The Supreme Court is reshaping the role of the administrative state in the federal government. Last term, in Loper Bright Enterprises v. Raimondo, the Court abandoned what is commonly referred to as Chevron deference, after the 1984 Supreme Court case adopting the rule, whereby courts deferred to an agency’s interpretation of an ambiguous statute that the agency is charged with administering. In Corner Post, Inc. v. Board of Governors of the Federal Reserve System, the Court held that the six-year statute of limitations applicable to a facial challenge to a regulation begins to run when the plaintiff is harmed, not…

At a time of heightened political and legal scrutiny surrounding immigration and birthright citizenship, U.S. citizens married to non-citizen spouses face not only challenges related to their citizenship status but also in estate planning. The current political climate, with increasing anti-immigrant rhetoric and tightening immigration laws, leaves many wondering if tools like the Qualified Domestic Trust—a benefit for married couples where one spouse is a non-citizen—could be at risk. What Is A QDOT And How Does It Work? A QDOT is designed to help U.S. citizens married to non-citizen spouses manage estate taxes. Normally, U.S. citizens can gift assets to…

As President Trump continues to make sweeping changes to federal agencies, sections of the IRS’ Internal Revenue Manual have been taken offline. The Internal Revenue Manual (IRM) sets forth the policies, procedures, instructions, guidelines, and delegations of authority that control the operation and administration of the IRS. It details how the agency works and is a blueprint for not only IRS employees but also tax professionals. IRM provisions aren’t laws and aren’t intended to be treated as such—they do, however, provide some insight on how the IRS may regard a certain tax matter or criteria important to IRS agents and…

With tax season just getting started—the season officially opened on January 27, 2025—you’ve likely received several tax reporting forms already, or they are on their way. Here’s what you need to know about tax form due dates and what to do if you don’t receive yours on time. Forms W-2 Taxpayers are generally on the lookout for Form W-2, due on January 31, 2025. Your tax form is on time if it is properly addressed and mailed on or before the due date. If the normal due date falls on a Saturday, Sunday, or legal holiday, issuers have until the…

A Qualifying Terminable Interest Property (QTIP) trust can be an advantageous tool for married couples to utilize as part of their comprehensive estate plan. Contrary to what it sounds like, the QTIP isn’t something used to clean your ears, but rather a flexible option for allocating assets depending upon the financial and tax circumstances that exist upon the first spouse’s death, with particular attention to minimizing tax burdens and maintaining control over the property for the surviving spouse. What Is A QTIP Trust? The QTIP trust is a specific type of trust that allows a surviving spouse to receive income…

Federal tax law requires U.S. persons to report their receipt of foreign gifts or inheritances. IRS Form 3520, Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts, is the appropriate information return. If a taxpayer misses the filing deadline, the IRS may impose significant penalties (up to 25% of the amount of the foreign gift or inheritance received). Taxpayers often miss the IRS Form 3520 filing deadline due to misunderstandings or ignorance of the reporting requirement. For example, taxpayers (and even their tax advisors) may reasonably believe that there is not a U.S. reporting obligation…

As part of his barrage of executive actions upon taking office, President Trump has halted federal payments on potentially trillions of dollars in federal spending that Congress has already approved, a step known as “impoundment.” Can the President legally refuse to spend funds already authorized in law, or set additional conditions on them? And how is this battle likely to play out? Trump’s Impoundment Freezes Spending Trump’s action is breathtaking in scope. Without clear guidance, agencies are suspending disbursements of funds that already have been approved, cutting back activities ranging across child care, cancer trials, scientific research, international aid, and…

The tax season opened on Monday, January 27, 2025, right on schedule, with the Internal Revenue Service expecting 140 million individual tax returns to be filed by April 15, 2025. Still, it didn’t feel like a normal open to the tax season. The IRS is currently without a permanent commissioner. A Trump Administration hiring freeze at the tax agency has begun, with existing job offers being rescinded. Meanwhile, at a rally in Las Vegas on Saturday, President Trump suggested he might fire some current IRS workers or move those authorized to carry guns to the border for immigration enforcement. All…

Now that the current tax filing season is open, scammers hope that distracted taxpayers will click on malicious links or provide personally identifying information (PII) that can be used to steal identities. Here are a few red flags to look out for—and what you should do if you think you might be a victim of a scam. New Tax Season Scam One such scam caught the attention of TIGTA (U.S. Treasury Inspector General for Tax Administration), which recently issued an alert. The scam involves a tax that suggests taxpayers can receive a $1,400 Economic Impact Payment. The text wording varies,…

In this episode of Tax Notes Talk, Tax Notes investigations editor Lauren Loricchio discusses security concerns regarding tax software platforms’ data-sharing practices. 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: tax season and big data. As tax filing season opens, U.S. taxpayers are collecting their forms and getting ready for the annual ritual of compliance. For most, this will mean using tax software, but in this age, where there is software,…