In this episode of Tax Notes Talk, Tax Notes contributing editor and historian Joseph J. Thorndike discusses President Trump’s referral to “the forgotten man” and how the phrase connects to a conservative case for taxing the rich. 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: memories of the forgotten man. On January 20 President Trump was officially sworn in to his second term in office. Although his official tax policies have…

Tariffs are tricky — not for economists, who tend to view them with an air of clinical (if generally hostile) abstraction, but for voters, who find them complicated. Sure, they raise prices for consumers, and nobody likes that. But tariffs also protect jobs — at least some of the time — and that can be appealing, even to people otherwise distressed by inflation. The tension between consumption and job security can be sectoral, dividing voters who work in protected industries from those who don’t. It can also be regional: Voters who live where foreign competition has wreaked havoc on employment…

The FICA Tip Credit offers a significant tax benefit to employers in the service industry, particularly those whose employees receive a considerable portion of their income through tips. The FICA tip credit targets the employer’s share of FICA taxes (taxes for Social Security and Medicare) levied on their employees’ tips employees. Eligible businesses should employ this credit to alleviate their tax burden. The primary function of the FICA Tip Credit is to alleviate the financial strain on employers by offsetting the FICA taxes paid on tips that employees earn beyond the federal minimum wage. This credit benefits businesses in the…

A new legislative effort, which started last year as House Bill 7035 was reintroduced in January 2025 by Representative Randy Feenstra, R-Iowa. The “Death Tax Repeal Act,” seeks to repeal the U.S. estate tax (often called the Death Tax) and the generation-skipping transfer tax. If passed, the Death Tax Repeal Act would have far-reaching implications for wealthy individuals and foreign investors wishing to invest in the U.S. Mr. Feenstra’s legislative move has now gained strong momentum with more than 170 House Republicans on board to repeal the estate tax. A counterpart bill in the Senate introduced on February 13, is…

“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…