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Treasury Department and IRS Collaborate to Interpret and Enforce Federal Tax Laws

Treasury Department and IRS Collaborate to Interpret and Enforce Federal Tax Laws

The U.S. Treasury Department and the Internal Revenue Service (IRS) are jointly responsible for administering and enforcing federal tax laws. While Congress writes the tax laws, the executive branch, specifically the Treasury Department and the IRS, brings these laws to life by developing regulations that interpret them and issuing practical guidance for taxpayers. The most authoritative rules they write are Treasury regulations, which explain the IRS’s interpretation of tax law. The Internal Revenue Code (IRC) explicitly authorizes the Secretary of the Treasury to create regulations for specific tax code sections and to assess and collect taxes. These agencies use their rulemaking authority to provide detailed guidance necessary for taxpayers to understand and comply with their tax obligations. This process often involves public notice-and-comment periods, allowing stakeholders to provide feedback before final regulations are issued.

Senate Finance Committee Chairman Mike Crapo Pushes for Passage of Taxpayer Assistance and Service Act

Senate Finance Committee Chairman Mike Crapo Pushes for Passage of Taxpayer Assistance and Service Act

Senator Mike Crapo, a Republican from Idaho and Chairman of the Senate Finance Committee, along with Ranking Member Ron Wyden, a Democrat from Oregon, are advocating for the full Senate to consider and pass the Taxpayer Assistance and Service Act (TAS Act). This bipartisan bill, which includes over 60 provisions, aims to enhance operations at the Internal Revenue Service (IRS), improve taxpayer responsiveness, and impose stricter penalties on non-compliant tax preparers. The Senate Finance Committee approved the TAS Act with a 26-1 vote in July 2026, but its progress in the full Senate has been slow. The National Association of Tax Professionals (NATP) has also urged Senate leadership to prioritize the bill, emphasizing its importance for taxpayer protections, IRS service, and standards for paid tax return preparers. The House Ways and Means Committee has adopted a different strategy, advancing tax-related bills individually rather than through a comprehensive approach like the TAS Act.

IRS Faces Lawsuit Over Taxpayer Information Sharing with ICE for Deportation Purposes

IRS Faces Lawsuit Over Taxpayer Information Sharing with ICE for Deportation Purposes

The Internal Revenue Service (IRS) is being sued by the Center for Taxpayer Rights and other plaintiffs over its policy of sharing taxpayer addresses with U.S. Immigration and Customs Enforcement (ICE) for civil deportation proceedings against noncitizens. The lawsuit alleges that this practice violates the Privacy Act, the Internal Revenue Code (IRC), and the Administrative Procedure Act. Specifically, the plaintiffs argue that IRC §6103 generally prohibits the IRS from disclosing information from tax returns to other agencies, except under certain circumstances. While the IRS has a Memorandum of Understanding with ICE allowing data-sharing for criminal investigations or enforcement, the lawsuit contends that sharing addresses for civil deportations falls outside these permissible exceptions. A U.S. District Court for the District of Columbia initially ruled in favor of the plaintiffs, but the case is now on appeal with the United States Court of Appeals for the District of Columbia Circuit.

IRS Clarifies Amendment Deadlines for SECURE and SECURE 2.0 Retirement Plan Provisions

IRS Clarifies Amendment Deadlines for SECURE and SECURE 2.0 Retirement Plan Provisions

IRS Clarifies Amendment Deadlines for SECURE and SECURE 2.0 Retirement Plan Provisions

U.S. Citizens Abroad Face Complex Tax Obligations, Warn Experts

U.S. Citizens Abroad Face Complex Tax Obligations, Warn Experts

U.S. citizens residing abroad are still subject to U.S. tax laws, requiring them to report worldwide income to the IRS, even if they live and work in another country. This obligation can lead to significant challenges, as highlighted by Erin Collins, who leads the Taxpayer Advocate Service. Collins stated in her latest annual report to Congress that these challenges are among the 'most serious problems' confronting American taxpayers. While living abroad does not automatically mean double taxation, Americans must navigate filing requirements in both the U.S. and their country of residence. For instance, a single U.S. taxpayer living abroad must generally file a separate form with the IRS to report specified foreign financial assets exceeding $200,000 on the last day of the tax year, or more than $300,000 at any time during the year. Additionally, foreign bank accounts with combined balances exceeding $10,000 can trigger a separate reporting requirement known as FBAR (Report of Foreign Bank and Financial Ac...

