Most years, once we’re past Tax Day, the Internal Revenue Service’s work continues quietly, behind the scenes. Not now. Last week the IRS got yet another interim commissioner. Michael Faulkender, who had been serving as deputy to Treasury Secretary Scott Bessent, is the agency’s latest acting leader. Faulkender is the fifth person to take the IRS reins after former commissioner Danny Werfel resigned in January. Faulkender became the third acting leader of the agency in just a week. The latest quick personnel rotation at the IRS — equivalent to 0.36 Scaramuccis — and that it happened during the week that... Read more →
Tax numbers
The April 15 federal income tax filing deadline is Tuesday. For most folks, that’s the only thing they have to worry about on that day. But there are some of us for whom Tax Day means more tax tasks. Here are nine instances — yes, that includes the regular annual filing of tax returns — where some people might need to take additional tax action on April 15. Most of these tax-related moves will ensure you fulfill your tax duties and avoid any additional contact with the Internal Revenue Service. But some also could save you some tax dollars. File... Read more →
Hanging on for more time to file your taxes? Get more by filing Form 4868. (Harold Lloyd in 1923 film Safety Last!) Tax returns are due in just over a week. A lot of taxpayers, however, don’t seem in that big of a hurry. Last year, more than 163 million taxpayers filed returns. With the 2025 filing deadline looming, the Internal Revenue Service reports that has received just more than 89.5 million returns. Sure, millions will get their 1040 forms filled out and to the IRS by Tuesday, April 15. But based on past filing numbers, a sizeable group won't.... Read more →
Most Americans believe that the wealthy, who have disposable income for things like pet accoutrements, should pay taxes at a higher rate. ( Photo by Pet foto) There’s word out of Washington that the White House might consider raising taxes on the wealthiest taxpayers in order to offset a Donald J. Trump campaign promise to end taxes on tip income. Nothing is finalized. And talk is particularly cheap on Capitol Hill. gratuities. But if Republicans in Congress do go along with that tax tradeoff as they work on expanding the 2017 tax cuts that expire at the end of this... Read more →
Some roads, like this rural one in Central Texas, don't get much funding from the state. (Photo by Kay Bell) I know, spring just officially arrived last week. But temperatures already in the 80s here in Central Texas have me contemplating summer travel. Thinking back on my family’s summer road trips when I was child, also made me realize that my interest in the tax world was foretold back then. Every time we’d run into a travel delay due to road crews repairing and/or resurfacing our routes across the Lone Star State, my father would announce, “Your tax dollars at... Read more →
Department of Government Efficiency and Congressional efforts appear to be putting a stop signal for many of the IRS' goals. (Photo by Kari Bluff Nesler via Flickr) The Department of Government Efficiency (DOGE), the quasi-governmental group created by billionaire Elon Musk, contends it has so far found $100 billion in fraud and waste across multiple federal agencies. Even if that’s true, which scrutiny from other organizations questions, the way DOGE, with the White House's approval, is slashing Uncle Sam’s operations could end up costing more than the purported savings. “Just one move — the plan to shrink the Internal Revenue... Read more →
Photo by Porapak Apichodilok You took that job in Rome and things are working out great. But you discovered that there’s one part of the United States that hitched an international ride with you. The Internal Revenue Code. Thanks to our worldwide tax system for individuals, as a U.S. citizen you remain a U.S. taxpayer, regardless of where you live. That makes you responsible for filing federal tax returns on your overseas earnings. Uncle Sam, however, does provide some tax breaks to his citizens living and working abroad. They get more time to file, with a June 15 deadline. And... Read more →
Some of the taxable goodies in this year's Academy Awards swag bag. (Photo: Distinctive Assets) An Oscar statuette, which is made of gold-plated bronze, costs around $400 to produce. Of course, the value to the winners is decidedly more, both emotionally and when it comes to negotiating their next film contract. But some 2025 nominees for the movie industry’s biggest prize, which will be handed out tomorrow night, already have received much more expensive tokens. Yes, we’re talking about the annual Academy Awards swag bag goodies. This year, Distinctive Assets prepared gift bags for the 25 nominees in the Academy... Read more →
Photo by RDNE Stock project The Republican party has long opposed the federal estate tax, or as its members call it, the Death Tax. Bills are regularly introduced to kill the tax. Eliminating it even made it into the GOP-led House Budget Committee working paper on extending the tax cuts enacted the last time Donald J. Trump was president. Now, however, that committee’s chairman has decided that a, dare we say, more conservative approach would be better. Rather than eliminate the tax, he’s introduced a bill that would cut the current 40 percent estate tax rate in half. Short-lived tax... Read more →
UPDATE, Monday, Feb. 24, 2025: The Internal Revenue Service layoffs did happen, but fewer than what might have been. Still, say seven former IRS Commissioners who served during both Democratic and Republican administrations say that the firing of 6,700 agency employees in the middle of tax season is a huge mistake. We’re in the heart of tax filing season. So far, things seem to be going smoothly. But that could change. Internal Revenue Service workers processing the millions of already filed returns also are dealing with some additional, but not tax-related, work concerns. Plus, the tax agency could lose as... Read more →
