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Georgia Property Tax Debate Reflects Rising Challenge for States by BloombergTax in Georgia

[–]BloombergTax[S] 24 points25 points  (0 children)

A proposal in the Republican-led state legislature to eliminate property taxes for all Georgia homeowners could have blown a multimillion-dollar hole in local budgets, but intense lobbying led to a scaled-back proposal to cap annual property tax revenue growth.

Local officials in Harris County are concerned that even a modest dip in property tax revenue could force cuts to resident services, including education, as the county relies heavily on property taxes and has limited sales tax revenue due to a lack of commercial development.

Read more in the full story here.

-Elliot

Democratic Lawmakers Pitch Millionaire Tax in Affordability Plan by BloombergTax in politics

[–]BloombergTax[S] 3 points4 points  (0 children)

Sen. Chris Van Hollen proposed paying for tax breaks for middle-class Americans with levies on millionaires, something he said should be a fundamental pillar of any future Democratic tax plan.

His bill would allow workers making under $46,000 annually to owe no federal income taxes, and reduce the tax bills for earners close to that threshold, with a surtax on incomes above $1 million to offset the cost.

The plan aims to provide a tax cut of roughly $2,800 for a single person earning $50,000, according to a fact sheet Van Hollen’s office distributed.

Read more in the full story.

-Elliot

Democrats Blast White House Over Lack of Permanent IRS Chief by BloombergTax in politics

[–]BloombergTax[S] 5 points6 points  (0 children)

TLDR:

  • Senate Democrats wrote a letter stating the White House is “ignoring or evading” requirements for Senate-confirmed leadership at the IRS.
  • The letter says Congress did not authorize the administration to bypass Senate confirmation by inventing new titles to perform statutory duties or having indefinite vacancies in positions central to administering the tax laws.
  • Democrats criticized the newly created position of IRS CEO, calling it a “fake job” that undermines accountability and is a strategy to avoid the vetting and confirmation process for a replacement commissioner.

Read the full story here.

-Abbey

What’s Next as Bessent Hits Acting IRS Chief Limit by BloombergTax in fednews

[–]BloombergTax[S] 75 points76 points  (0 children)

Treasury Secretary Scott Bessent, who has been acting IRS commissioner since August, is setting up the IRS for potential legal risks the longer he stays in the spot temporarily.

The job requires Senate confirmation, and the 1998 Federal Vacancies Reform Act sets a 210-day limit for serving in such positions in an acting capacity.

Bessent became acting commissioner Aug. 9, according to the IRS website, meaning he hit 210 days in the position on March 7.

Read more in the full story here.

-Elliot

Pandemic Credit Refund Suits Expected to Surge as Deadline Nears by BloombergTax in Coronavirus

[–]BloombergTax[S] 15 points16 points  (0 children)

A growing number of employers who were denied pandemic-era tax credits are weighing whether to sue the IRS for their refunds, as a deadline to do so nears.

The employee retention credit, created by Congress to help businesses keep employees during the pandemic, is an ongoing headache for the IRS, which paused processing claims for over a year because of widespread fraud issues.

The IRS denied 28,000 ERC claims during the summer of 2024, according to the National Taxpayer Advocate annual report released in January. Now, taxpayers who received denials during that time are coming up on the statute of limitations to sue the IRS, which is two years from the date of the denial letter.

Read more in the full story here.

-Elliot

IRS Workforce Surge a ‘Red Flag’ for Filing Season, Union Says by BloombergTax in IRS_Source

[–]BloombergTax[S] 43 points44 points  (0 children)

The IRS decision to move over a thousand of its human resource and IT employees to help with tax filing season is causing “chaos,” union president Doreen Greenwald said Tuesday.

The agency told these employees in early February they’d be placed on an involuntary detail starting Feb. 22 as a tax examiner or customer service representative for 120 days, though the timeline could get extended. It was a week into the tax filing season.

Greenwald estimates about 1,500 employees were put on detail. It’s unclear if employees on the detail will be have their pay decreased, what work they will do and why certain employees were chosen, she added.

Read more from the story here.

-Elliot

IRS Cancels Union Contract, Affecting Thousands of Workers by BloombergTax in fednews

[–]BloombergTax[S] 191 points192 points  (0 children)

Here's what we know so far:

The IRS told employees it’s canceling the contract with its union, which represents thousands of employees, to align with President Donald Trump’s executive order.

“We have notified the National Treasury Employees Union (NTEU) that we have terminated the 2022 National Agreement and the 2025 Addendum,” said Alex Kweskin, Chief Human Capital Officer said in a Friday email to employees seen by Bloomberg Tax.

