In a recent issue of the Forbes Tax Breaks newsletter, it was noted that the summer months did not bring a lull in tax news. The Supreme Court issued a decision in Moore v. U.S., upholding the tax code, while the IRS announced plans to deny thousands of improper high-risk Employee Retention Credit claims. The agency is also hiring to tackle these issues, with a renewed emphasis on enforcement and taxpayer services.
The IRS confirmed that the moratorium on processing new claims will continue, sparking some controversy and potential litigation. Additionally, the agency is cracking down on abusive tax promoters and preparers who improperly promoted ERC claims. This has led to hundreds of referrals and ongoing civil and criminal enforcement efforts.
The newsletter also highlighted tax breaks related to education assistance, with employers being allowed to pay employees up to $5,250 tax-free for educational assistance. However, former President Trump’s proposal to exempt all tips from federal tax raised concerns about its impact on tax policy and income distribution, especially for low-income tipped workers.
The EURO 2024 tournament provided a backdrop for a discussion on the complexities of tax consequences related to international moves and permanent residency in the U.S. Estate planning considerations were also emphasized, noting that wills and trusts can vary not only between countries but also between states.
Technology and tax were also in focus, with discussions on the impact of AI on taxpayer rights and the push for tech companies to contribute to the Universal Service Fund. The bankruptcy of a fintech intermediary highlighted the risks associated with nonbank financial services and the importance of robust record-keeping for customer protection.
The newsletter also delved into tax deductions, credits, and recent Supreme Court decisions. It provided guidance on home office deductions, detailed the EURO 2024 tax statistics, and offered trivia questions to engage readers. Overall, the content covered a wide range of tax-related topics, highlighting current issues and providing valuable insights for taxpayers and professionals alike.
