Supreme Court refuses to put disputes over House subpoenas for President Trump’s financial records on a fast track, rejecting requests by House Democrats to formally return the cases to the appeals court level ahead of schedule.
Highlights from the New York Times report on President Trump's taxes:
❇️ Trump paid $750 in U.S. income taxes in both 2016 and 2017
❇️ He reported losing millions from golf courses
❇️ He has hundreds of millions in debt coming due in the next few years
Sen. Elizabeth Warren is calling on Microsoft‘s top executive to provide answers around a $28.9 billion tax bill the IRS says the software giant owes in unpaid transfer pricing tax claims.
Deutsche Bank confirmed that it has tax returns requested by U.S. lawmakers seeking financial information for Trump and his family.
Whose returns are those? That’s still a secret.
Who will get checks, and for how much?
➡️ Individuals who earn as much as $75,000
➡️ Couples making $150,000, plus their children or adult dependents
➡️ Single parents with at least one dependent who earn $112,500 or less .
A federal appeals panel rejected President Trump’s latest bid to block the Manhattan district attorney from getting his tax filings and other financial records.
2⃣ Free file is open
The Free File program allows taxpayers with an Adjusted Gross Income of $73,000 or less in 2021 to file their taxes electronically for free using software provided by commercial tax filing companies.
The revelations from President Trump’s tax returns reported by the New York Times give new definition to the phrase “shocking but not surprising,”
@SethHanlon
says.
"When we use taxpayer dollars to rebuild America – we are going to Buy American: buy American products to support American jobs," says Biden during his
#SOTU
address.
#TaxTwitter
BREAKING: President Biden is seeking more than $1 billion dollars in additional funding for the IRS—showing his administration is serious about getting the agency the resources it needs to audit more wealthy individuals and large corporations.
New York’s attorney general continues to gather information about President Trump’s business, obtaining financial records this month from the family of Trump Organization’s CFO.
President Trump said he was ready to boost his offer for spending in a fiscal-stimulus package, a bid that was quickly rejected by Senate Majority Leader Mitch McConnell.
JUST IN: Treasury Department officials are considering rolling back a tax rule aimed at preventing American companies from moving money offshore to avoid U.S. taxes.
Our editors, reporters, and network of leading practitioners are tracking, reporting, and providing insights and analysis on developments as they unfold.
Florida and Texas are facing arguably the most pressure to scale back reopenings thanks to surges in Covid-19 cases. But they also stand out as states with budgets most vulnerable to shutdown.
The IRS's $3.4 billion victory against Coca-Cola signals the battle with multinationals over how to account for profits from intangible property, like brand trademarks, isn't going away.
Now the pressure is really on a top House Democrat Richard Neal, who has to decide how ferociously to respond to the Treasury secretary's refusal.
Neal’s most obvious recourse is to sue Mnuchin for failing to comply with the subpoena.
Lawmakers want IRS Commissioner Danny Werfel to make the agency’s free pilot electronic tax filing system available to more taxpayers next filing season.
Democrats in Congress are considering a plan that would require banks to report accounts with at least $10,000 to the IRS -- well above the Biden administration’s proposed $600 threshold.
The revelation that the IRS quietly disposed of around 30 million unprocessed tax documents is the latest blow to the reputation of an agency that has long struggled with its public perception.
This is the long-game strategy, and would likely take months, if not years, straight through the 2020 presidential election.
Neal has indicated he would would rather go straight to court than hold Mnuchin in contempt of Congress.
Follow
@allyversprille
for more on this story.
1⃣ Tax season opens soon
The IRS has announced that tax season will open Monday, January 24, 2022.
Other than last year, the agency has opened tax season in late January for more than a decade.
BREAKING: California Supreme Court struck down a law that would force President Trump to disclose his federal tax returns to qualify for the 2020 Republican primary ballot in the state.
Q. Do I have to report crypto that I buy?
A: Nope. If you buy crypto and hold onto it, that’s not a taxable event. It becomes reportable when you do something with it—like sell it, exchange it for another kind of virtual currency, or use it to pay for goods or services.
Opinion: The Democrats’ latest reconciliation proposal could spur greater inflation in the short term and damage the US economy, says Sen.
@ChuckGrassley
.
Q: When do I have to report my crypto to the IRS?
A: Report crypto taxable events when you file your Form 1040. Taxable events typically include the sale or exchange of crypto or using crypto to pay for goods/services—but other transactions like forks may also be taxable events.
BREAKING: The IRS overvalued the worth of Michael Jackson’s estate by hundreds of millions of dollars, the U.S. Tax Court held Monday in a ruling on the estate’s yearslong tax fight.
Countering bad advice, especially during tax season, is crucial.
@taxgirl
clarifies common tax myths from whether filing taxes are mandatory and if Social Security benefits are taxable.
Q: How do I report crypto?
A: You’ll see a question about crypto on the front page. The IRS asks, “At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any financial interest in any virtual currency?” You must check yes or no.
3⃣ Filing Deadlines
The filing deadline to submit 2021 tax returns is Monday, April 18, 2022, for most taxpayers. Some jurisdictions get some extra time.
This roadmap to the “Tax Cuts and Jobs Act” (H.R. 1) compares the conference committee report released on Dec. 15 to the bills passed by the House of Representatives and the Senate
The Treasury Department announced that the IRS has reached its goal of hiring 5,000 customer-service representatives to answer the agency’s phones and perform other functions.
