Key Takeaways
- Trump pardons reality show couple convicted of tax crimes.
- Employment tax evader pardoned after mother attends $1M Trump dinner.
- Tax bill Senate 'pressure points' are energy credits, SALT cap.
- Musk rips budget bill.
- Trade war triggers trade fraud.
- National Hamburger Day.
Trump To Pardon Reality TV Stars Doing Time For Tax Evasion, Bank Fraud - Kelly Phillips Erb, Forbes:
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On June 7, 2022, a jury convicted the Chrisleys on all counts of a superseding indictment, including conspiracy to commit bank fraud, bank fraud, wire fraud, and conspiracy to commit tax evasion. Julie was convicted of an additional charge of obstruction of justice because she submitted a fraudulent document in response to a grand jury subpoena. Tarantino was also convicted of multiple tax-related violations. In November, the couple was sentenced: Todd received a 12-year prison term and Julie received a seven-year sentence. (Tarantino received a three-year sentence.)
Trump Plans to Pardon Reality TV Stars Convicted of Tax Evasion - Wesley Elmore, Tax Notes ($):
The couple, along with their accountant, Peter Tarantino, also attempted to defraud the IRS and evade taxes. They attempted to avoid the collection of half a million dollars in delinquent taxes in Todd’s name by opening and keeping corporate bank accounts in Julie’s name.
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The couple also failed to file returns or pay any taxes for tax years 2013 through 2016. On their corporate returns, their accountant made fraudulent claims that the company earned no money and made no distributions.
Trump Pardoned Tax Cheat After Mother Attended $1 Million Dinner - Kenneth Vogel, New York Times:
Between 2016 and 2019, they said, he withheld more than $10 million from the paychecks of the nurses, doctors and others who worked at his facilities under the pretext of using it for their Social Security, Medicare and federal income taxes. Instead, he used some of the money to buy a $2 million yacht and to pay for travel and purchases at high-end retailers, including Bergdorf Goodman and Cartier, prosecutors said.
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By the time he pleaded guilty to two of the counts and agreed to pay the restitution on Nov. 15, 2024, Mr. Trump had been elected for a second term in the White House.
Big Beautiful Bill's Quiet Week
Reassessing a GOP tax bill - Bernie Becker, Politico:
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So what does that mean for the future of the GOP tax bill? There are at least two major pressure points. A good number of Senate Republicans have taken issue with how aggressively the House fiscal package targets the green energy incentives that Democrats enacted almost three years ago.
And there’s basically no natural constituency within the Senate GOP for a huge hike in the $10,000 cap on state and local deductions, even as Republicans there understand the political need for a SALT fix in the House.
Trump’s ‘big, beautiful bill’ pits Senate GOP moderates against conservatives - Alexander Bolton, The Hill. "Centrist GOP Sens. Susan Collins (Maine), Lisa Murkowski (Alaska) and Thom Tillis (N.C.) are facing off against conservatives such as Sens. Ron Johnson (R-Wis.), Rick Scott (R-Fla.) and Mike Lee (R-Utah) over potential cuts to Medicaid benefits, the phase-out of renewable energy incentives and other deficit-reduction measures that conservatives say don’t go far enough."
Elon Musk criticises Donald Trump’s ‘big, beautiful’ tax bill - Joe Miller, Financial Times:
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The comments by Musk are his strongest rebuke of the Trump administration to date.
They follow his criticism of the White House’s trade policy, calling trade tsar Peter Navarro a “moron” and “dumber than a sack of bricks” and saying he believed lower tariffs were “generally a good idea”.
Trump Pledged ‘No Tax on Social Security.’ The Tax Bill Says Otherwise. - Ashlea Ebeling and Richard Rubin, Wall Street Journal:
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This deduction would likely benefit people who earn modest incomes. The lowest-earning seniors already pay no federal income taxes, so they wouldn’t benefit. The highest earners make too much to qualify.
More Rich Taxpayers Hit With AMT Under House GOP Legislation - Chris Cioffi, Bloomberg ($):
The House legislation seeking to renew expiring parts of the 2017 tax law includes a last-minute amendment, moving the base year for calculating the AMT amount for inflation from 2018 to 2026. That creates a lower threshold that could snag a few thousand more taxpayers.
If the 2017 law’s AMT changes that are set to expire at the end of 2025 lapsed, millions more would be subject to the AMT.
