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Tax News & Views Chief Counsel with Sudoku Roundup

By Trina Pinneau
September 9, 2025

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 ($):

President Donald Trump’s nominee to serve as the next chief counsel at the IRS should limit any financial dealings with businesses after he leaves office, according to a key Democrat on the Senate committee overseeing the agency.

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 ($):

Senate Finance Committee member Elizabeth Warren, D-Mass., is asking President Trump’s pick to be the IRS’s top lawyer to commit to avoiding conflicts of interest with his former employers and clients.

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 list of occupations eligible for the new “no tax on tips” provision is under White House regulatory review.

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 Trump administration is quietly dismantling efforts by the Internal Revenue Service to shut down a slew of aggressive tax shelters used by America’s biggest multinational companies and wealthiest people.

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:

Federal prosecutors are also now investigating the promotion and sale of tribal tax credits by White River, Nepsis and other firms, according to people familiar with the matter. The probe hasn’t been previously reported.

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 ($):

The Justice Department has opened a criminal tax investigation into the sale of so-called tribal tax credits that the IRS says do not exist, according to a newly released letter from the top Senate Democratic taxwriter.

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 ($):

Federal prosecutors have opened a criminal investigation into the sale of so-called sovereign tribal tax credits, which the Treasury Department and IRS have said don’t exist, the Senate Finance Committee said in a letter.

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:

An overwhelming majority of Americans favor banning members of Congress from trading stocks, but efforts to turn that public sentiment into law have long sputtered.

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 ($):

Treasury’s Financial Crimes Enforcement Network said its new guidance should encourage appropriate cross-border information sharing by U.S. financial institutions, suggesting that beneficial ownership information can be shared without violating the Bank Secrecy Act.

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 ($):

If the U.S. Supreme Court decides President Donald Trump lacked authority to impose tariffs under the International Emergency Economic Powers Act, the U.S. government will refund revenue it has collected with tariffs under that law, Treasury Secretary Scott Bessent said.

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 ($):

The Treasury Department should adjust rules on the treatment of foreign-currency gains and losses by businesses’ subsidiaries to address the concerns of securities companies, a trade group said.

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 ($):

The OECD on Monday updated its baseline standard for how governments should share information following tax rulings.

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 ($):

The IRS sent most levy hearing notifications on time, but employee and technology errors led to the agency failing to send timely hearing notices to a small number of taxpayers, an agency watchdog found.

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.

Related: TIGTA Report - Fiscal Year 2025 Statutory Review of Compliance With Legal Guidelines When Issuing Levies

 

ACA Tax Credit

ACA Tax Credit Extension Draws Democrats’ Focus on Key Panels – Erin Durkin, Bloomberg ($):

House Democrats on three key committees are discussing the extension of enhanced Obamacare tax credits that are set to expire at the end of the year.

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?

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About the Author(s)

Trina Pinneau photo

Trina Pinneau

Senior Manager
Trina has more than 10 years of public accounting experience providing tax consulting services and analyzing complex tax situations. She has spent the majority of her time in the credits and incentives space with a focus on energy credits and excise taxes. Trina also has experience in tax controversy and accounting methods. In joining Eide Bailly's National Tax Office Trina is focusing her efforts on energy efficiency incentives while being a resource for the excise and tax controversy team.

Any opinions expressed or implied are those of the author and not necessarily those of Eide Bailly. Opinions found in linked items are those of the authors of the linked item, not of your bloggers or of Eide Bailly. “$” means link may be behind a paywall. Items here do not constitute tax advice.