# Taxgirl > Taxgirl by Kelly Phillips Erb explains tax news, IRS updates, scams, financial crime, tax policy, and money in plain English. > Generated by All in One SEO Pro v5.0.4, this is an llms-full.txt file, used by LLMs to index the site. ## Posts ### [What Is An ITIN? Taxes From A to Z®](https://www.taxgirl.com/2026/10/22/itin-from-a-to-z/) **Published:** October 22, 2026 **Author:** Kelly Phillips Erb **Excerpt:** What is an ITIN, and who needs one? Learn how Individual Taxpayer Identification Numbers work, who qualifies, and how to apply for or renew one. **Content:** An Individual Taxpayer Identification Number (ITIN) is a nine-digit number the IRS issues to individuals who need a U.S. taxpayer identification number for federal tax purposes but aren’t eligible for a Social Security number (SSN). Fun fact: it always begins with a 9. Qualifying resident and nonresident aliens can get ITINs, regardless of immigration status. This includes people who live and work in the United States, as well as individuals living abroad who have U.S. tax obligations. Certain spouses and dependents may also qualify. An ITIN allows individuals to file federal income tax returns, report income, pay taxes, and claim refunds or certain tax benefits for which they’re eligible. But an ITIN isn’t the same as an SSN. It doesn’t authorize someone to work in the U.S., provide legal immigration status, or qualify someone for Social Security benefits or the Earned Income Tax Credit (EITC). A common misconception is that ITINs are issued only to undocumented immigrants. That’s not true. Foreign investors, nonresident taxpayers, and others with U.S. tax obligations but no SSN also use them. To apply, individuals generally submit IRS Form W-7 with a federal tax return. ITINs can expire if they aren’t used on a federal tax return for three consecutive tax years, so taxpayers should check whether they need to renew before filing. --- **Taxes come with their own language. Taxes From A to Z® is here to help translate. Find more tax terms and explainers in the [full A to Z collection](https://www.taxgirl.com/tax-glossary/).** [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=What%20Is%20An%20ITIN%3F%20Taxes%20From%20A%20to%20Z%C2%AE&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2026%2F10%2Fpexels-thomas-k-268383750-28449348.jpg&p%5Btitle%5D=What%20Is%20An%20ITIN%3F%20Taxes%20From%20A%20to%20Z%C2%AE "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=What%20Is%20An%20ITIN%3F%20Taxes%20From%20A%20to%20Z%C2%AE "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=What%20Is%20An%20ITIN%3F%20Taxes%20From%20A%20to%20Z%C2%AE&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Taxes From A to Z® **Tags:** Individual taxpayer identification number, ITIN, tax ID, Tax ID number, taxes from a to z --- ### [What Are Hot Assets? Taxes From A to Z®](https://www.taxgirl.com/2026/10/15/hot-assets-from-a-to-z/) **Published:** October 15, 2026 **Author:** Kelly Phillips Erb **Excerpt:** What are hot assets in tax law? Learn how IRC Section 751 treats certain partnership assets and why selling them can trigger ordinary income instead of capital gains. **Content:** Hot assets? Yes, that’s a real tax term. And no, it doesn’t refer to that spectacular beachfront property you’ve been eyeing. In tax law, hot assets generally refer to certain partnership assets that can trigger ordinary income treatment when a partner sells or exchanges a partnership interest. Under Section 751 of the tax code, these include unrealized receivables and inventory items. The rules are designed to prevent partners from turning what would otherwise be ordinary income into more favorably taxed capital gains simply by selling their partnership interests. Here’s where things get spicy: When a partner sells an interest in a partnership, the gain is generally treated as capital gain. But to the extent the gain is attributable to hot assets, it may be taxed as ordinary income instead. And despite the name, hot assets aren’t necessarily exciting or valuable in the traditional sense. They’re simply assets that carry the potential for ordinary income tax consequences. So, while hot assets might sound like something you’d find on a dating app, the IRS is interested in their tax character, not their appeal. (Hey, eyes up here on the K-1!) --- **Taxes come with their own language. Taxes From A to Z® is here to help translate. Find more tax terms and explainers in the [full A to Z collection](https://www.taxgirl.com/tax-glossary/).** [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=What%20Are%20Hot%20Assets%3F%20Taxes%20From%20A%20to%20Z%C2%AE&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2026%2F10%2Fpexels-silverkblack-36766877.jpg&p%5Btitle%5D=What%20Are%20Hot%20Assets%3F%20Taxes%20From%20A%20to%20Z%C2%AE "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=What%20Are%20Hot%20Assets%3F%20Taxes%20From%20A%20to%20Z%C2%AE "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=What%20Are%20Hot%20Assets%3F%20Taxes%20From%20A%20to%20Z%C2%AE&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Small Business, Taxes From A to Z® **Tags:** hot assets, partnership tax --- ### [New Roth Retirement Catch-Up Rules For 2026: What To Know](https://www.taxgirl.com/2026/10/24/roth-catch-up-rules-2026/) **Published:** October 24, 2026 **Author:** Kelly Phillips Erb **Excerpt:** New Roth catch-up rules affect some workers aged 50 and older in 2026. Find out who must make Roth contributions and what it means for your taxes. **Content:** If you’ve received a notice from your employer about changes to your retirement contributions, you’re not alone. My husband received one this week explaining that certain retirement catch-up contributions must now be made on a Roth basis rather than a traditional pre-tax basis. For some workers age 50 and older, the change means losing an immediate tax deduction—or, more precisely, the ability to exclude certain retirement contributions from current taxable income. That doesn’t mean you can’t continue saving for retirement. It means some of your retirement savings may be taxed differently. Here’s what you need to know. ## What Are Retirement Catch-Up Contributions? Most workers who participate in an employer-sponsored retirement plan, such as a 401(k), can contribute a portion of their wages to their retirement accounts, subject to annual limits. For 2026, the standard employee contribution limit for most 401(k), 403(b), and governmental 457(b) plans is $24,500. Workers who turn 50 or older by the end of the year can generally contribute more. These additional amounts are called catch-up contributions. For 2026, the catch-up contribution limit is $8,000 for eligible workers age 50 and older, bringing the potential total employee contribution to $32,500. Thanks to another provision of SECURE 2.0, workers who turn 60, 61, 62, or 63 during the year may qualify for an even higher catch-up contribution of $11,250. That brings their potential total to $35,750. Until this year, eligible employees generally could make their catch-up contributions with pre-tax dollars (for a traditional plan) or with Roth dollars, depending on the options offered by their plans. Now, some employees no longer have that choice. ## What’s Changing For 2026? Beginning January 1, 2026, certain higher-income employees must make their catch-up contributions as designated Roth contributions. The rule generally applies to catch-up contributions in 401(k), 403(b), and governmental 457(b) plans, including SIMPLE 401(k) arrangements. Different contribution limits may apply depending on the type of retirement plan. The requirement applies if you meet both of the following conditions: - You’re eligible to make catch-up contributions because you’ll be age 50 or older by year-end. - Your FICA wages from the employer sponsoring the retirement plan exceeded $150,000 in 2025. If both conditions apply, your 2026 catch-up contributions must be designated Roth contributions. This means you’ll pay income tax on those contributions now rather than receiving the immediate tax benefit of traditional pre-tax contributions. Importantly, the rule doesn’t require all of your retirement contributions to be designated Roth. It applies only to the catch-up portion. Roth contributions made earlier in the year can count toward the requirement. If you’ve already made enough designated Roth contributions during the year to cover your catch-up amount, subsequent catch-up contributions may be made on a pre-tax basis. However, your plan may automatically designate those later contributions as Roth unless you make a different election under the plan’s procedures. ## What Does This Mean For Your Taxes? The main difference between traditional pre-tax contributions and Roth contributions is when you pay income tax. With traditional pre-tax 401(k) contributions, you generally reduce your taxable wages in the year you contribute. The money grows tax-deferred, and withdrawals are generally taxable in retirement. With designated Roth 401(k) contributions, you don’t receive that upfront income tax benefit. Instead, you include the contributions in your taxable income for the year. The trade-off is that qualified Roth distributions in retirement, including earnings, are generally tax-free. To qualify, the distribution generally must satisfy the five-year rule and certain other conditions, such as reaching age 59½. For workers subject to the new requirement, here’s how the tax treatment of catch-up contributions could change: Suppose you’re 55 years old and earned $175,000 in FICA wages from your employer in 2025. In 2026, you contribute the maximum $24,500 to your traditional pre-tax 401(k) and an additional $8,000 allowed under the catch-up rules. You can still make the regular $24,500 contribution on a pre-tax basis. Assuming you haven’t already made designated Roth contributions during the year, your $8,000 catch-up contribution must be Roth. If you’re in the 24% federal marginal income tax bracket, making that $8,000 contribution as Roth rather than pre-tax could mean paying approximately $1,920 more in federal income taxes for the year, assuming the entire amount would otherwise reduce income taxed at that rate. Of course, the Roth contribution may eventually provide a tax advantage when you withdraw the funds in retirement. Whether that’s a good trade-off depends on your circumstances, including your current tax bracket, your anticipated retirement income, and future tax rates. ## Does the $150,000 Threshold Include Your Spouse’s Income? No. The $150,000 threshold, which is indexed for inflation, isn’t based on your household income, your adjusted gross income, or your joint tax return. It is based on your FICA wages from the employer sponsoring your retirement plan during the last calendar year. Let’s say you’re married and file jointly and earned $120,000 in FICA wages in 2025, while your spouse earned $200,000. Even though your combined wages were $320,000, you wouldn’t be subject to the mandatory Roth catch-up requirement for 2026 because your individual FICA wages didn’t exceed $150,000. Your spouse could be subject to the rule. ## What If Your Retirement Plan Doesn’t Offer Roth Contributions? Not every employer-sponsored retirement plan offers designated Roth contributions. Under the new rules, an employer generally isn’t required to add a Roth feature simply because some employees are subject to the mandatory Roth catch-up requirement. However, if you’re subject to the rule and your plan doesn’t offer Roth catch-up contributions, you generally won’t be able to make catch-up contributions to that plan. You’re effectively cut off, but you may still make regular contributions up to the applicable limit. ## Will Your Employer Automatically Change Your Contributions? Possibly. Under IRS rules, retirement plans may use a deemed Roth election. Essentially, if you’re subject to the mandatory Roth catch-up requirement, your plan can automatically treat your catch-up contributions as Roth contributions, even if you previously elected to make pre-tax contributions. For example, suppose you’re focused on maximizing your traditional pre-tax 401(k) contributions. Once your contributions reach the regular annual limit, your employer’s plan may automatically direct additional eligible catch-up contributions into a Roth account. You wouldn’t necessarily need to submit a new Roth election for that to happen. But there are safeguards. The plan must provide a deemed Roth election, and employees must have an effective opportunity to make a different election. That could include choosing to stop making catch-up contributions altogether. However, an employee who’s subject to the Roth requirement can’t simply opt out of Roth treatment and continue making pre-tax catch-up contributions unless they’ve made sufficient designated Roth contributions earlier in the year to satisfy the requirement. If you’ve received a notice, check whether the change will happen automatically or whether you need to update your contribution elections. You should also confirm when the change takes effect and how it may affect your take-home pay. ## Does This Apply To IRAs? No. The mandatory Roth catch-up requirement under this provision doesn’t apply to traditional or Roth IRAs. IRAs have separate contribution limits and rules. For 2026, the regular IRA contribution limit is $7,500, with an additional $1,100 catch-up contribution available to individuals age 50 and older. ## Why Is This Happening Now? The mandatory Roth catch-up requirement was included in SECURE 2.0, which became law in December 2022. Originally, the provision was scheduled to take effect in 2024. However, employers, payroll providers, and retirement plan administrators raised concerns about the time needed to update their systems and implement the new rules. In response, the IRS announced a two-year administrative transition period, effectively delaying enforcement until 2026. In September 2025, the Treasury Department and the IRS issued final regulations, including how employers determine which employees are covered and how plans can correct certain mistakes. Although the final regulations generally apply beginning in 2027, the IRS made clear that the administrative transition period ended on December 31, 2025. Plans must comply with the statutory Roth catch-up requirement beginning in 2026. That’s why workers like my husband may be receiving notices about the change now, even though the underlying legislation was enacted several years ago. ## What Should You Do If You Receive A Notice? If your employer or retirement plan administrator has notified you that you must make catch-up contributions on a Roth basis, don’t ignore it. Here’s what you should look out for: 1. **Check your 2025 wages.** Determine whether your FICA wages from the employer sponsoring the plan exceeded $150,000. 2. **Review your current contributions.** Find out how much you’re contributing and whether you’re on track to exceed the regular annual limit. 3. **Confirm your plan’s Roth options.** Determine whether Roth catch-up contributions are available and whether your employer will automatically adjust your contributions. 4. **Consider the tax impact.** If you’re accustomed to making the maximum pre-tax contributions, the new rule could increase your taxable income. 5. **Check your withholding.** Higher taxable wages could affect the amount of income tax withheld from your paycheck or the estimated payments you need to make. ## The Bottom Line For workers already maximizing their retirement savings, the new Roth catch-up rule changes when they pay taxes on part of their retirement contributions. That doesn’t necessarily make Roth contributions a bad deal. For some taxpayers, paying tax now in exchange for potentially tax-free withdrawals in retirement may be advantageous. But it does mean that some workers who previously chose to make all their retirement contributions on a pre-tax basis no longer have that option for their catch-up contributions. If you received a notice from your employer this year, it’s worth taking a closer look before your next paycheck—or your next tax return—comes as a surprise. 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual, Retirement and Pension --- ### [Can You Make Whiskey At Home? The Supreme Court Will Decide](https://www.taxgirl.com/2026/10/22/supreme-court-home-distilling-whiskey-ban/) **Published:** October 22, 2026 **Author:** Kelly Phillips Erb **Excerpt:** The Supreme Court will decide whether the federal ban on home distilling whiskey exceeds Congress's constitutional taxing power. **Content:** You can brew beer at home. You can make wine at home. But try making whiskey in your basement, and you could face federal criminal penalties. The unlikely reason? Taxes. Nearly 160 years after Congress enacted restrictions on home distilling, the U.S. Supreme Court has agreed to decide whether those restrictions exceed Congress’s constitutional authority. If this sounds familiar, it should. We’ve been following this question for months. ## A Whiskey Case Goes To Washington On October 19, 2026, the Supreme Court [agreed to hear](https://www.supremecourt.gov/orders/courtorders/101926zor_q8l1.pdf) *Department of Justice v. McNutt*, a challenge to the federal prohibition on producing distilled spirits in homes and certain connected structures. The Hobby Distillers Association and several of its members brought the case. One of them, New Jersey resident Scott McNutt, was already familiar with distilling. He held a federal permit to produce alcohol for fuel in a shed 261 feet from his house, but he wanted to experiment with making spirits for drinking—and possibly develop a business someday. He was also familiar with federal regulators. In 2014, the Alcohol and Tobacco Tax and Trade Bureau sent him a notice warning that producing distilled spirits at home for personal use was illegal and could result in criminal penalties. Federal law generally requires distilled spirits to be produced at registered distilled spirits plants. Under Section 5178 of the tax code, those plants cannot be located inside a dwelling house or in certain structures connected to one. And yes, you read that correctly—the law governing whether you can make spirits at home is found in the tax code. The restrictions date back to 1868, when Congress was trying to address widespread tax evasion involving distilled spirits. The federal government had a revenue problem: Distillers were producing and selling whiskey without paying the taxes they owed. Congress responded with a system of registration, inspections, recordkeeping, and restrictions on where spirits could be produced. That’s what is at issue today. The Supreme Court will consider this question: **Does Congress’s power to collect taxes also give it the power to prohibit an activity because that activity might make tax collection more difficult?** ## Remember John Ream? In our [original installment](https://www.taxgirl.com/2026/09/14/you-be-the-tax-judge-ream-v-u-s-department-of-the-treasury/) of You Be the Tax Judge, I introduced John Ream and asked whether Congress could prohibit home distilling as a way to protect federal excise tax revenue. Ream, a retired aerospace engineer and former Ohio brewery owner, wanted to experiment with distilling small batches of rye and bourbon at home. Ream wasn’t trying to sell illegal whiskey. He wanted to make spirits for his own consumption and was willing to comply with the government’s tax requirements, but he couldn’t legally do so at home. Rather than risk committing a federal crime, Ream challenged the prohibition in court. I [revealed the answer](https://www.taxgirl.com/2026/09/15/you-be-the-tax-judge-ream-v-treasury-who-won/) in September. Ream won on standing—the Sixth Circuit agreed that he shouldn’t have to commit a felony before challenging the law—but lost on the constitutional question. The Sixth Circuit concluded that prohibiting home distilling was a permissible way for Congress to protect the collection of federal excise taxes. ## Two Courts, Two Different Answers Just 11 days before the Sixth Circuit ruling, the Fifth Circuit reached the opposite conclusion in McNutt. (For more on Circuit courts and how they work, check out this [previous article](https://www.taxgirl.com/2026/07/06/when-a-circuit-court-rules-who-has-to-follow-it/).) The federal government argued that the home-distilling prohibition is a practical enforcement measure. Commercial distilleries must register, maintain records, and submit to inspections. Home distilleries would be considerably harder to monitor, making it easier for people to evade the federal excise tax on spirits. The Sixth Circuit accepted that reasoning. Congress wasn’t simply prohibiting whiskey production for its own sake, the court concluded. It was protecting a legitimate source of tax revenue. That’s at odds with the Fifth Circuit ruling, which focused on an interesting contradiction: The government claims that the prohibition helps it collect taxes, but banning home distilling prevents the taxable whiskey from being produced in the first place. In other words, the government isn’t collecting a tax on home-distilled whiskey. It’s preventing the whiskey—and the potential tax—from existing. Congress has the power to impose and collect taxes. It also has the power to enact laws that are necessary and proper to carry out its enumerated powers. But the federal government doesn’t have an unlimited, general police power. So, where does tax enforcement end and an unconstitutional prohibition begin? ## What Will The Supreme Court Decide? The justices have agreed to review the Fifth Circuit’s decision in McNutt rather than the Sixth Circuit’s ruling in Ream. The Court will review the home-distilling location restrictions under Congress’s taxing power and the Necessary and Proper Clause. Ream’s separate petition also raised broader questions about Congress’s power to regulate local, noncommercial activity under the Commerce Clause, but the justices have not agreed to review those questions separately (it remains pending). Even if the Court ultimately sides with the challengers, that wouldn’t necessarily mean Americans could immediately start making bourbon in their basements. Other federal requirements and state laws governing distilled spirits would still apply. The Supreme Court’s decision could have implications beyond home distilling, particularly regarding the relationship between federal taxing power and the regulation of otherwise lawful activities. ## What Happens Next? For now, the federal home-distilling restrictions remain on the books. The Supreme Court will receive additional briefing and is expected to hear oral arguments in 2027. A decision could come by the end of June or early July. I’ll be sure to post an update. The case is [*Department of Justice v. McNutt*](https://www.supremecourt.gov/docket/docketfiles/html/public/26-204.html). Whether you’re interested in whiskey, taxes, or the limits of federal authority, this is one to watch. 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual, Law and the Courts, Supreme Court, You Be the Tax Judge **Tags:** can you make whiskey at home, Department of Justice v. McNutt, home distilling, Ream v. Treasury, whiskey laws --- ### [Fake Social Security Statement Scam Targets Your Computer](https://www.taxgirl.com/2026/10/21/fake-social-security-statement-scam/) **Published:** October 21, 2026 **Author:** Kelly Phillips Erb **Excerpt:** Fake Social Security statement emails are tricking people into downloading remote-access software. Here's how the scam works, warning signs, and what to do. **Content:** An email claiming your latest Social Security statement is ready might sound legitimate, but clicking the link could put you at risk. This week, I received a phishing email posing as a Social Security Administration (SSA) notification. It directs recipients to a website that impersonates the agency and attempts to download remote-access software onto their computers. The software itself is legitimate. The problem is who’s trying to get you to install it—and what they might do with access to your computer. Here’s how the scam works, what to watch for, and what to do if you’ve already clicked. ## How The Fake Social Security Email Works The email, which I received on October 20, 2026, has the subject line “\[Confirmation\] Your statement is here” and features a Social Security logo. ![Social security scam email](https://www.taxgirl.com/wp-content/uploads/2026/10/2026-10-20-at-23950-pm-1097x1200.png)Social Security Scam email The body of the email announces that a monthly statement is available for review and claims the statement includes earnings, benefits, and other account information for September through October. You’re encouraged to click a link labeled “Preview and Download.” But that link doesn’t lead to Social Security’s website. Instead, it directs users to a page on an unrelated organization’s website that looks like a guide to access Social Security statements—only it isn’t. The page also attempts to download a program called ScreenConnect. ## Why ScreenConnect Matters ScreenConnect, made by ConnectWise, is a legitimate remote-access tool IT professionals and businesses use to provide technical support and manage computers. There’s nothing wrong with the software—you might have even used it at work. But in the wrong hands, remote-access programs can give scammers a way to control someone else’s computer. Here, the website appears designed to initiate a ScreenConnect installer download about five seconds after the page loads. The page also instructs you to install what it describes as a document viewer. Despite the references to a Social Security statement and a PDF, the program being offered is an executable file (meaning it’s a program, not a static file like a document). If you run the installer and the software successfully connects to a scammer-controlled account, the scammer may be able to access your files, view your sensitive information, or interact with your computer without your permission. Depending on the configuration, that access may continue after the initial installation. ## The Website Raises Additional Questions The specific link—which purports to be affiliated with the SSA—actually leads to myabtc.org/ssa, a page on the website associated with the American Baptist Theological Center (ABTC), a religious educational organization in California. It’s not yet clear how the fraudulent page appeared on the website or whether someone gained unauthorized access to the organization’s systems. In response to questions from Taxgirl, ABTC acknowledged receiving the report and said it was investigating. “We are treating your report as a potential security incident and are working to have the page and its associated activity investigated,” ABTC Administration said in an email. The organization said it was reviewing the nature and scope of the activity and would provide additional information once it verified its findings. As of October 21, the suspicious page appears to have been taken down. A scan of the URL conducted that afternoon showed that the page was no longer available, and a subsequent attempt to access it returned a “404 Not Found” error. ABTC has not confirmed whether it removed the page or determined how it appeared on the website. The phishing email was also sent through infrastructure associated with WebinarJam, a legitimate webinar and online event platform. Neither ABTC nor WebinarJam is accused of knowingly participating in the scam. I also contacted WebinarJam and ConnectWise for comment but had not received a response by publication. This isn’t the first time scammers have used Social Security Statements as bait. In February 2026, the SSA’s Office of Inspector General warned of a sharp increase in fraudulent emails claiming to provide access to Social Security Statements. The agency cautioned that links in those messages could lead to malware, identity theft, or financial loss. ## Warning Signs Of A Fake Social Security Email Email and phishing scams are getting better at tricking ordinary users. This particular message includes several flags that something isn’t right. - **An unexpected monthly statement.** Social Security Statements provide an overview of your earnings history and estimated benefits, not a monthly account summary. You can access your Statement through your personal my Social Security account. SSA generally mails paper statements to workers age 60 and older who don’t have an online account. - **A link that doesn’t lead to SSA.gov.** The official Social Security website is https://www.ssa.gov. The link in this email instead directs recipients to an unrelated organization’s domain. - **An unfamiliar sender.** Although the email displays “SSA” as the sender, the underlying email address uses a domain unrelated to the federal government. - **A request to download software.** You shouldn’t need to install a remote-access application to view your Social Security information. You can easily view it through your online account. - **A file that isn’t what it claims to be.** A PDF statement and an executable application are two very different things. A file ending in .exe is a program, not a PDF. One especially important point: scammers can make an email look legitimate by using official logos, professional formatting, and reassuring security language. None of those things establishes that a message actually came from the government. ## What To Do If You Receive One Of These Emails If you receive an unexpected Social Security benefits email or statement, don’t click the link in the email. You can report it by contacting the Social Security Administration’s Office of the Inspector General at oig.ssa.gov. And don’t assume a website is trustworthy just because it has a familiar name, a government seal, or an HTTPS address. Secure connections protect information traveling between your browser and a website, but they don’t establish that the website itself is legitimate. If you have legitimate questions about your Social Security benefits, you can visit ssa.gov directly by typing the address into your browser. You can sign in to your personal my Social Security account to review your statements and benefit information. ## What If You’ve Already Downloaded The Software? Downloading a file is not the same as installing it. If the installer downloaded but you didn’t open or run it, don’t execute it. Delete the file and run a security scan if you’re concerned. If you ran the installer, take the situation more seriously. Disconnect the affected computer from the internet to interrupt any active remote connection. Contact a trusted IT professional or security specialist to check for unauthorized remote-access software and help remove it. Simply uninstalling a program may not be enough to establish that a compromised computer is safe to use. From a different, trusted device, change important passwords, beginning with your email and financial accounts. Review those accounts for suspicious activity, and contact your financial institutions if you believe any account information was exposed. ## The Bottom Line Scammers don’t always need you to hand over your Social Security number, bank account information, or passwords. Sometimes, they want you to open the door yourself. That’s what makes this particular scam worth paying attention to. A message promising a routine government document may instead lead to software that gives someone else access to your computer. Your best bet? Don’t click links in emails that claim to be from federal agencies like the IRS or the Social Security Administration. Always go to the official website if you have questions about your account. Remember, when in doubt, assume it’s a scam. 