Key Takeaways
- DOGE Treasury Access
- Trump Tax Priorities
- Tax Legislation
- Employee Buyout
- Carried Interest
- OMB
- Sports News
- In the Courts
- Bubblegum
DOGE Treasury Access
Democrats Seek to Block DOGE Access to Taxpayer Data – Benjamin Valdez & Doug Sword, Tax Notes ($):
House Ways and Means Democrats said February 6 they would file a resolution of inquiry “to demand that the administration answer key questions regarding the safety of Americans’ private data,” according to Rep. Lloyd Doggett, D-Texas, ranking member of the Ways and Means Health Subcommittee. The full House could vote on the measure — which has special legislative status — if the Ways and Means Committee forgoes a hearing on it.
Musk’s Brazen DOGE Tactics Irk GOP Senators, Treasury Staff – Nancy Cook, Saleha Mohsin, Emily Birnbaum, and Billy House, Bloomberg ($):
It also seemed to put Treasury Secretary Scott Bessent in the middle of a delicate standoff between bureaucrats at the agency he is charged with leading and President Donald Trump’s loudest adviser.
With Trump’s blessing, Musk, the world’s richest man and chief executive of automaker Tesla Inc., has been leading a tornadic campaign to remake the federal bureaucracy that some critics have called illegal.
Dems Demand Info on DOGE's Taxpayer Data Access – Asha Glover, Law360 ($):
It is "unclear and unsettling" that DOGE may have access to a sensitive Treasury payment system and confidential taxpayer information, Ways and Means Democrats said in the letter, sent to acting Internal Revenue Commissioner Douglas O'Donnell. The lawmakers, led by Rep. Terri Sewell, D-Ala., the ranking member on the Ways and Means Oversight subcommittee, asked how many times DOGE has requested confidential taxpayer information of specific individuals by name or Social Security number.
Musk's Access to Records Blocked In DOGE, Treasury Suit – Sarah Jarvis, Law360 ($):
…
The judge's order prohibits the government from providing access to any payment record or system of records from the Bureau of the Fiscal Service, other than to government employees who need access to do their jobs and two so-called special government employees: Tom Krause and Marko Elez. Those two — who were employed through the U.S. Department of the Treasury but tasked with carrying out DOGE goals — will have read-only access to the data, as needed to perform their job duties.
Treasury and Unions Make Initial Deal on Payment System Access – Nathan J. Richman, Tax Notes ($):
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The February 6 order granted a consent motion from the prior evening in a case seeking to block DOGE employee access to Treasury’s payment systems. The case was filed February 3 by three entities affiliated with the AFL-CIO — the Alliance for Retired Americans, the American Federation of Government Employees, and Service Employees International Union — and challenges Treasury Secretary Scott Bessent’s decision to grant DOGE members access to the bureau’s system.
Bessent Says Musk’s DOGE Isn’t Altering Treasury Data – Gregory Korte, Bloomberg ($). “US Treasury Secretary Scott Bessent said he personally vetted a senior Treasury employee on Elon Musk’s government efficiency team who has read-only access to federal payment data, and that there’s been no “tinkering” with the department’s payment systems.”
Trump Tax Priorities
Trump details his tax agenda in meeting of House Republicans – Benjamin Guggenheim & Meredith Lee Hill, Politico:
Trump also reiterated the promises he made on the campaign trail to renew expiring provisions of his 2017 tax cuts, as well as eliminate taxes on overtime pay, tips and Social Security, White House press secretary Karoline Leavitt said.
Trump Lays Out Tax Priorities in Meeting with GOP – Stephen K. Cooper, Law360 ($):
At a White House meeting called to discuss his tax and budget priorities for 2025, Trump also said he wanted to work with Republican lawmakers to lower taxes on American-made products, adjust the $10,000 cap on deductions for state and local taxes, and eliminate tax breaks for wealthy owners of professional sports teams and hedge fund operators, spokesperson Karoline Leavitt said. She did not release specific details of Trump's proposals.
Tax Legislation
Key House Tax Writer Urges Against Using Debt to Finance Big Cuts – Zach C. Cohen & Chris Cioffi, Bloomberg ($). “A senior House Ways and Means Committee member said he would oppose his party’s signature tax bill this year if it is “debt-financed” and questioned senior party members’ proposed scoring that could mask its overall price tag.”
Employee Buyout
Judge Pauses Trump’s Federal Employee Buyout – Mary Katherine Browne & Benjamin Valdez, Tax Notes ($):
During a February 6 hearing in American Federation of Government Employees v. Ezell, Judge George A. O’Toole Jr. of the U.S. District Court for the District of Massachusetts told the government and labor unions that he wished to be further briefed on the matter before determining whether to strike down the administration’s “Fork in the Road” resignation offer.
Carried Interest
Democrats Renew Carried Interest Battle Amid Tax Cliff Talks – Chris Cioffi, Bloomberg ($).
Sen. Tammy Baldwin (D-Wis.) and more than a dozen Senate Democrat colleagues Thursday reintroduced legislation ending the break on carried interest. The break allows investment managers to pay the lower capital gains tax rate of up to 23.8% on income received as compensation, instead of the ordinary income tax rate of up to 40.8% they’d pay for the same amount of wage income.
Wall Street Prepares to Defend a Favored Tax Break, Again – Andrew Ross Sorkin, Ravi Mattu, Bernhard Warner, Sarah Kessler, Michael J. de la Merced, Lauren Hirsch, and Edmund Lee, New York Times:
That could mean Wall Street will have to brace for a big fight to keep one of its most cherished tax breaks.
Carried interest was one of several items Trump mentioned yesterday, according to Karoline Leavitt, the White House press secretary. He reiterated ideas he promoted on the campaign trail, including ending taxes on tips, overtime and Social Security payouts, as well as expanding deductions for state and local taxes.
OMB
Senate Confirms Vought as OMB Director After All-Night Dem Delay – Cady Stanton, Tax Notes ($). “The Senate confirmed President Trump’s pick to lead the Office of Management and Budget after his nomination was held up briefly by procedural delays from protesting Democrats.”
Sports News
NFL Targeted by Trump with Tax Threat on Wealthy Team Owners – Giles Turner, Bloomberg ($). “President Donald Trump threatened to cut special tax breaks for sports team owners, potentially reigniting a long-running battle against the NFL and some of America’s wealthiest families.”
Ohtani’s Former Translator Gets Nearly Five Years – Nathan J. Richman, Tax Notes ($). “The former translator for baseball star Shohei Ohtani was sentenced to 57 months in prison on tax and fraud charges for stealing $17 million from his boss.”
In the Courts
US To Appeal Block on Corporate Transparency Act – Anna Scott Farrell, Law360 ($). “The federal government plans to challenge an order preventing it from enforcing the Corporate Transparency Act's reporting requirements for businesses, following the U.S. Supreme Court's pause of another nationwide block on the law in a separate case, according to a notice filed in a Texas federal court.”
Family Says Tax Shelter Creator to Blame in $81M IRS Case – Pete Brush, Law 360 ($). “Counsel for members of a wealthy extended family accused of shorting the IRS nearly $81 million by knowingly participating in an unlawful tax shelter told a Manhattan federal judge Thursday that the creator of the so-called Son-of-Boss scheme is to blame.”
Metals Dealer Says Partners Lost $12M In Attys' Tax Scam – Anna Scott Farrell, Law 360 ($). “A precious metals dealer and his partners said they were fleeced of $12 million by attorneys who directed them to form a partnership and take illegal tax deductions for intellectual property, according to a complaint filed in Colorado federal court.”
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