House Committee Advances Digital Asset Tax Certainty Act, Including De Minimis Exemption for Crypto Transactions

House Committee Advances Digital Asset Tax Certainty Act, Including De Minimis Exemption for Crypto Transactions

House Committee Advances Digital Asset Tax Certainty Act, Including De Minimis Exemption for Crypto Transactions

New SECURE 2.0 Rule Mandates Roth 401(k) Catch-Up Contributions for High Earners

New SECURE 2.0 Rule Mandates Roth 401(k) Catch-Up Contributions for High Earners

New SECURE 2.0 Rule Mandates Roth 401(k) Catch-Up Contributions for High Earners

Nationwide Insurance Unit Fails to Avoid Listeria Coverage in Oregon Meat Processor Case

Nationwide Insurance Unit Fails to Avoid Listeria Coverage in Oregon Meat Processor Case

Nationwide Insurance Unit Fails to Avoid Listeria Coverage in Oregon Meat Processor Case

Judge Blocks DHS from Acting Against Man Over Harsh Email to ICE Official

Judge Blocks DHS from Acting Against Man Over Harsh Email to ICE Official

A federal judge has issued a preliminary injunction blocking the Department of Homeland Security (DHS) and U.S. Immigration and Customs Enforcement (ICE) from taking further action against David Streever of Rochester, New York. This ruling stems from an incident where Streever sent a critical email to the former acting director of ICE, Todd Lyons, comparing him to a Nazi and calling him a 'monstrous human being.' Following the email, ICE agents attempted to track Streever down at his home, an airport, and a hotel to serve him with a warning notice stating he might be in violation of federal law. Streever, represented by the Foundation for Individual Rights and Expression (FIRE), subsequently filed a lawsuit in July, arguing that the agents' actions violated his First Amendment rights and led him to self-censor. The federal government had argued for the dismissal of the case, citing an increase in threats against public officials, but did not assert that Streever's email constituted a prosecutable violent t...

Fifth Circuit Ruling on Mental Illness Recording May Open Door to Challenges Against OSHA Reporting Rules

Fifth Circuit Ruling on Mental Illness Recording May Open Door to Challenges Against OSHA Reporting Rules

A July 2026 decision by the U.S. Court of Appeals for the Fifth Circuit in *Exxon Mobil Corp. v. Occupational Safety and Health Review Commission* has potentially opened the door for new legal challenges to the Occupational Safety and Health Administration's (OSHA) incident-reporting regulations. The court ruled that OSHA exceeded its statutory authority by requiring employers to record employee-reported work-related mental illnesses, vacating the rule and an associated citation and penalty. The Fifth Circuit's analysis, which emphasized that courts must independently judge whether an agency acted within its statutory authority, rather than merely accepting a plausible agency reading, could be applied to other OSHA reporting requirements. Specifically, the ruling raises questions about whether the Occupational Safety and Health (OSH) Act's provision for 'periodic reports' authorizes OSHA's current rules mandating immediate notification for fatalities and serious injuries.

Federal judge restricts warrantless immigration arrests in Southern California

Federal judge restricts warrantless immigration arrests in Southern California

A federal judge has blocked immigration officers from making warrantless arrests in Southern California unless they determine the person is likely to escape

House Unanimously Passes Representative Claudia Tenney's 'End Tax Penalties on American Hostages Act'

House Unanimously Passes Representative Claudia Tenney's 'End Tax Penalties on American Hostages Act'

The House of Representatives has unanimously passed Representative Claudia Tenney’s (R-N.Y.) 'End Tax Penalties on American Hostages Act' (H.R. 9496). This bipartisan measure aims to protect Americans who are held hostage or wrongly detained abroad from incurring IRS penalties due to missed tax deadlines. The bill proposes to pause certain federal tax deadlines during the period of captivity, extend these protections to the spouses of those detained, and mandate that the State and Justice departments work to identify eligible individuals for the IRS. Additionally, the legislation allows for the retroactive refunding of certain penalties and interest, with claims potentially reaching back to January 1, 2021. This initiative seeks to alleviate financial burdens on individuals and families already facing the immense stress of a loved one's detention overseas.