Key Takeaways
- November 3 becomes filing, payment deadline in parts of TX, OK, MO.
- Treasury Inspector General report says DOGE IRS cuts expected to slow return processing.
- "Tribal Credit" buyer sues seller, advisors.
- Tariffs kept in place pending expedited appeal.
- 55% China tariff "deal."
- A second tax bill?
- National Corn on the Cob Day.
Storms cause deadline extensions in Texas, Oklahoma, and Missouri.
The IRS has announced deadline extensions for March storms in parts of three states. Affected taxpayers will have until November 3 to file and pay taxes. Links to the IRS announcements and affected areas follow:
Texas: Affected taxpayers are "Individuals and households that reside or have a business in Cameron, Hidalgo, Starr, and Willacy counties." Returns and payments due on or after March 26, 2025 qualify for the relief.
Oklahoma: "individuals and households that reside or have a business in Cleveland, Creek, Lincoln, Oklahoma, Pawnee, and Payne counties qualify for tax relief" for returns and payments due on or after March 14, 2025.
Missouri: "individuals and households that reside or have a business in Bollinger, Butler, Callaway, Camden, Carter, Dunklin, Franklin, Howell, Iron, Jefferson, Madison, New Madrid, Oregon, Ozark, Perry, Phelps, Reynolds, Ripley, Scott, Shannon, St. Louis, Stoddard, Wayne, Webster, and Wright counties qualify for tax relief" for filings due on or after March 14.
The IRS explains the relief:
...
The Nov. 3, 2025, deadline also applies to affected businesses:
- Quarterly payroll and excise tax returns normally due on April 30, July 31, and Oct. 31, 2025.
- Calendar-year partnership and S corporation returns normally due on March 17, 2025. [Note: this only applies to Missouri and Oklahoma affected taxpayers].
- Calendar-year corporation and fiduciary returns and payments normally due on April 15, 2025.
- Calendar-year tax-exempt organization returns normally due on May 15, 2025.
More limited relief is provided for excise tax deposits, depending on which state the taxpayer is in.
IRS staff cuts expected to slow down return processing
IRS Says Resignations Will Affect Future Return Processing Times - Tyrah Burris, Tax Notes ($):
IRS management said the agency is expecting to lose about 450 employees from its submission processing function through the first deferred resignation program and another 1,400 employees through the second program, the Treasury Inspector General for Tax Administration said in a report released June 10.
Dubious tax credit linked to IRS Commissioner-designate triggers lawsuit
Buyer of Dubious Tribal Credits Sues, Citing $1.7 Million Loss - Bernie Kohn, Bloomberg ($):
Justin and Robin Daniels of Jupiter, Fla., filed suit in Palm Beach County Circuit Court against White River Energy Corp., the credits’ sponsor; as well as a wealth advisory firm that helped to market the credits and their own accounting firm.
...
The credits became an issue in the nomination of former Rep. Billy Long (R-Mo.) to be IRS commissioner after he disclosed he was paid by White River to help refer buyers and received contributions from people associated with White River to help pay off old campaign debts. Long’s nomination is awaiting a vote in the full Senate.
Today in Tariffs
Appeals Court Keeps Trump’s Sweeping Tariffs in Place for Now - James Fanelli, Wall Street Journal:
The U.S. Court of Appeals for the Federal Circuit extended its earlier temporary pause of a trade court decision that found Trump exceeded his powers in imposing the tariffs.
The appeals court said it intends to hear arguments on July 31, which means the tariffs likely will remain in effect for at least the next two months.
Fed. Circ. Keeps Trump Tariffs In Place, Fast-Tracks Appeal - Natalie Olivo and Rae Ann Varona, Law360 Tax Authority ($):
Pushing back against the trade court's decision, the administration told the Federal Circuit on Monday that the injunction would undermine the president's ability to carry out ongoing negotiations, which are "premised on the credible threat of enforcement of the IEEPA tariffs."
U.S.-China Trade Deal Includes 55% Tariff, Trump Says - Jed Graham, Investor's Business Daily. "U.S.-China trade talks in London have cleared the way for a full resumption of rare-earth exports to the U.S., President Trump said in a Truth Social post early Wednesday. He also indicated that U.S. tariffs on a broad range of Chinese imports would rise from 30% to 55%."
Update on Tax Bill's Progress
Senate Taxwriters Expect to Release Tax Bill Text June 13 - Cady Stanton and Doug Sword, Tax Notes ($):
...
The reconciliation package, including a $3.8 trillion tax portion, was passed by the House May 22. The legislation includes extensions of individual income tax rates from the Tax Cuts and Jobs Act, a handful of President Trump’s campaign trail tax priorities — including the elimination of tax on tipped income and overtime wages — and rollbacks of the clean energy credits from the Inflation Reduction Act as a cost offset.
