In the latest edition of Forbes’ Tax Breaks newsletter, readers are taken on a journey through the galaxy of Star Wars, where tax references can be found intertwined with the iconic movie franchise. From Palpatine’s rise to power due to a trade dispute to Jabba the Hut’s implementation of a “murder tax,” there are plenty of tax-related trivia nuggets to discover. The newsletter also delves into the tax planning strategies employed by George Lucas in timing the sale of his company in order to save over $100 million in taxes.
As 2025 approaches, discussions about proposed budget and election-year promises are on the horizon, with many tax provisions set to sunset. While some tax breaks for corporations under the Tax Cuts and Jobs Act of 2017 have been made permanent, provisions targeted at individuals may end unless renewed. The newsletter also touches on potential tax changes proposed by the White House, including taxing unrealized gains and increasing capital gains, which may face challenges in passing.
In addition to exploring tax-related fraud schemes during the Covid-19 pandemic, the newsletter highlights a case involving the unauthorized access and distribution of private tax information by former IRS contractor Charles Littlejohn. Littlejohn’s actions led to the sentencing of five years in prison, while affected taxpayers are being notified of the breach. The implications of the lawsuit filed against the government over the breach may shape future actions.
The newsletter also covers a range of topics, including reminders for tax-exempt organizations to file by May 15, 2024, and updates on charitable contribution deductions. It delves into recent rulings on civil penalties and automatic assessments, along with legal challenges to non-compete agreements by businesses. Furthermore, it touches on important dates, industry news, and the IRS Nationwide Tax Forum coming this summer.
In a playful segment of trivia, readers can find out the estimated cost of building a Death Star, as humorously addressed by the White House in response to a petition. The newsletter features insights from the team members on their favorite Star Wars characters, connecting tax-related content with a touch of pop culture fun. With a mix of tax updates, industry analysis, and entertaining trivia, the Forbes Tax Breaks newsletter provides a unique blend of information for tax professionals and enthusiasts alike.
