With a government shutdown likely on March 14, President Trump and Congress are getting serious about preventing it—or at least discussing it. Congressional procedures mean avoiding a shutdown will require bipartisan support. But Democrats don’t trust Trump to keep any bargain he agrees to, making it hard to see what the solution might be. Shutdown Because Regular Congressional Budget Process Is Broken Why is a shutdown looming? Because the regular Congressional appropriations process has broken down. Congress hasn’t used its regular budgeting procedures to cover all spending since 1996—29 years ago. Instead, Congress now routinely authorizes spending extensions for the…

Can doing nothing grow the economy by trillions of dollars over the next decade? Congressional Republicans may be on the road to making that extraordinary assumption. In effect, Congress may choose to assume, simultaneously, that extending the expiring provisions of the Tax Cuts and Jobs Act (TCJA) does not change tax policy and that, even though nothing is changing, it would substantially increase economic growth. House Speaker Mike Johnson (R-LA) seems to be warming to a Senate Republican plan to build a budget that assumes key provisions of the TCJA already are permanent, even though they are due to expire…

The IRS is on its third Commissioner in just over a month. Secretary of the Treasury Scott Bessent announced that IRS Chief Operating Officer Melanie Krause will become acting IRS Commissioner following the retirement announcement of Doug O’Donnell. O’Donnell had served as Acting Commissioner following former IRS Commissioner Danny Werfel’s departure on January 20, 2025 (one week before the tax season officially kicked off). His departure on February 28 marks a remarkable 39-day span of rotating Commissioners. Danny Werfel It is widely believed that Werfel was being pushed out early by the Trump administration and hoped to avoid a messy…

Selecting a 401k plan for your LLC or S Corporation can significantly impact your employees’ retirement savings and your company’s financial strategy. The various 401K plans offer retirement savings opportunities for employees and potential tax advantages for the company. Small businesses have several 401k options, including traditional 401k plans, Safe Harbor 401k plans, and Solo 401k plans. Traditional 401k Plans Traditional 401k plans offer a straightforward structure and significant tax benefits, making them an easy choice for small businesses. Employees can contribute part of their salary pre-tax, reducing their taxable income and providing substantial tax savings. For 2025, employees can…

IRS data from the fourth week of the tax filing season—the week ending February 21, 2025—continues to suggest that taxpayers are not excited about filing this tax season. Tax filing statistics are down in almost every area, except for tax refunds. Filing and Processing Dips Early filing data reflects a continued downturn in tax returns received compared to the prior year. The dip is 4.2% compared to last year (and 7% down from the same filing period in 2023). The IRS has apparently given up on excuses. After three weeks of offering an explanation for the lower numbers, explaining last…

It only takes a quick scan of any cable news network to realize that we have entered a whole new age of uncertainty. For many business leaders, it may be apropos to dub it the Age of Uncertainty. Tariffs, tax cuts, energy policy, interest rates – these are just a handful of the major variables in play right now that could have a massive impact on near- and longer-term macroeconomic activity. It begs the question: How can businesses that operate in this environment hope to accurately forecast growth when the core policies that will help determine that growth are in…

The Tax Cuts and Jobs Act of 2017 (TCJA) limited theft loss deductions, although tax professionals debate how far. I’ve commented on this issue in prior articles, including here, and therefore will not repeat those comments again. Rather, this article seeks to address questions I have received from tax professionals and taxpayers in recent weeks regarding whether taxpayers may claim theft losses post-TCJA under the “safe harbor” of Rev. Proc. 2009-20? Theft Losses Generally Prior to the TCJA, taxpayers could claim theft losses if they satisfied three primary requirements. First, they had to show the occurrence of a theft under…

In this episode of Tax Notes Talk, the second of a three-part series, Damien Martin and Tony Nitti of EY discuss their top tax cases from 2024, focusing on two S corp cases: Maggard v. Commissioner and Estate of Thomas Fry et al 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 2. We’re back this week with another set of top tax cases in…

U.S. businesses no longer have to comply with the beneficial ownership information (BOI) reporting filing requirements of the Corporate Transparency Act (CTA). The dramatic policy change was first announced on social medial by the Treasury Department, followed by a press release posted on its website and a Truth Social post by President Donald Trump celebrating the end of enforcement of what he branded an “outrageous and invasive” requirement. The CTA, which was passed on a bipartisan basis, was aimed at limiting the use of anonymous shell companies in drug trafficking, money laundering and other crimes. The beneficial ownership information for…

President Donald J. Trump is now the 47th president of the United States, and with his inauguration comes an expected new wave of tax policy changes. President Trump and the Republican-controlled Congress have committed to swift and sweeping action on a “must-pass” tax bill before the end of 2025. While work on new legislative actions is still in its infancy, it is important to be well-informed about potential tax policy changes and well-prepared to adapt to those changes this year. The central focus of tax policy changes for this year’s legislative session is the fate of the Tax Cuts and…