Key Takeaways
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Tax Preparer Regulation
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TCJA
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Chevron
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IRS
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Rules Committee
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Conservation Easements
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Refund Processor
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In the Courts
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Hammocks
Tax Preparer Regulation
Push to Regulate Tax Preparers Struggles Despite Growing Fraud – Chris Cioffi, Bloomberg ($):
Conservatives have long been skeptical of the IRS, and the agency’s renewed push to enforce tax laws with its billions in recent funding has exacerbated their ire. At the same time, industry pros, tax officials, and software companies have called on Congress to give IRS the regulatory power to set minimum standards for those paid to prepare taxes, and rising fraud among a pandemic-era credit, among others, is giving the push fresh momentum.
TCJA
Higher tax rates, smaller child tax credit and other changes await as Trump tax cuts end – Medora Lee, USA Today:
Major provisions in the Tax Cuts and Jobs Act of 2017 (TCJA) expire then unless Congress extends them. If the TCJA provisions sunset, most everyone will be affected one way or another, they said. Tax brackets, income tax rates, child tax credit, state and local tax deductions, mortgage interest deductions and much more will literally change overnight.
Chevron
Whistleblower’s Estate Seeks Award Review After Chevron’s End – Tristan Navera, Bloomberg ($).
“The estate of the whistleblower who brought to light major financial misdeeds by Rabobank is pursuing a new tactic to obtain an award in light of the demise of the Chevron deference.”
IRS
FOIA Document Shows IRS Stands by CIS Entry for Supervisory Approval – Andrew Velarde, Tax Notes ($).
“The IRS appears to view its internal correspondence imaging system (CIS) as providing sufficient proof that it obtained the necessary supervisory approval of penalties before assessment, according to agency emails.”
Rules Committee
House Panel to Weigh EV Credit Restrictions, IRS' Use of AI – Stephen K. Cooper, Law360 ($):
House lawmakers have proposed 235 amendments to the fiscal 2025 budget legislation, including more than a dozen that are tax related. Most of the proposals are likely to be rejected by the Rules committee, and those that do get approved, debated and passed by the House could get stripped by the Senate.
Conservation Easements
Partnership Protests IRS' Reasons For $84M Deduction Denial – David van den Berg, Law360 ($).
“The Internal Revenue Service wrongly denied a partnership's charitable contribution deduction of nearly $84 million for a donated conservation easement for reasons including the partnership failing to demonstrate it made the contribution, the partnership's representative told the U.S. Tax Court.”
Refund Processor
Tax Refund Processor Fined for Deceptive Business Practices – Lauren Loricchio, Tax Notes ($):
The fine stems from a review of Green Dot’s business practices in response to consumer complaints, the Fed said in a July 19 release. From January 2017 through December 2022, Santa Barbara Tax Products Group (TPG), a subsidiary of Green Dot, contracted with a major tax return preparer to provide payment services to its customers, according to the order. The tax return preparer involved wasn’t named.
In the Courts
Cox Owner's Estate Claims IRS Miscalculated $46M Tax Bill – Anna Scott Farrell, Law360 ($).
“The estate of an owner of the Cox Enterprises media empire challenged a $46 million tax bill from the Internal Revenue Service, telling the U.S. Tax Court that the agency erroneously calculated the tax by inflating the value of the company's stock by about $20 per share.”
Attorney Denied Separate Trial In $2.1B Danish Tax Fraud – Kevin Pinner, Law360 ($).
“An attorney facing trial alongside his clients for alleged ties to a $2.1 billion Danish tax fraud has been denied a separate hearing by a New York federal court, which remained unconvinced that his co-workers' advice to the clients could rebound on him prejudicially in a joint trial.”
Chippewa Tribe Lawyer Liable for Self-Employment Tax – Caitlin Mullaney, Tax Notes ($).
“The Eighth Circuit rejected a Chippewa tribe member’s argument that his law firm is exempt from self-employment tax because there is no express authorization for federal taxation of Native Americans.”
What Day is it?
Its National Hammock Day. The hammock was developed by the Mayans of Central and South America for sleeping or resting. It is the “universal symbol for relaxation.” If you need me, I’ll be swinging in the backyard.
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