A global minimum corporate tax would generate around $150 billion in extra revenue for governments across the world, according to the official overseeing talks to get a deal between 139 countries in coming weeks.
There’s a reason, and it’s a good one: I’m thrilled to be joining
@tax
.
There’s more to share later, but here are the good bits: I get to tell
#tax
stories. And I get to help other people tell tax stories.
I start 2/1 but I'm so excited that I wanted to announce it now... (2/2)
The U.S. government could take in $1.2 trillion in additional tax revenue over a decade by aggressively auditing wealthy individuals and corporations, according to a House Democrat’s new bill.
This roadmap compares the “Tax Cuts and Jobs Act” (H.R. 1), as passed by the House of Representatives with the Senate bill, as approved by the Senate Finance Committee
Q: How is crypto taxed?
The IRS issued guidance in 2014 making it clear that virtual currency will be treated as a capital asset.
In simple terms, that means that if you buy and sell crypto as an investment, gains and losses are figured the same as buying and selling stock.
We used a New York FOIA request to obtain written homeowners’ appeals last spring and summer that shed light on New York City’s often frustrating property tax system.
Here are their stories:
The European Commission will float new plans to create one corporate tax system across the EU to put a stop to countries offering more favorable tax deals for multinational companies.
Some tax myths have some basis in fact such as writing off expenses with an LLC, but are you exempt from payroll tax if you file as an S corporation?
@taxgirl
takes a look at some tax takes making the rounds and explains why they're wrong 👇
More Trump tax takeaways:
❇️ He paid no income taxes in 10 of the past 15 years because large losses offset money he made
❇️ Many of Trump’s businesses are struggling
❇️ He earned $73 million abroad in his first two years in the White House
5⃣ Be patient
IRS encourages taxpayers to check rather than calling.
The agency anticipates 9/10 taxpayers will receive their refund within 21 days of when they file electronically.
You get paid $1000 in Bitcoin to paint a house. That $1000 is taxable.
If you convert it immediately when it’s worth $1000, there’s no taxable gain.
If you hold it for a bit and it’s worth $1500 when you cash out, the $500 gain is subject to capital gain ($1500-$1000=$500).
The IRS Criminal Investigation unit is playing a role in building the database to house newly disclosed information about companies’ ownership, the unit’s deputy chief said.
NEW: Sen. Ron Wyden demanded details from GOP donor Harlan Crow providing a complete account of the pricey trips and other gifts he provided to Supreme Court Justice Clarence Thomas.
The Treasury Department has consulted Justice Department and concluded the House panel “lacks a legitimate legislative purpose” for the request, Mnuchin said.
Coupled with an existing surtax on investment income, federal tax rates for investors could be as high as 43.4%, according to people familiar with the proposal.
Scoop from
@allyversprille
and
@laurapdavison
.
The IRS will “substantially” decrease audits on refundable tax credits that benefit low-income taxpayers in an effort to reduce racial disparities, the agency said.
First Republic Bank shares a link with two other banks that foundered within the past week.
All three used KPMG as their auditor— and each had recently received a clean bill of health from the firm.
Opinion: It’s time to start considering the issues that should dominate the national and international tax agendas for the next decade or two, says
@UoS_Management
’s
@RichardJMurphy
.
More: The plan would boost the capital gains rate to 39.6% for those earning $1 million or more, an increase from the current base rate of 20%, the people said on the condition of anonymity because the plan is not yet public.
And if you treat crypto like cash—meaning that you are spending it directly for goods or services, or using it to buy other cryptocurrencies—the individual transactions may result in a gain or a loss.
NEW: A majority of senators has voted to confirm Janet Yellen as President Biden’s Treasury secretary. She will be the first woman to take on that role.
Shifting eligibility for stimulus checks can be confusing for taxpayers wondering if they’re in line for more money from the Covid-19 relief program.
This filing season offers a chance to rectify that situation. Here's how 👇
Long-term capital gains rates are typically favorable to taxpayers—most taxpayers pay a 15% rate—while short-term capital gains are taxed as ordinary income.
4⃣ Still waiting?
Even if your 2020 tax return has not yet been processed, Tax Day is still April 18, 2022. The IRS notes that taxpayers generally will not need to wait for their 2020 return to be processed to file their 2021 tax returns.
The IRS plans to spend more than half of its $80 billion in new funding to crack down on big companies and wealthy taxpayers who it says aren’t paying what they owe.
JUST IN: PwC LLP is introducing a work-anywhere policy for its 55,000 U.S. employees, allowing them to choose an all-virtual work option in a bid to keep and attract workers.
The rate of tax you pay depends.
If you hold a capital asset for more than one year before a taxable event, it’s considered a long-term gain or loss.
But, if you hold a capital asset for less than one year before a taxable event, it’s considered a short-term gain or loss.
NEW: A U.S.-driven effort to reach a global accord on taxing big tech companies’ overseas profits is getting bogged down over ensnaring one firm in particular: Amazon.
As part of the effort to address the financial fallout from the COVID-19 pandemic, the CARES Act provides retirement savings tax relief and access to retirement benefits.
Here is a summary of some of the most important of those provisions. 👇