax returns on January 27, 2025, taxpayers and tax professionals—including me—expected a relatively normal filing season. But as things began to change—the former IRS Commissioner submitted his resignation, a hiring freeze kicked in, and IRS employees were offered the chance to leave early—the tax filing season began to look a little less predictable. That might explain why early numbers suggest that taxpayers aren’t rushing to file. Early filing data reflects a 14% downturn in tax returns received compared to the prior year. The IRS, however, isn’t concerned, noting on its website that…

Earlier this year, I announced that during the 2025 tax filing season, I would be heading to Alaska to prepare tax returns as part of the Alaska Volunteer Income Tax Assistance (VITA) Project. The project partners with the Alaska Business Development Center (ABDC) and trains volunteers to prepare tax returns for taxpayers living in remote parts of the state. Residents of these remote villages rely on VITA to prepare free income tax returns. The ABDC serves over 8,000 people annually in 176 communities across the state. Since then, I’ve received several questions about the VITA program. Here’s a quick look…

State income tax rates receive relatively little attention compared with federal income taxes, but they can still put a large dent in your wallet. How large depends on the amount you earn, as well as where you live and work. Here’s how it works, and a list of state tax rates across the U.S.What is a state income tax?A state income tax is a tax on income earned in that state. It is similar to a federal income tax, but state income tax generally funds state budgets rather than the federal government. Some states have a progressive tax, while others…

Structured settlements (also known simply as “structures”) are becoming more and more popular. An ever-increasing number of plaintiffs, especially in personal injury lawsuits, opt for scheduled payments in addition to any lump sum received at settlement. Statistics from the National Structured Settlement Trade Association (NSSTA) bear this out. According to NSSTA, 2024 was a record year, with $9.48 billion of settlement proceeds structured. This is a 10% increase from $8.6 billion in 2023, and a remarkable 58% increase from $6 billion in structured settlements in 2022. A structured settlement primer Structured settlements are growing because they provide plaintiffs long-term financial…

Earlier this year, the Supreme Court granted the government’s application for a stay of a Texas ruling in the Fifth Circuit that had blocked the beneficial ownership interest (BOI) reporting requirements in the Corporate Transparency Act (CTA). That gave the impression that the government could again begin requiring businesses to comply—but another Texas court had issued a ruling that upended the government’s victory. The government has now appealed the second case—also in the Fifth Circuit. And this time, they’re suggesting that FinCEN would be willing to add a grace period for compliance. How We Got Here The case that made…

Purchasing or owning real estate property overseas can be an exciting investment opportunity, but for U.S. persons, it comes with significant tax and reporting obligations. Foreign persons becoming U.S. tax residents (e.g., obtaining a green card) may already own overseas properties and should be aware of the U.S. tax issues they will face at the all-important residency starting date. Here are 9 key points U.S. taxpayers should consider when buying or owning foreign real estate. 1. Understanding The Foreign Earned Income Exclusion vs. Income From Property Ownership The FEIE does not apply to income generated from foreign real property, such…

Recently I wrote something on the question of whether what I call Rothing is mandatory. I am planning on taking credit for making Roth a verb, since I haven’t noticed anybody else doing it. Peter Coy in a piece in the New York Times, “The Retirement Maneuver More People Should Be Making,” used the term Rothification. A traditional IRA or 401(k) or similar account allows you to defer tax on the amount contributed and the account earnings. You or your heirs are taxable when money is withdrawn. If you exercise a Roth option either in the original contribution or in…

Oops. It turns out that the Internal Revenue Service can’t operate without some of its employees, particularly during tax filing season. On January 27, 2025, the day after the IRS began accepting individual tax returns for 2024, the Office of Personnel Management sent more than two million full-time federal workers an email offering them the option to resign from their positions but stay on the payroll through September 30, 2025 (the end of the fiscal year). Employees had until February 6th to accept the Deferred Resignation Program (DRP) offer. There was originally some ambiguity over whether resigning workers would have…

President Trump, who announced several rounds of tariffs last weekend, appears to be trying to use the import taxes for two distinct and entirely incompatible purposes: First, raising revenue to pay for costly tax cuts and new spending and second, as a cudgel to force countries to cooperate with his domestic policy agenda, including immigration curbs. His problem: If US trading partners capitulate to Trump’s policy demands, and he rewards them by withdrawing the tariffs, much of that hoped-for revenue will dry up. The question then is which does Trump want more: tariff revenue or perceived international policy victories? Over…