This Bruce the Shark diamond pendant is just one of Tekashi 6ix9ine's pieces of jewelry that's on the tax auction block next month. (Photo courtesy Market Auctions) Music plays a big role in my life, from the tunes of my youth to many of today’s artists. In fact, I just ordered another CD last night. Yes, I am old when it comes to my playing (and owning) preference, even when it comes to newer music. And it’s easy to download select tunes to add to digital playlists, a modern version of my old cassette mixtapes. But I’ve got to admit... Read more →
When severe weather leads to major disaster declarations, the tax obligations of the residents dealing with the aftermath also are affected. The Internal Revenue Service regularly announces tax relief for those taxpayers, including later filing deadlines. One of those delayed tax due dates is Monday, Feb. 3. Taxpayers in 14 states and two U.S. island territories who were struck by devastating hurricanes, floods, and various other lashings from an irate Mother Nature last year were given more time to file their 2023 tax returns for which they had received an extension. So, instead of having get their 2023 tax year... Read more →
The Internal Revenue Service has its own Groundhog Day, but it's not limited to just one specific 24-hour period. Most often, this re-do of a tax return is when you find you made a mistake on your original Form 1040. The do-over is accomplished by filing Form 1040-X, an excerpt of which is shown below. See more tax forms and more about them at Tax Forms 2024 and Tax Forms 2025. Fix errors: Nobody's perfect, and the annual filing season underscores that for many of us. When we do make a mistake on our taxes, filing an amended return takes... Read more →
Agents with Internal Revenue Service Criminal Investigation (IRS-CI), the tax agency's law enforcement arm, regularly work with other officers to bring financial and tax criminals to justice. IRS-CI agents are responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money-laundering, public corruption, healthcare fraud, identity theft, and more. While we wait to see how things shake out at the Internal Revenue Service under the second Donald J. Trump term, I thought it worth taking a look back at some recent tax agency activity. Notably, the IRS’ law enforcement arm, the IRS Criminal Investigation unit, has over the years... Read more →
Photo by Scrumshus - Own work, Public Domain Work is about to begin in earnest on the Tax Cuts and Jobs Act (TCJA) of 2017 provisions set to expire at the end of 2025. With Donald J. Trump returning to the Oval Office, Republicans will have, as they did when the tax reform bill passed eight years ago, control of the House, Senate, and White House. The only thing that appears to be standing in the GOP’s way is dollars. Tax cuts’ ongoing costs: Extending the expiring provisions of the Trump tax cuts could cost as much as $4 trillion... Read more →
UPDATE, Monday, Jan. 13, 2025: California officials also are offering taxpayers in Los Angeles County a postponement on filing 2024 state tax returns and making tax payments that would have been due between January 7 and October 15, 2025. The extent and ferocity of the wind-propelled Palisades fire is, in many cases, an insurmountable challenge for Los Angeles, California, firefighters. (Photo by CAL FIRE_Official - Palisades Fire, Public Domain) California firefighters, joined by their brethren from other states and Canada and Mexico, are still struggled to contain the catastrophic wildfires that have engulfed the Los Angeles metropolitan area. Since the... Read more →
The first group of taxpayers in 14 states and two U.S. island territories hit by declared major disasters must get their forms to the IRS by Feb. 3. Residents in the other 10 states have until May 1. Photo by Analogue Kid at English Wikipedia, CC BY-SA 3.0 Much of the United States is facing the first weather catastrophe of the new year. A brutal winter storm is forecast to sweep through a 1,300-mile swath of the country, leaving an estimated 62 million people to deal with heavy snow, ice, rain, and severe thunderstorms. This early 2025 burst of anger... Read more →
Photo by Alexas Fotos 2024 is almost over, with millions making plans to celebrate the calendar changed on New Year’s Eve. But before you don your party hat and raise your glass to say goodbye to the old year and ring in 2025, you need to be aware of the tax importance of Dec. 31. Actions on the final day of a year could affect your full 2024 tax bill. Here are five that could make a difference. 1. Getting married. If you say "I do" on 12/31, then the Internal Revenue Service considers you married for the whole year.... Read more →
Photo by Kaboompics.com The Internal Revenue Service is sending out holiday gifts this month to around a million people. The recipients are people who were eligible for, but did not claim, the 2021 Recovery Rebate Credit (RRC). By the end of next month, they should have the funds in hand, or directly deposited into their bank accounts. The maximum RRC amount is $1,400 per person, but the exact amount will depend on the individuals’ specific circumstances, such as income, filing status, and number of dependents. Overall, the IRS says it will be delivering about $2.4 billion to the eligible recipients.... Read more →
Photo by Pixabay We’re heading into the home stretch, and playoff push, of the National Football League (NFL) season. It’s the most popular sport in the United States. Since the U.S. Supreme Court in 2018 okayed state-authorized sports betting, the NFL has gained new fans who are more interested in how the games can make them a few, or more, bucks. Currently, 38 states, along with the District of Columbia and Puerto Rico, have legalized some form of sports betting, though not all have implemented it. Now the National Council of Legislators from Gaming States (NCLGS) wants to help states... Read more →