Taxes

In deciding whether or not to bet on the founders of Lili, a digital banking app that caters towards America’s freelancers, Group 11 founding partner Dovi Frances wanted to be sure he had “the OGs of the digital banking industry.” “It’s not like you’re looking for veterans in everything you do,” Frances says. “In Lili’s

Now that we know the Biden administration’s ideal rate for a global minimum corporate tax — 21% — it’s a bit easier to look at what that rate might mean, particularly for developing countries. At the high end, one estimate has pegged the potential global gains in unrecovered taxes at over $500 billion annually. In a recent

Some Americans may be eligible to receive another cash stimulus from their state or local government, according to new spending rules released by the U.S. Department of Treasury on Monday. The rules outlined long-anticipated guidance on the State and Local Coronavirus Fiscal Recovery Fund (Recovery Fund), part of the American Rescue Plan Act. The bill includes $350 billion in direct,

Tax day this year was extended till May 17, but with that right around the corner, are you ready to file? Many mistakes happen when people are in a hurry, and tax returns are important. Each one must be signed under penalties of perjury. So instead of rushing to file your taxes, you can go

Today’s column addresses questions about divorcing and remarrying after 60 to allow survivor’s benefits from a previous marriage, temporarily avoiding the deeming provision even if you were born after 1/1/1954 and how Social Security uses earnings histories to calculate benefit amounts. Larry Kotlikoff is a Professor of Economics at Boston University and the founder and

Is the IRS broken? It depends on whom you ask. Yesterday Treasury Secretary Janet Yellen tweeted “It’s a stunning achievement. In the midst of a crisis, the IRS has put on a masterclass in implementation and how the machinery of government should work.” The pushback from tax industry professionals was immediate and vehement. Brian Streig,

It may be time to get a professional haircut and take your working clothes to the dry cleaner (while being sure they fit over any “pandemic pudge” you may have gained.) Although companies will allow more home-based work than before the pandemic, there’s evidence that office work is on the way back, and could be

The first round of aid for state and local governments is set to go out next week, but with no guidance yet on the spending rules, leaders are becoming increasingly frustrated. The American Rescue Plan Act (ARPA) included $350 billion in direct aid to states and localities and the law requires the U.S. Department of

Senate procedures, particularly those for budget reconciliation, mold the tax laws that are created or altered in that process in critical ways. Most recently, the reconciliation process prompted revision of the monthly distribution plans for the child tax credit, resulting in its being changed — at least statutorily — from a monthly benefit into a periodic

Today’s column addresses questions about when to apply to make sure you’ll receive all of the delayed retirement credits (DRCs) you earned by delaying until 70, eligibility for child disability benefits on a second parent’s record and potential options to increase benefit amounts. Larry Kotlikoff is a Professor of Economics at Boston University and the

In one of the most anticipated United States Tax Court decisions in years, yesterday the Court published a 271 page opinion deciding the fate of the Estate of Michael Jackson v. Commissioner, T.C. Memo 2021-48. And for the IRS, the Court’s opinion can only be interpreted one way: Bad. Really, Really Bad. In a battle

If you live in California, you likely know it is one of the highest-taxed states when it comes to income taxes; there is some good news for those worried about estate taxes. California is part of the 38 states that don’t impose their own estate tax. Keep in mind; this does not necessarily mean that

 The House Ways & Means Committee is once again tinkering with the law that requires retirees to take minimum distributions from their individual retirement accounts (IRAs) and 401(k)s. Each time, Congress eases the required minimum distribution (RMD) rules at great cost to the federal government. Yet the beneficiaries would overwhelmingly be wealthy retirees and their

In the latest episode of Tax Notes Talk, enrolled agents Eva Rosenberg and Jeffrey Schneider share their experiences on communicating with the IRS during the coronavirus pandemic and how the agency can improve.  The post has been edited for length and clarity. William Hoffman: Welcome, Eva, and welcome, Jeffrey. Today, we’re talking about how tax professionals are dealing with

Today’s column addresses questions about potential effects of retiring from work four years before filing for a retirement benefit, filing for retirement benefits before spousal benefits and transferring conserved benefits to a capable beneficiary. Larry Kotlikoff is a Professor of Economics at Boston University and the founder and president of Economic Security Planning, Inc, which

The long awaited opinion of Judge Mark V. Holmes in the case of the Estate of Michael J. Jackson is finally here. It was one of the most suspenseful things I have ever read. You may want to go read it now because the spoiler is coming soon. Not Going Well For IRS The first hint

In his American Families Plan, President Biden unveiled a tax compliance initiative aimed at closing the gap between taxes that are owed and what are paid. Most of the anticipated revenue, which the Administration estimated at $460 billion over 10 years, would come from requiring financial institutions to report account information that Treasury says would

If you live in California and own some low basis stock (i.e. stock that cost you next to nothing), you may have the opportunity to make money by being charitable. If the president’s tax proposal included in the American Families Plan (AFP) legislation is enacted and you are selling low basis stock, you would end

How do you know whether a tax has been a success or a failure? It’s a question we seldom ask. Most of us rarely think about taxes as possessing these attributes. Our professional interests revolve around other matters, such as the details of a tax’s enactment, implementation, enforcement, and compliance — plus minimizing the tax’s

Frustrated that savvy rich people will hide from the White House’s newly proposed tax hikes last week and sock it away into Bitcoin? Don’t worry. They can’t. And neither can the rest of us. If you’re selling Bitcoin for dollars, especially on a U.S. exchange, Uncle Sam will find out about it. President Joe Biden