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** ID Theft and Scams, Technology **Tags:** Social Security, Social Security email scam, Social Security scam --- ### [Charitable Giving And Taxes: What's Changing For 2026?](https://www.taxgirl.com/2026/10/14/charitable-giving-tax-deductions-2026/) **Published:** October 14, 2026 **Author:** Kelly Phillips Erb **Excerpt:** Charitable giving tax rules change in 2026. Learn about the new $1,000/$2,000 deduction, the 0.5% AGI floor, and limits for high-income taxpayers. **Content:** Giving to charity can make you feel terrific. Whether it makes a difference on your tax return is another question. Several new tax rules affecting charitable contributions take effect in 2026, thanks to the One Big Beautiful Bill Act (OBBBA). Some taxpayers will benefit from a new deduction, while others will face additional limits on how much they can deduct. The changes are particularly important for taxpayers who are planning year-end donations. And because the rules are different from those that applied in 2025, it’s worth understanding what’s new before you write that check—or transfer those shares of stock. Here’s what you need to know. ## Charitable Deductions For Taxpayers Who Don’t Itemize For years, most taxpayers who claimed the standard deduction received no additional federal income tax deduction for charitable contributions. (There was a temporary exception during the pandemic, but it expired after 2021.) That mattered more in recent years because the increase in the standard deduction (which nearly doubled in 2018) has meant fewer taxpayers can itemize their deductions. Until now, if you didn’t itemize your deductions—and only about 10% of taxpayers do—you generally couldn’t deduct charitable contributions. That is changing. Beginning in 2026, taxpayers who don’t itemize can deduct up to $1,000 in qualifying cash contributions, or $2,000 for married couples filing jointly. There are some restrictions. Contributions must be made in cash to eligible charitable organizations. Donations of clothing, household goods, and appreciated securities don’t qualify for this deduction. Neither do contributions to donor-advised funds or certain private foundations. And remember, this is a deduction, not a credit. A $1,000 charitable deduction doesn’t reduce your taxes by $1,000. It reduces the amount of income subject to tax. For example, if a $1,000 deduction offsets income taxed at 22%, the federal income tax savings would generally be $220. The [draft 2026 Form 1040](https://www.taxgirl.com/2026/09/22/draft-2026-form-1040-adds-new-citizenship-and-work-authorization-question/) includes a separate line for the charitable contribution deduction for non-itemizers, making it easier to see how the deduction works alongside the standard deduction. ## A New Floor For Taxpayers Who Itemize Taxpayers who itemize deductions on Schedule A will also see changes. Beginning in 2026, charitable contributions are deductible only to the extent they exceed 0.5% of adjusted gross income (AGI). This is similar to the “floor” for medical expenses—you can only claim expenses that are over the threshold. The floor applies to the total charitable contributions, not separately to each donation. Here’s an example. Let’s suppose your AGI is $100,000. That means your 0.5% floor would be $500 ($100,000 x .005). If you donate $2,000 to qualifying charities during the year, only the excess over the floor would be deductible, before considering any other applicable limitations. In our example, that would be $1,500 ($2,000 in charitable donations less the $500 floor). Existing percentage-of-AGI limits also continue to apply. Those limits vary depending on the type of property donated and the organization receiving the gift. There are also special carryover rules, so don’t assume that every amount disallowed by the new floor can automatically be deducted in a future year. ## New Limits For Taxpayers In The Highest Tax Bracket Another change affects taxpayers subject to the highest federal income tax rate. Beginning in 2026, the value of itemized deductions, including charitable contributions, is effectively limited to 35 cents per deductible dollar for taxpayers in the 37% bracket. Previously, a $10,000 deduction could potentially produce $3,700 in federal income tax savings for someone paying the 37% marginal rate. Under the new limitation, the tax benefit of that same deduction could be limited to $3,500. The distinction is important: the law doesn’t simply cap charitable deductions at 35% of the amount donated. Instead, it limits the tax benefit of itemized deductions for taxpayers above the applicable income threshold (that limit applies to all itemized deductions for taxpayers in the top bracket). The limitation also interacts with the new 0.5% AGI floor and other charitable contribution restrictions. ## What Taxpayers Need To Know The new rules mean that taxpayers who want a tax break for giving may want to think more carefully about how and when they give. Here are some strategies to consider. - **Donate appreciated property.** Taxpayers who itemize may be able to donate appreciated securities or other property directly to qualified charities. Depending on the circumstances, they may qualify for a charitable deduction and avoid recognizing capital gain that would otherwise arise from selling the property. - **Don’t overlook qualified charitable distributions (QCDs).** Taxpayers age 70½ or older may be able to make qualifying transfers directly from an IRA to charity. This strategy offers several tax advantages. For starters, you don’t have to itemize to use a QCD rollover. A QCD may satisfy all or part of a required minimum distribution (RMD) while allowing you to support a cause you care about. Finally, because QCDs are generally excluded from gross income (rather than claimed as an itemized deduction), they may also help keep your [adjusted gross income (AGI)](https://www.taxgirl.com/2026/09/24/whats-line-11-on-form-1040-understanding-adjusted-gross-income-agi/) lower, which can reduce taxes on [Social Security benefits](https://www.taxgirl.com/2026/10/14/social-security-cola-2027-benefits-taxes/), help you avoid higher Medicare premiums, and provide other tax advantages, such as eligibility for the temporary enhanced senior deduction. - **Take a look at donor-advised funds (DAFs).** A DAF allows taxpayers to make a charitable contribution now and recommend grants to operating charities later. However, contributions to DAFs don’t qualify for the new non-itemizer deduction, and DAFs are subject to other special rules. If you’re considering one of these strategies—or another charitable giving strategy, such as bunching, where you make several years’ worth of charitable contributions in a single tax year rather than spreading them out—be sure to consult your tax professional. The rules can be tricky (this is tax law, after all), and you want to get them right so you can claim the maximum benefit for your gift. Finally, remember that these rules apply to the 2026 tax year and generally affect returns filed in 2027. They don’t retroactively change the rules for contributions made in 2025. 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual **Tags:** 2026 charitable giving rules, charitable gifts, charitable giving rules, charitable-donations, DAFs, donor-advised funds, QCDs, qualified charitable distributions --- ### [Getting To Know You Tuesday: Logan Graf](https://www.taxgirl.com/2026/10/20/getting-to-know-logan-graf-cpa/) **Published:** October 20, 2026 **Author:** Kelly Phillips Erb **Excerpt:** Meet Logan Graf, a Texas CPA, content creator, and Counter founder who's challenging the traditional accounting firm model with humor and fresh ideas. **Content:** Logan Graf is a Texas-based CPA, firm owner, and content creator who isn’t afraid to challenge the traditional accounting firm model—or poke a little fun at the profession along the way. He owns The Graf Tax Co., a virtual accounting firm serving small business owners, and leads Counter, a community that helps accounting firm owners build better businesses without the burnout. He also co-hosts the Own Your Firm podcast and creates educational (and often entertaining) content for accountants, earning a following of nearly 60,000 on LinkedIn. A graduate of Texas Tech University, Logan has been a CPA since 2014. And if you appreciate a little self-deprecating humor, his LinkedIn bio describes him as a “CPA firm owner, accounting community runner, content creator, punchable face.” But honestly? One of the least punchable guys you’ll ever meet. So, let’s get to know Logan. ## In His Own Words **1. Where are you right now?** Leander, TX **2. What’s your official title, and what do you actually do?** I have three. Chief Tax Officer, where I run my CPA firm. Content creator, where I make videos for accountants. Community runner, where I help accountants be better firm owners. **3. Where did you go to school, and what did you study?** Texas Tech University. Studied accounting, specializing in tax. **4. How did you end up in tax?** I had a really good tax professor during my undergrad studies. **5. What was your first real job?** Like, grown-up real job? Tax accountant at a CPA firm. **6. What’s one thing people might be surprised to learn about you?** I’m tall, 6’4″. It doesn’t come across on screen. **7. If you weren’t working in tax, what would you be doing?** Working as a chef… or YouTuber… **8. What’s the best piece of tax, money, or career advice you’ve ever received?** You’ll never regret spending more time with family. **9. What tax issue do you think is getting too much attention right now?** How easy it is to file taxes with AI. **10. What tax issue isn’t getting enough attention?** How we should get a 7216 for all clients if we use AI on their tax data. (*Note from Kelly:* Under Section 7216 of the tax code, tax preparers generally must obtain a taxpayer’s consent before disclosing tax return information to third parties, including AI platforms, unless an exception applies.) **11. What’s the biggest tax myth you’d like to bust?** Business vehicle deduction. It’s rarely done right. **12. What’s a tax question you wish people would ask you more often?** “Do I really need an S Corp?” **13. What’s one tax rule you would change if you could?** I think self-employment tax should start after a certain income threshold. (*Note from Kelly*: Self-employment tax is the Social Security and Medicare tax that self-employed individuals generally pay on their net earnings, typically at a combined rate of 15.3%, in addition to income tax.) **14. What’s one non-tech thing in your office that you couldn’t do without?** My wrist pad. **15. Which tech tool, platform, or software do you rely on most in your practice?** Superhuman email. **16. What’s the best use of AI in tax or tax practice?** I really like to use AI to compile a bunch of data together to save time. **17. What are you watching right now (streaming or otherwise)?** I don’t watch much TV, but I’ve become addicted to the Red Rising book series. **18. Coffee or tea?** COFFEE. Only one a day, though… **19. Pancakes or waffles?** French toast. **20. If you received an unexpected tax refund tomorrow, what would you do with it?** Other than apply it to next year… I unironically want a 20-year-old G Wagon. You can find out more about Logan on [his website.](http://www.countercommunity.co) You can view his profile and find links to his podcast and socials on his [dot.card](https://dot.cards/logangraf). ## About Getting to Know You If you’d like to recommend a tax pro to be featured, send your suggestions to [gtky (at) taxgirl (dot) com](mailto:gtky@taxgirl.com) with the subject: Getting to Know You Tuesday. Self-nominations are totally okay and encouraged! If you’ve submitted a nomination before, feel free to send it again. I’ll consider all submissions, even those that were selected, so long as they were more than three years ago. 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Getting to Know You Tuesday, Interviews and People, Tax Professionals **Tags:** getting to know you tuesday, Logan Graf, Own Your Firm, The Graf Tax Co. --- ### [You Be The Tax Judge: The Home Office Makeover Verdict](https://www.taxgirl.com/2026/10/19/home-office-renovations-tax-court-verdict/) **Published:** October 19, 2026 **Author:** Kelly Phillips Erb **Excerpt:** Can you deduct home office renovations? See how the Tax Court ruled on a $24,728 deduction and what today's tax rules mean for working from home. **Content:** A bigger home office, new carpeting, heated floors, and a few other improvements might make working from home more pleasant. But do they make the renovation costs tax-deductible? [Last week](https://www.taxgirl.com/2026/10/13/you-be-the-tax-judge-can-you-write-off-a-home-office-makeover/), I asked you to weigh in on a dispute involving a California couple who claimed nearly $25,000 in home-office deductions after improving their home. The IRS challenged the deductions, and the case landed in Tax Court. So, who was right? The answer is B: No. The taxpayers weren’t entitled to deduct the renovation expenses as claimed. ## What The Tax Court Decided In Fontayne v. Commissioner, T.C. Summary Opinion 2013-54, Special Trial Judge John F. Dean considered several issues involving the home-office deductions claimed by Jean Marie and Yves Raymond Fontayne. The couple claimed a $24,728 home-office deduction on their 2008 federal income tax return. Their claimed expenses included costs associated with moving a wall, replacing carpeting, installing underfloor heating, and other improvements. The court concluded that the renovation expenses were capital expenditures rather than currently deductible repairs or maintenance. Under section 263 of the Tax Code, taxpayers generally cannot deduct the cost of permanent improvements that add value to property or extend its useful life. Those costs must instead be capitalized. Capitalization is generally less appealing than an immediate tax deduction. Instead of writing off the entire cost of the improvements in one year, you generally add those costs to the property’s tax basis and, if the improvements qualify, deduct the business-related portion gradually over several years through depreciation. The Fontaynes argued that some of the work constituted repairs. For example, Yves damaged a wall while removing bookcases, and the couple subsequently replaced it. But the court wasn’t persuaded that removing and replacing the wall was simply a repair. The same reasoning applied to the carpeting, heating system, central vacuum system, and bathroom tile. The court found that these improvements added value to the home or extended the property’s useful life. As a result, they couldn’t deduct the costs as current home-office expenses. ## The Employment Change Made A Difference There was another problem with the couple’s deductions: timing. Jean Marie worked as a part-time independent contractor for Vitesse Semiconductor Sales Corp. from January through July 2008. During that period, the IRS agreed she maintained a qualifying home office. In July, however, she became a full-time employee. Her employer provided office space and required her to work on-site at least two days each week. Although she was permitted to work from home up to three days per week, the court found that arrangement was at her own request and for her own convenience. Her supervisor described the arrangement as beneficial to Vitesse, but the couple offered no evidence that the company required or directed her to work from home. Under section 280A, an employee claiming a home-office deduction must satisfy an additional requirement: the home office must be maintained for the convenience of the employer. Because the court found that requirement wasn’t satisfied, the couple couldn’t claim home-office expenses for August through December 2008. The renovation expenses were incurred in November and December, after Jean Marie had become an employee and the home office no longer qualified for the deduction. Even apart from the capital improvement issue, the timing worked against the taxpayers. ## How Big Was The Home Office? The court also had to sort out a disagreement over the size of the workspace. The Fontaynes originally claimed that 554 square feet of their approximately 3,100-square-foot home was used for business, or nearly 18%. At trial, they acknowledged that the figure was overstated and reduced their claim to 307.5 square feet. The IRS examiner, meanwhile, estimated that Jean Marie needed only 99 square feet to perform her work. The court rejected both calculations. It found that the taxpayers had improperly included areas such as a bathroom and closet that weren’t used exclusively and regularly for business. For example, the closet contained a safe used to store personal items. But the court also found the IRS examiner’s 99-square-foot estimate arbitrary. Based on the available evidence, the court determined that the qualifying office space measured 180 square feet, or approximately 5.8% of the home. So the IRS didn’t win every argument. The court accepted that Jean Marie maintained a qualifying home office while she was an independent contractor, and it allowed a larger workspace than the examiner estimated. That didn’t save the renovation deductions. ## And There Was A Penalty The IRS determined a $10,414 tax deficiency and a $2,082.80 accuracy-related penalty under section 6662. The court upheld the penalty. The court found that the Fontaynes had substantially understated their income tax liability and had claimed expenses that were personal or otherwise not deductible. The taxpayers also failed to establish reasonable cause and good faith sufficient to avoid the penalty. Interestingly, they claimed a $500 tax preparation fee, even though their returns were marked as self-prepared. The IRS allowed the $500 deduction, but the court noted that the couple offered no explanation about who, if anyone, prepared their returns or what steps they had taken to determine their correct tax liability. ## What Can You Learn From This Case? There are several takeaways. First, using part of your home for business doesn’t automatically make every expense for that space deductible. Repairs and capital improvements are treated differently for federal income tax purposes. Second, employment status matters. The rules governing home-office deductions can change when a taxpayer moves from self-employment to employment. For the year at issue, an employee’s home office also had to be maintained for the employer’s convenience. Third, square footage is important. A taxpayer must establish which portions of the home are used regularly and exclusively for business. A room’s proximity to the office doesn’t necessarily make it part of the office. Finally, documentation matters. I’ll die on the “keep great records” hill, and here, the court also rejected $6,654 in claimed indirect repair and maintenance expenses because the taxpayers hadn’t adequately substantiated them. ## Today’s Law One important caveat: The Fontaynes’ case concerned the rules that applied to their 2008 tax return. Those rules have changed significantly. Before 2018, employees who met the home-office requirements could deduct qualifying expenses as miscellaneous itemized deductions, but only to the extent that those expenses, combined with other eligible deductions, exceeded 2% of their adjusted gross income. The Tax Cuts and Jobs Act of 2017 (TCJA) suspended those deductions for tax years 2018 through 2025. The One Big Beautiful Bill Act (OBBBA), signed into law in 2025, made that change permanent beginning in 2026. That means most employees still cannot deduct unreimbursed home-office expenses on their federal income tax returns. Self-employed taxpayers, however, may still qualify for the home-office deduction if they meet the applicable requirements, including regular and exclusive business use. While the law has changed, the larger lesson hasn’t: A home improvement doesn’t become a deductible business expense simply because it makes working from home easier. And sometimes, the date you make the improvement matters just as much as what you improve. ## A Note On Precedent The case is Fontayne v. Commissioner, T.C. Summary Opinion 2013-54 (July 3, 2013). The Tax Court issued the decision under its small tax case procedures, which provide a simpler, less formal way to resolve disputes involving relatively small amounts of tax. Decisions in these cases are not precedential, so other taxpayers generally cannot rely on them as binding legal authority. Still, they can offer useful insight into how the Tax Court approaches common tax disputes—and why the details matter. 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Law and the Courts, You Be the Tax Judge **Tags:** Adjusted basis, basis, capitalization, home office deduction, You Be The Tax Judge --- ### [IRS Clears The Way For Direct Credit Card Tax Payments](https://www.taxgirl.com/2026/10/19/irs-direct-credit-card-tax-payments/) **Published:** October 19, 2026 **Author:** Kelly Phillips Erb **Excerpt:** New IRS rules allow direct credit and debit card tax payments, but processing fees remain. Here's what taxpayers need to know. **Content:** Paying your federal taxes by credit card could soon be a little easier. But if you’re looking for a deal, don’t get too excited—it won’t be free. The Treasury Department and the IRS have finalized regulations allowing the agency to accept credit and debit card payments directly from taxpayers, without requiring them to pay through a separate third-party processor. The change is intended to simplify the process and give taxpayers more options. Here’s what you need to know. ## How Credit Card Tax Payments Work Now Taxpayers have been able to pay their federal income taxes by credit card since 1999, when the IRS launched a pilot program that let them charge their tax bills by telephone or through tax software. The program expanded the following year to include estimated tax payments and payments made with filing extensions. However, the IRS didn’t process the transactions. Private companies handled that, and taxpayers paid the resulting convenience fees. That’s because federal law restricted the IRS from paying the fees associated with accepting credit and debit cards. Currently, the IRS uses two approved third-party payment processors: Pay1040, operated by Link2Gov Corporation, and ACI Payments, Inc. Taxpayers can choose between the two providers, which charge different fees depending on the payment method. According to the IRS, the current fees for consumer cards are: | Payment Processor | Credit Card Fee | Debit Card Fee | |---|---|---| | Pay1040 | 1.75% (minimum $2.50) | $2.15 | | ACI Payments | 1.85% (minimum $2.50) | $2.10 | Different fees may apply when taxpayers pay while electronically filing their returns. Those fees can add up, particularly when making large tax payments. For example, if you made a $5,000 tax payment, you would pay an $87.50 processing fee through Pay1040 or a $92.50 fee through ACI Payments when using a consumer credit card. That’s money paid for the convenience of using a card, and it is not applied toward your tax liability. ## What’s Changing? The new regulations, issued as [T.D. 10060](https://public-inspection.federalregister.gov/2026-21267.pdf), implement a provision of the Taxpayer First Act of 2019. That law amended section 6311 of the tax code to give the IRS greater flexibility to accept payments through commercially available methods, including credit and debit cards. Under the final regulations, the IRS may enter into contracts with payment providers and pay the associated processing fees, provided the agency recovers those costs from taxpayers who choose to pay by card. That gives the IRS more control over the payment process, even if outside companies continue handling the transactions behind the scenes. The regulations specifically contemplate allowing taxpayers to pay by telephone without waiting to be connected to a third-party payment processor. The government could also benefit from more reliable payments and reduced costs associated with processing paper checks. ## Who Will Process The Payments? The IRS has not publicly identified any company selected to provide processing services under a new direct-payment arrangement. The agency’s existing payment processors, Pay1040 and ACI Payments, could potentially continue providing services. But the agency can negotiate contracts and structure how it accepts payments, so it could look elsewhere. It also means taxpayers may eventually have new ways to pay directly through the IRS, while the existing third-party payment options could remain available. For now, the IRS continues to direct taxpayers who want to pay by credit or debit card to its approved payment processors. ## What About The Fees? If the IRS enters into a contract under which it pays processing fees, it must recover the full amount from taxpayers using that payment method. The reimbursement fee must be collected at the time of payment, in addition to the tax owed. Unlike some of the card surcharges consumers have been encountering at the register lately (yes, I went there), the IRS reimbursement fee cannot exceed the amount the agency pays under the applicable contract. The IRS is also required to seek to minimize those fees when negotiating contracts. Whether the new arrangements ultimately result in lower processing fees will depend on the contracts the IRS negotiates. Importantly, the regulations make clear that the reimbursement fee is not a federal tax. That means taxpayers cannot claim the fee as a tax payment, and it isn’t eligible for a refund or credit under section 6402 of the tax code. A processing fee could, however, be deductible for business taxpayers, subject to the normal deduction rules. The regulations also preserve consumer protections for errors involving card accounts. Those procedures can address payment transaction errors, such as double charges, but they can’t be used to dispute the underlying tax liability. ## Should You Pay Your Taxes By Credit Card? Paying taxes by credit card can be appealing. Some taxpayers use cards to earn rewards, accumulate travel points, or meet spending requirements for sign-up bonuses. Others may want the added flexibility of using a credit card, especially when a tax payment is due before they have enough cash available. But it’s worth doing the math. If you’re paying a 1.75% processing fee to earn 1% cash back, you’re losing money on the transaction. And if you don’t pay your credit card balance in full, interest charges can make an already expensive tax bill even more costly. There are other options. The IRS offers electronic payment methods, including Direct Pay from a bank account, that don’t involve card processing fees. Individual taxpayers who owe less than $50,000 in taxes, penalties, and interest can typically apply online without speaking with an IRS representative. ## When Will The Changes Take Effect? The final regulations were published in the Federal Register on October 19, 2026, and took effect that day. The IRS will still need to implement any new payment systems and contractual arrangements. The final regulations don’t announce a specific launch date for a new direct-payment service or establish the fees taxpayers will ultimately pay. Treasury and the IRS originally proposed the regulations in July 2024. After receiving eight public comments, the agencies adopted the proposed rules without changes. Most commenters supported the proposal, citing the potential to simplify payments, reduce costs, and encourage taxpayers to pay on time. Not everyone was enthusiastic about the fees. One commenter suggested that card payments should be available without additional charges, but the IRS kept the reimbursement structure contemplated by the Taxpayer First Act. ## The Bottom Line The IRS has been working to modernize how taxpayers interact with the agency, from [online accounts](https://www.taxgirl.com/2026/07/25/how-to-create-and-use-an-irs-online-account/) to electronic filing and payment options. Allowing direct credit and debit card payments is another step in that direction. For now, the new regulations open the door to a simpler payment process. We’ll have to wait to see exactly what that will look like once IRS finalizes the details. 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Collections, IRS News **Tags:** credit card, paying taxes with credit cards, paying the IRS, paying with credit cards --- ### [Accion: Microfinance Works](https://www.taxgirl.com/2008/06/20/accion-microfinance-works/) **Published:** June 20, 2008 **Author:** Kelly Phillips Erb **Content:** Want more information about [Accion](http://www.accion.org), the charity that the Business Channel for b5media is supporting during The Great Blog Off? Check out this video: ![YouTube thumbnail](https://www.taxgirl.com/wp-content/cache/wpo-youtube-thumbnails/GiNDKV2VSHw-hqdefault.jpg)![YouTube icon](https://www.taxgirl.com/wp-content/plugins/wp-optimize-premium/images/icon/icons8-youtube-96.svg) [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Accion%3A%20Microfinance%20Works&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Accion%3A%20Microfinance%20Works "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Accion%3A%20Microfinance%20Works "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Accion%3A%20Microfinance%20Works&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Contests and Events --- ### [Twitter Tax Tips](https://www.taxgirl.com/2009/03/01/twitter-tax-tips/) **Published:** March 1, 2009 **Author:** Kelly Phillips Erb **Content:** I’ve been asked by a few of my fellow twitterers to offer some tax tips as tweets. It’s a fairly interesting challenge since tweets on twitter are limited to 140 characters. But then, I love a challenge. So, from now until April 15, I’m going to make an effort to **tweet a tax tip a day**. I’ll also post it on taxgirl. Not on Twitter? What are you waiting for? It’s fun and easy (and, I’ll warn you in advance, just a little bit addictive). 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Just for Fun **Tags:** Twitter --- ### [Taxgirl Goes To The Movies: Trading Places](https://www.taxgirl.com/2007/07/31/taxgirl-goes-to-the-movies-trading-places/) **Published:** July 31, 2007 **Author:** Kelly Phillips Erb **Content:** Next in my movie review series is one of my favorite movies, *Trading Places*, and not just because it was filmed in Philadelphia. While the plot is quite contrived, the acting is really funny – it’s Eddie Murphy back when he remembered what being a comedian meant. And Jamie Lee Curtis? This was just the beginning of a great comedic career for her (I loved her in *True Lies*). \[Here’s my disclaimer: As always, I’ll try my best not to give out any big spoiler type info – but I can’t promise. So, you’ve been warned!