Key Takeaways
- Much of IRS workforce still furloughed amid shutdown.
- More layoffs happening at the IRS.
- Overview of IRS leadership changes this month.
- Government remains shut down; ACA fight continues.
- Vance discusses ACA fraud.
- Pressure to reach deal as ACA enrollment begins Nov 1.
- OBBBA and its effect on clean energy credits.
- October 15th deadline approaches tomorrow.
- National dessert day!
Shutdown Enters Third Week; Backpay Uncertain For Some Furloughed Workers - Renu Zaretsky, Tax Policy Center:
IRS confusion deepens over pay and furlough policy. Retracting earlier assurances that furloughed employees would automatically receive back pay, the IRS is now deferring to the Office of Management and Budget’s position that Congress must authorize it. The IRS is also warning that even shutdown-exempt staff could be furloughed if they take more than eight hours of leave per pay period, according to Federal News Network. Nearly half the IRS workforce is already furloughed, and those still working say the new policy was delivered verbally, without written notice.
The Tax Angle: IRS Leadership Changes Amid Gov't Shutdown - Stephen K. Cooper, Law 360 Tax Authority ($):
The federal government shutdown didn't appear any closer to being resolved on Capitol Hill, but that hasn't stopped the U.S. Treasury Department from pushing ahead with a dizzying amount of changes in the Internal Revenue Service's top leadership.
Here's a rundown of changes at the IRS in the past week.
New IRS CEO
Compliance Chief
Treasury Noms Advance
Here's a rundown of changes at the IRS in the past week.
New IRS CEO
Compliance Chief
Treasury Noms Advance
Shutdown Continues; Fights Over ACA
Vance says ACA tax credits fuel fraud - Max Rego, The Hill:
Vice President Vance said Sunday that subsidies offered under the Affordable Care Act (ACA) fuel waste and fraud in the insurance industry, as Republicans refuse Democratic demands to extend the tax credits ahead of open enrollment next month.
“The tax credits go to some people deservedly. And we think the tax credits actually go to a lot of waste and fraud within the insurance industry. So we want to make sure that the tax credits go to the people who need them,” Vance told Margaret Brennan on CBS News’s “Face the Nation.”
“The tax credits go to some people deservedly. And we think the tax credits actually go to a lot of waste and fraud within the insurance industry. So we want to make sure that the tax credits go to the people who need them,” Vance told Margaret Brennan on CBS News’s “Face the Nation.”
The Senate stalls, ACA buzz builds - Calen Razor, Mia McCarty, and Behamin Guggenheim, Politico:
Some Democrats, like Sen. Ruben Gallego, argue that Republicans are poised to feel serious pressure soon from the looming expiration of Affordable Care Act tax credits, with ACA open enrollment coming up on Nov. 1. (As Minority Leader Hakeem Jeffries told MSNBC, some have even started reaching out to Rep. Marjorie Taylor Greene, who’s among the House Republicans disgruntled about Johnson’s approach to ACA.)
OBBBA and Clean Energy
Blogs and Bits
Tips to help meet the Oct. 15 filing deadline - Kay Bell, Don't Mess with Taxes:
If you got an extension to file your 2025 tax return, your deadline is Wednesday, Oct. 15. Yes, that due date still holds even though much of the Internal Revenue Service, like the rest of the federal government, is in the midst of a partial shutdown.
But don’t panic. Just get busy, because it could literally cost you if you miss the deadline.
But don’t panic. Just get busy, because it could literally cost you if you miss the deadline.
Accounting Method Failures and Income Reconstruction - Ed Zollars, Current Federal Tax Developments:
The court confirmed that a taxpayer generally must follow their own accounting method, provided it clearly reflects income and is consistently followed (§ 446(a)). However, if the method does not clearly reflect income, the Commissioner has the discretion to determine the existence and amount of income using a reasonable method based on surrounding facts and circumstances (§ 446(b); RLC Indus. Co. & Subs. v. Commissioner, 98 T.C. 457, 491 (1992)). This latitude is substantial, particularly when a taxpayer fails to keep adequate books and records.
...
The ultimate result was deemed a mixed result, requiring decisions to be entered under Rule 155 to incorporate the court’s findings on income adjustments (corporate income reduced, individual income fully upheld for taxpayers) and the disallowance of all disputed deductions.
...
The ultimate result was deemed a mixed result, requiring decisions to be entered under Rule 155 to incorporate the court’s findings on income adjustments (corporate income reduced, individual income fully upheld for taxpayers) and the disallowance of all disputed deductions.
Ways To Build Your Tax-Free Retirement Income - David Rae, Forbes:
If you are a supersaver and have already maxed out your Roth IRA or Roth 401(k), you may want to check out the mega backdoor Roth. With this strategy to get more tax-free income, you may be able to make additional after-tax contributions to your 401(k). This tax-planning strategy could help you contribute up to $70,000 per year to your 401(k).
IRS Generally Provided Courteous Phone Service, TIGTA Says - Asha Glover, Law 360 Tax Authority ($):
TIGTA reviewed 831 IRS calls that came into five of the agency's telephone applications in April and May 2024, according to the report, which is dated Oct. 7. Of those calls, the watchdog observed 90 instances of unprofessional behavior by IRS representatives, including 51 calls where taxpayers were not provided courteous service, 24 calls where taxpayers experienced long hold times and 15 calls where the representatives had potentially disruptive background noise, the IRS' watchdog said.
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