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IRS Report Highlights Rising Tax Noncompliance Among Federal Employees and Retirees

IRS Report Highlights Rising Tax Noncompliance Among Federal Employees and Retirees

A report by the Treasury Inspector General for Tax Administration has revealed a significant increase in tax noncompliance among federal employees and retirees. Between fiscal years 2021 and 2024, the total tax debt owed by this group rose by 32%, amounting to over $1.5 billion. The report indicates that more than 571,000 current and retired federal employees have outstanding tax obligations totaling approximately $6.3 billion. Despite a slight decrease in the federal workforce, the number of delinquent employees and retirees increased by 43% during the same period. The IRS had previously issued 427,000 notices to inform federal employees of their tax noncompliance, but this was a one-time effort. The report suggests that privacy restrictions hinder the IRS from sharing specific tax information with federal agencies, affecting accountability.
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AICPA Requests IRS Guidance on Excise Tax for Nonprofits

AICPA Requests IRS Guidance on Excise Tax for Nonprofits

The American Institute of CPAs (AICPA) has requested guidance from the IRS and the Treasury Department regarding the excise tax imposed on tax-exempt organizations under the One Big Beautiful Bill Act (OBBBA). The excise tax affects organizations whose top executives earn over $1 million. The AICPA is seeking transition relief to address immediate issues that could disrupt nonprofit operations. The request includes extending exceptions for limited hours and services, and ensuring unpaid public volunteers are not classified as covered employees.
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Jack Schlossberg Proposes Monthly Child Tax Credit Payments to Support NYC Families

Jack Schlossberg Proposes Monthly Child Tax Credit Payments to Support NYC Families

Jack Schlossberg, a Democratic candidate for New York's 12th Congressional District and grandson of former President John F. Kennedy, has proposed a plan to modify the existing IRS Child Tax Credit. His proposal, dubbed the 'Monthly Moms Bonus,' aims to transform the current annual credit into monthly payments. This initiative is designed to provide immediate financial support to families, with payments directly deposited into parents' bank accounts. The plan suggests using $1 billion, which some Senate Republicans have earmarked for White House security updates, to partially fund the initiative. Schlossberg's proposal also includes restoring and expanding the Child Tax Credit to levels seen during the COVID-era American Rescue Plan, offering $300 per month for children under six and $250 for older children. This proposal is part of Schlossberg's campaign as he seeks to fill the seat of retiring Rep. Jerry Nadler.
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US issues alert to banks on IRGC efforts to evade sanctions

US issues alert to banks on IRGC efforts to evade sanctions

WASHINGTON, May 11 (Reuters) - The United States on Monday issued an alert to financial institutions warning of efforts by the Islamic Revolutionary Guard Corps' to evade U.S. sanctions, as concerns mount of a resumption of hostilities in the conflict with Iran. The U.S.
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Proxy Voting Case Threatens Laws on Veterans, 9/11 Families, and Election Certification

Proxy Voting Case Threatens Laws on Veterans, 9/11 Families, and Election Certification

A legal case challenging the use of proxy voting in the U.S. House of Representatives during the COVID-19 pandemic threatens several key laws, including those related to veterans' benefits, 9/11 families, and election certification. The lawsuit, filed by Texas Attorney General Ken Paxton, argues that the Democratic-led House's reliance on proxy votes to pass a massive funding bill was unconstitutional. The case is currently being heard by the 5th U.S. Circuit Court of Appeals, which could set a precedent affecting the validity of the appropriations package and its numerous provisions.
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IRS Court Ruling May Entitle Taxpayers to COVID-Era Refunds

IRS Court Ruling May Entitle Taxpayers to COVID-Era Refunds

A recent court ruling in the case of Kwong v. United States has opened the possibility for millions of taxpayers to claim refunds or abatements on penalties and interest charged during the COVID-19 federal disaster period. The IRS has not widely publicized this potential refund, as it disagrees with the ruling and anticipates an appeal by the Department of Justice. Taxpayers who were charged interest or penalties between January 20, 2020, and July 11, 2023, may be eligible for a refund. To claim this, taxpayers must file IRS Form 843 by July 10, 2026, specifying the claim is based on the Kwong decision. This ruling affects a wide range of taxpayers, including individuals, businesses, and estates, who may have faced penalties on various tax obligations.
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Senator Mark Kelly Criticizes Trump Administration's $1.5 Trillion Defense Budget Request

Senator Mark Kelly Criticizes Trump Administration's $1.5 Trillion Defense Budget Request

Senator Mark Kelly has criticized the Trump administration's $1.5 trillion defense budget request, calling it 'outrageous.' The proposed budget represents a 42% increase from the previous year and includes funding for a space-based missile defense system, troop pay raises, and munitions resupply. Kelly, a member of the Senate Armed Services Committee, expressed concerns about the feasibility and effectiveness of the proposed 'Golden Dome' missile defense system. He also highlighted the depletion of U.S. munitions stockpiles due to ongoing conflicts, including the war with Iran, which has cost approximately $25 billion.
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IRS May Owe Taxpayers Refunds for Pandemic-Era Penalties

IRS May Owe Taxpayers Refunds for Pandemic-Era Penalties

A federal court decision in Kwong v. United States has opened the possibility for millions of taxpayers to claim refunds for penalties and interest assessed during the COVID-19 pandemic. The ruling found that certain penalties and interest should not have been assessed from January 20, 2020, through July 10, 2023. Taxpayers have until July 10, 2026, to file claims for refunds or abatements. The National Taxpayer Advocate has highlighted the widespread impact of the issue, affecting a broad range of taxpayers, including individuals and businesses.
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IRS May Owe Millions in COVID Tax Refunds as Court Ruling Extends Filing Deadlines

IRS May Owe Millions in COVID Tax Refunds as Court Ruling Extends Filing Deadlines

A recent court ruling in the case of Kwong v. United States has determined that tax filing extensions during disasters should have applied to the COVID-19 pandemic. This decision means that millions of Americans who were penalized for late tax filings during the pandemic may be eligible for refunds. The ruling covers the period from January 20, 2020, to July 10, 2023, and taxpayers have until July 10, 2026, to file for these refunds. The IRS is not automatically issuing refunds, so eligible taxpayers must submit Form 843 to claim their refunds. The decision is not final, and the U.S. government may appeal, potentially prolonging the legal process.
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Small Businesses Face Cybersecurity Leadership Gap Amid Rising Threats

Small Businesses Face Cybersecurity Leadership Gap Amid Rising Threats

Small Businesses Face Cybersecurity Leadership Gap Amid Rising Threats
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Treasury Department tells US banks to flag suspected Iranian money-laundering networks

Treasury Department tells US banks to flag suspected Iranian money-laundering networks

The Treasury Department wants U.S. banks to monitor suspected Iranian money laundering networks
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IRS May Owe Refunds for COVID-19 Era Penalties, Deadline Approaches

IRS May Owe Refunds for COVID-19 Era Penalties, Deadline Approaches

The IRS may owe refunds to millions of taxpayers who were penalized for late tax filings during the COVID-19 pandemic. A federal court ruling in the case of Kwong v. U.S. determined that emergency laws extended tax filing deadlines, potentially entitling taxpayers to refunds for penalties assessed between January 2020 and July 11, 2023. The national taxpayer advocate has highlighted the urgency for affected individuals to apply for relief by the July 10, 2026 deadline. Eligible taxpayers include those who filed late returns, paid penalties, or filed international information returns late. The IRS had imposed over 120 million penalties during this period. The ruling is still under litigation, and taxpayers are advised to file claims to preserve their rights.