\] **The Background** The movie focuses initially on two brothers, Mortimer and Randolph Duke, played wonderfully by Don Ameche and Ralph Bellamy, who are both rich and bored – not a great combination. As a social experiment, they make a bet and plot to improve the life of a poor man, Billy Ray Valentine (played by Eddie Murphy) at the expense of a successful man, Louis Winthorpe III (played by Dan Ackroyd). Mortimer believes that no matter what challenges are thrown at the men, they will remain true to their social standings. Randolph believes that each will adapt. **The Switch** The brothers choose Louis because he is an employee at their firm and has a respectable background – the perfect subject. His position at the firm makes it easy to ruin him: the brothers make it look as though he has stolen from the company and then plant drugs on him. The brothers proceed to freeze Louis’ bank accounts and lock him out of his home. Penniless and accused of a crime, Louis has nowhere to go – until a jailed hooker, Ophelia, (played by Jamie Lee Curtis) takes pity on him and takes him home. At the same time, Billy Ray Valentine is picked up from jail by Mortimer and Randolph. They tell Billy Ray that he will be part of their program to assist the underprivileged. In reality, they plop him in the middle of Louis’ old life. As before, my tax radar is on the second I hear anyone discussing gambling and prostitution (yeah, see if you read that on TaxProf blog). All earned income must be reported, even if illegally gained. That means that Billy Ray should have been reporting his hustlings and Ophelia should have been reporting her, um, hustlings. It also means that Mortimer and Randolph would also have to report their winnings, if any, from their bet (it’s important to note that they don’t tell us the amount of the bet in the beginning – it’s just “the usual amount”). **The Transition** Once a hustler, always a hustler. It doesn’t take Billy Ray long to figure out that the market is much like gambling – and he begins to shine at the firm. Billy Ray learns to make money because he understands the commodities market – buy low, sell high. Capital gains, for these purposes, would likely be short term and would be calculated based on the selling price less the buying price. However, the firm deals largely with futures. I won’t even attempt to explain the taxation of futures (anyone?). But when it comes to income, assuming that Billy Ray is being paid a salary, which is taxable, he would also have to consider the source of his other trappings. And this is where my analysis gets a little bit hazy. Billy Ray begins to live in Louis’ house. It’s clearly not a gift from Louis – but I’m not sure what it else it would be since that part isn’t really explained in the film. If the home was somehow part of the compensation package of being at the firm, then the fair market value of the perks would be reportable as income. It can’t be a gift from the brothers while he’s an employee; remember that usually, [employers can’t make significant non-taxable gifts to employees](https://www.taxgirl.com/iphone-utax/). At the opposite end of the spectrum, Louis grows more desperate despite his association with Ophelia, the stereotypical hooker with a heart of gold. While Ophelia is making some, um, income, on her own, it appears that Louis is stealing and begging. Louis would still be responsible for reporting the income from his activities. At the pawnshop, however, Louis takes a loss on the sale of his fancy watch. While sales of personal property are generally excepted from capital gains, items that are considered artwork, collectible, or appreciated property may be includable. I’m not sure where a watch would fall in this argument but it’s worth noting that selling a watch valued at nearly $7000 in 1983 isn’t quite the same as selling your old jeans at a yard sale. **The Climax** Christmas serves as the backdrop for the pivotal scene in the movie. At the firm Christmas party, a boozed-up Louis shows up with a gun. Mortimer realizes that he has lost the bet (which turned out to be $1 – still reportable!) and confesses his loss to Randolph. However, Billy Ray overhears the brothers, is offended by their scheme, and decides to turn the tables. **The Turnabout** Billy Ray plots with Louis to teach the brothers a lesson. I won’t spill the entire scene, but suffice it to say that Billy Ray and Louis end up doing okay – and the brothers? Well, they won’t be drinking any freshly squeezed orange juice for a while. While I don’t want to give away any more, remember that income from all sources is taxable – and losses, even giant ones, can be carried forward. But at the brothers’ ages, that kind of carry forward probably doesn’t mean a whole lot. **The Skinny** The movie was nominated for review by Madgirl. Remember that your comments will count as votes for Madgirl – and she can win some great prizes. So tell me what you think about the movie, the review, the locale… And if you want in on the action, be sure and leave your suggestions on [the original post](https://www.taxgirl.com/taxgirl-goes-to-the-movies/) – or [send me an email](mailto:kelly.erb@b5media.com). ![YouTube thumbnail](https://www.taxgirl.com/wp-content/cache/wpo-youtube-thumbnails/vEaXAsbvHV4-sddefault.jpg)![YouTube icon](https://www.taxgirl.com/wp-content/plugins/wp-optimize-premium/images/icon/icons8-youtube-96.svg) [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Taxgirl%20Goes%20To%20The%20Movies%3A%20Trading%20Places&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Taxgirl%20Goes%20To%20The%20Movies%3A%20Trading%20Places "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Taxgirl%20Goes%20To%20The%20Movies%3A%20Trading%20Places "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Taxgirl%20Goes%20To%20The%20Movies%3A%20Trading%20Places&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? 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[ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Just for Fun, Pop culture **Tags:** gambling, movies, prostitution, taxgirl goes to the movies --- ### [Taxgirl Named Top 50 Legal Career Blog](https://www.taxgirl.com/2010/01/25/thanks/) **Published:** January 25, 2010 **Author:** Kelly Phillips Erb **Content:** Thanks to Justice/e-Learning for naming taxgirl as one of their Top 50 Legal Career Blogs![![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Taxgirl%20Named%20Top%2050%20Legal%20Career%20Blog&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Taxgirl%20Named%20Top%2050%20Legal%20Career%20Blog "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Taxgirl%20Named%20Top%2050%20Legal%20Career%20Blog "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Taxgirl%20Named%20Top%2050%20Legal%20Career%20Blog&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Site Info --- ### [An Inconvenient Tax - the Trailer](https://www.taxgirl.com/2008/10/24/an-inconvenient-tax-the-trailer/) **Published:** October 24, 2008 **Author:** Kelly Phillips Erb **Content:** ![YouTube thumbnail](https://www.taxgirl.com/wp-content/cache/wpo-youtube-thumbnails/T5YzMH0ySPc-maxresdefault.jpg)![YouTube icon](https://www.taxgirl.com/wp-content/plugins/wp-optimize-premium/images/icon/icons8-youtube-96.svg) The trailer for “An Inconvenient Tax” is out. Give it a look—maybe you’ll see someone you know. 😉[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=An%20Inconvenient%20Tax%20%E2%80%93%20the%20Trailer&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=An%20Inconvenient%20Tax%20%E2%80%93%20the%20Trailer "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=An%20Inconvenient%20Tax%20%E2%80%93%20the%20Trailer "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=An%20Inconvenient%20Tax%20%E2%80%93%20the%20Trailer&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Just for Fun **Tags:** An Inconvenient Tax, movies, tax, tax-reform --- ### [Presidents Day: Presidential Tax Moves #1](https://www.taxgirl.com/2011/02/21/presidents-day-presidential-tax-moves-1/) **Published:** February 21, 2011 **Author:** Kelly Phillips Erb **Content:** In honor of President’s Day, I thought it would be fun to try and match U.S. Presidents to their tax policies. For purposes of clarification, I am well aware that tax legislation is Congressional, not presidential, but the President sets the tone for policy and action, so that’s the framework we’re using for the tax moves. Try and guess who did which tax move throughout the day. I’m not promising fabulous prizes – mostly, it’s just for amusement and interest – but depending on how it goes, I might have a little something in the prize box. So, guess away. **President Tax Move #1:** Created the first version of the IRS, called the “Bureau of Internal Revenue,” described at the time as “the largest Government department ever organized.” So who did it? Guesses? [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Presidents%20Day%3A%20Presidential%20Tax%20Moves%20%231&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Presidents%20Day%3A%20Presidential%20Tax%20Moves%20%231 "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Presidents%20Day%3A%20Presidential%20Tax%20Moves%20%231 "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Presidents%20Day%3A%20Presidential%20Tax%20Moves%20%231&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Contests and Events, History, Just for Fun, Politics, Tax Policy **Tags:** President's Day, Tax Legislation, tax policy --- ### [Presidents Day: Presidential Tax Moves #2](https://www.taxgirl.com/2011/02/21/presidents-day-presidential-tax-moves-2/) **Published:** February 21, 2011 **Author:** Kelly Phillips Erb **Content:** In honor of President’s Day, I thought it would be fun to try and match U.S. Presidents to their tax policies. For purposes of clarification, I am well aware that tax legislation is Congressional, not presidential, but the President sets the tone for policy and action, so that’s the framework we’re using for the tax moves. Try and guess who did which tax move throughout the day. I’m not promising fabulous prizes – mostly, it’s just for amusement and interest – but depending on how it goes, I might have a little something in the prize box. So, guess away. **President Tax Move #2:** Unified the federal estate and gift tax systems. So who did it? Guesses? [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Presidents%20Day%3A%20Presidential%20Tax%20Moves%20%232&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Presidents%20Day%3A%20Presidential%20Tax%20Moves%20%232 "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Presidents%20Day%3A%20Presidential%20Tax%20Moves%20%232 "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Presidents%20Day%3A%20Presidential%20Tax%20Moves%20%232&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Contests and Events, History, Just for Fun, Politics, Tax Policy **Tags:** President's Day, Tax Legislation, tax policy --- ### [Presidents Day: Presidential Tax Moves #3](https://www.taxgirl.com/2011/02/21/presidents-day-presidential-tax-moves-3/) **Published:** February 21, 2011 **Author:** Kelly Phillips Erb **Content:** In honor of President’s Day, I thought it would be fun to try and match U.S. Presidents to their tax policies. For purposes of clarification, I am well aware that tax legislation is Congressional, not presidential, but the President sets the tone for policy and action, so that’s the framework we’re using for the tax moves. Try and guess who did which tax move throughout the day. I’m not promising fabulous prizes – mostly, it’s just for amusement and interest – but depending on how it goes, I might have a little something in the prize box. So, guess away. **President Tax Move #3:** Pushed through a 1% net corporation income tax which included a publicity requirement that all corporate tax returns be open to public inspection. So who did it? Guesses? [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Presidents%20Day%3A%20Presidential%20Tax%20Moves%20%233&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Presidents%20Day%3A%20Presidential%20Tax%20Moves%20%233 "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Presidents%20Day%3A%20Presidential%20Tax%20Moves%20%233 "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Presidents%20Day%3A%20Presidential%20Tax%20Moves%20%233&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Contests and Events, Just for Fun, Politics, Tax Policy **Tags:** President's Day, Tax Legislation, tax policy --- ### [Presidents Day: Presidential Moves #5](https://www.taxgirl.com/2011/02/21/presidents-day-presidential-moves-5/) **Published:** February 21, 2011 **Author:** Kelly Phillips Erb **Content:** In honor of President’s Day, I thought it would be fun to try and match U.S. Presidents to their tax policies. For purposes of clarification, I am well aware that tax legislation is Congressional, not presidential, but the President sets the tone for policy and action, so that’s the framework we’re using for the tax moves. Try and guess who did which tax move throughout the day. I’m not promising fabulous prizes – mostly, it’s just for amusement and interest – but depending on how it goes, I might have a little something in the prize box. So, guess away. **Presidential Tax Move #5:** Authorized the use of force to collect taxes (specifically, customs duties). So who did it? Guesses? [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Presidents%20Day%3A%20Presidential%20Moves%20%235&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Presidents%20Day%3A%20Presidential%20Moves%20%235 "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Presidents%20Day%3A%20Presidential%20Moves%20%235 "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Presidents%20Day%3A%20Presidential%20Moves%20%235&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Contests and Events, History, Just for Fun, Tax Policy **Tags:** President's Day, Tax Legislation, tax policy --- ### [Presidents Day: Presidential Tax Moves #4](https://www.taxgirl.com/2011/02/21/presidents-day-presidential-tax-moves-4/) **Published:** February 21, 2011 **Author:** Kelly Phillips Erb **Content:** In honor of Presidents Day, I thought it would be fun to try to match U.S. Presidents to their tax policies. For clarity, I know tax legislation is Congressional, not presidential, but the President sets the tone for policy and action, so that’s the framework we’re using for the tax moves. Try and guess who did which tax move throughout the day. I’m not promising fabulous prizes – mostly, it’s just for amusement and interest – but depending on how it goes, I might have a little something in the prize box. So, guess away. **President Tax Move #4:**Repealed the windfall profits tax (also known as the Crude Oil Windfall Profit Tax Act). So who did it? Guesses?[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Presidents%20Day%3A%20Presidential%20Tax%20Moves%20%234&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Presidents%20Day%3A%20Presidential%20Tax%20Moves%20%234 "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Presidents%20Day%3A%20Presidential%20Tax%20Moves%20%234 "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Presidents%20Day%3A%20Presidential%20Tax%20Moves%20%234&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Contests and Events, History, Just for Fun, Politics **Tags:** President's Day, Tax Legislation, tax policy --- ### [Congress Extends Homebuyer's Credit](https://www.taxgirl.com/2010/07/01/homebuyers-credit-extended/) **Published:** July 1, 2010 **Author:** Kelly Phillips Erb **Content:** The homebuyer tax credit has been extended. Homebuyers now have until September 30, 2010, to close on their purchases after a late-night deal passed by the Senate. The bill now goes to President Obama, who is expected to sign it into law. An extension was proposed months ago, but the measure failed to pass until it was separated from a larger bill. Under the latest version, homeowners must have entered into an agreement to buy a new home by April 30, 2010, and have until September 30, 2010, to close. The original closing deadline was yesterday, June 30, 2010. The extended deadline does not affect the criteria for the credit; it otherwise [remains the same](https://www.taxgirl.com/homebuyers-credit-expires-this-week/). The numbers of taxpayers who might be affected by the extension have varied wildly. Initially, reports were that 80,000 taxpayers might lose the credit because of difficulties closing due to obtaining a mortgage (!) and old homes that were slow to sell. However, CNN is reporting that the number is 200,000 because of the number of short sales. A short sale tends to happen when a house sells for less than what’s owed on the property (for example, a house sells for $250,000 but the seller still owes $300,000 on the mortgage). The difficulty tends to be that the seller is not released from the liability for the mortgage, but the lender is hesitant to remove its lien/obligation on the property (mortgages tend to travel with the property, not the person). As a result, it can be expensive and cumbersome to work out a deal. It can also, depending on the circumstances, create a tax liability for the seller. I haven’t been a fan of the credit since it was proposed in 2008. We’ve been attempting to “right” the market with artificial incentives for three years, and there’s no real evidence that it’s working. Proponents of the extension have claimed a number of “wins” when the market has spiked (although much of that can be attributed to seasonal, not tax, boosts), but the real numbers attributed to the credit have been soft. There have also been [massive amounts of fraud](https://www.taxgirl.com/cheater-cheater-pumpkin-eater-home-buyer-credit-fraud-rampant/) perpetrated on the system using the tax credit. Nonetheless, some powerful lobbyists want to extend the homebuyer’s tax credit beyond September, or possibly make it permanent. More housing data will be out this week. I’m sure we’ll hear dire predictions about what will happen if we don’t give buyers a reason to buy… With elections not so far away, keep an eye on this one. I can’t think of a better way to build another housing bubble. Sudsing up, anyone?[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Congress%20Extends%20Homebuyer%E2%80%99s%20Credit&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2010%2F07%2Fwhite-and-brown-concrete-bungalow-under-clear-blue-sky-210617.jpg&p%5Btitle%5D=Congress%20Extends%20Homebuyer%E2%80%99s%20Credit "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Congress%20Extends%20Homebuyer%E2%80%99s%20Credit "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Congress%20Extends%20Homebuyer%E2%80%99s%20Credit&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual, Politics **Tags:** extensions --- ### [Congress Gives Itself 'Window' To Consider New Tax Bill](https://www.taxgirl.com/2010/05/22/congress-gives-itself-window-to-consider-new-tax-bill/) **Published:** May 22, 2010 **Author:** Kelly Phillips Erb **Content:** Hmm. Maybe Congress is listening after all. After vowing to rush the [American Jobs and Closing Tax Loopholes Act of 2010](https://www.taxgirl.com/new-tax-bill-raising-eyebrows/) (the revised Tax Extenders Bill) through, they’ve taken a step back. On Friday, House members decided to give themselves a 72-hour window for “member review.” I don’t want to get anybody’s hopes up, but do you think this means they’re going to read the darn thing?[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Congress%20Gives%20Itself%20%E2%80%98Window%E2%80%99%20To%20Consider%20New%20Tax%20Bill&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Congress%20Gives%20Itself%20%E2%80%98Window%E2%80%99%20To%20Consider%20New%20Tax%20Bill "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Congress%20Gives%20Itself%20%E2%80%98Window%E2%80%99%20To%20Consider%20New%20Tax%20Bill "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Congress%20Gives%20Itself%20%E2%80%98Window%E2%80%99%20To%20Consider%20New%20Tax%20Bill&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Politics **Tags:** American Jobs and Closing Tax Loopholes Act of 2010, Congress, tax extenders bill --- ### [Ask The Taxgirl: Can You File As Single When You're Married?](https://www.taxgirl.com/2010/05/17/ask-the-taxgirl-filing-single-when-youre-married-2/) **Published:** May 17, 2010 **Author:** Kelly Phillips Erb **Content:** ***Taxpayer asks:*** Hi, I am getting married july 2010 for personal reasons. However, my husband and I are both going to still be in college until May 2011 and will be living separately with our parents as dependents. Would I need to change anything regarding my taxes? Could I still have my parents claim me and me file 0? Also, I have heard that you don’t have to file married for up to a year on your taxes which would be July 2011 and the next tax season would be 2012, so would we be able to wait until 2012 to change our tax status to married? I have read in various places now that if you are married during the year that you need to file as married that upcoming year. Realistically, what would happen if we both just ignored the married status and just filed single next year and then filed married (we are planning on having a public wedding after we both graduate) in 2012? Would a year really make a big difference? We both don’t really care about the advantages or disadvantages to the whole married filing jointly aspect, it would just make things much easier to file single. Also, we are not going to be living together at all until 2012 and we are both from the Philly area (I read that you are from that area so if there are any local laws I figured you could let me know). If we did so illegally, what would be the consequences for this one year? We are not married yet and have both already filed for this year, so next year is really the only issue since we are planning on getting married this July. Thanks ***Taxgirl says:*** For federal income tax purposes, your marital status is determined as of the last day of the tax year. For most taxpayers, that means December 31. It doesn’t matter if you were single from January 1 through December 30; if you are married as of December 31, you are considered married for the year. If you are single or divorced as of December 31, you are considered not married, again, no matter what your status was from January 1 through December 30. There are some limited exceptions to these rules, but those generally apply to persons who are supporting another person and not the other way around (see IRS Publication 501 for more information). To answer your question then, for federal income tax purposes, if you are getting married in July 2010, you are considered married for 2010 unless you get divorced or separated by December 31. It’s worth noting, since you mentioned local laws, that the feds follow the states with respect to marriage laws (except when it comes to same sex marriages, which are specifically ignored because of DOMA and related statutes). If you ignore your marital status and file as single, you should be aware that: 1. When you sign your tax return, you swear that “Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete.” Willfully misrepresenting your marital status is perjury. 2. Not only are you opening yourself up to an audit (as well as your spouse), but you are likely risking an audit for your parents. If your parents claim you as a dependent when they shouldn’t, they are breaking the rules (see again #1). I’m a little baffled as to why you would want to file as single. If it’s a financial thing (though you’ve said that it isn’t), you can always file married filing separately, though most married couples find it more advantageous to file jointly. Keep in mind that your tax returns are often used for other purposes, like FAFSA and getting a mortgage, so filing with the wrong marital status at the start can set you up for bigger problems down the road. Before you go: be sure to read my [disclaimer](https://www.taxgirl.com/ask-the-taxgirl-disclaimer/). Remember, I’m a lawyer and we love disclaimers. If you have a question, here’s how to [Ask The Taxgirl](https://www.taxgirl.com/ask-the-taxgirl/). [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Ask%20The%20Taxgirl%3A%20Can%20You%20File%20As%20Single%20When%20You%E2%80%99re%20Married%3F&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Ask%20The%20Taxgirl%3A%20Can%20You%20File%20As%20Single%20When%20You%E2%80%99re%20Married%3F "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Ask%20The%20Taxgirl%3A%20Can%20You%20File%20As%20Single%20When%20You%E2%80%99re%20Married%3F "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Ask%20The%20Taxgirl%3A%20Can%20You%20File%20As%20Single%20When%20You%E2%80%99re%20Married%3F&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Ask the Taxgirl, Individual **Tags:** ask the taxgirl, marital status, married filing separate, single --- ### [Daschle Is "Deeply Embarrassed And Disappointed" By Tax Issues](https://www.taxgirl.com/2009/02/02/daschle-is-deeply-embarrassed-and-disappointed-by-tax-issues/) **Published:** February 2, 2009 **Author:** Kelly Phillips Erb **Content:** And well, he should be. Tom Daschle, President Barack Obama’s nominee for Secretary of Health and Human Services, has apologized [for not paying more than $120,000 in federal taxes](https://www.taxgirl.com/new-secretary-nominee-hits-bump-in-the-road/). Instead, Daschle tried to offer an explanation for the tax errors. Yes, plural. Daschle claims that the information provided to him by his friend and business associate, Leo Hindery, was not accurate and resulted in the omission of more than $80,000 in income on his tax returns. Come on, cut the guy some slack… How many times have you just forgotten that you had an extra $80,000? It happens. And the use of a car service for three years? He just didn’t know that was income. And the charitable contributions? He just didn’t know that they weren’t proper. Enough! The amount of hemming and hawing, excuses, and other rot (oh yeah, I said rot, I’m officially irritated!) coming out of this hearing is more than distressing. Daschle is said to have earned more than $5 million in two years after being booted out of his Senate seat (much of it in speaking fees for health care industry firms). With all of that money, *this* is what his accountants and tax advisors come up with? Hundreds of thousands of dollars in unreported income and improper deductions? Not just one mistake, not just two, not even just three. Years and years of unreported income. And we just get a big “I didn’t mean it” out of it? There has to be a line. There has to be a point at which our politicians take some responsibility for their actions – and not simply because they want something. We expect those who make the laws not to consider themselves above them.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Daschle%20Is%20%E2%80%9CDeeply%20Embarrassed%20And%20Disappointed%E2%80%9D%20By%20Tax%20Issues&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Daschle%20Is%20%E2%80%9CDeeply%20Embarrassed%20And%20Disappointed%E2%80%9D%20By%20Tax%20Issues "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Daschle%20Is%20%E2%80%9CDeeply%20Embarrassed%20And%20Disappointed%E2%80%9D%20By%20Tax%20Issues "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Daschle%20Is%20%E2%80%9CDeeply%20Embarrassed%20And%20Disappointed%E2%80%9D%20By%20Tax%20Issues&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Politics **Tags:** Daschle, Obama, Tom Daschle --- ### [Fix the Tax Code Friday: Illegal Activity & the IRS](https://www.taxgirl.com/2009/01/23/fix-the-tax-code-friday-illegal-activity-the-irs/) **Published:** January 23, 2009 **Author:** Kelly Phillips Erb **Content:** It’s Fix the Tax Code Friday! One of this week’s “Ask the Taxgirl” posts focused on illegally gained income. Under the Tax Code, you must report all income, regardless of source. This includes drug sales, illegal betting operations, prostitution, bribes, the whole bit. Clearly, including this income on your return, while required, opens you up to additional scrutiny from additional authorities. The tax return could serve as a “road map” to your illegal activities. Should the IRS share this info? Should it be “off limits” to other authorities? Today’s Fix the Tax Code Friday question is: **Should the IRS be prohibited from sharing tax information related to illegal activities – under any circumstances, including a subpoena – in order to encourage tax compliance? If so, are there any crimes you would suggest should be exempt from such a ban?**[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Fix%20the%20Tax%20Code%20Friday%3A%20%20Illegal%20Activity%20%26%20the%20IRS&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Fix%20the%20Tax%20Code%20Friday%3A%20%20Illegal%20Activity%20%26%20the%20IRS "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Fix%20the%20Tax%20Code%20Friday%3A%20%20Illegal%20Activity%20%26%20the%20IRS "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Fix%20the%20Tax%20Code%20Friday%3A%20%20Illegal%20Activity%20%26%20the%20IRS&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Fix the Tax Code Friday, Individual **Tags:** income-tax, IRS --- ### [Geithner Says "I'm Sorry"](https://www.taxgirl.com/2009/01/22/geithner-says-im-sorry/) **Published:** January 22, 2009 **Author:** Kelly Phillips Erb **Content:** In a hearing before the Senate Finance Committee, Timothy Geithner says he is sorry. Is it enough? The Committee seemed to think so, voting today in favor of his nomination as Treasury Secretary. The final vote was 18-5, with the following Senators voting against Geithner: Chuck Grassley (R-IA); Jon Kyl (R-AZ); Jim Bunning (R-KY); Pat Roberts (R-KS); and Mike Enzi (R-WY). The nomination now goes to the full Senate, where Geithner is expected to be confirmed. What do you think? Is this the right man for the job?