If you received a lawsuit settlement in 2024, you probably received an IRS Form 1099 from the defendant in early 2025. Some types of cases are exempt, but most are not. And if you receive a Form 1099, you need to report it on your taxes. But what if you also receive a Form 1099 from your own lawyer for the same money? It happens more than you might think. Some lawyers believe they need to issue their client an IRS Form 1099 to match the amount of the disbursement. But is this required by the IRS, or is it…

The House’s very aggressive budget plan for next fiscal year (starting in October) is the latest turmoil gripping Washington. The Republican budget plan calls for trillions of dollars in regressive tax cuts. And the budget numbers tell us the most likely place to get money to partially pay for the tax cuts will be severe cut backs in Medicaid—the source of health insurance for over 25% of Americans and close to 60% of children, and a major source of basic health care from nursing homes to rural hospitals. The House’s action, and likely resulting crisis, is a major step towards…

In this episode of Tax Notes Talk, the first of a three-part series, Damien Martin and Tony Nitti of EY discuss their top tax cases from 2024, focusing on two partnership cases: Denham Capital Management LP v. Commissioner and Surk LLC v. Commissioner. 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: top 2024 tax cases, part 1. We’re switching things up this week as we host a special series from EY…

The House of Representatives has passed a major budget plan that will help shape government spending and tax cuts for the next decade. The bill, known as H.Con.Res.14, was passed on February 25, 2025, by a close vote of 217 to 215. President Donald Trump pushed hard to get this bill approved because it is a crucial step in his plan to cut taxes and control spending. Why This Bill Matters This bill allows Congress to use a special process called “reconciliation.” Normally, most bills need 60 votes to pass in the Senate, but through reconciliation, some bills can pass…

The 2024 tax year has ended and tax professionals everywhere are encouraging their small business clients to close their books and start thinking about their tax returns. In a perfect world these clients have worked with their tax and accounting professionals throughout the year to optimize their small business taxes. Of course, we don’t live in a perfect world and clients are often surprised at how much their small business made (and how much tax they owe) come tax time. The good news is that there are a few tax optimization strategies that are available to small business owners after…

In the area of gift taxes, one of the fundamental principles in U.S. tax law is what is known as the “annual exclusion” gift limit. This allows individuals to gift up to a certain amount per recipient each year without incurring any tax liability or needing to file a gift tax return. For 2025, the annual exclusion amount is set at $19,000 per recipient, meaning that a donor can give up to this amount to an individual without triggering any gift tax. While gifting over the annual exclusion amount would trigger a gift tax, U.S. citizens do have a lifetime…

The Pass-Through Entity Tax (PTET) may be the only time your tax-planning expert or tax preparer encourages you to pay an optional tax now. The PTET is a valuable tax credit that can mean substantial tax savings for high-income California business owners. The tax-planning strategy can help you get around the costly state and local tax cap (from the 2017 Trump tax plan) and turn non-deductible state taxes into valuable tax savings. Similar pass-through entity strategies exist in other states, and residents in these states see their tax bills skyrocket due to limited state and local tax deductions. If you…

Connecticut Governor Ned Lamont recently called for Congress to “rethink” the Jones Act. The governor is right, as this segment of What’s Ahead demonstrates. Passed in 1920, the legislation was supposed to revive and protect the U.S. shipping industry. Perversely, it has done the opposite. The cost of building a commercial vessel in the U.S., for instance, is four to five times what it is in Japan and South Korea. The U.S. Merchant Marine is a shadow of what it once was. The Jones Act has unnecessarily raised energy costs, particularly hurting Connecticut and other New England states. It has…

When is a tax an unfair foreign attack? Apparently, when it’s a tax on Big Tech. That’s the gist of a new White House memorandum declaring that foreign governments have been extorting American businesses through, it seems, the fair application of digital services taxes (DSTs) and related regulations. The memo warns that these policies—particularly those of Europe and Canada—are unfairly burdening US companies and, absent repeal, will be met with retaliatory tariffs. This isn’t a bold stand for American workers or small businesses—it’s a protectionist policy toward Big Tech, designed to shield Silicon Valley giants from paying their fair share…

This week, House Republican leadership is pushing for vote on its budget framework, which assumes $2.6 trillion in economic growth from tax cuts and unspecified deregulation, far more than conventional economic estimates suggest. At the same time, key Senate leaders are endorsing the idea that tax cuts are not really tax cuts at all, and thus have no cost. But don’t be fooled by the debate over current law versus current policy baselines, or by unfounded claims that tax cuts pay for themselves. No matter how Congress formally scores the price of extending the 2017 Tax Cuts and Jobs Act,…