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,…

Decision-making moments come at you fast when you have stock options, restricted stock units (RSUs), an employee stock purchase plan (ESPP), or other forms of company equity compensation. It’s best to have financial and tax plans in place ahead of time. The early part of the year, before you focus on your tax return, is an opportune time to consider your planning for the year ahead. Now that the Tax Cuts & Jobs Act (TCJA) is likely to be extended beyond 2025, you have much less uncertainty in tax planning than before the 2024 election. Financial and tax advisors routinely…

I have been thinking a lot about Rothing of late. I wonder – Is a Roth IRA a must? Among the various tax advantaged “retirement” accounts that are available to people most notably IRAs, but also 401(k)s and 403(b)s and others, there can be a Roth option. The classic IRA, 401(k), etc. lets you reduce your adjusted gross income by the amount of the contribution. Hence there is no current taxation of earnings going in. When you take distributions you have taxable income and a penalty if the distributions are taken before 59 1/2. if you go with the Roth…

There are differences in handling a spousal Inherited Roth 401(k) versus an inherited Traditional 401(k). When you have a Roth 401(K), you likely will need to address the Roth savings and the 401(k) savings and any associated matching and profit-sharing contributions which have different rules. I address the traditional savings in Contemplating Your Spousal Inherited 401(k) Options. It’s essential to understand the IRS rules and options to maximize the account’s current and retirement benefits. The spousal rules differ from the non-spouse ones, as they provide more options designed to foster your retirement income security. Here’s how to approach an inherited…

The hiring freeze at the IRS is officially on—and that includes rescinding existing job offers. Executive Order Last week, I reported that President Trump issued an executive order freezing hiring for most federal agencies. Specifically, the order says that “no Federal civilian position that is vacant at noon on January 20, 2025, may be filled, and no new position may be created except as otherwise provided for in this memorandum or other applicable law. Except as provided below, this freeze applies to all executive departments and agencies regardless of their sources of operational and programmatic funding.” The hiring freeze does…

If you experience the loss of your home, you have many issues to consider, and taxes are probably far down on the list. However, some fire victims may be receiving money from insurance companies, even if any eventual lawsuit recovery may be years away. Amounts received following a wildfire are not automatically tax-free, although there are rules that can make them effectively tax-free in many cases. With numerous complex tax issues, it is clear that fire victims still have tax issues. The tax code provides some types of relief. Recently, a tax law passed to make many wildfire settlements tax…

With President Donald Trump now back in the oval office once again, whispers within Washington D.C. of a potential repeal of the estate tax have once again surfaced. While Trump had quite the busy first day, including a flurry of executive orders and memorandums, none really touched upon the estate tax. Nevertheless, Trump has long expressed his desire to repeal the estate tax, commonly referred to as the “death tax.” In general, the estate tax, which applies to the transfer of wealth upon death, has been a point of contention in American politics for years, with critics arguing it penalizes…

Old habits are difficult to break. Case in point: I habitually refer to posts on the social media platform X as “tweets” despite knowing the term is outdated. I intend no offense by the verbal miscue, mindful that referring to the online blurbs as tweets is less pejorative than other descriptors that might be apt. It’s more polite than calling them rants, screeds, harangues, diatribes, bloviations, huffs, or tirades. This week’s column was inspired by a single tweet. It was a retweet (another anachronism) of something President Trump recently posted on his preferred social media platform. The relevant excerpt reads…

Two recent criminal tax cases, one crypto focused and one less so, show how digital assets are making their way into the normal legal process involving criminal tax enforcement. The United States Department of Justice announced, in April 2024, that Roger Keith Ver, known by his followers as “Bitcoin Jesus,” was indicted on fraud and tax-related charges, including mail fraud, tax evasion, and filing false tax returns. The indictment alleged that Ver, a former California resident who expatriated to St. Kitts and Nevis in 2014, concealed assets and provided false information during the expatriation process to evade taxes, including an…