[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Geithner%20Says%20%E2%80%9CI%E2%80%99m%20Sorry%E2%80%9D&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Geithner%20Says%20%E2%80%9CI%E2%80%99m%20Sorry%E2%80%9D "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Geithner%20Says%20%E2%80%9CI%E2%80%99m%20Sorry%E2%80%9D "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Geithner%20Says%20%E2%80%9CI%E2%80%99m%20Sorry%E2%80%9D&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Politics **Tags:** economy, Timothy Geithner, Treasury --- ### [Obama's Treasury Pick Under Fire for Tax Liability](https://www.taxgirl.com/2009/01/14/obamas-treasury-pick-under-fire-for-tax-liability/) **Published:** January 14, 2009 **Author:** Kelly Phillips Erb **Content:** In the midst of the current economic crisis, I know that many in Congress were hoping for a smooth transition to a new administration. That may not happen. President-elect Barack Obama’s nomination to head the Treasury Department has hit a roadblock: revelations that Timothy Geithner failed to pay $34,000 in taxes on time. Republicans and Democrats have indicated that the information about back taxes (which were eventually paid) would not necessarily block the nomination. Sen. Orrin Hatch (R-UT) has said he had “no problem” with Geithner while Sen. Charles Grassley (R-IA) called the information “serious, and whether or not it’s disqualifying is to be determined.” With all the buzz, it looks like it won’t be smooth sailing for Geithner at his confirmation hearing. The problem stems from Geithner’s 2001-2004 stint at the International Monetary Fund. Geithner failed to pay SE taxes (self-employment taxes, which are basically the FICA equivalent for an independent contractor or otherwise self-employed person). At an IRS audit in 2006, Geithner repaid the obligation for 2003 and 2004 but did not pay the tax for 2001 and 2002 until 2008. Remarkably, that amount due wasn’t discovered by the IRS at audit, but by Obama’s transition team. Many in Congress believe that the filing omissions were not intentional and that the confirmation hearing will proceed without further problems. Intentional or not, it’s a sure bet that, no matter what Congress is saying now, the hearing will not be easy for Geithner. Geithner formerly worked with the International Affairs division of the U.S. Treasury Department. He later served as an attaché at the U.S. Embassy in Tokyo before working under Treasury Secretaries Robert Rubin and Lawrence Summers. Geithner then served as the director of the Policy Development and Review Department at the International Monetary Fund for the tax years in question. He was later named president of the Federal Reserve Bank of New York. An impressive resume, for sure. But what about the tax issues? It’s not surprising to hear about someone failing to file SE taxes – or other taxes related to self-employment. I see it all the time – just look at my “ask the taxgirl” questions. But most of the time, the folks who make those mistakes are web designers, authors, engineers, and writers… They aren’t people whose entire careers have focused on money management. Timothy Geithner’s career has always been about money, and he’s now on tap to lead the Treasury. He will set the tone for how our country reacts to economic news and tax policy. He will follow in the footsteps of such esteemed Secretaries of the Treasury as Alexander Hamilton, William Gibbs McAdoo, and James Baker (I’ll conveniently leave out Henry “I’ve pulled one over on the American people” Paulson). **Is this really the face that we want as a representative of our economic policy?** Especially in a time of crisis? What do you think?[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Obama%E2%80%99s%20Treasury%20Pick%20Under%20Fire%20for%20Tax%20Liability&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Obama%E2%80%99s%20Treasury%20Pick%20Under%20Fire%20for%20Tax%20Liability "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Obama%E2%80%99s%20Treasury%20Pick%20Under%20Fire%20for%20Tax%20Liability "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Obama%E2%80%99s%20Treasury%20Pick%20Under%20Fire%20for%20Tax%20Liability&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Politics **Tags:** Hatch, Obama, tax policy, Timothy Geithner, Treasury --- ### [Amazon.com Did Not Even "Come Close" In Tax Case](https://www.taxgirl.com/2009/01/14/amazoncom-did-not-even-come-close-in-tax-case/) **Published:** January 14, 2009 **Author:** Kelly Phillips Erb **Content:** With very little fanfare, a tax case in New York may shake up the online world as we know it. In April 2008, New York [passed a new law targeting online sales](https://www.taxgirl.com/holy-zappos-new-york-is-collecting-sales-tax-on-online-sales/) and requiring that online retailers collect and remit sales tax to the state. Amazon.com balked at the new law and later sued the state of New York, alleging violations of the Commerce Clause in the US Constitution and the Due Process and Equal Protection Clauses of the NY and US Constitutions. This week, Amazon.com’s case was dismissed. Manhattan Supreme Court Justice Eileen Bransten ruled that Amazon.com did “not come close” to showing the law was unconstitutional. Justice Bransten found that the new law was sufficiently in line with existing laws requiring retailers to have nexus, or a significant relationship, in the state before imposing sales tax. Amazon.com had argued that associate links were merely advertising. Justice Bransten found otherwise. With a tweak to out-of-state companies, she wrote: “The neutral statute simply obligates out-of-state sellers to shoulder their fair share of the tax-collection burden when using New Yorkers to earn profit from other New Yorkers.” New York legislators must be breathing a sigh of relief. In an already stretched-thin budget, the tax will add about $50 million a year of breathing room. Amazon is considering an appeal, according to reports. Given the strongly worded ruling, I’m guessing any appeal would come only after serious consideration. What does it all mean? I think there will be two significant outcomes: 1. Online retailers will begin to rethink the way that they [do business with affiliates](https://www.taxgirl.com/ask-the-taxgirl-affiliate-advertising-ny-and-amazon/) – especially in a tough economic climate. 2. Other states will jump on the bandwagon. California, anyone? 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Law and the Courts, State and Local Tax (SALT), Tax Policy **Tags:** amazon.com, New-York --- ### [Judge Lengthens Tax Protester’s Sentence](https://www.taxgirl.com/2008/09/08/judge-lengthens-tax-protesters-sentence/) **Published:** September 8, 2008 **Author:** Kelly Phillips Erb **Content:** [Remember Irwin Schiff](https://www.taxgirl.com/those-tired-arguments-still-dont-work/)? He is serving the equivalent of a life sentence for his tax evasion and tax fraud convictions. Though he was only sentenced to 13 years in federal prison, that should more or less be the end for the 80-year-old tax evader. Only it isn’t. A federal judge has sentenced him to an additional 11 months in prison for 15 contempt citations during his trial – 15! At this rate, he may make 100 in prison.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Judge%20Lengthens%20Tax%20Protester%E2%80%99s%20Sentence&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Judge%20Lengthens%20Tax%20Protester%E2%80%99s%20Sentence "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Judge%20Lengthens%20Tax%20Protester%E2%80%99s%20Sentence "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Judge%20Lengthens%20Tax%20Protester%E2%80%99s%20Sentence&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Prosecutions, Felonies and Misdemeanors **Tags:** Irwin Schiff, tax evasion --- ### [Online Charitable Fundraising & Activism](https://www.taxgirl.com/2008/07/19/online-charitable-fundraising-and-activism/) **Published:** July 19, 2008 **Author:** Kelly Phillips Erb **Content:** I attended a great session at BlogHer today about online charitable fundraising and activism. Afterwards, another attendee asked me why I was there. Hmm. Well, a lot of it was because I have an interest on behalf of my nonprofit clients. Online charitable fundraising and activism is changing the face of the nonprofit world, though more slowly than I thought. Another reason that I trekked over to see it was my hopefulness that b5media will continue to participate in charitable causes – our [Blog Off](https://www.taxgirl.com/the-countdown-begins/) was my first foray into online charitable fundraising. It was a great experience. The blogosphere offers tremendous opportunity to raise awareness and money in the nonprofit world – in the same way that for-profit businesses have been doing for years. But there’s still a lot of catching up to do. So here are a few facts that were shared at today’s session that I found interesting: According to Giving USA, charitable giving totaled $300 billion last year. Of that amount, 82% of the dollars were given by individuals – I have to say that I was totally floored by that number. I expected to see a much lower percentage. It’s actually kind of amazing that the corporate giving is so low, don’t you think? Of that, about 1/3 of individual giving comes through faith-based organizations like churches. I expected that number to be higher. Considering the $300 billion in charitable giving, only about 1% comes from online giving. 1%! It’s about $2-3 billion. The session ended with some commentary about why people give. Nonprofit organizations find that people will give for primarily three reasons: 1. Because someone asks (solicitations) 2. When there is a disaster 3. Tax deductions (donations tend to increase at the end of the tax year) Tax policy at work? Of course. I’ve been mulling it over a little bit (the session was just a couple of hours ago), and I’m going to follow up on this later. For now, I’m just kind of digesting. 82% of charitable donations are made by individuals – and they cite tax deductions as a primary reason. Clearly, our tax policy is driving some donations. Just think how much more of an impact there might be with an above-the-line charitable donation (meaning not having to itemize)… More on this later.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Online%20Charitable%20Fundraising%20%26%20Activism&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Online%20Charitable%20Fundraising%20%26%20Activism "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Online%20Charitable%20Fundraising%20%26%20Activism "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Online%20Charitable%20Fundraising%20%26%20Activism&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Charitable Organizations, Individual **Tags:** charitable-donation, tax, tax donation --- ### [Ask The Taxgirl: Divorce & Taxes](https://www.taxgirl.com/2008/04/14/ask-the-taxgirl-divorce-and-taxes/) **Published:** April 14, 2008 **Author:** Kelly Phillips Erb **Content:** ***Taxpayer asks:*** After 17 years and one 12-year-old daughter, I divorced in October 2007. The decree stated we would file jointly for 2007. However, the idiot was not cooperative, and I had no W2’s . (He hasn’t paid child support either) My accountant said I could file for 1/2 of his income. I’m not a stupid woman; in all the paperwork I had collected I found his last paystub. (He quit his job). This doesn’t violate my decree as I believe IRS law is the state you’re in as of the year’s end. I own my home and have my child as a deduction. Do you think I’ll receive a refund? ***Taxgirl says:*** You’re right that your filing status should be your status as of the end of the year. This means that if you were single (or head of household) as of December 31, 2007, you should file as such. [You can read more about filing status here](https://www.taxgirl.com/ask-the-taxgirl-nonresident-spouse/). Clearly, your accountant knows your personal situation better than I do. I highly recommend working with a qualified accountant on this matter. Here’s my gut on this situation: you can’t make your ex-spouse file jointly with you. I’m not sure why the decree said you’d file jointly, given federal law on filing status, but it seems to me the best answer would have been to file with the proper status and split the baby on income and deductions. Regardless of your filing status, I personally wouldn’t include your ex-spouse’s income without a Form W-2. First, a Form W-2 will not always correspond with a pay stub for a lot of reasons – including taxable benefits or additional withholding – so the information that you include may not match what the IRS has on file. If the form W-2 is in your husband’s name, he would be required to file – and you don’t know that he hasn’t already. Additionally, if you’re expecting a refund due to excess withholding, it’s going to be difficult (if not impossible) to get a refund without your ex-spouse’s consent and signature. And not that you’re considering it, but just a warning to ALL folks out there that forging a spouse’s signature on a return is not an option… Consult your accountant about how to proceed. But you might want to consider filing properly for 2007 and returning to court to resolve the financial pieces after the fact. IRS is not going to want to play divorce court – and the result of your attempt to file without the ex-spouse’s consent will likely be more trouble than it’s worth. For more information on divorce and taxes, [you can check out my prior post on the subject](https://www.taxgirl.com/tax-and-the-single-girl/). Good luck. Before you go: be sure to read my [disclaimer](https://www.taxgirl.com/ask-the-taxgirl-disclaimer/). Remember, I’m a lawyer and we love disclaimers. If you have a question, here’s how to [Ask The Taxgirl](https://www.taxgirl.com/ask-the-taxgirl/). 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Ask the Taxgirl **Tags:** ask the taxgirl, divorce, marital status, missing tax forms, w-2 --- ### [Medical & Dental Expenses From A-Z](https://www.taxgirl.com/2008/02/29/medical-and-dental-expenses-from-a-z/) **Published:** February 29, 2008 **Author:** Kelly Phillips Erb **Content:** You know you can deduct the cost of doctor and dentist visits, right? And that you can deduct the cost of parking and transportation to and from those visits? What else is deductible? Check out this handy list: - Abortion - Acupuncture - Alcoholism treatment - Ambulance service - Artificial Limb - Artificial Teeth - Bandages - Breast Reconstruction Surgery (following a mastectomy for cancer) - Birth Control Pills - Braille Books and Magazines - Capital Expenses for home improvements and modifications if their main purpose is medical care - Car modifications for persons with a disability - Chiropractor - Christian Science Practitioner (whew, good for Tom Cruise, no?) - Contact Lenses - Crutches (buy or rent) - Dental Treatment (X-rays, fillings, braces, extractions, and dentures, but not teeth whitening) - Diagnostic Devices (such as glucometers) - Drug Addiction Treatment - Drugs – the prescription kind - Eyeglasses - Eye Examinations - Eye Surgery - Fertility Enhancement (including in vitro fertilization) - Guide Dog or Other Animal for persons with disabilities - Health Maintenance Organization (HMO) payments - Hearing Aids (including batteries) - Home Health Care - Hospital Services - Insurance Premiums - Laboratory Fees - Lead-Based Paint Removal from your home (scraping is okay, repainting is not deductible) - Legal Fees (only for authorization of treatment for mental illness) - Lifetime Care—Advance Payments - Lodging for medical care - Long-Term Care premiums - Qualified Long-Term Care Services - Qualified Long-Term Care Insurance Contracts (note that there are limits) - Medical Conferences primarily for and necessary for medical care - Medical Information Plan - Medicines (prescribed only – except for insulin, which need not be prescribed) - Nursing Home (medical care – not for lodging or personal care) - Nursing Services - Operations if medically necessary (elective cosmetic surgery is not deductible – sorry, Joan Rivers) - Optometrist - Organ Donations and Transplants - Osteopath - Oxygen - Psychiatric Care - Psychoanalysis - Psychologist - Special Education for children with disabilities - Stop-Smoking Programs (does not include nicotine gum or patches) - Surgery - Telephone equipment for the hearing impaired (includes TTY and TDD equipment) - Television equipment for the hearing impaired - Therapy - Transportation (includes bus, taxi, train, or plane fares or ambulance service for patients, parents and nurses) - Trips (if the trip is primarily for, and essential to, receiving medical services) - Vasectomy - Vision Correction Surgery - Weight-Loss Program (only for a specific disease diagnosed by a physician) - Wheelchair - Wig (upon the advice of a physician for the mental health of a patient who has lost all of his or her hair from disease) - X-ray So what’s NOT deductible? - Babysitting, Childcare, and Nursing Services for a Normal, Healthy Baby - Controlled Substances (no tax deduction for buying cannabis even if prescribed by a doctor) - Cosmetic Surgery (elective) - Dancing Lessons, even if for improving health (so sorry, Marie Osmond) - Diapers or Diaper Service - Electrolysis or Hair Removal - Funeral Expenses - Hair Transplant - Health Club Dues - Household Help, even if recommended by a doctor - Illegal Operations and Treatments - Insurance Premiums - Maternity Clothes - Medicines and Drugs From Other Countries (including Canada and Mexico) - Nonprescription Drugs and Medicines - Nutritional Supplements such as vitamins unless they are recommended by a medical professional for a specific medical condition - Personal Use Items such as toothpaste and tampons - Swimming Lessons, even if for improving health - Teeth Whitening - Weight-Loss Program unless it is a treatment for a specific disease diagnosed by a physician You should keep records to substantiate your claims. And remember, this is just a checklist. The expenses listed may be subject to phase-outs, eligibility requirements, and other limitations. If you’re not sure whether these expenses apply to you, ask your tax professional![![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Medical%20%26%20Dental%20Expenses%20From%20A-Z&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Medical%20%26%20Dental%20Expenses%20From%20A-Z "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Medical%20%26%20Dental%20Expenses%20From%20A-Z "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Medical%20%26%20Dental%20Expenses%20From%20A-Z&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual **Tags:** income-tax, medical deduction, Medical expenses --- ### [Ask The Taxgirl: Medicaid & Rebates](https://www.taxgirl.com/2008/02/22/ask-the-taxgirl-medicaid-and-rebates/) **Published:** February 22, 2008 **Author:** Kelly Phillips Erb **Content:** ***Taxpayer asks:*** Would my Mother who is on Medicaid and in a nursing home – be eligible for the stimulus payment? The money would be deposited into her checking account to help by for “extra” things for her at the nursing home. She doesn’t file because the only source of income is SS – 14,300.00. Out of which, we pay the nursing home $10,800 a year and AARP 167.00 every month. I was just wondering would she be eligible for the Tax Rebate since she is on Medicaid at the nursing home. Thanks for answering me back. ***Taxgirl says:*** Thanks for the question. First, your mother (and any other taxpayer) must file in order to receive a rebate. Those taxpayers who do not file will not receive a rebate. So, if she doesn’t normally file and she wishes to receive a rebate, she must file for 2007. Second, Social Security recipients are eligible for the tax rebates. So, under these facts, I’m guessing your mother would receive a rebate as long as she files. The bigger issue is whether she would be entitled to keep the rebate if she lives in a nursing home. Medicaid recipients have income limits and resource limits; even though it’s a federal program, liability and regulations may vary by state. If you have questions, you may want to check with social services. For more information on tax rebate eligibility, [check out my prior post](https://www.taxgirl.com/ok-so-who-doesnt-get-a-rebate/). Before you go: be sure to read my [disclaimer](https://www.taxgirl.com/ask-the-taxgirl-disclaimer/). Remember, I’m a lawyer and we love disclaimers. If you have a question, here’s how to [Ask The Taxgirl](https://www.taxgirl.com/ask-the-taxgirl/). 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Ask the Taxgirl **Tags:** Medicaid, rebate, Social-Security, tax rebate --- ### [BlogHer: Art & Commerce](https://www.taxgirl.com/2007/07/28/blogher-art-and-commerce/) **Published:** July 28, 2007 **Author:** Kelly Phillips Erb **Content:** My BlogHer session is later today. For those of you who couldn’t make it, or for those of you who want a recap, here are some details worth noting: - Anne-Marie Nichols will be live blogging the session, so take a peek at her site for all of the juicy bits - Nina Smith, of Queercents, will be moderating (I met her at the speaker reception and she’s fabulous) - Denise Howell, of Bag and Baggage, will be talking about copyright protection and intellectual property (perhaps I’ll ask her about the rogue “taxgirl” who is floating around posting on the STD message boards) - Liz Gumbinner, creator of Mom-101, will be chatting about marketing, advertising, and blogging. I’m psyched about the session. I have a great panel. I fully expect it to rock. Oh, if that’s not enough excitement, I have handouts. Mostly because I’m a geek, but also because I have an odd attraction to office supplies and things like handouts. Yes, while many of my colleagues were tying one on last night, I was cabbing to the Kinkos. - If you miss the session, have more questions, or just want to say hello, feel free to [email me](mailto:kelly.erb@taxgirl.com). 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Contests and Events, Individual, Small Business **Tags:** BlogHer, deductions, income, tax --- ### ['New' Form 1099-NEC Targeted To Freelancers & Gig Workers](https://www.taxgirl.com/2020/09/15/new-form-1099-nec-targeted-to-freelancers-gig-workers/) **Published:** September 15, 2020 **Author:** Kelly Phillips Erb **Content:** Last year, the Internal Revenue Service [introduced](https://www.taxgirl.com/2019/08/01/move-over-1099-misc-irs-throwback-season-continues-with-form-1099-nec/?doing_wp_cron=1600210028.9019250869750976562500) a draft version of a form that we haven’t seen since 1982: Form 1099-NEC, *Nonemployee Compensation*. Form 1099-NEC is intended to replace the nonemployee compensation part of a form many of us have come to know and love: Form 1099-MISC, *Miscellaneous Income*. Form 1099-MISC is sticking around for other things, like reporting gross proceeds to an attorney, Section 409A deferrals, and nonqualified deferred compensation income. But nonemployee compensation – money paid to freelancers, independent contractors, gig workers, and others that aren’t employees – will now be reported on Form 1099-NEC. ## Who Gets A Form 1099-NEC? The IRS [says](https://www.irs.gov/pub/irs-pdf/i1099mec.pdf) that trades or businesses need to issue Form 1099-NEC if the following four conditions are met: 1. You made the payment to someone who is not your employee. 2. You made the payment for services in the course of your trade or business (including government agencies and nonprofit organizations). 3. You made the payment to someone who is an individual, partnership, estate, or, in some cases, a corporation. 4. You made payments to the payee of at least $600 during the year. ## Making The Changes Why is the form 1099-NEC being (re)introduced? The Protecting Americans from Tax Hikes Act of 2015 ([PATH Act](https://www.govinfo.gov/content/pkg/PLAW-114publ113/html/PLAW-114publ113.htm)), enacted on December 18, 2015, made several changes to how we file taxes. Notably, Section 201 of the PATH Act required taxpayers who claimed the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) to [wait until mid-February](https://www.taxgirl.com/2017/01/24/heres-why-some-tax-refunds-are-delayed-in-2017/) to receive their tax refunds. Of course, taxpayers who claim the EITC and/or the ACTC must have earned wages, typically reported on Form W-2 or – until now – a Form 1099-MISC. Employers were required to furnish those forms to taxpayers by January 31. However, employers could wait until the end of February, if filing on paper, or the end of March, if filing electronically, to submit these forms to the government. That means that taxpayers who filed early could get tax refunds even before the IRS received the related forms from the employers. The result? Room for fraud. Scammers and thieves could file bogus tax returns weeks before the IRS could confirm wage information. That’s why the agency started holding onto the checks a little longer. The PATH Act also required employers to submit Forms W-2 and 1099-MISC to the Social Security Administration (SSA) on January 31, the same date taxpayers receive their documents. By pushing the tax refund issue date to February 15, the IRS has time to match employer forms with taxpayer forms. Problem solved, right? Not exactly. The PATH Act didn’t change the due dates for all Forms 1099-MISC. Remember – it’s a catch-all form. The due date for certain Forms 1099-MISC was January 31, while the due date for other Forms 1099-MISC was February 15. That confused employers and taxpayers, and it was no less confusing for IRS systems and employees. The proposed solution was to bring back Form 1099-NEC to report nonemployee compensation. ## The Slight Hitch It’s not all smooth sailing. This year, the IRS released its updated [Publication 1220, *Specifications for Electronic Filing of Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G*](https://www.irs.gov/pub/irs-pdf/p1220.pdf). Publication 1220 helps employers and tax professionals understand the specifications for filing certain information forms electronically with the IRS, including the requirements under the Combined Federal/State Filing Program (CF/SF). (Stay with me, this will all make sense in a moment…) The CF/SF Program [was created](https://www.irs.gov/taxtopics/tc804) to simplify the filing of information returns. As part of the program, the IRS forwards original and corrected information returns filed electronically to participating states free of charge for approved filers. That means that separate reporting to those states is not required. Information returns that may be filed with the CF/SF Program are: - Form 1099-B, *Proceeds from Broker and Barter Exchange Transactions* - Form 1099-DIV, *Dividends and Distributions* - Form 1099-G, *Certain Government Payments* - Form 1099-INT, *Interest Income* - Form 1099-K, *Payment Card and Third Party Network Transactions* - Form 1099-MISC, *Miscellaneous Income* - Form 1099-OID, *Original Issue Discount* - Form 1099-PATR, *Taxable Distributions Received From Cooperatives* - Form 1099-R, *Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.* - Form 5498, *IRA Contribution Information* Um. It includes Form 1099-MISC, but where is Form 1099-NEC? That’s right. For now, **the CF/SF Program does not include Form 1099-NEC for 2020.** That means Forms 1099-NEC must be filed separately for state purposes. This is important information for some taxpayers who might have relied on the CF/SF Program in the past to forward Form 1099-MISC for nonemployees. For 2021, you’ll have to make other arrangements for the new forms. ## **You May Still Need To File Form 1099-MISC** Also important to know? Even though beginning with tax year 2020, you’ll use the new Form 1099-NEC to report nonemployee compensation, you should not report prior-year nonemployee compensation on Form 1099-NEC. If you need to issue a form to report prior-year nonemployee compensation – for example, you realize that you forgot to report a 2019 payment – you’ll need to use a prior-year Form 1099-MISC. Got it? ## The Round-Up Usually, these technical changes are reserved for tax professionals and tax geeks among us. But these changes will also impact businesses that work with independent contractors and freelancers. And independent contractors and freelancers? You need to know this information, too, so you’ll know which form to look out for (Form 1099-NEC) and when (by January 31 in most years, but in 2021, it will be February 1). The IRS will provide more information about filing requirements for next year (2021) as 2020 draws to a close. Stay tuned! 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Freelancers and Creators, Tax Forms **Tags:** 1099-MISC, 1099-NEC, IRS tax forms, tax forms --- ### [What's Line 11 on Form 1040? Understanding Adjusted Gross Income (AGI)](https://www.taxgirl.com/2026/09/24/whats-line-11-on-form-1040-understanding-adjusted-gross-income-agi/) **Published:** September 24, 2026 **Author:** Kelly Phillips Erb **Excerpt:** Looking for adjusted gross income (AGI) on Form 1040? Find out where to locate it on Line 11a, how it's calculated, and why it matters for your taxes. **Content:** Whether you’re filling out forms for credit checks, FAFSA, or other financial applications, you may be asked about your adjusted gross income, or AGI. For years, you would find AGI on line 11. On the [current Form 1040](https://www.irs.gov/pub/irs-pdf/f1040.pdf), you’ll find AGI on Line 11a at the bottom of the first page. (And, assuming no changes, the [draft Form 1040](https://www.taxgirl.com/2026/09/22/draft-2026-form-1040-adds-new-citizenship-and-work-authorization-question/) indicates you’ll find AGI on Line 11a in 2026, too.) AGI is one of the more important numbers on your tax return. It starts with the income you report for the year and subtracts certain adjustments allowed by the tax code. Your AGI can affect your eligibility for deductions, credits, and other tax benefits, and you may need your prior-year AGI when you electronically file your next tax return. Here’s what it means, how you get there, and why it matters. ## What Is Adjusted Gross Income? Adjusted gross income is generally your total income for tax purposes, reduced by certain adjustments to income. In its simplest form: Total income − adjustments to income = adjusted gross income (AGI) Total income can include wages, salaries, tips, interest, dividends, capital gains, retirement income, business income, and other taxable income. On Form 1040, you combine those amounts to arrive at total income on Line 9. But total income isn’t necessarily your AGI. Before you get there, you may be able to subtract certain adjustments. ## What Adjustments Reduce AGI? Adjustments to income are sometimes called “above-the-line” deductions because you claim them in arriving at AGI. You don’t have to itemize deductions to claim them. Depending on your circumstances, adjustments may include amounts for: - The deductible portion of self-employment tax - Certain contributions to retirement accounts - Health savings account (HSA) contributions - Student loan interest - Certain self-employed health insurance costs - Certain educator expenses Many of these adjustments are calculated on Schedule 1, Additional Income and Adjustments to Income. The total is then carried to Form 1040. Not every taxpayer will have adjustments. If you don’t, your total income and AGI may be the same. ## AGI Is Not the Same as Taxable Income This is where taxpayers can get tripped up. Your AGI is not necessarily the amount of income on which you’ll pay federal income tax. You still have a few adjustments to make. After calculating AGI, you generally subtract your standard deduction or itemized deductions, along with any other applicable deductions, to arrive at taxable income. For example, the new deductions for seniors, tips, overtime, and car loan interest that took effect in 2025 are claimed after you calculate AGI. The same will be true of the new charitable deduction for non-itemizers, which takes effect in 2026. That means you could qualify for one or more of those deductions and reduce your taxable income without changing the AGI reported on Line 11a. Those deductions will, however, change your taxable income, which showed up in 2025 on line 15. ## Why Does AGI Matter? AGI isn’t simply a subtotal on the way to calculating your tax. It’s used throughout the tax code. Your AGI can affect whether you qualify for certain deductions and credits, as well as whether those tax benefits are reduced or eliminated as your income increases. It can also factor into calculations and limitations involving medical expenses, charitable contributions, retirement savings, and other tax provisions. And sometimes the tax code doesn’t use AGI at all. Instead, it uses modified adjusted gross income, or MAGI. ## What’s the Difference Between AGI and MAGI? MAGI generally starts with AGI and then modifies that number—often by adding back certain deductions or exclusions. If that sounds a little like I’m hedging, I am. That’s because there isn’t a single universal MAGI calculation. Different provisions of the tax code can define modified adjusted gross income differently (of course they do, this is tax law, after all). That means the MAGI calculation used to determine eligibility for one tax benefit may not match the calculation used for another. So, if a tax rule refers to MAGI, don’t assume the number on Line 11a is automatically the one you need. Check the rules for that particular tax provision. ## Why Do I Need Last Year’s AGI? There’s another reason taxpayers often go hunting for AGI: electronic filing. When you e-file your federal income tax return, you may be asked for your prior-year AGI as part of the IRS authentication process. In that case, you need the AGI from the prior-year return, not the AGI you’re calculating on the return you’re filing now. If you have a copy of last year’s return, look for adjusted gross income on that year’s Form 1040. Since line numbers can change, it’s better to look for the description rather than assume AGI will always appear on the same line. If you don’t have a copy of your prior-year return, you may be able to find the information on an IRS tax transcript. You can view your transcript online with an IRS online account (I recommend everyone sign up for one—[here’s how](https://www.taxgirl.com/2026/07/25/how-to-create-and-use-an-irs-online-account/)). And remember: if you’re looking at an older Form 1040, the line number may be different. Check the tax year on the form before using it to locate your AGI. ## The Bottom Line You may not spend much time thinking about AGI after you file your return, but the tax code does. It shows up again and again in rules governing deductions, credits, contribution limits, and other tax benefits. Knowing where to find it—and what went into calculating it—can make the rest of your tax return a little easier to understand. And if you remember AGI being on Line 11 rather than Line 11a, your memory is fine. The form changed. The underlying concept didn’t.