According to sources that spoke to Reuters, President-elect Donald Trump intends to dismantle the $7,500 electric vehicle (EV) tax credit—which could have implications far beyond individual car buyers and be a major setback for the American automotive industry. The proposed rollback is part of a broader tax reform strategy aimed at prioritizing fossil fuel energy and preserving funds for expiring tax cuts under the Tax Cuts and Jobs Act (TCJA). Eliminating the EV tax credit could have far-reaching consequences, however, and will likely push US automakers further behind in the race toward an electric future when the sector becomes dominated…

In this installment of the Five Minutes On series, Tax Notes contributing editors Robert Goulder and Joseph J. Thorndike examine the history of taxing Social Security benefits and former President Trump’s proposal to stop taxing them. Five Minutes On is a video series produced by Tax Notes. This transcript has been edited for clarity. Robert Goulder: Hello, I’m Bob Goulder, contributing editor with Tax Notes. You know that the presidential elections are getting closer when the candidates start to throw around tax proposals. Well, we’ve seen several of them lately, and one that stands out is former President Trump’s idea…

The federal tax code is extremely complicated and difficult to understand. Each state (and the District of Columbia) with an income tax has its own tax code. These tax codes change most years and retroactive tax changes have become more frequent. The difficulty of the tax code makes year-round tax planning difficult. I have been preparing U.S. income tax returns for 20 years. I have filed returns in at least 30 states and the District of Columbia. I have signed more than 7,000 federal income tax returns and a similar number of state income tax returns. I enjoy researching the…

Killing green energy tax credits–as Trump has pledged to do–could prove difficult. Anyway, much of the industry can survive and grow without those subsidies. By Christopher Helman, Forbes Staff D on’t overestimate the damage that President-elect Donald Trump’s energy policy could do to the global green transition. Yes, he has promised to undo the Democrats’ 2022 Inflation Reduction Act (IRA), deriding it on the campaign trail as a “green new scam” for its $500 billion in tax credits and other subsidies for renewable energy projects. Cleantech companies and their backers understandably fear losing benefits like an investment tax credit worth…

The Financial Crimes Enforcement Network, FinCEN Form 114, Report of Foreign Bank and Financial Accounts, is a crucial yet frequently misunderstood requirement for U.S. persons with foreign financial accounts. The FBAR may be familiar to many Americans living abroad, but it remains largely unknown to many U.S.-based individuals who might still have an obligation to file it. This can happen if, for example, they inherit a foreign account, a foreign relative grants them signature authority over an overseas account, or if a U.S. parent receives control over a foreign account set up for their child. Awareness of these requirements is…

With post-election posturing and an eye toward the budget deadline (December 20, 2024), the elbowing about what to keep and cut when it comes to spending has already begun. One word that keeps resurfacing in the midst of these debates is “entitlement.” Some taxpayers seem to equate entitlement with subsidy—what you and I think of as a hand-out—while others claim that it’s earned and can’t be taken away. Memes like this one, which says, “REPEAT AFTER ME: Social Security is OUR money, that we earned by working and paying into the fund – EACH paycheck, and NOT an “Entitlement”!” are…

In this episode of Tax Notes Talk, South African Revenue Service Commissioner Edward Kieswetter discusses his tenure leading the agency and the country’s position in the modernization of the international tax system. Tax Notes Talk is a podcast produced by Tax Notes. This transcript has been edited for length and clarity. David D. Stewart: Welcome to the podcast. I’m David Stewart, editor in chief of Tax Notes Today International. This week: righting the ship and setting a new course. At the end of October, the podcast team traveled to Cape Town, South Africa for the International Fiscal Association’s Annual Congress.…

The Tax Foundation, one of the world’s foremost think tanks concerning tax policy, has issued its annual survey: “State Tax Competitiveness Index.” It’s an in-depth examination of the 50 states’ tax codes. It covers all aspects, such as rates, simplicity, transparency and neutrality. This episode of What’s Ahead makes the case for this survey’s being a must-read for state politicians. It should surprise no one that high-ranking states, such as Florida, Texas, the Dakotas and Montana, are attracting people and are economically vibrant. The worst rankers—New Jersey, New York and California—are losing population. Follow me on Twitter. Send me a secure tip.  Read…

Now that Republicans control the federal government, President-elect Trump’s ambitious campaign proposals will move up on the fiscal policy agenda. Figure 1 summarizes Trump’s campaign promises and their corresponding revenue estimates (collected by the Committee for a Responsible Federal Budget). Figure 2 provides a historical perspective on how these proposals could affect the federal debt. Read the full article here

Federal payroll obligations imposed on employers can be expensive and time-consuming. Therefore, it is not uncommon for companies to outsource these responsibilities to third parties referred to as “third-party payers” (TPPs). Under a TPP arrangement, the TPP deducts, withholds, and remits employment taxes and prepares and files the corresponding employment tax returns on behalf of the employer. Generally, these third-party arrangements work well for both sides. In exchange for offloading the payroll headaches to a third party for a fee, the employer has more time to focus its efforts and personnel on other better-suited activities outside of the payroll function.…