Memorial Day weekend is a time for Americans to honor those who died in service of the country, but it also marks the unofficial start of summer. Many people enjoy activities like eating ice cream, watching baseball, and planning trips to the beach. The origin of Memorial Day is disputed, but the most widely accepted story involves General John Alexander Logan being inspired by the Southern practice of decorating military graves by war widows. Memorial Day became a federal holiday in 1888 but wasn’t uniformly observed until 1971. Today, it is always celebrated on the last Monday in May.
In December 2000, President Clinton signed The National Moment of Remembrance Act, which encourages Americans to observe a moment of silence at 3 p.m. on Memorial Day to honor those who died in service. Major League Baseball and other organizations participate in this tradition, pausing games for a moment of silence. In other news, the Department of Justice unsealed court documents charging defendants in a scheme linked to North Korea, involving skilled IT workers infiltrating U.S. companies’ networks using stolen identities. Meanwhile, some members of the G20 have proposed a global billionaires’ tax, which has garnered mixed responses, including remarks from Secretary Yellen clarifying the U.S. stance.
The White House imposed $18 billion in new tariffs on Chinese electric vehicles and solar panels, affecting prices of imported goods and potentially leading to increased prices from domestic competitors. Consumers interested in electric vehicles should also consider buying used cars to take advantage of federal tax credits. Additionally, discussions are ongoing regarding legislation to prevent companies from bypassing import duties and taxes, and the IRS is facing challenges with processing tax refund claims, particularly Employee Retention Credit refund claims.
Taxpayers are advised to keep records until the statute of limitations for filing tax returns or claiming refunds expires, with exceptions for cases of underreported income or fraudulent returns. The IRS announced an extension of the Free File program, allowing eligible taxpayers to file their federal tax returns for free. The AICPA submitted recommendations to the IRS focused on tax guidance for the upcoming year. In a Tax Court case, a taxpayer learned the challenges of obtaining innocent spouse relief. The newsletter also includes updates on industry news and upcoming tax-related events.