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=What%E2%80%99s%20Line%2011%20on%20Form%201040%3F%20Understanding%20Adjusted%20Gross%20Income%20%28AGI%29&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2026%2F09%2F2026-09-24-at-90317-pm.png&p%5Btitle%5D=What%E2%80%99s%20Line%2011%20on%20Form%201040%3F%20Understanding%20Adjusted%20Gross%20Income%20%28AGI%29 "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=What%E2%80%99s%20Line%2011%20on%20Form%201040%3F%20Understanding%20Adjusted%20Gross%20Income%20%28AGI%29 "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=What%E2%80%99s%20Line%2011%20on%20Form%201040%3F%20Understanding%20Adjusted%20Gross%20Income%20%28AGI%29&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual, Tax Forms **Tags:** Adjusted Gross Income, AGI, Line 11 on Form 1040, Line 11a on Form 1040 --- ### [IRS Releases Form 1040 for the 2020 Tax Year](https://www.taxgirl.com/2020/12/11/irs-releases-form-1040-for-2020-tax-year/) **Published:** December 11, 2020 **Author:** Kelly Phillips Erb **Excerpt:** The IRS has released Form 1040 for 2020. Here’s what’s new, including changes for stimulus payments, cryptocurrency, charitable contributions, and tax deferrals. **Content:** (Note to readers: I love that you’re here! Just a quick note that this is an explainer for the 2020 Form 1040. If you’re looking for a draft of the 2027 Form 1040, you’ll find it [here](https://www.taxgirl.com/2026/09/22/draft-2026-form-1040-adds-new-citizenship-and-work-authorization-question/).) The IRS has released the very-probably-unless-Congress-does-something-soon final version of Form 1040, *U.S. Individual Income Tax Return* for 2020. Several notable changes to the form are proposed for tax year 2020, the tax return you’ll file in 2021. ## Page One ![Form 1040 page 1](https://www.taxgirl.com/wp-content/uploads/2021/01/Screen-Shot-2021-01-10-at-3.08.56-PM-1200x1198.png) **Identifying information.** The identification portion of Form 1040 has no real changes: this is where you list your name, address, Social Security Number (or ITIN), and filing status. **Virtual currency.** As expected, a question about virtual currency remains at the top of Form 1040. A new cryptocurrency compliance measure for taxpayers was introduced in 2019 as a checkbox at the top of Schedule 1, *Additional Income and Adjustments to Income*. Schedule 1 reports income or adjustments to income that can’t be entered directly on the front page of Form 1040. ![Form 1040 crypto question](https://www.taxgirl.com/wp-content/uploads/2021/01/Screen-Shot-2021-01-10-at-3.09.05-PM-1200x513.png) I noted [last year ](https://www.taxgirl.com/2020/06/28/taxes-from-a-to-z-2020-c-is-for-cryptocurrency-reporting/)that the IRS has made no secret that it believes that taxpayers are not correctly reporting cryptocurrency transactions. An IRS dive into the data showed that for the 2013 through 2015 tax years, when the IRS matched data collected from Form 8949, *Sales and Other Dispositions of Capital Assets*, which were filed electronically, they found that just 807 individuals reported a transaction using a property description likely related to bitcoin in 2013; in 2015, the number fell to 802. This, despite a clear uptick in cryptocurrency use and trading. The IRS made cryptocurrency compliance one of its target issues for 2021, so expect this box to get a lot of scrutiny. **Standard Deductions and Dependents.** This routine information and layout remain the same (only the standard deduction amounts have changed). **Charitable contributions.** Because of the CARES Act, charitable cash contributions of up to $300 are temporarily above-the-line deductions. That means you don’t have to itemize to deduct your charitable contribution. *And yes, the $300 limit is per return, so a married couple can deduct only $300 total.* **Income items.** Outside of the adjustments to income, income reconciliation doesn’t differ much. We’ll just have to get used to yet another line number for taxable income (it’s now line 15). ## Page Two ![Form 1040 page 2](https://www.taxgirl.com/wp-content/uploads/2021/01/Screen-Shot-2021-01-10-at-3.09.19-PM.png) **Tax, Credits, and Deductions.** One thing that jumps out immediately is that the “Federal income tax withheld from Forms W-2 and 1099” line has now been divided into separate lines (lines 25(a)-(c)) for withholding for Forms W-2, 1099, and “other forms.” This suggests increased scrutiny for self-employed and gig workers. Also keep in mind the new Form 1099-NEC (Nonemployee Compensation), which will replace Form 1099-MISC for gig workers and independent contractors. You can find out [more here](https://www.taxgirl.com/2019/11/29/irs-introduces-newish-form-to-replace-parts-of-form-1099-misc/). You’ll also post any estimated tax payments and amounts carried forward from last year’s return (if any) on line 26. This is new and *much* simpler: previously, estimated tax payments were lumped in together on line 18 after you figured the amounts on Schedule 3. **Stimulus Checks.** A separate reconciliation schedule for stimulus checks will carry over to page two of your Form 1040. You’ll see it on line 30: Recovery rebate credit. If you didn’t receive the correct amount in your stimulus check in 2019 (for example, you made too much money in 2019 or you had a child in 2020), you’ll make those adjustments on line 30. The instructions will include a worksheet that you can use to figure out what you’re owed. The maximum credit is $1,200 ($2,400 if married filing jointly) plus $500 for each qualifying child. The instructions aren’t out just yet, but you can get a sense of what you’ll need to know by checking out the draft instructions. **Refunds.** Aside from some renumbering, the refund sections haven’t changed. **Amount You Owe.** Usually, figuring the amount you owe is pretty simple: it’s tax due less credits and payments. But there’s a new line for 2020 which notes: *Schedule H and Schedule SE filers, line 37 may not represent all of the taxes you owe for 2020. See Schedule 3, line 12e, and its instructions for details.* And yes, Schedule 3, line 12e, is new. It says: *Deferral for certain Schedule H or SE filers (see instructions).* That deferral? Under the CARES Act, employers may defer depositing and paying the employer’s portion of Social Security taxes. The deferral applies to deposits and payments of the employer’s share of Social Security tax that would otherwise be required to be made during the period beginning on March 27, 2020, and ending December 31, 2020, with half being due on December 31, 2021, and the remainder due on December 31, 2022. What does that have to do with Form 1040? **The relief also applies to self-employed persons.** ## Other Information **IP PIN.** The spot for an IP PIN isn’t new, but more taxpayers may be paying attention this year because they can opt in. **Numbered and Lettered Schedules.** Form 1040 still has lettered schedules (like Schedule A, *Itemized Deductions*) and numbered schedules (like Schedule 1, *Additional Income and Adjustments To Income*). **New Schedule LEP.** A new schedule, Schedule LEP, lets you request a change *in Language Preference*. Schedule LEP lets taxpayers request written communications from the IRS in a language other than English. The draft instructions suggest that you can choose from 20 languages, including French, Spanish, Japanese, and Farsi. **Form 1040-SR.** For 2020, if you were born before January 2, 1956, you have the option to use Form 1040-SR, *U.S. Tax Return for Seniors*. Expect more information as the IRS continues to update forms for what promises to be an interesting tax season! 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Tax Forms **Tags:** 1040 draft, form 1040 --- ### [Legal Meltdown: Was Dewey Too Big To Fail?](https://www.taxgirl.com/2012/05/04/legal-meltdown-was-dewey-too-big-to-fail/) **Published:** May 4, 2012 **Author:** Kelly Phillips Erb **Content:** Guaranteed $5 million pay packages with no strings. Borrowing from a number of banks to stay afloat. Lavish corporate offices. Unchecked spending. Questionable financials. Another Wall Street meltdown? Not quite. This one is a law firm. And it’s huge. Until recently, Dewey & LeBoeuf, LLP (formerly the separate firms of Dewey Ballantine and LeBoeuf, Lamb, Greene & MacRae, now just referred to as “Dewey”) was one of the largest law firms in the world. Earlier this year, the firm touted more than 1,100 lawyers in 26 offices; it was considered one of the largest law firms in New York City and one of the largest US firms located in London. A few years ago, Dewey lawyers were making news advising on Walt Disney’s $4 billion cash and stock acquisition of Marvel Entertainment and successfully defending Dallas Mavericks owner Mark Cuban against insider trader accusations. Now, they are packing up their offices and running from what many in the legal community have called “chaos.” When a public company melts down, the market generally reacts. The price per share of stock tends to fall, and investors can, if they think the company is worth saving, rush in and “rescue” the company by buying up those shares. Depending on the nature of the company, it can be taken apart and sold off (think about Richard Gere’s job in *Pretty Woman*), or some assets can simply be liquidated in order to pay off debts. But that’s not what happens in a law firm. There are no public investors. And there is generally no incentive for another firm to “rescue” a struggling one. And there are no assets to liquidate: the assets are the people who work at a firm. And the very real problem with law firms is that, at any moment, those people can get up and simply walk away. That’s exactly what’s happening to Dewey. As of last night, the firm’s web site indicated that the number of partners at Dewey stood at about half of what it was a few months ago, with defections happening every day. There have been whispers about Dewey for months now. It was clear that the firm’s financials weren’t as solid as they were said to be. While revenues were publicly stated to be about $1 billion, those financials were eventually adjusted down by a jaw-dropping quarter billion dollars. Even as profits were falling, partners in the firm were pocketing big dollars. Many Dewey partners had pay packages worth several million dollars that were guaranteed – even if the partner wasn’t profitable. As guaranteed paychecks were doled out, Dewey reportedly couldn’t manage its debt load. Despite its struggles, banks continued to lend to the firm, with guaranteed credit worth [a reported $100 million issued by JPMorgan Chase, Citigroup, Bank of America and HSBC](http://blogs.wsj.com/law/2012/04/24/dewey-faces-debt-deadline/). The firm’s reputation took an even bigger hit last month when it was disclosed that the firm’s then-acting chairman, Steven Davis, was under investigation by the Manhattan District Attorney’s Office on grounds of “financial irregularities.” Davis was subsequently voted out of all leadership positions in the firm. Davis has, as expected, denied any wrongdoing. The good news for partners at the firm is that they received their guaranteed April “draws” in the neighborhood of $25,000 so long as they get their time in. The bad news is that it may be the last check many receive. While the firm has said, that it has no plans to file for bankruptcy, *The AmLaw Daily* is reporting that Dewey’s doors will close on May 15. There’s no doubt that many of the partners will land on their feet. Many have already fled to firms like Morgan Lewis and White & Case. But it’s a grim job market for lawyers. Finding a new home for more than 1,000 lawyers won’t be easy. And finding a new home with guarantees similar to those touted by Dewey will be nearly impossible. Dewey had existed in some form for nearly a century. It was a stalwart in the legal world, one of a number of firms that rolled off your tongue when asked about “BigLaw.” So when we heard about the implosion, it felt a little crazy at first. This kind of thing isn’t supposed to happen in “BigLaw” – I think we all kind of bought into the notion that some firms, like banks on Wall Street, were too big to fail. It was the little firms that were supposed to crumble. But then I remembered Brobeck, Phleger & Harrison, LLP and Wolf Block, LLP. I thought about Howrey LLP and Heller Ehrman, LLP. And I recalled the spectacular downfall that was Drier LLP (so spectacular, in fact, that [Hollywood made a movie about it](http://www.jdjournal.com/2012/02/28/movie-on-infamous-marc-dreier-of-drier-llp-to-hit-theaters/)). As lawyers, we make our living fixing other problems. It’s an odd thing to watch a law firm be so caught up in its own – arguably dysfunctional – culture that it can’t fix its own problems. Banks and automotive industries call in lawyers to right the ships when they were going down: so who do lawyers call? The answer is obviously other lawyers. But in a profession increasingly caught up in tradition and appearances, at a time when our world is changing so quickly, I question whether legal culture can still offer a suitable response.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Legal%20Meltdown%3A%20Was%20Dewey%20Too%20Big%20To%20Fail%3F&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Legal%20Meltdown%3A%20Was%20Dewey%20Too%20Big%20To%20Fail%3F "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Legal%20Meltdown%3A%20Was%20Dewey%20Too%20Big%20To%20Fail%3F "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Legal%20Meltdown%3A%20Was%20Dewey%20Too%20Big%20To%20Fail%3F&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Law and the Courts, Law School, Tax Professionals **Tags:** bankruptcy, Dallas Mavericks, Dewey, Dewey & LeBoeuf, Dewey Ballantine, JPMorgan Chase, law firm, legal profession, Mark Cuban, New-York-City, Steven Davis, Wall Street --- ### [IRS Is Limiting Operations Due To COVID-19 Crisis](https://www.taxgirl.com/2020/03/27/irs-is-limiting-operations-due-to-covid-19-crisis/) **Published:** March 27, 2020 **Author:** Kelly Phillips Erb **Content:** Some Internal Revenue Service (IRS) call centers and services are temporarily shutting down in response to COVID-19. COVID-19 is the official name for the infectious disease caused by the most recently discovered coronavirus. [According to Johns Hopkins](https://coronavirus.jhu.edu/map.html), as of March 27, 2020, there are 593,291 confirmed cases of COVID-19 in 176 territories and countries. The United States has 101,657 confirmed cases with reported cases in every state. As a result, the President of the United States issued an emergency declaration under the [Robert T. Stafford Disaster Relief and Emergency Assistance Act](https://www.fema.gov/media-library/assets/documents/15271). And, Governors in several states have issued stay-at-home orders and ordered non-essential businesses to close. That includes many federal employees. For example, Social Security offices are closed to the public for in-person service. The IRS is following suit. A notice on the IRS website [declares](https://www.irs.gov/coronavirus), “In response to the national emergency and to protect our employees, America’s taxpayers, communities and our partners, the IRS has temporarily closed all Taxpayer Assistance Centers and discontinued face-to-face service throughout the country until further notice. The IRS is continuing to process tax returns, issue refunds, and help taxpayers to the greatest extent possible.” The IRS subsequently [advised in a tweet](https://twitter.com/IRSnews/status/1242813894525169673) on March 25, 2020: > To ensure the safety and health of [\#IRS](https://x.com/hashtag/IRS?src=hash&ref_src=twsrc%5Etfw) employees and taxpayers, all Taxpayer Assistance Centers are temporarily closed in response to the [\#COVID19](https://x.com/hashtag/COVID19?src=hash&ref_src=twsrc%5Etfw) outbreak. Nearly every tax issue can now be resolved online. Please find tools and resources at <https://t.co/O58xEUkGZu> > > — IRSnews (@IRSnews) [March 25, 2020](https://x.com/IRSnews/status/1242813894525169673?ref_src=twsrc%5Etfw) Earlier this week, tax professionals confirmed that the IRS is not answering phones at the Offer In Compromise Unit and the Practitioner Priority Service. A message on the OIC Unit advises that “Live telephone assistance is not available at this time.” Now, the IRS has confirmed that “Due to staff limitations, the Practitioner Priority Service (PPS) line, the e-Services Help Desk line and the e-Services, FIRE and AIR system help desks are closed until further notice.” As a result, IRS suggests that you “Please make [IRS.gov](http://irs.gov/) your first option for answers to questions.” Additionally, the IRS is temporarily suspending acceptance of new Income Verification Express Services (IVES) requests and you can expect delays with existing IVES processing. There are also delays in Centralized Authorization File (CAF) number authorizations (notice how I didn’t make a snarky comment there suggesting the latter isn’t out of the ordinary). There’s more. All [AARP Foundation Tax-Aide services](https://www.aarp.org/money/taxes/aarp_taxaide/) and most IRS Volunteer Income Tax Assistance (VITA) program sites have closed. Additionally, [all Taxpayer Assistance Centers (TACs) are closed](https://www.irs.gov/help/telephone-assistance) until further notice. For taxpayers with open Taxpayer Advocate Service (TAS) cases, the IRS is advising taxpayers and practitioners to call their local TAS office directly. The TAS [tweeted](https://twitter.com/YourVoiceAtIRS/status/1243228806674087936): > Alert: Due to the [\#COVID19](https://x.com/hashtag/COVID19?src=hash&ref_src=twsrc%5Etfw) national emergency, [@YourVoiceAtIRS](https://x.com/YourVoiceAtIRS?ref_src=twsrc%5Etfw)'s toll-free phone line is temporarily suspended. [\#Taxhelp](https://x.com/hashtag/Taxhelp?src=hash&ref_src=twsrc%5Etfw) is still available by telephone. Use the state locator tool at <https://t.co/AYBrYJRt10> to find the local phone number available in your state. > > — Taxpayer Advocate Service (@YourVoiceAtIRS) [March 26, 2020](https://x.com/YourVoiceAtIRS/status/1243228806674087936?ref_src=twsrc%5Etfw) And those stimulus payment questions? You’ll have to wait on IRS to answer those, too. A notice to practitioners advises that “Additionally, the IRS is unable to answer any questions as yet on stimulus payments. Normal operations will resume as soon as possible. Please check [IRS.gov](http://irs.gov/) for updates.” Some of the closures may be frustrating for taxpayers, but there is a silver lining: collection and enforcement actions are limited. Relief ranges from suspending installment agreements payments (you have to make the arrangements) to postponing compliance actions like levies. Audits are also on hold. And there’s some good news: The IRS will continue to work refund claims where possible, without in-person contact, and issue tax refunds. You can check the IRS  [“Get Refund Status” tool](https://sa.www4.irs.gov/irfof/lang/en/irfofgetstatus.jsp) for refund updates. Eventually, things will get back to normal. In the meantime, be prepared for extended wait times for calls and correspondence. Be proactive and patient. 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Collections, IRS News **Tags:** collections, COVID-19, installment agreement --- ### [IRS Begins Closing Offices Due To COVID-19](https://www.taxgirl.com/2020/03/23/irs-begins-closing-offices-due-to-covid-19/) **Published:** March 23, 2020 **Author:** Kelly Phillips Erb **Content:** (Updated: March 25, 2020) The Internal Revenue Service (IRS) isn’t shutting down completely – but it’s getting close. Some IRS call centers and return processing centers are closing in response to COVID-19. On March 13, 2020, the President of the United States issued an emergency declaration under the [Robert T. Stafford Disaster Relief and Emergency Assistance Act](https://www.fema.gov/media-library/assets/documents/15271). Additionally, several Governors have issued stay-at-home orders. For example, Pennsylvania Governor Tom Wolf released an executive order declaring that all “non-life-sustaining” businesses must close their physical locations in Pennsylvania due to the COVID-19 crisis. Consequently, many tax, accounting, and law offices are closing (including mine) to work remotely. And the National Treasury Employees Union (NTEU), the nation’s largest independent union of federal employees – including IRS employees – has confirmed that IRS offices in Pennsylvania are closing. California Governor Gavin Newsom has also issued stay-at-home orders. The result is that some IRS offices in California are closing. Individual workers have confirmed these closures. The IRS has not yet returned my request for comment on closing additional call centers and offices. However, a notice on the IRS website [declares](https://www.irs.gov/coronavirus), “In response to the national emergency and to protect our employees, America’s taxpayers, communities and our partners, the IRS has temporarily closed all Taxpayer Assistance Centers and discontinued face-to-face service throughout the country until further notice. The IRS is continuing to process tax returns, issue refunds and help taxpayers to the greatest extent possible.” Anecdotally, tax professionals have confirmed that the IRS is not answering phones at the Offer In Compromise Unit and the Practitioner Priority Service. A message on the OIC Unit advises that “Live telephone assistance is not available at this time.” The IRS Taxpayer Advocate Service [advised](https://www.irs.gov/taxpayer-advocate), “The Taxpayer Advocate Service (TAS) wants you to know that the safety and concern for our taxpayers and employees continues to be our highest priority. Currently, TAS remains open to receive phone calls at the local phone numbers [listed here](https://taxpayeradvocate.irs.gov/contact-us) but due to the coronavirus TAS is suspending walk-in services until further notice. If you have an open TAS case and need assistance, please reach out to your assigned Case Advocate by phone.” As of March 24, the IRS is advising taxpayers and practitioners to call their local TAS office directly. Specifically, [IRS.gov](http://irs.gov/) webpage describing the current status of operations contains the following blurb: > Taxpayer Advocate Service. Currently, TAS remains open to receive phone calls at the local phone numbers but has suspended walk-in services in their offices and their toll-free centralized number is unavailable until further notice. Please visit taxpayeradvocate.irs.gov to locate your local office phone number. The IRS subsequently [advised in a tweet](https://twitter.com/IRSnews/status/1242813894525169673) on March 25, 2020: > To ensure the safety and health of [\#IRS](https://x.com/hashtag/IRS?src=hash&ref_src=twsrc%5Etfw) employees and taxpayers, all Taxpayer Assistance Centers are temporarily closed in response to the [\#COVID19](https://x.com/hashtag/COVID19?src=hash&ref_src=twsrc%5Etfw) outbreak. Nearly every tax issue can now be resolved online. Please find tools and resources at <https://t.co/O58xEUkGZu> > > — IRSnews (@IRSnews) [March 25, 2020](https://x.com/IRSnews/status/1242813894525169673?ref_src=twsrc%5Etfw) NTEU National President Tony Reardon confirmed the closures in a statement, saying, “IRS is working to implement workplace changes to address the COVID-19 pandemic, but with the outbreak rapidly evolving, they are not enough. The positive developments include: closing call sites and moving those employees to telework; closing Taxpayer Assistance Centers and moving that work to the telephones; ending walk-ins at Taxpayer Advocate Offices; extending weather and safety leave to employees considered high risk under CDC guidelines; expanding telework; closing offices in “hot spot” areas locations; and halting all face-to-face field work for revenue agents and revenue officers.” However, Reardon remains concerned that these efforts may not be enough, saying, “NTEU remains troubled about large numbers of employees still reporting to work contrary to the recommended gathering sizes; the inability to enact safe social distancing in these environments; and the lack of essentials necessary to sanitize hands and work surfaces.” In response, Reardon says, “We continue to call for the closure of all federal buildings where 50 or more federal employees work, including IRS facilities.” And that’s not all. Remember the extension to July 15, 2020? The NTEU believes that there should be more time, declaring, “The three-month extension of the tax-filing deadline should be extended to October 15, 2020. This would further assist taxpayers allowing them additional time in light of this pandemic and help alleviate the intense anxiety that IRS employees are experiencing over continuing to report to work in crowded offices. A broader shutdown of the IRS would give the agency time to clean all facilities and prepare to bring back those employees essential to issuing refunds to taxpayers and stimulus checks, as needed.” What does all of this mean? Clearly, be prepared for extended wait times for calls and correspondence. I would recommend you be P&P: proactive and patient. (And at this rate, P may also stand for Patron…) [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=IRS%20Begins%20Closing%20Offices%20Due%20To%20COVID-19&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2020%2F05%2Fclose-up-photo-of-closed-signboard-1706020.jpg&p%5Btitle%5D=IRS%20Begins%20Closing%20Offices%20Due%20To%20COVID-19 "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=IRS%20Begins%20Closing%20Offices%20Due%20To%20COVID-19 "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=IRS%20Begins%20Closing%20Offices%20Due%20To%20COVID-19&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** IRS News **Tags:** COVID-19, IRS closures --- ### [Ask The Taxgirl: Social Security Numbers & Dependents](https://www.taxgirl.com/2013/01/29/ask-the-taxgirl-social-security-numbers-and-dependents/) **Published:** January 29, 2013 **Author:** Kelly Phillips Erb **Content:** ***Taxpayer asks:*** I have a child that moved in with me from Canada in July and I do not have a Social Security number for him how do I go about claiming him on my taxes? ***Taxgirl says:*** You generally need a Social Security Number (SSN) to claim a dependent on your federal income tax return. If you do not have a Social Security Number for your dependent, and your dependent qualifies for a Social Security Number, you need to file Form SS-5, *Application for a Social Security Card*, with the Social Security Administration (SSA). According to the IRS, it usually takes about two weeks to get the SSN once you’ve submitted all of the information. Since it’s so early in the tax season, you ought to be able to get the SSN in time to file your tax return timely. If you don’t have the SSN by April 15, you can always request an extension of time to file your return. If your dependent does not qualify for an SSN, you may be able to apply for an individual taxpayer identification number (ITIN) for your dependent. To do this, use [federal Form W­7, *Application for IRS Individual Taxpayer Identification Number*](https://www.irs.gov/pub/irs-pdf/fw7.pdf). You’ll file Form W-7 with the Internal Revenue Service; note that this is different from SS-5, which is filed with the Social Security Administration. If you cannot get an SSN or an ITIN, and the child is in your home as part of a legal adoption, you must get an adoption tax­payer identification number (ATIN). You’ll use federal Form W-7A[, *Application for Taxpayer Identification Number for Pending U.S. Adoptions*](https://www.irs.gov/pub/irs-pdf/fw7a.pdf). Like Form W-7, you request this number directly from the IRS. Hopefully, one of those options will work for you. — Be sure to read [my disclaimer](https://www.taxgirl.com/blog-info-2/notice-and-disclaimer/)… Remember, I’m a lawyer, and we love disclaimers. But you know who loves them more? My malpractice carrier. Consider yourself warned.