Key Takeaways
- Anticipated Rate Announcement
- IRS Upgrades
- Plans for 2025 Tax Policy
- Secure 2.0
- In the Courts
- Save the Ozone Day
Anticipated Rate Announcement
Tax Breaks: The Falling Interest Rates And Creeping Tax Brackets Edition - Kelly Phillips Erb, Forbes:
In plain talk, that means that the cost of goods is increasing, but only slightly—inflation is finally easing. Inflation has been falling steadily since peaking at 9.1% two years ago in response to the pandemic.
IRS Upgrades
IRS Making Strides in IT Modernization, Watchdog Says - Benjamin Valdez, Tax Notes ($):
One of those milestones, the creation of an enterprise data platform, was reached in October 2023, the Treasury Inspector General for Tax Administration said in a report released September 13. In fiscal 2023, the IRS spent approximately $53 million of its Inflation Reduction Act funds on developing the platform, which is a modern system for managing data across the agency.
IRS Cloud Systems Security Protocols Get Dinged by Watchdog - Caleb Harshberger, Bloomberg($):
According to TIGTA, the IRS failed to maintain appropriate separation of duties for certain roles related to cloud systems and didn’t “follow guidance to prevent conflicts of interest, increasing the risk of erroneous and inappropriate actions.”
Plans for 2025 Tax Policy
Unknown Fate of Trump Tax Cuts Gives Advisers a Chance to Shine - Sarah Adkisson and Jeffrey Kelson, Bloomberg:
While some provisions were permanent, most of the individual income tax provisions are scheduled to sunset on Dec. 31, 2025, including the requirement to capitalize and amortize research and development expenses under tax code Section 174.
Trump’s Proposal to End Taxes on Overtime Pay Could Cost Billions - Andrew Duehren, New York Times($):
Mr. Trump floated the idea this past week during a campaign rally in Tucson, Ariz., telling the crowd that it would supercharge incentives to work more and put money back in the pockets of many Americans.
Scorekeeper Set to Play Pivotal Role in 2025 Tax Cliff Talks - Samantha Handler, Bloomberg($):
Love it or hate it, a “score” of how much a tax bill will cost or raise from the nearly 70-person office down the street from the US Capitol can make or break legislation.
Secure 2.0
IRS’s 401(k) Match for Student Loan Repayment Supports Employees - Kristin Gutting and Caitlyn Meehan, Bloomberg:
...
The guidance issued in August relates to the SECURE 2.0 Act for plan years beginning after Dec. 31, 2024. It permits employers to match contributions to an employee’s retirement account based on that employee’s qualified student loan payments.
In the Courts
Employee Retention Credit Unknowns Spur Taxpayer Litigation - Caitlin Mullaney, Tax Notes($):
The IRS’s moratorium on processing ERC claims has caused “widespread uncertainty,” Peter Haukebo of Frost Law told Tax Notes. “Decision-makers at companies with pending refund claims are asking a lot of questions about these cases as they evaluate what’s best for them,” he said.
Sysco’s Dividend Deduction Spat Follows in Varian’s Footsteps - Andrew Velarde, Tax Notes($)."The Tax Court is handing another taxpayer a partial win in a dispute challenging the validity of a rule that would exclude from the dividends received deduction foreign taxes paid by foreign subsidiaries."
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