November 9, 2020
What Does A Biden Presidency Mean For Your Tax Bill? – Tony Nitti, Forbes. “Biden has made no secret of his desire to raise nearly $3.5 trillion in additional tax revenue, though he has repeatedly assured voters that those earning less than $400,000 annually will not experience any increase in their tax bills. What would he change?”
“Will your tax bill go up or down? It depends. It depends on whether Joe Biden’s victory withstands legal challenges from the Trump administration. It depends on whether residents of Georgia continue the same voting trends that saw the state go blue for Biden in two January Senate runoffs, handing Democrats a 50-50 split that would allow Biden to do as he pleases with the tax law.”
TPC Revises Its Revenue Estimate of Biden’s Tax Plan Downward to $2.1 Trillion Over 10 Years – Mark J Mazur, TaxVox. “The Tax Policy Center has revised its analysis of former Vice President Joe Biden’s tax plan. TPC’s new analysis finds Biden’s tax proposals would raise about $2.1 trillion over the 2021-2030 budget period, or about 0.8 percent of Gross Domestic Product—roughly $260 billion less than TPC estimated in October. Over the subsequent 10-year period, Biden would raise about $4.3 trillion, down from TPC’s October estimate of $4.7 trillion.”
Tax ballot measures yield mixed results for progressives – Naomi Jagoda, The Hill. “Experts said messaging likely played a key role in the results. Measures that don't specify a use for the new funds, they said, typically fare worse than those that explain to voters how the additional money will be allocated..”
Lawmakers Remain Far Apart on Stimulus Deal – Jad Chamseddine, TaxVox. “A large COVID-19 relief package to help the economy rebound appears increasingly unlikely during the lame-duck session of Congress, as Republicans and Democrats remain far apart on how much to spend.”
IRS To College Students: It’s Not Too Late To Register For A Stimulus Check – Kelly Phillips Erb, Forbes. “The Internal Revenue Service (IRS) is reminding qualified college students that it’s not too late to register for a stimulus check.”
"The IRS is working hard with our partners across the country to raise awareness about the upcoming deadline to register for a payment," said IRS Commissioner Chuck Rettig. "College students in particular should be careful not to overlook these payments if they're supporting themselves and can't be claimed as a dependent on someone's tax returns. A few minutes of research could really help students."
IRS Special Agent Sheds Light on COVID-19 Fraud Investigations – Rederic Lee, Tax Notes($). “COVID-19 fraud investigations are typically carried out faster than traditional tax cases, and many leads are sourced from local law enforcement, according to an IRS Criminal Investigation division official.”
“Highlighting one of the more interesting COVID-19 fraud cases, Korner discussed Fontrell Antonio Baines — a rapper known as Nuke Bizzle — who bragged in a music video called “EDD” about getting rich by committing unemployment benefits fraud. EDD is an acronym for California’s Employment Development Department, and Baines was arrested October 16 on allegations of fraudulently obtaining unemployment insurance benefits under the Coronavirus Aid, Relief, and Economic Security Act (P.L. 116-136).”
How we reduced one client’s tax debt from $1.7 million to $49,728 – Case Study from Eide Bailly.
IRS collection issues can be extremely burdensome, the Eide Bailly team is eager to help.
Tax Court Looking for More Big Law Remote Trial Uptake – Nathan Richman, Tax Notes($). “Most Tax Court litigants have adapted well to the court’s remote trial procedures, but some private attorneys from large law firms seem reluctant to use them”
“Willie Nelson landed himself in tax trouble as a result of investments he made in the early 1980s in a tax shelter later ruled illegal by the IRS. With interest and penalties on top of his original unpaid taxes, Nelson was facing a tax bill in excess of $16 million, and though his lawyers convinced the IRS to accept a $6 million cash payment to settle the entire debt, even this was more than Nelson was able to pay, despite being perhaps the most bankable country-music star of the day.”
This is a roundup of tax news and opinion. Any opinions expressed or implied are those of the author and not necessarily those of Eide Bailly. Opinions found in linked items are those of the authors of the linked item, not of your bloggers or of Eide Bailly. “$” means link may be behind a paywall. Items here do not constitute tax advice.