Taxes

Axios reports that Sen. Joe Manchin (D-W VA), one of the Senate’s key swing votes, wants any extension of the Child Tax Credit (CTC) to include a “firm” work requirement and be limited to parents with “family income” of about $60,000 or less. But that idea raises more questions than it answers. It isn’t easy

             Good news for businesses taking the Employee Retention Credit (ERC).  A number of key House Democrats have recently written a letter to Speaker Pelosi (D-CA) asking that the ERC be retained for the fourth quarter of 2021. The letter – led by Congressman Antonio Delgado (D-NY) and Stephanie Murphy (D-FL) – emphasizes the benefits of the

IRS Commissioner Charles Rettig infamously testified before Congress in April of this year that the estimated tax gap – meaning the difference between taxes due and owing by U.S. taxpayers each year and the taxes actually reported as due and collected – could be as much as $1 trillion each year. According to Senator Ron

Should tax cheats with unreported income pay their fair share of federal income taxes? That’s what’s at stake in the congressional tax compliance proposal that would reel in tax cheats by tracking bank account transfers. The proposal has riled industry players and stoked misinformation campaigns. Amid this backdrop, the Treasury Department issued a fact sheet

Tax Notes chief correspondent Stephanie Soong Johnston recaps the final agreement on the OECD’s two-pillar corporate tax reform plan approved in October by 136 countries of the inclusive framework. 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:

This segment of What’s Ahead spotlights a chilling proposal from the White House and congressional Democrats that would ultimately destroy all vestiges of your financial privacy. If Congress approves, the IRS will track every bank account with more than $600 in activity a year. With straight faces, proponents claim this gross invasion of privacy is

When there is no stated intent regarding a specific Tax Cuts and Jobs Act provision, its general intent to reduce taxes and stimulate the economy should usually prevail. It is undeniable that former President Trump’s budget was largely realized through the TCJA’s successful passage — and that it was designed to reduce taxes and other taxpayer costs, including those related to

Today’s column addresses questions about cost of living increases for spousal benefits’ effects on later COLAs for retirement benefits, taking retirement benefits before survivor’s benefits and Social Security options with no saving and health concerns. Larry Kotlikoff is a Professor of Economics at Boston University and the founder and president of Economic Security Planning, Inc.

President Joe Biden’s approval rating has been steadily falling in recent months and that doesn’t bode well for municipal market friendly proposals in his Build Back Better plan. Data from the Morning Consult U.S. presidential approval polling show that Biden’s rating was once as high as 56% but has now fallen to 47%. The recent

More than 550,000 student loan borrowers may find it easier to have their balances forgiven under recent changes to the Department of Education’s public service loan forgiveness (PSLF) program, but for millions more participating in the government’s income-driven repayment (IDR) programs, much-needed relief is still waiting. The government’s various student loan programs offer forgiveness after

A provision of the Build Back Better Act threatens to louse up a lot of life insurance plans. The problems is in the provision titled “Special Rule for For Grantor Trusts”. In many ways it is a sensible provision doing away with shenanigans that clever planners have concocted over many years largely to benefit the 1%, The rule

The Internal Revenue Service announced that most families will see their fourth advanced child tax credit payment in their bank accounts today. It shows up as IRS TREAS CHILDCTC on your bank statement. The payments will reach approximately 36 million taxpayers getting a total of $15 billion. If you’re getting payments by check, the check

The Covid-19 pandemic and outbreaks at meat processing plants triggered massive supply chain issues leading to meat shortages at grocery stores and higher consumer prices last year. In response, state and local governments sent more than $84 million in Coronavirus Relief Funds (CRF) to butchers, processing plants and farms between April 1, 2020 and June

In recent decades, South Dakota has become one of the world’s great tax havens. By the end of last year, more than $367 billion in trust assets were managed in the state through at least 62 publicly-chartered trusts. The trust companies earn big fees. The trust owners hide their assets and avoid billions of dollars

While tax season 2022 may be months away, New Year’s Eve will be here before you know it. The fourth quarter is the time for some proactive tax planning to lower your 2021 tax bill. For business owners, tax planning shouldn’t be a once-per-year exercise when filing your taxes. With extensions, you may be able

Tax Notes reporter Sarah Paez discusses the EU tax haven blacklist and the potential impact of the recently released Pandora Papers. 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: back in blacklist. On October 3 a consortium

The Social Security Administration announced key numbers today that affect workers and retirees—a substantial increase in the taxable wage base for workers and the biggest increase in benefits for retirees in decades. First the wage base news. The maximum amount of earnings subject to Social Security tax will rise 2.9% to $147,000, from $142,800 in 2021.

Senators Mike Crapo (R-ID) and Chuck Grassley (R-IA) recently asked for an investigation into the Internal Revenue Service’s research activities, including its use of contractors to conduct studies and its  security protocols. The senators are right to be concerned about taxpayer privacy, especially after ProPublica’s recent articles about the tax situations of very high-income Americans

The statutory debt ceiling has its origins in World War I when Congress streamlined federal borrowing by delegating some of its authority to the Treasury Department. And for several decades, the innovation developed smoothly, with lawmakers granting the executive branch more control over the amount and terms of federal borrowing. It took almost a quarter-century for things to

Most legal settlements are taxed, but there is often flexibility and the wording matters. Even legal malpractice settlements are usually taxed. The latest example is Carol Holliday v. Commissioner, T.C. Memo. 2021-69, on the heels of several other recent cases. In McKenny, McKenny v. United States, No. 18-10810 (11th Cir. 2020), aff’g in part, rev’g