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Ask%20The%20Taxgirl%3A%20Social%20Security%20Numbers%20%26%20Dependents&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Ask%20The%20Taxgirl%3A%20Social%20Security%20Numbers%20%26%20Dependents "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Ask%20The%20Taxgirl%3A%20Social%20Security%20Numbers%20%26%20Dependents "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Ask%20The%20Taxgirl%3A%20Social%20Security%20Numbers%20%26%20Dependents&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Ask the Taxgirl, International, Tax Forms **Tags:** ask the taxgirl, dependent, Social-Security, SSN --- ### [A Note About Spam](https://www.taxgirl.com/2009/06/03/a-note-about-spam/) **Published:** June 3, 2009 **Author:** Kelly Phillips Erb **Content:** Earlier in the week, I received an email about spam, and I just wanted to take a moment or two to re-emphasize my thoughts on spam and your privacy. Like most bloggers, I use a service to send out feeds via RSS and email. The most popular service is Feedburner, which is what I use at taxgirl.com. Feedburner was acquired last year by Google in what is clearly Google’s attempt to take over the world. More or less, Google requires opt-in consent for third-party email, so you won’t get on a mailing list by simply providing your email for a feed like mine. In other words, subscribing to my email feed does not equal solicitations! I’ve noticed an uptick in spam on all of my accounts this spring – from Gmail and Mac (both of which normally have great filters) to erblaw and taxgirl. Estimates are that more than 80% of all email received is spam. Nice, huh? I just wanted to put your mind at ease that your email address is safe with me – I don’t do a thing with it – and with Feedburner. Unfortunately, spammers exist and they will spoof, steal headers, phish, etc. as much as they can until they are stopped. I hate it, too. Trust me. You can read more about [how much I hate spam](https://www.taxgirl.com/blog-info-2/privacy-policy/) here.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=A%20Note%20About%20Spam&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=A%20Note%20About%20Spam "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=A%20Note%20About%20Spam "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=A%20Note%20About%20Spam&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Site Info **Tags:** Google, spam --- ### [Philadelphia Counts Down To Pope's Visit As Rental Prices Keep Climbing](https://www.taxgirl.com/2015/07/21/philadelphia-counts-down-to-popes-visit-as-rental-prices-keep-climbing/) **Published:** July 21, 2015 **Author:** Kelly Phillips Erb **Content:** Philadelphia is rolling out the red carpet in September 2015 in preparation for the Pope’s visit. It’s not only Pope Francis’ first time in Philadelphia but also his first official visit to the U.S. While the Pope will also be making stops in Washington, D.C. and New York City, the [focus of his visit](http://www.usccb.org/about/leadership/holy-see/francis/papal-visit-2015/2015-papal-visit-schedule.cfm) is the City of Brotherly Love, where he will be offering Mass for the conclusion of the World Meeting of Families. Pope Francis’ agenda includes a Saturday Mass at the Cathedral Basilica of SS Peter and Paul (this event is not open to the public). That same day, Pope Francis will also speak at Philly’s Independence Hall about religious freedom and immigration to an [estimated crowd](http://www.popefrancisvisit.com/schedule/visit-to-independence-mall/) of 50,000, where he may greet crowds. The big event, however, will be on Sunday, when Pope Francis will hold Mass on the Benjamin Franklin Parkway. The Mass, which is open to the public, will be held outside the Philadelphia Art Museum, and folks are expected to line up along the mile-long avenue. Estimates for the crowd hoping to take Mass on the Parkway have ranged from thousands to millions. If similar events are any indication, the latter is likely: in January, Vatican spokesman Father Federico Lombardi reported that [between six and seven million](http://www.reuters.com/article/2015/01/18/us-pope-philippines-idUSKBN0KQ0TX20150118) people attended a Mass held by the Pope in Manila. There are approximately the [same number of Catholics](http://www.pewresearch.org/fact-tank/2015/01/09/5-facts-about-catholicism-in-the-philippines/) in the Philippines as in America, with [76.7 million people](http://www.pewresearch.org/fact-tank/2014/11/06/the-number-of-u-s-catholics-has-grown-so-why-are-there-fewer-parishes/) in the U.S. identifying as Catholic in 2014. Realistically, nobody knows for sure how many visitors to expect. But consider this: a special website selling Southeastern Pennsylvania Transportation Authority (SEPTA) Regional Rail passes for the Pope’s visit was forced to shut down less than two hours after it opened yesterday because of web traffic that was “significantly higher than anticipated.” How much higher? According to SEPTA, “During a 10-minute period after the sales site launched at 9 a.m., we received approximately 900,000 visits, and approximately 1,700 transactions were attempted per second.” And where are all of these people staying? Not in hotels. Philadelphia boasts just 11,200 hotel rooms in Center City and 35,000 hotel rooms in the region. That means that visitors hoping to see the Pope are relying on rentals. For months now, those who live in Philadelphia have been offering spots in their homes – at a price – for those traveling to see the Pope. Listings ranging from one room to entire houses abound on Craigslist and other online sites. There’s even a Facebook page advertising rentals: Popedelphia. For those looking for something a little more official, listings on the popular rental site Airbnb are topping upwards of $4,000 per night for a chance to stay near the Parkway. One Rittenhouse apartment is even listed for $6,786 per night, although the average listing price, so far, is $733 per night for a spot inside the City. Perhaps not so coincidentally, a new law was just pushed through this summer making Airbnb legal – and taxable – in the City. All of this adds up to a lot of money changing hands over the next several weeks. While some companies – like Airbnb – make it easy to figure out sales taxes on stays, it’s clear that many homeowners are hoping that the cash-strapped city merely looks the other way when it comes to rentals. But what about the feds? Money that you receive for the use of real estate – even if it’s your personal residence – is generally taxable to you as rental income. And it’s not only rental payments that might be reportable on your tax return. Income is income. So, you would also include any amounts paid by a prospective renter to cancel the lease; security deposits (to the extent that you retain those; if you return the deposit to the renter, it’s not reportable); advance rents; and expenses (including utilities and the like) paid by the renter. Income is reported in the year it’s received. For deduction purposes, the same timing rules apply: you report and claim deductions as they are paid. Real estate-related deductions would include repairs (but not additions or improvements) and operating expenses. Be aware, however, that you can’t deduct everything related to the stay: deductions related to the rental of your main residence may be limited. You can also claim a depreciation expense for rental real estate but realistically, the depreciation of a property rented for a week or two likely isn’t worth it. It’s also important to note that getting stiffed may stink, but it’s not a taxable event. Cash-basis taxpayers can’t deduct anticipated losses: in other words, if there’s a no-show or a non-payer, you cannot deduct those uncollected rents since you haven’t previously included those rents in income (the rules are different for accrual-based taxpayers). It’s easy to think of it this way: you can generally only deduct expenses or losses for which you paid money out of pocket. For the most part, income and expenses related to real estate rentals are reported on federal Form 1040, Schedule E. If you are providing additional services for renters, like offering to show your guests the town for a fee, those might be includible somewhere else, likely on a Schedule C or on line 21 as “other income.” But. And it’s a big but. Before you start dragging out those green ledger sheets, here’s your mind-blowing “Get Out Of Jail Free” card: if you rent your personal residence for fewer than 15 days, **you do not report any of the rental income.** It doesn’t matter what the dollars look like. It’s determined by the number of days, not the number of zeros. That said, be smart: if you are exempt from reporting the income, that means that you do not deduct any expenses as rental expenses. Don’t be greedy. The opposite is also true. If you rent your home for 15 days or more during the year, you would include all your rental income in your income (it also means that you can claim those expenses). That doesn’t mean 15 consecutive days, it’s an aggregate. So count carefully. Keep in mind that *these are the federal rules.* State and local rules do not necessarily follow. You’ll want to read up on rules for permits, licenses and taxes. Of course, I’m also assuming that you’re planning on a temporary rental of your personal residence. The Pope is only in town for so long. If you’re planning to extend your rental or if the property doesn’t qualify as a personal residence, take note that the rules are very different for second homes and vacation rentals or business rentals. Be sure to check with your tax professional for the scoop on those.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Philadelphia%20Counts%20Down%20To%20Pope%27s%20Visit%20As%20Rental%20Prices%20Keep%20Climbing&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Philadelphia%20Counts%20Down%20To%20Pope%27s%20Visit%20As%20Rental%20Prices%20Keep%20Climbing "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Philadelphia%20Counts%20Down%20To%20Pope%27s%20Visit%20As%20Rental%20Prices%20Keep%20Climbing "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Philadelphia%20Counts%20Down%20To%20Pope%27s%20Visit%20As%20Rental%20Prices%20Keep%20Climbing&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual, Pop culture **Tags:** Air BnB, Pope Francis, rental income, temporary rental --- ### [Out Of Ideas And In Debt, Spain Sets Sights On Taxing The Sun](https://www.taxgirl.com/2013/08/19/out-of-ideas-and-in-debt-spain-sets-sights-on-taxing-the-sun/) **Published:** August 19, 2013 **Author:** Kelly Phillips Erb **Excerpt:** Spain is generating so much solar power, according to its government, that production capacity exceeds demand by more than 60%. To solve the problem, Spain's government has a new idea: tax the solar panels. **Content:** It’s always sunny in Spain, right? That might be a bit of an overstatement, but the country hasn’t garnered a sunny reputation for nothing: cities like Huelva and Seville [boast nearly 3,000 hours](http://www.currentresults.com/Weather/Spain/annual-days-of-sunshine.php) of sunshine per year. With so much sunshine at its disposal, Spain has aggressively pursued the development of solar energy: over the past ten years, the government has made significant advances in pressing solar energy and is one of the top countries in the world with respect to installed photovoltaic (PV) solar energy capacity. It might, however, be too much of a good thing. Spain is generating so much solar power, according to its government, that production capacity exceeds demand by more than 60%. That imbalance has created a problem for the government, which now finds itself in debt to producers. And not by a little bit. The debt is said to have grown to [nearly 26 billion euros](http://www.salon.com/2013/08/14/facing_taxes_spaniards_tear_down_their_solar_panels/) ($34.73 billion U.S.). So how do you get out of that kind of debt? You propose incredibly onerous taxes and fines, of course. And you do it on exactly the behavior that you encouraged in the first place: the use of solar energy panels. That’s right. Spain is now attempting to scale back the use of solar panels – the use of which they have encouraged and subsidized over the last decade – by imposing a tax on those who use the panels. You get the feeling that government officials were out of ideas, stared up at the sky one day, and thought, *“I’ve got it! We’ll tax the sun!”* But wait, it gets worse. You see, solar panels have not only let many in the country produce their own energy for less than they would have paid the utility company, but also let many residents in Spain generate enough electricity to get paid to sell the excess energy back to producers. This, it turns out, is a problem. The government is putting a stop to that, too: as part of the reform efforts (read: desperate measures), it will prohibit selling extra energy. And there’s still more: in order to figure out who is producing what level of energy (and, of course, to tax it), all solar panels now have to be hooked up to the grid. Those taxpayers who don’t connect to the grid face a fine of up to 30 million euros ($40 million U.S.). Yes, million. With an m. That kind of number is so incomprehensible to the average person that it’s almost like they pulled it out of nowhere, as if the conversation went something like this: *Maybe 10 euros? Nah, not nearly enough.* *What about 100 million euros? No, way too much.* *30 million euros? Yeah, that sounds about right.* However they figured the number, the intention is clearly to scare taxpayers into connecting to the grid in order to be taxed. The tax, however, will make it [economically unfeasible](http://www.energias-renovables.com/articulo/la-solar-fotovoltaica-anonadada-20130719) for residents to produce their own energy: it will be cheaper to keep buying energy from current providers. And that is exactly the point. It seems ludicrous. But before you shake your head and assume that such a policy could only happen in Spain, think again. A similar concern has been brewing in Arizona, where [power companies are hoping for legislation](http://www.sustainablebusiness.com/index.cfm/go/news.display/id/25103) that would require customers to pay *them* to buy back excess power. Of course, since we don’t like taxes in this country, they’re framing it as a “convenience fee” – but really, to-may-to, to-mah-to. As the battle in Arizona heats up (pun totally intended), other states will no doubt be watching since the dollars at risk are huge: $590 million was invested in Arizona on homes and businesses in 2012 alone. No doubt, other countries like Germany – and the U.S. – will wait to see what happens exactly in Spain. The measure is already wildly unpopular, and some worry that the result will be large-scale civil disobedience: that is, the Spanish will simply decide not to abide by the law. Teresa Ribera, the senior adviser to the Institute for Sustainable Development and International Relations (IDDRI), [called the law](http://www.reuters.com/article/2013/08/14/us-spain-energy-idUSBRE97D0FX20130814) “illogical,” noting that it is “a serious invitation by the government for citizens to become anti-system.”[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Out%20Of%20Ideas%20And%20In%20Debt%2C%20Spain%20Sets%20Sights%20On%20Taxing%20The%20Sun&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Out%20Of%20Ideas%20And%20In%20Debt%2C%20Spain%20Sets%20Sights%20On%20Taxing%20The%20Sun "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Out%20Of%20Ideas%20And%20In%20Debt%2C%20Spain%20Sets%20Sights%20On%20Taxing%20The%20Sun "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Out%20Of%20Ideas%20And%20In%20Debt%2C%20Spain%20Sets%20Sights%20On%20Taxing%20The%20Sun&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Environment, International, Tax Policy **Tags:** renewable energy, solar energy, solar panels, Spain --- ### [Ok, So Who DOESN’T Get A Rebate?](https://www.taxgirl.com/2008/02/16/ok-so-who-doesnt-get-a-rebate/) **Published:** February 16, 2008 **Author:** Kelly Phillips Erb **Content:** By far, the most popular questions to “ask the taxgirl” this season have involved the tax rebates. Of those, the most asked is **“Do I qualify for a tax rebate?”** To help you figure it out, here is a list of folks who do NOT qualify for a tax rebate: 1. You will NOT qualify for a tax rebate if you don’t file a 2007 tax return. 2. You will NOT qualify for a tax rebate if your net income tax liability is zero and your qualifying income is less than $3,000. Qualifying income includes wages, net self-employment income, nontaxable combat pay, **Social Security benefits**, certain Railroad Retirement benefits, and certain veterans’ payments. 3. You will NOT qualify for a tax rebate if you can be claimed as a dependent on someone else’s return (so yes, college students still being reported on your parents’ tax return, this means you). 4. You will NOT qualify for a tax rebate if you do not have a valid Social Security Number (if you need more information about how to get one, check [here](https://www.taxgirl.com/ask-the-taxgirl-%c2%bfcomo-puedo-obtener-un-itin-ask-the-taxgirl-%c2%bfcomo-puedo-obtener-un-itin-how-do-i-get-a-tin/)). It’s important to note that ITINs are NOT sufficient. 5. You will NOT qualify for a tax rebate if you are a nonresident alien. 6. You will NOT qualify for a tax rebate if you file any of the following returns: Form 1040NR or Form 1040NR-EZ, Form 1040PR or Form 1040SS. Keep checking for more tax rebate information.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Ok%2C%20So%20Who%20DOESN%E2%80%99T%20Get%20A%20Rebate%3F&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Ok%2C%20So%20Who%20DOESN%E2%80%99T%20Get%20A%20Rebate%3F "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Ok%2C%20So%20Who%20DOESN%E2%80%99T%20Get%20A%20Rebate%3F "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Ok%2C%20So%20Who%20DOESN%E2%80%99T%20Get%20A%20Rebate%3F&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual **Tags:** ask the taxgirl, Social-Security --- ### [State Tax Deadlines For Filing Tax Returns & Making Estimated Payments During COVID-19](https://www.taxgirl.com/2020/06/10/state-tax-deadlines-for-filing-tax-returns-making-estimated-payments-during-covid-19/) **Published:** June 10, 2020 **Author:** Kelly Phillips Erb **Content:** On March 20, 2020, Treasury Secretary Mnuchin extended the federal income tax filing and payment deadline to July 15, 2020. This relief includes estimated payments for the first and second quarters. Some states have also extended filing and payment deadlines – but not all of them are extended to July 15, 2020. Additionally, not all state filing extensions apply to estimated payments (you’ll see the information about estimated payments in bold below). Here’s what we know so far: Alabama: For taxpayers affected by the coronavirus (COVID-19), the due date for filing state income tax, FIET, and BPT returns and making state income tax, FIET, and BPT payments due on or after April 1, 2020, and before July 15, 2020, is postponed to July 15, 2020. **Extension payments and estimated payments due on April 15, 2020, have been postponed to July 15, 2020. However, the Order does not include estimated payments due after April 15, 2020. For example, a calendar year taxpayer’s second-quarter payment is still due June 15, 2020.** Alaska: Alaska does not have a personal income tax. Arizona: The Arizona Department of Revenue (ADOR) announced it has moved the deadline for filing and paying state income taxes from April 15 to July 15, 2020. This includes individual, corporate, and fiduciary tax returns. Taxpayers who need more time beyond the July 15 deadline to file state income taxes should consider filing for an extension. **Arizona’s delay in filing and paying state income taxes does not include an extension to pay estimated tax payments.** Arkansas: Governor Hutchinson announced the state deadline to file and pay individual income taxes has been extended to July 15, matching the federal extension. **Arkansas did not extend the 2020 estimated tax payments. California: FTB has postponed the filing and payment deadlines for all individuals and business entities for 2019 tax returns, 2019 tax return payments, 2020 LLC taxes and fees, and 2020 Non-wage withholding payments until July 15. **California has also extended 2020 1st- and 2nd-quarter estimated payments to July 15.** Colorado: The income tax payment deadline has been extended for all Colorado taxpayers to July 15, 2020. All income tax returns that were required to be filed by April 15, 2020, are granted a six-month extension and are due on or before October 15, 2020. **EO D 2020 010 grants an extension of time to pay until July 15, 2020, for any estimated payment due between April 15, 2020, and June 15, 2020, without penalty.** Connecticut: At the direction of Governor Ned Lamont, the Connecticut Department of Revenue Services (DRS) has extended the filing and payment deadline for personal income tax returns by 90 days, to July 15, 2020. **The extension also applies to Connecticut’s estimated income tax payments for the first and second quarters of 2020.** Delaware: The Delaware Division of Revenue (DOR) announced deadlines for taxpayers to file their 2019 Delaware personal income tax returns, and extended corporate income tax deadlines to July 15, 2020. Under a Technical Information Memorandum 2020-01, DOR has also extended income tax filing deadlines for corporate final, corporate tentative, and fiduciary income taxes due in April to July 15, 2020. All other returns remain due without extension. Individuals who are unable to meet the July 15 filing deadline may file an extension on or before July 15. Estimated personal income tax payments that were due on April 30, 2020, are extended to July 15, 2020. **Please note that second-quarter estimated payments remain due on June 15, 2020.** Florida: On April 27, 2020, Florida Department of Revenue Executive Director Jim Zingale issued Order of Emergency Waiver/Deviation # 20-52-DOR-003 extending certain corporate income/franchise tax (CIT) returns and payments. Florida does not have a personal income tax. Georgia: The Georgia Department of Revenue extended the income tax filing and payment deadlines to July 15, 2020. **Georgia estimated income tax payments due on or after April 15, 2020, and before July 15, 2020, are also extended to July 15, 2020.** Hawaii: The Department of Taxation has issued Tax Announcement 2020-01 to grant special tax relief for State income taxpayers similar to the IRS. The due date for filing 2019 State income tax returns due from April 20, 2020, to June 20, 2020, is postponed to July 20, 2020. The due date for making 2019 State income tax payments due from April 20, 2020, to June 20, 2020, is postponed to July 20, 2020. The Tax Announcement applies to individuals, trusts and estates, corporations, and other non-corporate tax filers as well as those who pay self-employment tax. The relief provided in the Announcement applies solely to returns and payments for Tax Year 2019 due from April 20, 2020, to June 20, 2020. **The extension does not apply to estimated payments.** Idaho: Idaho has extended the deadlines for 2019 individual and business income tax returns (returns and payments are now due June 15, 2020), Property tax reduction programs, and IFTA 2020 first-quarter returns. The due dates for all other tax types remain the same. **Idaho has also extended the due date for income tax estimated payments that are normally due April 15 to June 15. Illinois: The filing deadline for Illinois income tax returns has been extended from April 15, 2020, to July 15, 2020. **This does NOT affect the first and second installments of estimated payments for 2020 taxes due April 15 and June 15. Indiana: The Indiana DOR has extended certain filing and payment deadlines to align with the IRS. Individual tax returns and payments originally due by April 15, 2020, are now due on or before July 15, 2020. Corporate tax returns and payments originally due by April 15 or April 20 are now due on or before July 15, 2020; those originally due on May 15, 2020, are now due on August 17, 2020. All other tax return filings and payment due dates remain unchanged. These due dates can be found on DOR’s tax filing deadlines webpage. **The extensions include those for individual and corporate estimated payments.** Iowa: The Iowa Department of Revenue has extended the filing and payment deadline for several state tax types under an order signed by the Director of Revenue. The Order extends filing and payment deadlines for income, franchise, and moneys and credits taxes with a due date on or after March 19, 2020, and before July 31, 2020, to July 31, 2020. **Income tax estimated payments must still be made by their regular due date. A calendar-year filer’s 1st quarter and 2nd quarter 2020 estimated payments are due on April 30, 2020, and June 30, 2020, respectively.** Kansas: Gov. Kelly signed Executive Order #20-13, extending tax filing deadlines to July 15, 2020, and waiving any interest and penalties for returns and payments made on or before July 15, 2020. **The Order does not apply to estimated payments.** Kentucky: Kentucky income tax return filings due on April 15, 2020, May 15, 2020, and June 15, 2020, for individual, corporate, limited liability, fiduciary, and pass-through filers are now due July 15, 2020. Kentucky income tax payments due on April 15, 2020, May 15, 2020, and June 15, 2020, for individual, corporate, limited liability, fiduciary, and pass-through filers are due on July 15, 2020. **The deferral includes estimated payments due on these dates.** Louisiana: Individual income and franchise tax returns are due on July 15, 2020. **Title 47 of the Louisiana Revised Statutes of 1950 provides no mechanism or authority for the Secretary to extend the statutory due date for individual declaration payments. However, for the 2020 tax year, the Secretary may waive the UET (underpayment of estimated tax) penalty if the taxpayer requests a waiver by May 17, 2022 (one year after the statutory due date of the return) and the taxpayer has acted in good faith in failing to make estimated payments.** Maine: The State of Maine has extended the payment deadline of state income tax payments from April 15, 2020, to July 15, 2020. That change included any final and estimated Maine income and franchise tax payments due by April 15, 2020. **The extended payment due date includes second-quarter estimated payments, originally due June 15, 2020, for the following Maine tax types: individual income tax, corporate income tax, franchise tax, and fiduciary income tax for estates and trusts. The extended payment due date also includes any estimated or final payments, originally due April 16, 2020, through June 15, 2020, for fiscal-year filers, for the taxes listed above.** Maryland: The deadline to file a 2019 income tax return for Maryland individual, corporate, pass-through entity, and fiduciary taxpayers is July 15, 2020. Fiscal year filers with tax years ending January 1, 2020, through March 31, 2020, are also eligible for the July 15, 2020, extension to file returns and make payments. **The due date for March quarterly estimated payments of 2020 taxes is also extended to July 15, 2020.** Massachusetts: Personal income tax returns and payments otherwise due April 15, 2020, are now due July 15, 2020, for Massachusetts taxpayers. **Additionally, the first and second installments of estimated tax, due April 15, 2020, and June 15, 2020, respectively, will now be due July 15, 2020.** Michigan: The Department of Treasury extended the due date for all Michigan income tax returns or payments due between April 15, 2020, and July 30, 2020. The automatic extension is limited to returns and payments due under the Michigan Income Tax Act, and includes the filing and payment of the annual return, and the application and payment of tax for any extension of time to file the annual return. **The extension also applies to the first- and second-quarter estimated payments. Minnesota: Minnesota is providing additional time until July 15, 2020, for taxpayers to file and pay 2019 Minnesota Individual Income Tax without any penalty and interest. **This includes all estimated and other income tax payments for tax year 2019 that would otherwise be due April 15, 2020. However, first-quarter 2020 estimated income tax payments for individuals, calendar-year partnerships, S-corporations, and fiduciaries were still due April 15, 2020.** Mississippi: Mississippi has extended the due date for filing income tax returns to July 15, 2020. This extension applies to Individual Income Tax returns, Corporate Income and Franchise Tax returns, and Fiduciary Income Tax returns. **Mississippi has also extended the due date for first- and second-quarter estimated payments to July 15, 2020. Missouri: The filing and income tax payment deadline for individual and corporate income tax returns with an original due date of April 15, 2020, is extended until July 15, 2020. This filing and payment relief applies to all individual income tax returns, income tax returns filed by C Corporations, and income tax returns filed by trusts or estates. The filing deadline for partnership returns that were originally due on April 15, 2020, is also extended to July 15, 2020. **The deadline to remit estimated tax payments for tax year 2020 that were originally due on April 15, 2020, and June 15, 2020, is extended through July 15, 2020.** Montana: Governor Steve Bullock extended the payment and filing deadlines for 2019 individual income taxpayers to July 15 in accordance with the new federal filing deadline. **The deadline for those making estimated tax payments for the first quarter of 2020 has also been extended to July 15. The due date for the second quarter remains July 15.** Nebraska: The tax filing deadline is extended to July 15, 2020, for state income tax payments that were originally due on April 15, 2020. **The same relief applies to estimated payments.** Nevada: Nevada does not have a personal income tax. New Hampshire: The New Hampshire Department of Revenue Administration (NHDRA) granted automatic relief to qualifying Business Profits Tax (BPT), Business Enterprise Tax (BET), and Interest & Dividends Tax (I&D) taxpayers, extending the deadline to remit payment by two months, from April 15 to June 15, 2020. **This relief is available for any Business Tax or Interest & Dividends Tax return or extension payment due on April 15, 2020, as well as any Business Tax or Interest & Dividends Tax quarterly estimated tax payment due on April 15, 2020.** New Jersey: Individual Gross Income Tax, Partnership, and Corporation Business Tax calendar year filers now have until July 15 to file and pay these taxes, including estimated tax payments due on April 15. All other returns and payments are due on their original due date (including 2nd quarter estimated tax payments for calendar year filers). **However, 2nd quarter estimated tax payments are still due on June 15 for both Income Tax and Corporation Business Tax taxpayers. Any 2nd quarter payments made after June 15 will be considered late and may be subject to interest charges. Only estimated payments originally due on April 15 have been extended to July 15, 2020.