Tax News & Views Socks it to Scams Roundup

IRS and Security Summit partners announce 10th Annual National Tax Security Awareness Week - IRS:

The IRS and Security Summit partners want taxpayers, tax professionals and businesses to be extra aware during the upcoming holiday season for the threats listed below.

- Social media scams: Bad tax advice on social media can mislead taxpayers about their credit or refund eligibility. Influencers may convince taxpayers to lie on tax forms or suggest the IRS is keeping a tax credit secret from them. Social media posts may put taxpayers in touch with scammers.

- Phishing and smishing: The IRS frequently warns against phishing emails and smishing texts, which are common tactics used by criminals to steal personal and financial information. The impersonator wants taxpayers to send them money. Opening links and attachments may harm their computer.

- Protection for seniors: Scammers target people over age 65 or nearing retirement for personal or financial information or money. Often, once seniors give them money, they ask for more. When scammers trick them to withdraw from their retirement account, it could affect their taxes.

- Protections for businesses and tax professionals: The IRS reminds tax professionals of their legal obligation to have a Written Information Security Plan and to use multi-factor authentication. Businesses are also advised to update their security measures and remain vigilant against cyberattacks.

- Identity Protection PIN: An identity protection PIN is a six-digit number that prevents someone else from filing a tax return using a taxpayers Social Security number or individual taxpayer identification number. If taxpayers don't already have an IP PIN, they may get an IP PIN as a proactive step to protect themselves from tax-related identity theft. Anyone with an SSN or an ITIN can get an IP PIN including individuals living abroad.

You can get your IP-PIN online through your personal IRS online account. If you don't have either, it's worth a little time on a snowy day to go online and get one. The online accounts are handy for making and checking on tax payments, refunds, and notices. And an IP-PIN just might save you hours of fun trying to clean up from an identity theft.

ACA Fraud Report and Congressional Inaction on Credit Extensions

Watchdog Finds Ongoing Fraud Risks in Healthcare Tax Credit - Tyrah Burris, Tax Notes ($):

A government watchdog uncovered cases of ongoing fraud risks involving the Affordable Care Act premium tax credit after observing that the program again approved coverage plans for fake applicants submitted by the agency.

The Government Accountability Office, as part of its examination, found that nearly all the 20 applications it submitted using fake identities were approved for subsidized healthcare coverage plans in the federal marketplace for 2024 and 2025, according to a report released December 3.

Those results are “generally consistent” with similar testing conducted in 2014 through 2016 regarding the advanced premium tax credit, the GAO said.

Obamacare fraud report has Republicans crying foul - Robert King, Politico:

Republicans have long complained that a Democratic Congress’ move in 2021 to increase subsidies for health insurance bought on the Obamacare marketplace, and to make plans free for many low-income people, had allowed fraud to run rampant. Now they say the GAO report reaffirms their opposition to extending the enhanced subsidies expiring at the end of the month that have thrown Capitol Hill into turmoil.

The Obamacare cliff’s leadership vacuum - Laura Weiss, Andrew Desiderio and John Bresnahan, Punchbowl News:

The deadline to extend Obamacare premium subsidies is just three weeks away. And Congress is nowhere on this issue.

There’s been no real push from party leaders on either side to secure a deal, leaving moderates and vulnerable Republicans scrambling.

As the chances for a deal hover near zero, the fingerpointing has only intensified ahead of “show” votes in the Senate next week. Senate Republican leaders are dealing with an absent White House while they struggle to coalesce around a messaging bill to counter Democrats’ unity on a subsidy extension.

Taxwriters Threaten International Tax Increase to Punish International Tax Increase

GOP Taxwriters Call for Quick Action on Global Minimum Tax Accord - Cady Stanton, Tax Notes ($):

House Republican taxwriters revived a threat to institute retaliatory international taxes if global powers don’t show progress on the agreement to exempt American companies from some OECD global minimum tax rules by the end of 2025.

House Ways and Means Committee Chair Jason Smith, R-Mo., pushed for negotiators to make headway on the G7’s pledge on principles for ensuring some pillar 2 global minimum tax rules don’t apply to U.S.-parented groups during a December 3 House Ways and Means Tax Subcommittee hearing on global competitiveness.

Initial drafts of the One Big Beautiful Bill Act (P.L. 119-21) included a proposed section 899, the so-called revenge tax, which called for imposing punitive taxes on entities from jurisdictions that enforce what the United States views as discriminatory taxes, including digital services taxes.

Remote Work: Cross-border Issues

Tax News & Views International Weekly: Telecommuting and Taxes - Alex Parker, Eide Bailly:

Remote work has been with us since the days of Marco Polo, but since the pandemic it’s become an entirely new dynamic. Today, the ease and availability of working from anywhere for many professions has changed the concept of work itself.

That this would lead to tax issues may seem obvious. The range of issues it raises may be less obvious, though. Cross-border disputes about the personal income tax are the first that come to mind. But it’s also an issue for corporate taxation, when the location of employees–and whether they’re key decision-makers, value-creators, or among the rank-and-file–can be a factor in determining if a company has a taxable presence in a jurisdiction.

Multitasking

Bessent Under Discussion to Also Lead National Economic Council - Nancy Cook and Josh Wingrove, Bloomberg ($):

Donald Trump’s aides and allies are discussing the possibility of making Treasury Secretary Scott Bessent the top White House economic adviser — in addition to his current job — should the president pick Kevin Hassett as the next chair of the Federal Reserve, according to people familiar with the matter.

