Key Takeaways
- Talks of taxes on higher income taxpayers.
- IRS turmoil.
- Business taxes in Europe.
- Pillar 2 and international tax reforms.
- Estimating economic affects of tariffs.
- $1.7M in FBAR penalties assessed against taxpayer.
- National Arbor Day!
Trump: I ‘love the concept’ of millionaire tax hike, but ‘may not be acceptable to the public’ - Brett Samuels, The Hill:
Three Ways To Raise Revenues By Increasing Taxes on Capital Gains and Wealth of High-Income Taxpayers - Janet Holtzblatt, Tax Policy Center:
Happening at the IRS
IRS turmoil: Leadership churn, worker exodus and threats to groups’ tax-exempt status roil agency - Fatima Hussein, AP News:
Just three months into Trump’s second term, the government’s fly-under-the-radar tax collector has become the latest platform for the Republican administration’s vision to cut and control the federal bureaucracy. Tax policy experts fear that taxpayer services and collection efforts will face prolonged delays as a result of the rapid changes.
Blogs and Bits
Tax records: What to keep and for how long - Kay Bell, Don't Mess with Taxes:
The bottom line is to choose a record keeping method, implement it, and stick with it each passing tax year. It’s tax insurance that you hope you never need, but are glad to have if the worst ever happens.
In the Courts
Navigating ERISA Prohibited Transaction Claims: A Deep Dive into Cunningham v. Cornell University - Ed Zollars, Current Federal Tax Developments:
...
The Supreme Court’s decision in Cunningham v. Cornell University reaffirms the established principles of statutory interpretation and clarifies the pleading burden in ERISA prohibited transaction claims. Plaintiffs alleging a violation of § 1106(a)(1)(C) need only plausibly allege the elements of that section. They are not required to anticipate and negate the applicability of any of the exemptions listed in § 1108. These exemptions, including the one for necessary services with reasonable compensation in § 1108(b)(2)(A), are affirmative defenses that the defendant fiduciaries bear the burden of pleading and proving.
Tax Policy
Businesses Pay and Remit 87 Percent of All Taxes Collected in Europe - Cristina Enache, Tax Foundation:
How Pillar 2 and International Tax Reforms Affect US Multinational Taxes - Thomas Brosy, Tax Policy Center:
...
Our estimates show that Pillar 2 works as intended: US multinationals engaging in profit-shifting or reporting profits in low-tax jurisdictions will face higher tax burdens. Multinationals that do limited profit-shifting will see little or no increase in their tax burdens.
Think Tank Says Tariffs Hit Lower-Income Workers Hardest - Dylan Moroses, Law 360 Tax Authority ($):
Tax Trouble
Gov't Stands By $1.7M In FBAR Penalties Against Texan - David Hansen, Law 360 Tax Authority ($):
What day is it?
Time to plant a tree? Just a few days after Earth Day, today is National Arbor Day!
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