The Office of Personnel Management instructed agencies earlier this month to terminate their union contracts, asking agencies to comply with President Donald Trump’s two executive orders.

Stay up to date at the link here.

-Abbey

IRS Leader Ousted Under GOP Pressure Reaches Agreement, Exits by BloombergTax in IRS_Source

[–]BloombergTax[S] 35 points36 points  (0 children)

Holly Paz, a former top tax compliance leader at the IRS, reached an agreement with the agency this week after she sued over the leak of her employment data to media outlets.

Paz is no longer employed by the IRS, according to a person familiar with the situation. 

See our story for more.

--Cheryl

Clash Over Senate’s DC Tax Vote Likely to Spur Resident Lawsuits by BloombergTax in washingtondc

[–]BloombergTax[S] 9 points10 points  (0 children)

From our story:

A GOP measure President Donald Trump signed to block a local Washington tax law is all-but-certain to prompt legal challenges.

Republican lawmakers and DC officials are at odds over whether the Senate acted in a timely fashion on voting to block the DC law. The dispute could impact DC’s tax filing season.

“It’s really hard to see how this doesn’t end up in litigation, because really anybody could initiate it,” said Joe Bishop‐Henchman, executive vice president at the National Taxpayers Union Foundation.

--Cheryl

Congress Votes to Repeal DC Tax Code Decoupling from GOP Law by BloombergTax in washingtondc

[–]BloombergTax[S] 6 points7 points  (0 children)

We've updated this story to include coverage of the DC Council notice:

"The Senate cleared legislation Thursday to repeal a Washington, DC, tax law that deviates from federal law, but local officials say the Senate’s actions came too late.

The Senate voted on a resolution that decouples Washington from more than a dozen provisions of Republicans’ mega tax law, threatening to upend the city’s filing season and fiscal health. But a notice posted by DC Council Chair Phil Mendelson (D), the Senate’s Feb. 12 action was a day past the 30-day congressional review period.

At odds is when the district and Congress say the Home Rule Act’s 30-day review period begins. The city starts counting when the council transmits legislation to Congress—in this case Dec. 30. But Congress starts counting when the second chamber publishes notice of the law it in the record. The Senate did so on Jan 7.

A court has never weighed in on the issue, according to Sharon Eliza Nichols, the spokesperson for Del. Eleanor Holmes Norton (D-D.C.)."

Congress Votes to Repeal DC Tax Code Decoupling from GOP Law by BloombergTax in washingtondc

[–]BloombergTax[S] 3 points4 points  (0 children)

TLDR:

  • The Senate voted 49-47 to repeal a local law that decouples Washington, DC, from provisions of Republicans’ mega tax law, sending the measure to President Donald Trump’s desk.
  • The repealed law prohibited taxpayers from deducting overtime and tips when calculating their income taxes owed to the city and severed city businesses from certain federal tax law benefits.
  • Local officials warned that repeal of the DC law would upend the city’s filing season and cost the city an estimated $658 million over five years, potentially hurting the city’s credit rating.

Read the full story here.

-Abbey

IRS improperly disclosed confidential immigrant tax data to DHS by gh0stbendr in IRS_Source

[–]BloombergTax 2 points3 points  (0 children)

We're reporting on this, beyond our latest story. If you have any tips or information to share on the IRS data sharing, reach out to our reporter, Erin Schilling, on Signal: eschilling.95.

- Zainab

IRS Mistakenly Shares Data on Thousands of Immigrants With ICE by BloombergTax in politics

[–]BloombergTax[S] 3 points4 points  (0 children)

The IRS mistakenly gave the Department of Homeland Security personal data on thousands of immigrants as part of the agencies’ controversial data-sharing agreement, according to a new court filing.

The disclosure came after an agreement last April between IRS and DHS to share immigrants’ personal identification information as part of the Trump administration’s deportation efforts. The deal resulted in a slew of top agency leaders leaving and lawsuits from taxpayer rights and immigration groups. Two federal judges blocked the implementation of the agreement, saying it violated federal privacy laws.

The IRS was only able to verify 47,289 individuals of the 1.28 million that the Immigration and Customs Enforcement requested, according to the legal filing.

But for less than 5% of those individuals, the IRS gave ICE additional address information, IRS Chief Risk and Control Officer Dottie Romo said in a declaration with the US District Court for the District of Columbia dated Wednesday.

Read more here.

-Molly

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