...

Trump is known to make surprise personnel decisions, meaning that any potential moves for Hassett or Bessent aren’t final until they’re made public.

Still, having multiple titles is a hallmark in the Trump administration. The Treasury secretary is also already serving as the acting Internal Revenue Service commissioner.

Tariff Complexity and Refund Scramble

Welcome to Tariff Complexity Hell - Scott Lincicome, The Dispatch:

Nevertheless, even the best U.S. tariff analyses have typically focused on the big picture—average tariffs, big deals, major actions or exemptions—while ignoring an issue that’s just as important, if not more so, for the tens of thousands of American businesses now forced to grapple with U.S. tariffs every day: their unprecedented, crippling, and truly insane complexity. Beginning in Trump’s first term and dramatically accelerating this year, navigating the U.S. tariff system has gone from relatively easy to mind-numbingly difficult for even the most skilled technicians and biggest corporations. For the little guys, on the other hand, it’s become virtually impossible. And the overall economic cost is likely staggering.

Ahead of Tariff Ruling, Businesses Race to Secure Refunds - Tony Romm and Ana Swanson, New York Times:

A growing roster of companies in recent weeks has hired lawyers, filed lawsuits or submitted official claims to the U.S. government, all in an early bid to secure a quick payout in the event that the centerpiece of Mr. Trump’s global trade war is struck down.

For the moment, the fate of the money collected from his sweeping tariffs rests in the hands of the Supreme Court justices. At oral arguments last month, they seemed skeptical of the president’s vast assertions of power to tax imports at a whim, stoking suspicions that they could deliver a defining blow to Mr. Trump’s economic strategy.

A ruling against the president could also force the Trump administration to pay back a substantial portion of the roughly $200 billion it has collected in duties since the start of the year.

Blogs and Bits

A QCD in lieu of an RMD can be a tax saver - Kay Bell on Substack:

When you turn 73, the Internal Revenue Service requires you to take a specified portion of your savings. The reason? Uncle Sam has been waiting decades in many situations, to get his cut of these tax-deferred earnings.

But you can meet up to $108,000 of your RMD amount and not owe tax on it by directly transferring the mandated withdrawal amount, generally from a traditional IRA, to an IRS-approved charity as a Qualified Charitable Distribution, or QCD.

Three Year-End Strategies That Can Cut Your 2025 Tax Bill - Robyn Friedman, Wall Street Journal. "1. Max out your retirement plans. Whether you use an individual retirement account, an employer-sponsored 401(k), a solo 401(k) or any other qualified plan to save for retirement, contributing the maximum amount allowable—if you’re able to—can reduce your taxable income now while your portfolio grows tax-deferred."

New Law Requires IRS To Make Those Confusing Math-Error Notices Easier To Understand - Kelly Phillips Erb, Forbes. "The new law fixes those problems by requiring the IRS to explain exactly what the agency thinks is wrong, why it made the adjustment, and what rights the taxpayer has to challenge that action."

A Giving Tuesday Reminder: Document Your Donations - Jeremy Wells, JWellsTax. "Any noncash contribution over $250 requires a contemporaneous written acknowledgment from the donee organization, which must include a description (but not the value) of the property. Contemporaneous means the taxpayer obtains the acknowledgment on or before the earlier of the date the taxpayer files a return for the tax year of the contribution or the due date (including extensions) of that return."

Annual returns of 48% to 96%? Sounds legit.

Minocqua man pleads guilty to wire fraud and money laundering - IRS (defendant name omitted, emphasis added):

Chadwick M. Elgersma, Acting United States Attorney for the Western District of Wisconsin, announced that Defendant, of Minocqua, Wisconsin, pleaded guilty on November 7, 2025, in federal district court in Madison to wire fraud and money laundering in connection to his long-term investment fraud scheme.

At the plea hearing, Defendant admitted that between September 2018 and March 2025, he used social media and other online communications to falsely portray himself as a successful trader in stocks, mutual funds, cryptocurrency, and the foreign currency exchange market (forex). Defendant also used social media to display wealth he allegedly acquired from trading, including images or references to expensive watches, a large home, tropical vacations, and exotic sports cars.

Truly rich people sometimes indulge in fancy watches and sports cars. Of course, it's a lot harder to become rich in the first place doing that. When you are buying them with stolen money, maybe that's not a concern.

During meetings with investors, Defendant told them that they could expect a monthly rate of return of approximately 4% to 8%, with the potential of earning up to 30% a month.

Okie-Dokie. Can I see your audited statements?

Instead of investing money as promised, Defendant often used investor money to pay his personal expenses. He also provided some investors with false information about the success of their investments, including sending fictitious account statements with inflated portfolio balances. Investors lost more than $800,000 as a result of Defendant’s conduct.

At the plea hearing, Defendant admitted that he laundered proceeds from his wire fraud scheme, including using $50,000 in investor funds to make a payment on a 2022 Lamborghini Urus.

You mean those 96% annual returns weren't legit?

It's an old scam, an old story. Maybe the most amazing tidbit here is that he used stolen investor funds to "make a payment" on a Lamborghini. That means somebody thought this guy was a good credit risk for the rest of the car price.

While no tax crimes are mentioned, the IRS enforcement arm - the one facing more budget cuts - played a key role in stopping this scam.

What day is it?

It's National Sock Day! Change them daily, if only to switch feet.

Tax News & Views Socks it to Scams Roundup

Make a habit of sustained success.

Joe B. Kristan, CPA