Taxes

Today’s Social Security column addresses questions about how spousal benefits are calculated, survivor’s benefits after taking reduced retirement benefits and earnings credits when self-employed. Larry Kotlikoff is a Professor of Economics at Boston University and the founder and president of Economic Security Planning, Inc. See more Ask Larry answers here. Have Social Security questions of

The cannabis industry continually grows and is weeding out the cynics in the process. To date, 21 states and the District of Columbia legalized the recreational use of cannabis; meanwhile, 37 states legalized the medical use. As a result, the cannabis industry is estimated to take in more than $25 billion annually within two years.

In a previous Urban Institute study, researchers spoke to parents with low incomes about how these dynamics affected their lives. We found that when families anticipate an increase in earnings, they tend to focus on the prospect of losing benefits rather than gaining access to tax credits. Losses feel scary for people, as benefits are

The IRS recently released its 2023 “Dirty Dozen” tax avoidance and fraud list consisting of nine consumer-targeted fraud schemes and three categories carried over from 2022. Consumer-Focused Fraud Employee Retention Credit. The ERC is a refundable tax credit designed for businesses that closed during COVID-19 but still paid their employees or that had a significant

Now that the tax deadline has passed, have you ever paused for a moment to consider how all of the tax returns get processed? The Internal Revenue Service (IRS) is arguably one of the most loathed government agencies in the country. It is a mammoth organization consisting of over 79 thousand employees that are responsible

Introduction VAT in the UK is 50 years old this month. VAT is one of the highest yielding taxes for the UK government with official government statistics that over £150 billion of UK VAT was collected last year, being around 16% of total tax receipts. This compares to circa £68 billion for corporation tax and

After months of dithering, Washington is finally beginning to grapple with the need to raise or suspend the federal debt limit. The White House has said for months it would not entertain negotiations until House Republicans laid out a coherent negotiating position. Speaker Kevin McCarthy sought to do just that on Monday with a speech

The $787 million settlement by Fox FOXA News and Fox Corporation to resolve the Dominion defamation suit made big news, but the tax news that this is a deductible business expense to Fox should be no surprise. It appeared that Fox was likely to lose the defamation suit, and likely would have had to pay

Today is 4/20, a counterculture holiday based on the celebration of cannabis. A few years ago, the day would have confounded some. Now, 4/20 is so mainstream that it trends on social media. Cannabis simply doesn’t have the same taboo as it once did, largely due to legalization efforts. History Of 4/20 While there are

Senators Kevin Cramer and John Thune, Republicans who represent Dakota, North and South respectively, have introduced the Death Tax Repeal Act of 2023. This is not a new thing. I think the origination of the term “death tax” is a little murky but much credit for its adaptation as a GOP talking point goes to

As usual, the politicians are missing the point: Success or failure of the IRS’s ambitious plan to spend $80 billion in new money won’t be measured by how many new staff it hires. Rather it will depend largely on the agency’s ability to hire the right people, upgrade and modernize its technology, and change its

For many Americans, tax season is as exciting as watching paint dry and as tedious as picking weeds in the garden. The best or worst moment is finalizing the calculations that determine whether you get a refund or a tax bill. Here are some tips on how you can use either outcome to improve your

Last week, the U.S. Treasury surprised almost no one by concluding in Revenue Ruling 2023-02 that IRC section 1014’s basis step-up does not apply to irrevocable grantor trusts that are not included in the grantor’s estate. So, what is notable about a revenue ruling to which maybe 100 people paid attention? Well, less than a

Former IRS Commissioner Fred Goldberg, now with Skadden, Arps, Slate, Meagher & Flom LLP, shares his thoughts on the IRS’s strategies and proposals outlined in the recently released spending plan for the $80 billion the agency was granted by the Inflation Reduction Act. This transcript has been edited for length and clarity. David D. Stewart:

If you plan to file your federal income tax return today, you’re not late—yet. If your return is in good shape, you still have time to submit it by the deadline. Extension If you’ve clicked over hoping that I’ll offer you the tax prep equivalent of magic beans, I’ll stop you right now—that doesn’t exist.

I kept my swearing to a minimum this tax season. Honestly, that says more about IRS than it does about me. It felt like a different tax season. Last year, the IRS marked a dismal 15% Level of Service to taxpayers. The “Level of Service” is the number you get when you divide the number

Does naming and shaming tax debtors and tax defaulters violate their human rights? Particularly their human right to privacy? From the perspective of several tax authorities around the world, the answer is no. Their common argument is that taxpaying is a public activity, and debtors and defaulters who shirk their public duty should not be

With the release of the IRS’ strategic operating plan (you can read about it here), there has been a lot of conversation about enforcement. Specifically, there are worries that the IRS will use extra funding from Congress to target working families and small businesses making under $400,000—a charge that both Treasury Secretary Yellen and IRS

Every now and again, a case comes across your desk that makes you say, “Whoa.” Alon Farhy v. Commissioner is just such a case. The U.S. Tax Court gave Farhy a win, ruling that the IRS could not collect from him in this instance—the IRS had no statutory authority to assess penalties under section 6038.

Today’s Social Security column addresses questions about whether people living outside the US can still collect their Social Security benefits, how payments are made when eligible for two benefits at once and survivor’s benefits before retirement benefits. Larry Kotlikoff is a Professor of Economics at Boston University and the founder and president of Economic Security