One Big Beautiful Revenge Tax: Hits Foreigners From “Unfair Tax” Jurisdictions - Virginia La Torre Jeker, US Tax Talk. "The punitive bite of Section 899 would be an escalating increase of U.S. tax rates on foreign persons from any discriminatory foreign country. The initial rate increase would be 5 percentage points, and it would rise each year, up to a maximum of 20 percentage points above the applicable tax rate imposed by the U.S. tax law. Even rates that are reduced by a treaty would not escape the Section 899 tax increase."
Related: Tax News & Views International Weekly: Retaliation on Auto-Pilot
Protect Our Jobs targets vulnerable Republicans - Max Cohen, Punchbowl News. "The ad campaign slams the Republican effort to roll back clean energy tax credits enacted in the Inflation Reduction Act. The House Freedom Caucus pushed hard to repeal these tax credits while a number of GOP moderates weren’t fully on board."
Tariff Talk
Trump’s Trade War Sends Chill Through Southern California Port Economy - Paul Berger, Wall Street Journal:
Now, the 38-year-old is struggling to find two loads a week, and is being paid less for them, following a sharp drop in imports into the ports of Los Angeles and Long Beach. Late one afternoon, he refueled at the Sunshine Truck Stop after dropping off a single empty container at the port. He figured he would be left with about $50 after deducting costs for truck rental, insurance and diesel and was considering giving up as a self-employed driver.
“I am just surviving. But I am not going to make it,” he said.
Trade Crime Is Soaring, U.S. Firms Say, as Trump’s Tariffs Incentivize Fraud - Ana Swanson and Lazaro Gamio, New York Times:
For years, Chinese shippers had offered to help her factories doctor customs forms, telling them that there was little chance of being caught because U.S. customs officials would never examine the shipping containers, she said. Ms. Jordan has always refused. But tariffs are making business difficult for honest companies like hers, leaving her owing the government tens of thousands of dollars in import duties on some shipments.
Exclusive: Businesses still expect growth, even as tariff costs mount - Ben Berkowitz, Axios. "More than 70% of U.S. small and mid-sized businesses say tariffs have already increased their operating costs — but almost all still expect to be able to grow internationally in the coming years, per a new HSBC survey shared exclusively with Axios."
Trump Tariffs: Tracking the Economic Impact of the Trump Trade War - Erica York and Alex Durante, Tax Foundation. "The tariffs as imposed and scheduled to rise will reduce after-tax incomes by 1.2 percent on average, with the top 1 percent of taxpayers seeing a smaller 1.0 percent reduction in after-tax incomes. Per US household, the imposed and scheduled tariffs will amount to an average tax increase of more than $1,155 in 2025 and $1,397 in 2026."
IRS Update
IRS hotline questions resolved faster in 2025; concern grows about agency’s future - Martha Waggoner, The Tax Adviser:
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As the IRS faces funding and staffing cutbacks, 70% of members said they are concerned about political distractions affecting funding and administration, compared with 22% in 2024. On the potential impact of late legislative changes, 66% said they were concerned, compared with 29% last year. Sixty-three percent cited continued IRS processing delays as a concern, up from 27% in 2024. And 34% are worried about a lack of clarity or guidance from the IRS compared with 17% in 2024.
What taxpayers should do if they get mail from the IRS - IRS. "The IRS will never contact a taxpayer using social media or text message. The first contact from the IRS usually comes in the mail. Taxpayers who are unsure whether they owe money to the IRS can view their tax account information on IRS.gov."
IRS notices are often wrong, but they should not be ignored. Failing to properly respond to even an incorrect notice can lead to costly headaches.
Related: Eide Bailly IRS Dispute Resolution and Collections Services.
Blogs and Bits
Former billion-dollar defense contractor pleads guilty to tax crimes with global connections - Kay Bell, Don't Mess With Taxes. "Instead of paying the taxes that he knew he owed, law enforcement officials allege Edelman used the money to fund his lifestyle and additional investments. "
Summer Jobs and Taxes: Helping Teens Navigate IRS Rules - Jill Kenady, Tax School Blog. "Teenagers who earn money from self-employment, such as babysitting or lawn mowing, must pay self-employment tax if their net income exceeds $400. This tax covers Social Security and Medicare benefits. Self-employed teens should keep detailed records of income expenses and net income to determine their tax liability."
WSOP and Taxes: 2025 Update - Russ Fox, Taxable Talk:
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And now on to the meat of the post: I’m covering the basics of the tax situation, backing, foreign (non-US) backing, and non-American winners and what they will face with taxes.
What day is it?
It's National Hamburger Day! "To this day, there is little agreement over who actually created the iconic food."
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