Key Takeaways
- IRS Chief Counsel Nominee
- Tip Deduction
- IRS
- Tribal Tax Credit Sales
- Congressional Stock Trading
- Financial Information Sharing
- Tariffs
- Currency Gain and Loss Rules
- OECD
- Levy Hearings
- ACA Tax Credits
- In the Courts
- Sudoku Day
IRS Chief Counsel Nominee
Warren Seeks Recusal Commitments from Top IRS Lawyer Nominee – Zach C. Cohen, Bloomberg ($):
Sen. Elizabeth Warren (D-Mass.) on Sunday specifically asked Donald Korb, a lawyer at Sullivan & Cromwell looking to return as the IRS’s top lawyer, to recuse himself during Trump’s term from any matters involving his former clients, employers, or financial interests. She also sought Korb’s assurance that after leaving government work he wouldn’t lobby or seek employment or board membership with companies involved in legal disputes with the IRS for at least four years.
Warren Asks Chief Counsel Nominee to Commit to Being Impartial – Benjamin Valdez, Tax Notes ($):
Warren, in a September 7 letter, asked Donald Korb, Trump’s nominee for IRS chief counsel, to commit to recusing himself from all matters involving his former clients and employers for four years, which could include decisions about regulations and enforcement actions.
Tip Deduction
List of ‘No Tax on Tips’ Jobs Is Under White House Review – Michael Rapoport, Bloomberg ($):
A proposed rule with the list was received Saturday by the White House Office of Information and Regulatory Affairs, according to OIRA’s website.
OIRA Begins Review of Tipped Jobs Eligible for Deductions – Trevor Sikes, Tax Notes ($). “Proposed guidance on jobs that customarily receive tips as payment, which are now eligible for tax deductions, is under review by the Office of Management and Budget.”
IRS
Trump Administration Halts I.R.S. Crackdown on Major Tax Shelters – Jesse Drucker, New York Times:
The administration, bowing to pressure from industry groups, right-wing activists and congressional Republicans, is quickly rolling back several I.R.S. law enforcement efforts, including one aimed at a lucrative tax shelter used by companies like Occidental Petroleum and AT&T.
Tribal Tax Credit Sales
A Tax Strategy Peddled to the Rich Comes Under Federal Scrutiny – Dylan Tokar & Richard Rubin, Wall Street Journal:
Dubious tax-break strategies have long been marketed to some of America’s highest earners and are enough of a problem that the IRS releases an annual “Dirty Dozen” list that includes too-good-to-be-true scams. The strategy promoted by White River is getting heightened scrutiny, thanks to allegations by Senate Democrats earlier this year of ties between White River and Billy Long, who was ousted as IRS commissioner after less than two months in the job.
Justice Department Investigating Tribal Tax Credit Sales – Cady Stanton, Tax Notes ($):
Senate Finance Committee ranking member Ron Wyden, D-Ore., said in an August 19 letter to SEC Chair Paul Atkins that members of his staff “have confirmed the existence of this DOJ and IRS investigation” into White River Energy Corp. regarding the sale of the alleged tax credits that had been issued to Native American tribes.
DOJ Opens Criminal Probe into Dubious Tribal Tax Credits – Erin Schilling, Bloomberg ($):
The Department of Justice Tax Division notified White River Energy Corp. and certain investment advisers that they’re subjects of an ongoing probe and has issued subpoenas, according to the letter signed by ranking member Ron Wyden (D-Ore.).
Congressional Stock Trading
Congress eyes stock-trading ban - with tax break sweetener – Benjamin Guggenheim, Politico:
That’s because the lawmakers who would have to approve any overhaul of congressional investing stand to suffer considerable financial impacts — not least of which are potentially hefty tax liabilities if they are forced to sell off long-held stocks.
Financial Information Sharing
FinCEN Guidance Promotes Voluntary Financial Information Sharing – Amanda Athanasious, Tax Notes ($):
While the Bank Secrecy Act generally forbids disclosures of suspicious activity reports (SARs) and “information that would reveal the existence or non-existence of a SAR,” that doesn’t mean financial institutions can’t share information underpinning a SAR, according to guidance released September 5.
Tariffs
Bessent Says US Will Refund Revenue If Justices Nix Tariffs – Kevin Pinner, Law 360 ($):
About half of Trump's tariffs will need to be refunded if the justices uphold the Federal Circuit's August ruling that IEEPA does not authorize the president to impose tariffs, Bessent estimated Sunday in an interview on "Meet The Press" posted on the NBC News website.
Currency Gain and Loss Rules
Securities Group Urges Tweaks in Currency Gain and Loss Rules – Michael Rapoport, Bloomberg ($):
Implementation of final and proposed regulations on how “qualified business units” under Section 987 should handle currency transactions should be refined “in a way that best reflects the realities of our industry,” the Securities Industry and Financial Markets Association said in a comment letter Sept. 5. QBUs are units of larger companies that do business separately and maintain their own books and records.
OECD
OECD Revises Tax Ruling Information Sharing Standards – Saim Saeed, Bloomberg ($):
Among the updates the Organization for Economic Cooperation and Development made to its tax ruling information exchange standards include a revised peer review methodology that will enter into force next year and a new XML format, which will be mandatory for filings after Jan. 1, 2027.
Levy Hearings
IRS Failed to Timely Notify Some Taxpayers of Levy Hearings – Tyrah Burris, Tax Notes ($):
In a report released September 8, the Treasury Inspector General for Tax Administration found that out of 46,182 taxpayers with levies issued by field collection revenue officers from July 1, 2023, through June 30, 2024, more than 99 percent of the levies were issued properly. However, there were 357 violations affecting the rights of 354 taxpayers.
ACA Tax Credit
ACA Tax Credit Extension Draws Democrats’ Focus on Key Panels – Erin Durkin, Bloomberg ($):
The premium tax credits under the Affordable Care Act help individuals pay for health premiums if they have a plan through the ACA marketplace. During the Covid pandemic, Congress passed an enhancement of these subsidies that made them more generous and allowed more individuals to access the assistance. But these enhanced tax credits will end this year if Congress doesn’t act.
In the Courts
New $25M Vanguard Investor Tax Case Deal Gets Initial OK – Kat Lucero, Law 360 ($). “A $25 million settlement of a class action accusing Vanguard of improperly triggering an asset sell-off that saddled investors with steep tax bills received preliminary approval Monday, according to an order in Pennsylvania federal court, after a $40 million deal was rejected in May.”
Fourth Circuit Tosses States’ Suit on Federal Employee Firings – Kristen A. Parillo, Tax Notes. “A group of Democratic-led states didn’t have standing to challenge the Trump administration’s mass firings of probationary employees from the IRS and other federal agencies, a divided Fourth Circuit panel has held.”
Greek Pipe Co.'s Data Gaps Merit Tariff Hike, Fed. Circ. Says – Natalie Olivio, Law 360 ($). “Tariffs against Greek pipe importers will stay in place, the Federal Circuit found Monday, affirming a U.S. Court of International Trade holding that the companies submitted deficient financial data, requiring the U.S. Department of Commerce to fill in certain information gaps when calculating the duties.”
What Day is it?
Put on your thinking caps! Its International Sudoku Day. Not into numerical puzzles? Grab a glass because its also International Box Wine Day!Make a habit of sustained success.