Senate Plans to Deliver Trump-Backed Tip, Overtime Tax Breaks - Cam Kettles and Steven Dennis, Bloomberg ($):
The House bill, in lieu of a direct tax cut on Social Security, which would violate Senate budget rules, provided a $4,000 bonus deduction for per taxpayer age 65 and older with incomes up to $75,000 for individuals and $150,000 for married couples. The House provisions on tips, overtime, the elderly and car loans would all expire in 2029.
Key Republican Senator Expects ‘Revenge’ Tax to Be Delayed - Erik Wasson, Bloomberg via MSN:
The additional tax, as currently written in the bill, would go into effect on Jan. 1 for companies located in some foreign countries, if Congress remains on course to pass the legislation this summer. But Tillis, a moderate who has been heavily involved in negotiations, suggested Tuesday that more time is needed to implement the provision.
Graham prepares for a possible second Republican tax bill - Burgess Everett, Semafor:
...
Some Republican senators have quietly raised concerns about those Trump-backed provisions not juicing the economy as much as other measures in the bill, suggesting they may be pared back. Similarly, adding more spending cuts could alienate moderate GOP members.
“It just becomes: How much can you put into the bill before you lose the votes?” [Senator Lindsey] Graham said. “We’re not going to get the bill through the Senate without more spending cuts. I think if you do too much, you’re going to lose the House, so there will be round two.”
GOP Senator Wants Energy Tax Credit Deadline Tweak in Trump Bill - Katie Lobasco, Tax Notes ($):
...
The Senate is considering changes to the House version of the tax-focused reconciliation bill (H.R. 1) that rolled back nearly all the clean energy tax credits provided by the IRA. A number of Republicans in both the Senate and House have expressed support for saving some of the tax credits, while some conservative members, including the House Freedom Caucus, are pushing for a full repeal by the end of the Trump administration.
Agricultural Provisions in the Big Beautiful Bill - Kristine Tidgren, Ag Docket:
What Labor Costs vs. What Labor Gets
Tax Burden on Labor in Europe, 2025 - Cristina Enache, Tax Foundation. "This so-called tax burden on labor reflects the difference between an employer’s total cost of an employee and the employee’s net disposable income."
The comparable US figure is 30%, according to the article.
Blogs and Bits
A friendly tax nag reminder: Don't miss June 16 estimated tax due date - Kay Bell, Don't Mess With Taxes. "The June estimated tax due date is officially the 15th, but since that’s on a Sunday — Father’s Day, just in case you need a reminder about that, too 😊 — the second estimated tax payment is due Monday, June 16."
Illinois Lawmakers Pass Budget Including Remote Seller Amnesty - Emily Hollingsworth, Tax Notes ($). "As outlined under H.B. 2755, the Illinois Department of Revenue would abate all penalties and interest if a remote seller pays their outstanding retailers’ occupation tax in full between August 1, 2026, and October 31, 2026."
Related: Eide Bailly State and Local Tax Services.
Ninth Circuit: Discharge of Debt Does Not Presumptively Render It Worthless - Parker Tax Pro Library. "A panel of the Ninth Circuit affirmed the Tax Court and held that a taxpayer who cancelled millions of dollars of purported loans between business entities he owned, and reported cancellation of debt income to the debtor entities, was not presumptively entitled to claim a corresponding worthless debt deduction by the creditor entities."
Don’t Expect Much Growth From The One Big, Beautiful Bill - William Gale and Kyle Pomerleau, TaxVox. "While most groups agree that it will have an impact, the bill’s provisions indicate that effects will be modest at best. And those modest effects will be swamped by its significant negative impact on the federal government’s finances."
Google First
Woman who defrauded Everett employer of $2.5 million, sentenced to prison for second embezzlement from Kent, Washington employer - IRS (Defendant name omitted, emphasis added):
...
At the time of her guilty plea, the Magistrate Judge asked about her current employment. Through her attorney, Defendant claimed she had no access to bank accounts or checks. Nevertheless, the Magistrate Judge ordered Defendant to inform her employer of her conviction. Defendant later claimed to her pretrial services officer and other probation staff that she had been fired after informing the company. She claimed that the only employment she had, before reporting for prison, was as a nanny or receptionist.
In fact, Defendant never told her Kent employer about the conviction, and she had already begun embezzling from that company. Between January and August 2023, she attempted to steal some $60,000 by altering checks made out to vendors, manipulating the payroll system to increase her own paycheck, or simply writing checks to herself. On her last day at the office, she wrote a check to herself for $3,516. Defendant never told the company she was leaving. When she did not show up for work and they could not reach her, a web search revealed the prior embezzlement case.
This case reminds us that internal accounting controls are important for businesses of all sizes. Also, maybe HR should do the web searches before onboarding financial help.
Related: Eide Bailly Fraud Protection & Detection Services.
What day is it?
For reasons beyond my ken, it's National Corn on the Cob Day. Everyone knows that the good corn isn't available until July, at the earliest.
We're Here to Help
