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
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
A provision of the Build Back Better Act threatens to louse up a lot of life insurance plans. The problem 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
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
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
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
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
Tax Planning is an essential part of being a business owner. As your income grows, the options may seem more complicated, but they are also more valuable. Filing your taxes is not fun, and most business owners are busy, so proactive tax planning tends to get pushed aside. This can often result in higher than
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
The good news: The Internal Revenue Service says it’s on track to dig out of the pandemic-related backlog of tax year 2020 returns by year end 2021—just in time for the 2022 tax filing season to kick off. The bad news: Millions of taxpayers are still waiting for refunds and/or struggling to understand IRS notices
Kent Hovind’s half-billion dollar lawsuit against the United States and various individuals implicated in his nearly decade long imprisonment appears to be totally done. But that’s currently the least of his legal problems. On September 21, Judge Clinton Hyde of District Court of Conecuh County Alabama found Hovind guilty of third degree domestic assault against Cindi Lincoln,
With the festivities starting for Halloween, Congress has chosen to provide tricks rather than treats in their desire to increase taxes and push through significant tax law changes through a process called budget reconciliation. As Congress holds the federal purse strings, they can focus on policy regarding spending and revenue through the budget reconciliation process, which
Today’s employment report for September was surprisingly weak in terms of job growth—only 194,000 new jobs. Analysts blame the spread of the Covid-19 Delta variant for the slowdown, and it shows the economy isn’t out of the woods yet. The news should encourage Congress (really just Democrats) to pass a large economic stimulus bill. Job growth wasn’t expected to
The economy created jobs at a much slower than expected pace in September, with payrolls rising by just 194,000 in the month compared to the Dow Jones estimate of 500,000, the Labor Department reported Friday. Looking at the most recent numbers by state, it’s clear that some places are lagging far more behind than others.
Many states recently enacted “SALT cap workaround” legislation enabling pass-through entities (PTE) to deduct entity-level SALT payments as a business expense in place of non-deductible itemized deductions over the “SALT cap” of $10,000 per individual tax return. Currently, 20 states have enacted this legislation, and others are considering it. The SALT cap workaround is not
Tax Notes Capitol Hill reporters Doug Sword and Frederic Lee return to discuss the latest tax developments with the recordbreaking infrastructure and reconciliation legislation advancing in Congress. 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: So many
Immigrant parents are less likely to have heard about the expanded child tax credit (CTC) than parents born in the United States, according to a survey conducted in early July. They’re more likely to see the credit as a way to invest in their children’s education and pay for child care and health care. The American Recovery Plan temporarily
Robert Goulder of Tax Notes and Reuven Avi-Yonah of the University of Michigan Law School discuss the potential issues in the latest international tax proposals spearheaded by Senate Finance Committee Chair Ron Wyden, D-Ore. Here are a few highlights from their discussion, edited for length and clarity. Robert Goulder: Welcome to the September edition of In The Pages.
I thank my partner Brandon Ketron, CPA, JD, LLM for his assistance with this post. The estate tax revisions released by the Ways and Means Committee of the House of Representatives on September 13th have our full attention for very good reason, given that the effective date of significant changes would be the date that
A San Francisco jury ruled that Tesla TSLA must pay $137 million in a workplace racism case in which a Black man alleged that he endured racist abuse while working at Tesla’s Fremont California plant. Owen Diaz alleged that he suffered racist remarks and abuse causing him sleepless nights, weight loss, and loss of appetite.
The House reported out the “Build Back Better Act” late last month, closely following the proposed tax law changes by Senators Sanders and Van Hollen. Each makes somewhat different proposals, and the Act is far from finalized, what is clear is that any of these proposals, if enacted, will have significant impact on not only future
The new WikiLeaks style disclosures and “revelations” about offshore and domestic “secret trust” arrangements will reveal a great many legitimate and perfectly legal family planning arrangements that are commonly established for non-tax purposes by U.S. and non-U.S. taxpayers. The Asset Protection Trust It is perfectly legal and the right of any U.S. taxpayer to establish
Fast-growing private companies rely heavily on equity compensation to recruit, motivate, and retain the best employees. Grants are typically stock options, restricted stock, or restricted stock units (RSUs). However, stock comp in private companies is surprisingly more complex and varied than what’s commonly used in mature public companies. The many challenges range from the inability
October 2021 Experience has shown that many organizations are struggling with the changes arising from Brexit to the process for bringing goods to the UK, the consequent requirements for customs declarations, and paying and reclaiming import VAT. Frequently, businesses are unsure whether they have paid import VAT and, if so, how it is to be
A perplexing attribute of the U.S. tax system is that successive reform efforts tend to layer new regimes on top of old ones without bothering to repeal the latter. It’s as if retention of the older regimes provides a sense of security, regardless of how out-of-date or flawed they might be. Familiarity brings comfort. Familiarity
When it comes to taxes, most people think about the IRS. But if you live or do business in California, state taxes are a big piece of what you pay. California does a good job of aggressively drawing people into its tax net of high individual (13.3 percent) and business (8.84 percent) tax rates. Add