The considerations for your spousal inherited 401(k) are extensive and can be overwhelming, especially during a time of grieving. The inherited 401(k) rules vary significantly depending on whether you’re a spouse or a non-spouse beneficiary. In this multi-part series, I will address the peculiarities of each. This article focuses on the spousal inherited 401(k). Inheriting a 401(k) from a spouse can provide a crucial financial lifeline. However, navigating the rules and making the right decisions are vital to maximizing the benefits and minimizing taxes. The SECURE Act 2.0 introduced changes that make understanding your options as a surviving spouse more…

As it turns out, not everyone is a fan of pickleball. A conservative think tank is taking legal action to stop a town in Arizona from using taxes to fund local projects—including new pickleball courts. The Goldwater Institute has filed a lawsuit in Maricopa County Superior Court challenging the constitutionality of a recent tax rate boost in Gilbert, Arizona. The lawsuit asks the court to find the action unconstitutional under state law and enjoin the town from enforcing the tax. Gilbert, Arizona Gilbert, Arizona, is a fast-growing town in Maricopa County. Less than an hour’s drive from Phoenix, it’s the…

Published reports suggest President-elect Trump may support raising the state and local tax (SALT) deduction cap from $10,000 to $20,000 for married couples who file jointly, if Blue State Republicans agree to back a massive tax and spending bill later this year. A new Tax Policy Center analysis finds that raising the cap to $20,000 would increase the federal debt by about $225 billion from 2025-2034, assuming all expiring provisions of the 2017 Tax Cuts and Jobs Act (TCJA) are extended permanently. Nearly all the benefit would go to households making about $200,000 or more. TPC found that the change…

Washington is abuzz over whether Congress will address President-elect Trump’s ambitious policy agenda in one bill or two. But lawmakers must confront a more important question: How will Trump navigate between those Republicans whose top priority is cutting the size of the federal government and those who quietly worry about the political fallout from slashing popular programs? The dilemma: While Republican voters favor smaller government in concept, they often back specific programs. For example, a Pew Research survey finds 79 percent of Trump supporters want smaller government providing fewer services. But two-thirds of all voters and even 40 percent of…

The IRS routinely monitors abusive tax transactions. If a particular transaction becomes more prevalent, the agency identifies it as a “listed transaction,” requiring self-reporting by taxpayers (IRS Form 8886) and material advisors (IRS Form 8918). The agency can impose significant civil penalties and criminal sanctions for the failure to properly file either of these forms. However, the IRS has recently suffered numerous setbacks in attempting to impose listed-transaction penalties. Because many of the notices underlying the listed transactions were not subject to the notice-and-comment requirements under the Administrative Procedure Act (APA), several courts have agreed with taxpayer arguments that the…

The United States is facing an orphan and uncapped oil well crisis. Orphaned wells are those that have no known owner to assume liability. Uncapped wells are oil wells open to the elements and can potentially leak methane, contaminate groundwater, and threaten public health. The Interstate Oil and Gas Compact Commission puts the number of undocumented orphaned wells at between 310,000 and 800,000—these are wells that are thought to exist but haven’t even been positively identified yet and thus may or may not be capped. The Environmental Defense Fund has assembled a map of more than 120,000 identified uncapped orphaned…

January is a good time to consider tax planning for your income in 2025. It’s before tax-return season puts your focus on last year’s income. It also comes before the likely bustle over tax legislation by the new Republican White House and Congress: they must decide whether to extend the current tax code, introduced in 2018 by the Tax Cuts & Jobs Act, which expires after 2025. In this calm before those storms, take a moment to understand the federal tax-related numbers for 2025 that are crucial for you. Where to begin? The IRS and the Social Security Administration annually…

In this episode of Tax Notes Talk, Tax Analysts Chief Operating Officer Jeremy Scott reviews the 2024 developments in U.S. tax legislation and speculates what may lie ahead in 2025. 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: 2024 wrap-up. We’re continuing our tradition at the start of the new year of reviewing what happened in U.S. tax policy and looking ahead to what we can expect in the next 12…

In 1789, Benjamin Franklin wrote to the French scientist Jean-Baptiste Leroy: “Our new Constitution is now established, everything seems to promise it will be durable; but, in this world, nothing is certain except death and taxes.” Back then, there was no income tax – the federal government was funded mostly by taxes on imports, determined and paid when goods were brought into the country. What Franklin was resigned to is the payment of taxes. Fast forward more than 230 years, that’s still how many people think about taxes though our federal tax system has evolved. Taxpayers today bear distinct obligations…

The annual IRS priority guidance plan (PGP) lays out key areas for Treasury and the IRS. Comparing the 2023-2024 and 2024-2025 PGPs yields clues about what to expect in 2025. The initial PGP is published annually in the fall. It contains a list of priority guidance projects that have received, or will receive, focus from the preceding July 1 through the following June 30. The 2024-2025 PGP, released October 3, 2024, lists 231 guidance projects, while the 2023-2024 PGP, released September 29, 2023, lists 237 guidance projects. The initial PGP for any year is typically followed by three quarterly updates.…