** New Mexico: Personal, fiduciary, and corporate income tax returns, return payments, and estimated payments, with a filing or payment due date of April 15, are postponed to July 15, 2020. **Personal, fiduciary, and corporate income estimated payments due between April 16 and July 14, 2020, may be submitted without penalty no later than July 15, 2020.** **Interest will be due on payments made after their original due date because TRD and the Secretary have no authority under Section 7-1-13 NMSA 1978 to waive interest otherwise due**. New York: New York State personal income tax and corporation tax returns (and related tax payments) originally due on April 15, 2020, have been extended to July 15, 2020. **The Tax Department extended the April 15, 2020, due date to July 15, 2020, for all related tax payments, including estimated tax payments, that were due on April 15, 2020. The due date for estimated tax payments due on June 15, 2020, for personal income, fiduciary, and corporate taxpayers remains in place.** North Caroli[na](https://www.ncdor.gov/news/press-releases/2020/03/21/tax-filing-deadline-extended-july-15): The N.C. Department of Revenue (NCDOR) has automatically extended the time for filing income and franchise tax returns due on April 15, 2020, to July 15, 2020, for individuals, corporations, partnerships, and estates and trusts. Revenue will not impose a failure-to-pay penalty or interest for payments made on or before July 15, but you will be responsible for paying interest beginning April 15, 2020, until you pay your income tax liability: state law prevents the Department from waiving accrued interest. **Under North Carolina law, the liability for failing to pay estimated income tax on time is interest.** T**he Secretary will waive the accrual of interest during the COVID Period (through July 15, 2020) owed on estimated tax payments.** North Dakota: The State of North Dakota is currently aligned with the IRS extension date. North Dakota will also provide automatic relief from penalty and interest for any income tax return or payment that is due prior to July 15. **This includes the first-quarter estimated payment due April 15, 2020, and the second-quarter estimated payment due June 15, 2020.** Ohio: Ohio is following the federal government and the IRS by extending the deadline to file and pay state income tax. The new deadline is July 15, an extension of approximately three months from the original deadline of April 15. **Individuals, estates, trusts, and certain businesses making quarterly estimated income tax payments also have additional time to file and pay without penalty or interest. The first and second quarterly payments, normally due April 15 and June 15 for most taxpayers, have been extended to July 15.** Oklahoma: Oklahomans have until July 15, 2020, to file and pay their 2019 Oklahoma income tax return. **The deadline for April 15 estimated tax payments has also been extended to July 15. However, the regularly scheduled June 15 estimated tax payment deadline has not been extended.** Oregon: The filing due date for an Oregon personal income tax return is automatically extended from April 15, 2020, to July 15, 2020, just like the IRS. The relief also includes the personal income tax, fiduciary income tax returns, estate transfer tax returns, S-Corporation income tax returns, and corporate income/excise tax returns and related payments for tax year 2019. **The relief doesn’t include estimated tax payments due during tax year 2020.** Pennsylvania: The Department of Revenue announced the deadline for taxpayers to file their 2019 Pennsylvania personal income tax returns is extended to July 15, 2020. The Department of Revenue will also waive penalties and interest on 2019 personal income tax payments through July 15, 2020. This extension applies to both final 2019 tax returns and payments. **The relief also applies to estimated payments for the first and second quarters of 2020.** Rhode Island: Individuals can defer Rhode Island resident and nonresident personal income tax returns and personal income tax payments, normally due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. Similarly, certain business entities can defer Rhode Island returns and tax payments, normally due April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. **The new deadline also applies to first-quarter and second-quarter estimated payments of Rhode Island income tax for the 2020 tax year by individuals, estates, and trusts.** South Carolina: The South Carolina Department of Revenue (SCDOR) has moved the due date for Income Tax returns and payments originally due April 15, 2020, to July 15, 2020. **This includes Individual Income Taxes originally due April 15 and estimated payments originally due June 15.** South Dakota: South Dakota does not have a personal income tax. Tennessee: The Tennessee Department of Revenue has extended the due date for filing and paying franchise and excise tax from April 15, 2020, to July 15, 2020. This extension applies to all taxpayers who had a franchise and excise tax return due on April 15, 2020, regardless of whether the due date is the original due date or the due date on extension**. It also applies to taxpayers required to renew their franchise and excise tax exemption (filed on Form FAE183) or make an estimated payment on April 15, 2020. Any estimated payments due on dates other than April 15 remain unchanged.** Texas: Texas does not have a personal income tax. Utah:  By Utah statute, individuals have the same deadline to file and pay their 2019 taxes as the IRS, which is July 15, 2020. Additionally, interest and penalties are waived for late-filed 2019 tax returns and payments of corporations and pass-through entities such as LLCs. Vermont: The Vermont income tax filing due dates for the following taxes have been extended from April 15, 2020, to July 15, 2020, for Vermont personal income tax, Vermont Homestead Declaration and Property Tax Credit Claims, Corporate income tax, and Fiduciary income tax. Taxpayers may file and pay these taxes before July 15, 2020, without penalty or interest. **Penalties and interest are waived for estimated income tax payments that were originally due between April 15 and July 15, so long as they are paid by July 15, 2020. This relief applies to Vermont personal income tax, Corporate and business/pass-through income tax, and Fiduciary and estate income tax.** Virginia: Individual and corporate income tax payments were due June 1, 2020. **This included the first estimated income tax payments for the 2020 tax year.** Washington: Washington does not have a personal income tax. West Virginia: The deadline to file 2019 annual income tax returns for individuals, trusts or estates, and corporations has been extended from April 15, 2020, to July 15, 2020. This extension does not apply to any other tax collected by the Tax Commissioner. **This relief does extend to estimated tax payments for tax year 2020 that are due between April 15, 2020, and June 15, 2020, for individuals, trusts or estates, corporations, and pass-through entities: they will be due July 15, 2020.** Wisconsin: Wisconsin income tax payment and return due dates are automatically extended to July 15, 2020. **Estimated payments due on or after April 1, 2020, and before July 15, 2020, are extended to July 15, 2020. Wyoming: Wyoming does not have a personal income tax. Please note that this information is current as of the date of publication and is subject to change. I’ve included links to Revenue websites, where possible (click on the state name). Please check with Revenue (and local government) websites and your tax professional before relying on this information, or if you have questions. Check back regularly: I’ll keep you updated as information becomes available. If you have an update or tip, [here’s how to reach me](https://www.taxgirl.com/find-me/) (including secure methods). 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** State and Local Tax (SALT), Tax Forms **Tags:** estimated payments, filing deadlines, state tax --- ### [New Email Phishing Scams Prompt IRS Warning](https://www.taxgirl.com/2018/12/04/irs-warns-on-surge-of-new-email-phishing-scams/) **Published:** December 4, 2018 **Author:** Kelly Phillips Erb **Excerpt:** The Internal Revenue Service (IRS), state tax agencies and the nation’s tax industry are warning taxpayers to be on the lookout for scams at this time of year. The call follows what the IRS refers to as “a surge of new, sophisticated email phishing scams.” **Content:** It’s the most wonderful time of the year … for scammers. The Internal Revenue Service (IRS), state tax agencies and the nation’s tax industry are [warning taxpayers](https://www.irs.gov/newsroom/irs-sees-surge-in-email-phishing-scams-summit-partners-urge-taxpayers-dont-take-the-bait) to be on the lookout for scams at this time of year. The call follows what the IRS refers to as “a surge of new, sophisticated email phishing scams.” Scammers can take advantage of taxpayers at any time, but the IRS believes that taxpayers may be particularly vulnerable now. “The holidays and tax season present great opportunities for scam artists to try stealing valuable information through fake emails,” said IRS Commissioner Chuck Rettig. “Watch your inbox for these sophisticated schemes that try to fool you into thinking they’re from the IRS or our partners in the tax community. Taking a few simple steps can protect yourself during the holiday season and at tax time.” Phishing scams are on the rise. In 2018, the IRS noted a 60% increase in bogus email schemes that seek to steal money or tax data. That marks a dramatic change: Reports had declined for the previous three years. In terms of numbers, more than 2,000 tax-related scam incidents were reported to the IRS from January through October, compared to approximately 1,200 incidents in all of 2017. In a typical phishing scheme, scammers attempt to obtain sensitive personal, financial or tax information such as usernames and passwords by pretending to be another person or entity. The emails may appear to be legitimate by using spoofed email addresses and stolen logos to trick the recipient into believing that the email is from a trusted source. Typically, the emails contain hyperlinks that take users to a fake site or PDF attachments that may download malware or viruses. These phishing schemes can endanger a taxpayer’s financial and tax data, allowing identity thieves a chance to try stealing a tax refund. Last month, the IRS warned about a new “tax transcript” scam. In the scam, taxpayers were tricked into opening emails that look like they are from the IRS—but they potentially carried malware. In another malware scam, thieves sent emails with subject lines like “IRS Important Notice” and “IRS Taxpayer Notice.” In the email, scammers demanded payment or threatened to seize the recipient’s tax refund. Don’t respond to these emails, and don’t click on links. Taxpayers can forward these email schemes to phishing@irs.gov—then hit delete. Of course, not all phishing schemes use email: Some may be phone scams. In a [common version of this kind of phishing scam](https://www.taxgirl.com/2014/08/14/tigta-irs-warn-phone-scam-continues-as-fraudsters-rake-in-millions/), callers posing as IRS representatives contact taxpayers by phone, claiming that they owe money to the IRS. Taxpayers are told they must pay the balance promptly using a pre-loaded debit card or wire transfer, or face punishment, including arrest, deportation, or suspension of a business or driver’s license. The callers may have heavy foreign accents, use common names, and fake badge numbers. The number on the caller ID may also look like the IRS since the scammers may spoof the IRS toll-free number. Reports of phone scams increased in 2018, with the IRS reporting receipt of thousands of such complaints each week. These phone scams are “a major threat to taxpayers” and, as such, continued to hold down a top spot on the IRS “Dirty Dozen” list of tax scams for the 2018 filing season. Don’t engage or respond with scammers. Here’s how to protect yourself: - If you receive a call from someone claiming to be from the IRS, and you do not owe tax, or if you are immediately aware that it’s a scam, don’t engage with the scammer and do not give out any information. Just hang up. - If you receive a telephone message from someone claiming to be from the IRS, and you do not owe tax, or if you are immediately aware that it’s a scam, don’t call them back. - If you receive a phone call from someone claiming to be with the IRS, and you owe tax or think you may owe tax, do not give out any information. Call the IRS back at 1.800.829.1040 to find out more information. - Never open a link or attachment from an unknown or suspicious source. - If you’re not sure about the authenticity of an email, don’t click on hyperlinks. A better bet is to go directly to the source’s main Web page. - Use security software to protect against malware and viruses found in phishing emails. - Use strong passwords to protect online accounts and use a unique password for each account. Longer is better, and [don’t hesitate to lie](https://www.taxgirl.com/2017/05/19/my-mothers-maiden-name-is-cumberbatch-and-other-lies-i-tell-for-the-sake-of-security/) about important details on websites since crooks may know some of your personal details. - Use two-factor or multi-factor authentication when possible. Two-factor authentication means that in addition to entering your username and password, you typically enter a security code sent to your mobile phone or other device. As a reminder, the IRS will never: - Call to demand immediate payment over the phone, nor will the agency call about taxes owed without first having mailed you a bill. - Threaten to immediately bring in local police or other law-enforcement groups to have you arrested for not paying. - Demand payment without giving you the opportunity to question or appeal the amount they say you owe. - Require you to use a specific payment method for your taxes, such as a prepaid debit card, gift card or wire transfer. - Ask for credit or debit card numbers over the phone. Don’t fall for the tricks. Keep your personal information safe by remaining alert. And, **when in doubt, assume it’s a scam.** For tips on protecting yourself from identity theft-related tax fraud, click here. The Internal Revenue Service, state tax agencies and the tax community, partners in the Security Summit, are marking “National Tax Security Awareness Week” December 3 -7, 2018, with a series of reminders to taxpayers and tax professionals. Visit “Taxes. Security. Together.” or review IRS [Publication 4524](https://www.irs.gov/pub/irs-pdf/p4524.pdf#_blank), *Security Awareness for Taxpayers* (downloads as a PDF) to learn more.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=New%20Email%20Phishing%20Scams%20Prompt%20IRS%20Warning&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=New%20Email%20Phishing%20Scams%20Prompt%20IRS%20Warning "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=New%20Email%20Phishing%20Scams%20Prompt%20IRS%20Warning "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=New%20Email%20Phishing%20Scams%20Prompt%20IRS%20Warning&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** ID Theft and Scams **Tags:** email scams, ID theft, phishing, scams --- ### [Understanding Your Forms: W-2, Wage & Tax Statement](https://www.taxgirl.com/2015/03/16/understanding-your-forms-w-2-wage-tax-statement/) **Published:** March 16, 2015 **Author:** Kelly Phillips Erb **Content:** By now, you probably have a stack of tax forms from employers, banks, and other issuers on your desk. Sometimes, those tax forms go straight to a tax professional, unopened. Other times, taxpayers may dutifully open those forms and type the information, box for box, into tax preparation software. In both cases, it’s not unusual for taxpayers not to understand the meaning of all the numbers, letters, and other information on those forms. That’s about to change. This week, I’ll be dissecting some of the most basic tax forms for you. The more you know, the less scary some of these forms can be. ## Form W-2, *Wage and Tax Statement* An employer issues Form W-2 to an employee. That carries with it some significance, and not only for tax reasons. An employer has certain reporting, withholding, and insurance requirements for employees that are a bit different from those owed to an independent contractor. The threshold for issuing a Form W-2 is based on dollars – nothing else matters. Not time worked. Not position held. Just dollars (or dollar equivalents) earned. The magic number is $600. Every employer who pays at least $600 in cash (or cash equivalent, including taxable benefits) must issue a Form W-2. If any taxes are withheld, including Social Security or Medicare, the employer must issue a Form W-2 regardless of how much was paid to an employee. An employer prepares six copies of each Form W-2 per employee. Yes, that’s a lot of paperwork. Copy A looks different from the other W-2 forms because it’s printed in red (the rest are printed in black). That’s on purpose: the printed version you buy from a supply store like Staples or print using software from Intuit can be scanned and read by the government’s machines. The version that you can download and print out from the IRS website is not. You can be fined for using the wrong version of the form, so pay attention. Copy A is transmitted to the Social Security Administration (SSA) along with a Form W-3 (Form W-3 reports the total of all of the Forms W-2 for the employer). The due date for employers to get that information to SSA is February 28. Copy 1 is issued to any applicable state, city, or local tax department. Copy D is retained by the employer. As an employee, you get three copies of your Form W-2. Those three copies must be issued by January 31 of each year (more on filing dates [here](https://www.taxgirl.com/where-are-my-tax-forms-due-dates-for-forms-w-2-1099-1098-more/)). Copy B is used to report your federal income taxes and is generally filed with your federal income tax return (unless you are e-filing, in which case you have to provide it to the preparer, but it is not usually forwarded to IRS). Copy 2 is used to report your state, city, or local income tax and is filed with the relevant taxing authorities. Copy C is for your records (you should retain Copy C for at least three years after you file or the due date of your return, whichever is later). ## Left Side of the Form **Box a.** Your Social Security Number (SSN) is reported in box (a). You should always double-check this to make sure it’s correct. If it’s not correct, you need to request a new form W-2 from your employer. An error could slow the processing of your return. **Box b**. Your employer’s EIN is reported in box (b). An EIN is more or less the employer’s equivalent of your SSN. **Box c**. Your employer’s address is reported in box (c). This is the legal address of your employer which may or may not be where you actually work. Don’t let that throw you. **Box d**. The control number is an internal number used by your employer or your employer’s payroll department. If your employer doesn’t use control numbers, box (d) will be blank. **Boxes e and f**. These appear as one big block on your Form W-2. Your full name is reported at box (e). It’s supposed to reflect the name that’s actually on your Social Security card (the SSA isn’t crazy about suffixes, even if you use them, so you shouldn’t see one on your Form W-2 unless it’s on your Social Security card). If your name isn’t exactly as it appears on your Social Security card, you may need a new Form W-2; ask your employer if you’re not sure. Your address is reported in box (f) and should reflect your mailing address – which could be a post office box – likely without punctuation (a USPS preference). If your address on the Form W-2 isn’t correct, notify your employer: you won’t need a new Form W-2, but your employer needs to update their records. ## Right Side of the Form **Box 1** shows your total taxable wages, tips, prizes, and other compensation, as well as any taxable fringe benefits. It does not include elective deferrals to retirement plans, pretax benefits, or payroll deductions. Since the figure doesn’t include those amounts, it’s not unusual for this amount to be less than the amounts included at boxes 2 and 3. It’s the number most taxpayers care about the most. **Box 2** reports the total amount of federal income taxes withheld from your pay during the year. This amount is determined by the elections on your Form W-4 based on exemptions and any additional withholding. If you find that this number is too low or too high, you’ll want to make an adjustment on your Form W-4 for the next year. **Box 3** shows your total wages subject to the Social Security tax. This figure is calculated before any payroll deductions, which means that the amount in box 3 could be higher than the number reported in box 1, as in my example. It could also be less than the amount in box 1, if you’re a high-wage earner, since the total of boxes 3 and 7 (see below) cannot exceed the maximum Social Security wage base. For 2014, that amount was $117,000 (it’s $118,500 for 2015). If you have more than one job, for Social Security tax purposes, the cap still applies. **Box 4** shows the total of Social Security taxes withheld for the year. Unlike federal income taxes, Social Security taxes are calculated based on a flat rate. The rate is 6.2%. The amount in box 4 should, then, be equal to the amount in box 3 times 6.2%. Since you should not have more Social Security withholding than the maximum wage base times 6.2%, the amount in box 4 should not exceed $7,524.00. In my example, the figure is $50,000 x .062, or $3,100.00. **Box 5** indicates wages subject to Medicare taxes. Medicare taxes generally do not include any pretax deductions and will include most taxable benefits. That, combined with the fact that unlike Social Security wages, there is no cap for Medicare taxes, means that the figure in box 5 may be larger than the amounts shown in box 1 or box 3. In fact, it’s likely the largest number on your Form W-2. **Box 6** shows the amount of Medicare taxes withheld for the year. Like Social Security taxes, Medicare taxes are figured based on a flat rate. The [rate is 1.45%](https://www.irs.gov/taxtopics/tc751.html). For most taxpayers, this means that the figure in box 6 is equal to the figure in box 5 times 1.45% (as in my example indicated by the green arrow since $50,000 x 1.45% = $725). However, as part of Obamacare, an employer must withhold an additional Medicare tax of .9% from wages paid to an individual earning more than $200,000, regardless of filing status or wages paid by another employer. Since your employer doesn’t know your entire financial picture, it’s possible that you may have to [pay more additional Medicare taxes](https://www.irs.gov/Businesses/Small-Businesses-%26-Self-Employed/Questions-and-Answers-for-the-Additional-Medicare-Tax) than your withholding depending on filing status, compensation, and self-employment income. Tips that were reported to your employer will be found in **box 7**. If this box is blank, it means that you did not report tips to your employer (this doesn’t mean that you don’t have to report those tips to IRS). Allocated tips reported in **box 8** are those that your employer has figured are attributable to you. Those tips are considered income to you. There won’t be anything in **box 9**. The reporting requirement for that box expired a few years ago and the box hasn’t yet been removed from the form (go figure). At least it’s shaded in now, eliminating some confusion. At **box 10**, your employer will report the total of any benefits paid on your behalf under a dependent care assistance program. Amounts paid out under a qualified plan which are less than $5,000 are considered non-taxable benefits. That number will include report the value of all dependent care benefits, including those greater than the $5,000 exclusion (if the value exceeds $5,000, that excess will be reported in boxes 1, 3 and 5). **Box 11** is used to report amounts which have been distributed to you from your employer’s non-qualified deferred compensation plan (this amount is taxable). This isn’t to be confused with amounts contributed *by* you. That shows up in box 12. **Box 12** is the kitchen sink of Form W-2 reporting. Here, you’ll see all kinds of codes. Not all of the income coded at box 12 is taxable. Here’s a [quick rundown of the codes](https://www.irs.gov/pub/irs-pdf/iw2w3.pdf): A – Uncollected Social Security or RRTA tax on tips B – Uncollected Medicare tax on tips (but not Additional Medicare Tax) C – Taxable cost of group-term life insurance over $50,000 (included in your wages at boxes 1, 3 and 5) D – Elective deferrals to a section 401(k) cash or deferred arrangement plan (including a SIMPLE 401(k) arrangement) E – Elective deferrals under a section 403(b) salary reduction agreement F – Elective deferrals under a section 408(k)(6) salary reduction SEP G – Elective deferrals and employer contributions (including nonelective deferrals) to a section 457(b) deferred compensation plan H – Elective deferrals to a section 501(c)(18)(D) tax-exempt organization plan J – Nontaxable sick pay K – 20% excise tax on excess golden parachute payments L – Substantiated employee business expense reimbursements M – Uncollected Social Security or RRTA tax on taxable cost of group-term life insurance over $50,000 (former employees only) N – Uncollected Medicare tax on taxable cost of group-term life insurance over $50,000 (but not Additional Medicare Tax)(former employees only) P – Excludable moving expense reimbursements paid directly to employee Q – Nontaxable combat pay R – Employer contributions to an Archer MSA S – Employee salary reduction contributions under a section 408(p) SIMPLE plan T – Adoption benefits V – Income from exercise of nonstatutory stock option(s) W – Employer contributions (including employee contributions through a cafeteria plan) to an employee’s health savings account (HSA) Y – Deferrals under a section 409A nonqualified deferred compensation plan Z – Income under a nonqualified deferred compensation plan that fails to satisfy section 409A AA – Designated Roth contributions under a section 401(k) plan BB – Designated Roth contributions under a section 403(b) plan CC – HIRE exempt wages and tips (2010 only) DD – Cost of employer-sponsored health coverage EE – Designated Roth contributions under a governmental section 457(b) plan Two of the most popular codes are worth noting: - Elective deferrals (Code D) are extremely popular. As noted above, these amounts will generally be included at box 3 and box 5 even if they are excluded from wages at box 1. - The cost of employer-sponsored health coverage is reported using Code DD. This might look new to you (I’ve indicated it with a red arrow). This amount is now reportable under the Affordable Care Act but it is not taxable to you. ## Additional Boxes **Box 13** really isn’t one box: it’s a series of three boxes. Your employer will check the applicable box if you are a statutory employee (employees whose earnings are subject to Social Security and Medicare taxes but not federal income tax withholding); if you participated in your employer’s retirement plan during the year; or if you received sick pay under your employer’s third-party insurance policy. **Box 14** is a “catch all” box. Your employer reports anything here that doesn’t fit anywhere else on the form W-2. Examples include state disability insurance taxes withheld, union dues, health insurance premiums deducted and nontaxable income. Your state and local tax reporting can be found at the very bottom of the form W-2. **Box 15** is very straightforward and includes your employer’s state and state tax identification number. If you work in a state without a reporting requirement, this box (along with boxes 16 and 17) will be blank. If you had multiple withholdings in a number of states, more than one box will be filled. If you are subject to state income taxes, **box 16** will indicate the total amount of taxable wages for state tax purposes. If you live and work in a state that doesn’t impose an income tax, this spot will be blank. If you have wages reported in box 16, **box 17** will show the total amount of state income taxes withheld during the year. If you live in a state that has a flat state tax (like PA), you can double check to make sure that your withholding is correct by multiplying the amount in box 16 by the flat tax rate. If you are subject to local, city, or other state income taxes, those will be reported in **box 18**. If you have wages subject to withholding in more than two states or localities, your employer will furnish an additional form W-2. If you have wages in box 18 subject to local, city, or other state income taxes, any withholding will be reported in **box 19**. **Box 20** is exactly what you’d expect: the name of the local, city, or other state tax being reported at box 19. You should have received your Form W-2 – with all of this information properly reported – by February 2, 2015. If you haven’t, contact your employer and consider taking further action.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Understanding%20Your%20Forms%3A%20W-2%2C%20Wage%20%26%20Tax%20Statement&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Understanding%20Your%20Forms%3A%20W-2%2C%20Wage%20%26%20Tax%20Statement "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Understanding%20Your%20Forms%3A%20W-2%2C%20Wage%20%26%20Tax%20Statement "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Understanding%20Your%20Forms%3A%20W-2%2C%20Wage%20%26%20Tax%20Statement&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual, Tax Forms **Tags:** form W-2, tax form, w-2, Wage & Tax Statement --- ### [Sales Tax Laws Keep Changing As More Shoppers Go Online](https://www.taxgirl.com/2020/08/03/sales-tax-laws-keep-changing-as-more-shoppers-go-online/) **Published:** August 3, 2020 **Author:** Kelly Phillips Erb **Content:** If you find yourself clicking over to do some online shopping more than before, you’re not alone. Web sales [are up](https://www.digitalcommerce360.com/article/coronavirus-impact-online-retail/) from last year in the U.S., reaching $73.2 billion as compared with $41.5 billion a year earlier. That’s true even though the U.S. gross domestic product (GDP) was down [a record 33% in the second quarter](https://www.businessinsider.com/us-q2-gdp-record-decline-coronavirus-pandemic-recession-lockdowns-economy-2020-7), unemployment levels remain high at just over 11%, and there’s no stimulus package on the books just yet. So why the clicks? Many Americans are choosing to shop from home as COVID-19 continues to spread. According to data from the Center for Systems Science and Engineering (CSSE) at Johns Hopkins University, the United States has reported nearly 4.7 million cases and approximately 155,000 deaths, the highest numbers anywhere in the world. Those clicks mean something different than they did even five years ago. That’s because of a 2018 Supreme Court case called South Dakota v. Wayfair, Inc., Overstock.com, Inc., and Newegg, Inc. — sometimes just referred to as *Wayfair.* Under the Constitution, states must establish a connection between a taxpayer and the state to impose taxes: that’s referred to as [nexus](https://www.taxgirl.com/2020/07/18/taxes-from-a-to-z-2020-n-is-for-nexus/). For years, the rule was that only those companies with a physical presence inside a state can be required to collect sales tax, “continuing value of a bright-line rule in this area.” For brick-and-mortar stores, that’s pretty easy: Are you physically located in the state or not? The idea that you could only impose sales tax on sales where a retailer maintained a physical presence in a state had previously been established in *National Bellas Hess, Inc. v. Department of Revenue of Ill.*, 386 U. S. 753 and was affirmed in *Quill Corp. v. North Dakota* (91-0194), 504 U.S. 298 (1992). But the advent and growth of internet sales complicated the issue: When *Quill* was decided, fewer than 2% of Americans had internet access. But the advent and growth of internet sales have complicated the issue. As states become increasingly aware of the amount of revenue they’re losing, they are seeking better ways to collect. Increasingly, that means that they are demanding that retailers be responsible for figuring and remitting the tax – and the requirements may differ from state to state. The lack of a consistent approach raised the question of whether *Quill* deserved a second look. That’s what the Supreme Court heard in *Wayfair*. In *Wayfair*, the Supreme Court essentially killed *Quill*, ruling that states have broad authority to require online retailers to collect sales taxes. (You can read more on *Wayfair* [here](https://www.taxgirl.com/2018/06/21/supreme-court-kills-quill-gives-states-more-authority-to-collect-sales-tax/).) As a result of *Wayfair*, there have been significant changes in sales tax compliance laws for remote sellers and marketplace facilitators. States rushed to change their laws following Wayfair, and more than a dozen states tweaked their sales tax laws [beginning October 1, 2019](https://www.taxgirl.com/2019/10/03/following-wayfair-new-sales-tax-rules-take-effect/). Since *Wayfair,* more than 40 states have made changes to their sales tax laws. Of the 45 states with a general sales tax, 43 have adopted an economic nexus law or rule since *Wayfair*. That can make tax compliance burdensome for some sellers, especially small- to midsize businesses. This was a concern raised in *Wayfair*, which caused Justice Kennedy to note: > These issues are not before the Court in the instant case; but **their potential to arise in some later case** cannot justify retaining this artificial, anachronistic rule that deprives States of vast revenues from major businesses. Those words were considered a signal that *Wayfair*, Part II, might eventually find its way into the courts. For now, sellers are considering other options. Some are pushing for more favorable legislation. As states watch sales tax revenues go up – as other tax revenues may take a dip – it may be the case that states will revisit how they view their tax systems under *Wayfair*. Brad Scott, the Director of Finance at Halstead Bead, Inc., a jewelry component wholesaler, hopes that states will take a second look at how sales taxes are applied across the country. Since May 2019, Scott has led Halstead’s *Wayfair* legislative advocacy efforts to achieve uniformity, simplification, clarity, and liability limitations for small businesses at both the state and federal levels. He and I recently discussed those advocacy efforts on the Taxgirl podcast (you can listen to the discussion – and find out more – [here](https://www.taxgirl.com/2020/07/27/learning-the-burden-or-benefit-of-online-businesses-paying-taxes/)). Why does Scott care? And why should retailers? Folks like to say that *Wayfair* leveled the playing field between brick-and-mortar stores and online retailers. It was supposed to be about fairness. But Scott says that *Wayfair* has resulted in a more complicated system – one that applies as equally to a Walmart as it does to a Halstead. As Scott notes, while those compliance burdens are the same, “I don’t have the team that Walmart already has.” The cost to comply can be considerable, chasing some retailers out of business while encouraging others to consider aligning with bigger businesses, like Amazon, to do the heavy lifting (though it’s not always that simple). And there’s collateral damage, too. Halstead had to replace its long-time accountant, properly licensed in the state where they are located, because they needed someone who could reach – and comply with laws – in all states where they did business. What’s the solution? Almost every retailer and tax professional has their own answer for this one, but it generally has something to do with uniformity. The current system, says Scott and many retailers like him, simply isn’t working. 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[ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Sales Tax, State and Local Tax (SALT) **Tags:** nexus, sales tax, South Dakota v Wayfair, Wayfair --- ### [Sales Tax-Free Back To School Shopping Still Happening Even During COVID](https://www.taxgirl.com/2020/08/07/sales-tax-free-back-to-school-shopping-still-happening-even-during-covid/) **Published:** August 7, 2020 **Author:** Kelly Phillips Erb **Content:** Back-to-school may look different in 2020, but that doesn’t mean that parents and teachers won’t be shopping. According to the National Retail Federation, consumers could spend a record amount in 2020 to prepare students for school and college as they buy more laptops and computer accessories for online and hybrid schools. “By any measure, this is an unprecedented year with great uncertainty, including how students will get their education this fall whether they are in kindergarten or college,” NRF President and CEO Matthew Shay said. “Most parents don’t know whether their children will be sitting in a classroom or in front of a computer in the dining room, or a combination of the two. But they do know the value of an education and are navigating uncertainty and unknowns so that students are prepared.” According to the NRF survey, parents with children in elementary school through high school say they plan to spend an average of $789.49 per family, topping the previous record of $696.70. College students and their families expect to pay an average of $1,059.20 per family, more than last year’s record of $976.78. Total spending for K-12 and college combined is projected to reach $101.6 billion, topping last year’s $80.7 billion and exceeding $100 billion. Not surprisingly, many shoppers plan to buy online – and top of the list? Computers and other electronics. With those expenses looming, parents are often looking for opportunities to save some cash. One of the ways that they do it? Sales tax holidays. Here’s a look at states offering taxpayers a break on sales tax for back-to-school items this year: - **Connecticut** (August 16-22) Exemptions apply to purchases of clothing and footwear ($100 or less per item), excluding clothing accessories, protective or athletic clothing, and some shoes including ballet, bicycle, bowling, cleats, football, golf, track, jazz, tap, and turf (but note that aerobic, basketball, boat and running shoes are exempt). - **Florida** (August 7-9) Exemptions include clothing, shoes, wallets, handbags, and backpacks that cost $60 or less. Computers that cost less than $1,000 and school supplies, such as pens, pencils, binders, and lunch boxes that cost less than $15 are also included. - **Iowa** (August 7-8) Exemptions apply to purchases of clothing or footwear (up to $100 per item); for any item that costs $100 or more, sales tax applies to the entire price. - **Maryland** (August 9-15) Exemptions apply to purchases of clothing and footwear ($100 or less per item), including sweaters, shirts, slacks, jeans, dresses, robes, underwear, belts, shoes, and boots priced at $100 or less. Accessories, including jewelry, watches, watchbands, handbags, handkerchiefs, umbrellas, scarves, ties, headbands and belt buckles will remain taxable, as will special clothing or footwear designed primarily for protective use (and not for normal wear) such as football pads. - **Massachusetts**(August 28-29) Retail items of up to $2,500, purchased in Massachusetts for personal use on these two days, will be exempt from sales tax (exceptions apply). - **Mississippi** (July 26-27). Exemptions apply to purchases of clothing and footwear ($100 or less per item regardless of how many items are sold at the same time); accessory items such as jewelry, handbags, wallets, watches, backpacks and similar items are not included. Footwear does not include cleats and items worn in conjunction with an athletic or recreational activity. - **Missouri** (August 7-9) Exemptions apply to purchases of clothing ($100 or less per item), school supplies ($50 or less per purchase), computer software ($350 or less), personal computers or computer peripheral devices ($1,500 or less) and graphing calculators ($150 or less). Some cities have opted not to participate (check the website for specifics), although, in those circumstances, the state’s portion of the tax rate will remain exempt. - **New Mexico** (August 7-9) Exemptions apply to purchases of footwear and clothing, excluding accessories ($100 or less per item); school supplies ($30 or less per item); computers ($1,000 or less per item); computer peripherals ($500 or less per item); and book bags and backpacks ($100 or less per item). - **Ohio** (August 7-9) Exemptions apply to purchases of clothing ($75 or less per item). Note that the exemption applies to clothing selling for $75 or less. If a piece of clothing sells for more than $75, the tax is due on the entire selling price. Exemptions also apply to school supplies ($20 or less per item) and instructional materials ($20 or less per item). - **Oklahoma** (August 7-9) Exemptions apply to purchases of clothing and footwear ($100 or less per item). The exemption does not apply to the sale of any accessories, special clothing or footwear primarily designed for athletic activity or protective use that is not usually worn except when used for athletic activity or protective use, or to the rental of clothing or footwear. Qualified items are exempt from state, city, county, and local municipality sales taxes. - **South Carolina** (August 7-9) Exemptions apply to a variety of back-to-school essentials, from clothing, accessories, and shoes to school supplies, backpacks, and computers. Shoppers will also find tax-free items for the home and dorm room. - **Tennessee** (August 7-9) The back-to-school holiday weekend has passed, but Tennessee is offering a second opportunity to save this year: During this time, the retail sale of food and drink by restaurants and limited-service restaurants, is exempt from sales tax. - **Texas** (August 7-9) The law exempts most clothing, footwear, school supplies and backpacks priced under $100 from sales and use taxes from a Texas store or from an online or catalog seller doing business in Texas. - **Virginia** (August 7-9) Exemptions apply to purchases of clothing and footwear ($100 or less per item) and school supplies ($20 or less per item). Sports or recreational items are not exempt from tax. The holiday also applies to hurricane and emergency preparedness items, and Energy Star™ and WaterSense™ products. Looking for more information? Some states are pretty specific about the exemptions. \*\*A few states, like Alabama and Arkansas, have already held their 2020 sales tax holidays. Keep in mind that some states have no statewide sales tax (Alaska, Delaware, Montana, New Hampshire, and Oregon), while others (like Pennsylvania and Vermont) already exempt some necessities like clothing. Also, keep in mind that some states offer counties and towns the option not to participate, so again, check with your state if you have questions. **I’ll update the list as information is made available (feel free to reach out to me with changes or updates that you notice). Happy shopping!** [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Sales%20Tax-Free%20Back%20To%20School%20Shopping%20Still%20Happening%20Even%20During%20COVID&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2020%2F11%2Fpexels-pixabay-207665.jpg&p%5Btitle%5D=Sales%20Tax-Free%20Back%20To%20School%20Shopping%20Still%20Happening%20Even%20During%20COVID "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Sales%20Tax-Free%20Back%20To%20School%20Shopping%20Still%20Happening%20Even%20During%20COVID "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Sales%20Tax-Free%20Back%20To%20School%20Shopping%20Still%20Happening%20Even%20During%20COVID&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Sales Tax, State and Local Tax (SALT) **Tags:** back-to-school, COVID-19, National Retail Federation, Online shopping, sales tax --- ### [Following The Money: All About IRS Criminal Investigation](https://www.taxgirl.com/2020/08/10/the-influence-of-the-irs-criminal-investigation-for-taxpayers/) **Published:** August 10, 2020 **Author:** John Luckenbaugh **Content:** For many years, the Internal Revenue Service (IRS) has served our community and taxpayers. Today, the Criminal Investigation Agency, also known as CI, works hard to better our community by tackling tax fraud and other financial crimes. The hard work and efforts of this agency are sometimes overlooked or unknown. This week, Kelly invites Don Fort, the Chief of IRS-CI, to explore the crucial work and educate listeners on how the agency provides a backbone for us worldwide. # **Learn About IRS-Criminal Investigation From the Chief** As Don Fort states, “Most crimes are financially driven.” When you break down crime, most cases involve financial matters. The CI team always has their hands full and never has a shortage of cases. Don has been with the IRS for 29 years and has held roughly nine leadership positions. If anyone can explain the ins and outs of the IRS, it’s Don. In this episode, Don and Kelly touch base on the organization itself, the cases they face, and the future that lies ahead. ## **Listen to Kelly and Don discuss more about IRS-CI, including:**  - The history of the Intelligence Unit and Criminal Investigation - Don’s Career path with the IRS and how he became Chief - Don’s successes and special stories that shaped his Career - The truths about Special Agents and Jurisdictions - All about the Academy - IRS initiating cases versus being sought out for them - Don’s most memorable and highlighted achievements with the IRS - The intensity and timeline of cases - Danger behind the scenes - How to become a part of the IRS or CI team - Strong staff and worldwide successes with the Agency - What is next for CI and Don, as he faces retirement ### **About Kelly:**  Kelly Phillips Erb created and hosts the Taxgirl podcast, your home for tax news, tax info, and tax policy. In each episode, she shares conversations about taxes, money, and the choices we make. Kelly is a tax attorney who works with taxpayers and tax practitioners like you every day. She helps folks out of tax jams, and hopefully, keeps others from getting into them. You can find out more about Kelly [here](https://www.taxgirl.com/about-taxgirl/) and you can follow her on [Twitter](https://x.com/taxgirl), [Facebook](https://www.facebook.com/taxgirl), [Instagram](https://www.instagram.com/therealtaxgirl), and [Linkedin](https://www.linkedin.com/in/taxgirl/). ****To subscribe to the podcast (it’s free!) using Apple, Spotify, or your favorite listening app,** [**click here**](https://www.taxgirl.com/taxgirl-podcast/podcast-subscription/)**.**** ### **Links:**  Kelly’s Website: [Taxgirl](https://www.taxgirl.com/) Don Fort: [LinkedIn](https://www.linkedin.com/in/don-fort-4a656435) PPP Florida Arrest [IRS Criminal Investigation](https://www.irs.gov/compliance/criminal-investigation) [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Following%20The%20Money%3A%20All%20About%20IRS%20Criminal%20Investigation&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2020%2F08%2FEp-5-Feature-Image-1.png&p%5Btitle%5D=Following%20The%20Money%3A%20All%20About%20IRS%20Criminal%20Investigation "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Following%20The%20Money%3A%20All%20About%20IRS%20Criminal%20Investigation "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Following%20The%20Money%3A%20All%20About%20IRS%20Criminal%20Investigation&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Podcast, Prosecutions, Felonies and Misdemeanors **Tags:** Chief Don Fort, criminialinvestigation, Don Fort, IRS, IRS-CI, IRS-Criminal Investigations, kellyerb, tax, taxgirl, taxgirlpodcast --- ### [Top 100 Tax Twitter Accounts to Follow in 2021](https://www.taxgirl.com/2020/12/31/top-100-tax-twitter-accounts-to-follow-in-2021/) **Published:** December 31, 2020 **Author:** Kelly Phillips Erb **Content:** If this time last year, you had suggested I would spend most of 2020 away from my office and rely on the tax community on social media to keep me both informed and sane, I likely would have laughed at you. Don’t get me wrong: I have always enjoyed the tax community on Twitter. But 2020 was different. It was more than a year of sharing links to IRS Revenue Rulings and pending legislation; it was a year when the tax community came together to ask not only how we could help taxpayers, but each other. Twitter streams weren’t just filled with news, links, and best practices focused on tax, but also practice hacks, spaces to vent, and much-needed words of encouragement. That’s why this year’s must-follow list is a bit different. In 2020, the world was different. #TaxTwitter was different. So the 2021 list doesn’t just focus on the folks who brought us tax news and updates, but also on those who boosted and supported the tax community. Best of all, it includes many new voices who were always willing to lend a hand to their colleagues and share valuable information and insights. ## About Twitter Twitter is an easy way to find out what’s happening in the tax world – for tax professionals, taxpayers and tax geeks. You can join live Twitter chats or simply look for hashtags like #IRS, #taxtwitter, and #taxpros. Or, you can follow some of the folks who are most engaged in sharing tax news and information. ## The Lists To get started, check out the top 100 must-follow tax Twitter accounts for 2021: **Forbes Tax Writers & Regular Contributors (**[**Twitter list**](https://twitter.com/i/lists/1344761875637145600)**):** 1. [@janetnovack](https://twitter.com/janetnovack) – Janet Novack – Forbes Washington Bureau Chief & Personal Finance Editor / I follow tax, budget and retirement policy & planning. 2. @nittiaj – Tony Nitti – Tax guy @rubinbrown. Writer @forbes. Tax Prof @uofdenver and @ggu. Pope of Chili Town. 3. [@peterreillycpa](https://twitter.com/peterreillycpa) – Peter Reilly – That things are not so ill with you and me as they might have been, is half owing to the number who lived faithfully a hidden life, and rest in unvisited tombs. 4. @wealthintersect – Megan Gorman – Senior Contributor @forbes, Managing Partner at Chequers Financial Management, @NEFE Board member, @GGULaw Adjunct Professor, ENTJ personality **Tax-Related Orgs (**[**Twitter list**](https://twitter.com/i/lists/1344764516354162691)**):** 1. [@ABATaxSection](https://twitter.com/ABATAXSECTION) – ABA Tax Section – The ABA Section of Taxation 2. [@AICPA](https://twitter.com/AICPA) – AICPA – The official Twitter account of the American Institute of CPAs 3. [@NATPTAX](https://twitter.com/NATPTAX) – NATP – The National Association of Tax Professionals (NATP) serves professionals through tax education, research, updates, publications and office supplies. 4. [@NSAtax](https://twitter.com/NSAtax) – NSA – National Society of Accountants (NSA) has been helping tax and accounting professionals succeed for 75 years. 5. [@Tax\_Experts](https://x.com/Tax_Experts) – NAEA – NAEA is the membership organization advocating for America’s Tax Experts®. **Tax Professionals, Firms & Companies (**[**Twitter list**](https://twitter.com/i/lists/1344771360111943680)**):** 1. [@adammarkowitzEA](https://twitter.com/adammarkowitzEA) – Adam Markowitz – Enrolled Agent. Advocate for small businesses. The only way we get through this is together. For musical parodies, follow @taxtuneparody #TaxTwitter 2. [@ajthecpa1226](https://twitter.com/ajthecpa1226) – Albert J. Campo, CPA, MBA – Proud father to a little princess – Former Big 4 sellout – Sole Practitioner – I help individuals and small business clients navigate the choppy tax waters. 3. [@andreacpa0](https://twitter.com/andreacpa0) – Andrea Carr, CPA – foundation bookkeeping. overly excited peon. built like a fainting goat. donut coach 4. [@AmieKCPA](https://twitter.com/amiekcpa) – Amie K – Iowa tax girl • Came for the TaxTwitter, stayed for the sarcasm and gifs • Your weird is your strength. 5. [@Aprilshowerstax](https://twitter.com/Aprilshowerstax) – April Walker – AICPA Lead Manager- Tax Practice & Ethics Team \| #CPA \| #UNC Tarheel \| Wife & mom to a mini me and 2 fur babies \| Proud #IMMT finisher \| Views are mine 6. [@Avalara](https://twitter.com/avalara) – Avalara – Tax compliance done right. Cloud-based solution for various transactional taxes, including sales and use, VAT, excise, communications, and other tax types. 7. [@BrandonHarbeke](https://twitter.com/BrandonHarbeke) – Brandon Harbeke, CPA – Tax CPA specializing in partnerships and corporations; sci-fi watcher and reader; classical and country music listener 8. [@bstonercpa](https://twitter.com/bstonercpa) – Brian Stoner, CPA – Award-Winning CPA; Forbes 2020 top 100 Twitter Tax Acct; Quoted on MarketWatch CNBC & CNN; #TaxPlanning & #TaxPrep for Small Business! Laker Ram & Dodger fan! 9. [@CariWestonCPA](https://twitter.com/CariWestonCPA) – Cari Weston – Strategic, future-focused, problem solving leader with a passion for growth and learning. 10. [@cbriancpa](https://twitter.com/cbriancpa) – Brian Streig, CPA –CPA focusing on tax planning, compliance, start-ups & entrepreneurs. Plus tweets about Austin, TX, food and my puppy. 11. [@conciergetax](https://twitter.com/conciergetax) – Robert Gambardella, CPA – Robert Gambardella, CPA. Shelton CT. Tax Planner for Service-Based Business Owners. Auburn, Washington Football, and Mets fanatic. BatDad 12. [@DamienMartinCPA](https://twitter.com/DamienMartinCPA) – Damien Martin – Host of the #SimplyTax podcast \| #Tax 13. [@DebFoxFinancial](https://twitter.com/DebFoxFinancial) – Deborah Fox CPA – Dual Licensed CPA in Texas and in Florida. Tax Focused because it can save money for everyone. Teaches IRS Compliance & Strategy for new Small Business Owners. 14. [@DonnaLCPA](https://twitter.com/DonnaLCPA) – Donna Laubscher – Tax CPA, especially fond of Form 1040; avid outside-of-tax-season reader, live theater, baseball & football spectator; iced tea addict (hydrate in the desert) 15. [@edzollars](https://www.twitter.com/edzollars) – Ed Zollars, CPA – Tax CPA & CPE Lecturer for Kaplan Financial Education. Author of material on Current Federal Tax Developments website. 16. [@ehjerp](https://twitter.com/Ehjerp) – Eric L Hjerpe, CPA – Father to 3 beautiful young ladies. Man to my Memma. Co-owner and managing partner of Hjerpe & Tennison CPA’s located in Bloomington, IL 17. [@fintaxdude ](https://twitter.com/fintaxdude)– Dan Herron – A dude trying to simplify investing, retirement & taxes for all. CPA/PFS, CFP® Co-Founder of #fitfactorygear. Principal of BBFS Inc & Elemental Wealth Advisors. 18. [@ForemanTaxLaw](https://twitter.com/ForemanTaxLaw) – Matt Foreman – Tax lawyer. I like baseball, colorful ties, and efficient taxation. Funnier IRL. Tweets: Not legal advice. Views: Mine, not my employer’s. #FundtheIRS 19. [@fullygodwin](https://twitter.com/fullygodwin) – Jonathan Godwin – CPA. Reader. Wine snob. Coffee drinker. All-around good guy. 20. [@GlenBirnbaum](https://twitter.com/GlenBirnbaum) – Glen Birnbaum – Husband, son, brother \| CPA, Partner @sikichllp – income tax (#199A) & business valuation \| Logan County, IL farm roots \| Tax Moves Moving Iron Podcast 21. [@HowardGinsberg](https://twitter.com/HowardGinsberg) – Howard Ginsberg, CPA – CPA, Wealth Management, Tax, Financial & Accounting Services. Forbes Top Must Follow Tax List. Voted Best of Long Island. #TaxTwitter ginsbergwealth.com 22. [@J\_Stephens\_CPA](https://twitter.com/J_Stephens_CPA) – Jeremy Stephens – Technical Trainer #Tax SW; Grad @IPTATL #SalesTax 2; TX #CPA; TX Teacher; BS #Math @DBUPatriots but #Catholic; MA #Ethics ’23; husband of @JLRStephens 23. [@JLWCPA2](https://twitter.com/JLWCPA2) – Jeanne W. – mom, advocate, MBA, CPA/PFS. Specialties are estates and trusts. Spellcheck is my friend. Wear your life jacket. 24. [@joebwan](https://twitter.com/joebwan) – Joe Kristan – Tax guy. Contributor, EBtaxblog.com. Former proprietor, Tax Update Blog. Currently with Eide Bailly LLP. Views are mine (who else would want them?). 25. [@JPorterCPA](https://twitter.com/JPorterCPA) – Jeffrey A. Porter, CPA – Tax Practitioner, Tax policy aficionado, Past Chair—AICPA Tax Executive Committee, Past Chair—AICPA Tax Reform Task Force & fan of Kiawah Island 26. @JStaatsCPA – Jason Staats – Tweeting about automation for accountants & operators 27. [@JustinMillerEsq](https://twitter.com/justinmilleresq) – Justin Miller – Bad tax jokes and even worse puns. National Strategist at BNY Mellon, Adjunct Professor at GGU Law, and ACTEC Fellow. Tweets ≠ legal or tax advice. 28. [@korlando2251](https://twitter.com/korlando2251) – Karen Orlando – Momma bear. Wife. Goofball. 80’s child. Utah grad. EA. Tax geek. Ally. Imperfect person trying to do good. She/her. 29. [@LoganGrafTax](https://twitter.com/LoganGrafTax) **–** The Tax TeleGraf with Logan Graf, CPA. Pioneering the tax landscape one tweet at a time. 30. [@lypierceCPA](https://twitter.com/lypierceCPA) – Lykethia Pierce, CPA – CEO of Pierce, CPA & Advisors\| Check out what I have a flair for (e.g., accounting, business, sunsets, life…)\| Phone no. (205) 370-4508/@AuthenticCPA 31. [@MeganTarnow](https://twitter.com/MeganTarnow) – Megan Genest Tarnow – Ferociously committed to helping nonprofits tell their stories & advance their missions through rock solid financials. It’s not really about the beans. she/her 32. [**@**MelindaNCPA](https://twitter.com/MelindaNCPA)– Melinda Nelson, CPA – CPA, explainer of all things tax, mom of 3, musical theater geek, fan of soccer & Iowa State basketball, just an Iowa girl at heart. 33. [@MissTaxCat](https://twitter.com/MissTaxCat) – Jina Etienne – #Speaker, trainer & facilitator engaging with passion, clarity & humor \| Accounting Today #Top100 2016 – 2018 \| #CPA with personality 34. [@NathanPClark](https://twitter.com/NathanPClark) – Nathan Clark – Tax geek, beer consumer, dog lover, boardgamer, runner. Prone to extreme sarcasm and dry humor. Opinions are my own. 35. [@NayoCarterGray](https://twitter.com/NayoCarterGray) – Nayo Carter-Gray, EA – Savvy virtual Accountant by day who loves a corny joke, funky glasses, and is passionate about financial literacy… 36. [@PhxCPA](https://twitter.com/PhxCPA) – J. Southern – Tax Guru, @Morehouse Man, Investor, Pizza Junkie; If it produces dividends, interest or rent I’m interested. $PhxCPA 37. [@PKubeyEA](https://twitter.com/PKubeyEA) – Phyllis Jo Kubey, EA – I am an Enrolled Agent passionate about helping taxpayers navigate our complex tax system. Also, Juilliard MM (voice) + Certified Alexander Technique teacher. 38. [@raniacombs](https://twitter.com/raniacombs) – Rania Combs – Attorney with a completely web-based law firm who helps Texans prepare their wills, trusts and estate plans online, without the usual overhead. 39. [@Roberg Tax](https://twitter.com/RobergTax) – Jan Roberg – I specialize in individual and small business (one or two owner) taxes. she/her 40. [@RobKovacev](https://twitter.com/RobKovacev) – Rob Kovacev – Tax attorney, DOJ alum. #Tax controversy & taxation of #innovation/#AI/#robotics. Forbes Top 100 #TaxTwitter to Follow. Views my own. 41. [@RyanLEllis](https://twitter.com/RyanLEllis) – Tax lobbyist/preparer. Prez of @CFEconomy. Go @patriots. @examiner contributor. Freedom/fiscal, paleo/foreign, Catholic/social. Senate unconfirmable. DMs open. 42. [@SalesTaxInst](https://twitter.com/SalesTaxInst) – Sales Tax Institute – Sales & use tax news, education, and expert training • Forbes Top 100 Tax Twitter Accounts For 2020 • Fearless leader: @YetterTax – the original #salestaxnerd 43. [@ShaunHunley](https://twitter.com/ShaunHunley) – Shaun Hunley – Sketch comedian turned tax attorney and author (not a stretch). Click for my latest thoughts. 44. [@ShaynaCPA](https://twitter.com/ShaynaCPA) – CPA.CITP, CGMA, Tech addict. Founder & Chief Strategist of Shaynaco LLC. Lover of useless facts. Trying to control my addiction to chocolate chip cookies 45. [@SylviaDionCPA](https://twitter.com/SylviaDionCPA) – Sylvia F. Dion – #CPA Founder & Partner #SALT Firm, #EconomicNexus Guru #StateTax #SalesTax Blogger/Writer, Forbes #Tax to follow 2015-2020, PROUD Mexican-American LATINA 46. [@TaxBuzzOnline](https://twitter.com/taxbuzzonline) – TaxBuzz.com – Forbes Top 100 #TaxTwitter to Follow. Get #tax & #accounting help from highly-rated professionals. Easy & free service for individuals & #smallbusiness. 47. @TaxHatchet – Brent A. Auberry – Attorney, Faegre Drinker, focusing on State and Local Tax (SALT) — property, sales/use, income tax — Tweets are my own & not legal advice; RTs not endorsements 48. [@TaxPoetic ](https://twitter.com/TaxPoetic)– Brad Garland, CPA – Huntsville’s adopted son. CPA at @BrandBlackwell, #Auburn MAcc. Serve @TheRocketHatch, @TEDxHuntsville; found @bnicove, @RocketCitySGO. #WarEagle! #TaxTwitter 49. [@TaxPro10018](https://twitter.com/TaxPro10018) – Patrick Murphy – Enrolled Agent. Enrolled Agent. Forty-six years of tax professional experience. 2020 Forbes Top 100 Tax Twitter Account linkedin.com/in/hrbtaxpro Intuit/Turbo Tax Expert Lead 50. @taxtherapist505 – Amber Gray-Fenner, EA – Easing tax pain and providing peace of mind! I read; I write; I knit; I solve tax problems. I take my business seriously. Myself? Not so much. (she/her) 51. [@TropicalTax](https://twitter.com/tropicaltax) – Jerry Gaddis, EA, MBA – Founder/CEO Tropical Tax Solutions: Founded in Paradise, Serving Clients Everywhere \| #EnrolledAgent \| @DaveRamsey ELP \| @Forbes Must-Follow Tax Account 52. [@VertexInc.](https://twitter.com/vertexinc) – Vertex – The official Twitter account of Vertex, Inc., pioneers in tax automation helping companies around the globe to transact, comply and grow with confidence. 53. [@VLJeker](https://twitter.com/VLJeker) – V. La Torre Jeker – US Tax – Dubai since 2001. NYS Bar 35+ yrs; US Tax Court. US/int’l tax, cross-border, expatriation, FATCA. Forbes Top 100 Tax Twitter Account 2017-2020 54. [@wifemomcpa100](https://twitter.com/wifemomcpa100) – Wife to 1, mom to 5 and CPA to many. Side gig: superhero \| I #indiepharmacies \| Founder: @bdaccounting 55. @yourfaveCPA – Eric Pierre – @yourfavecpa – Your Favorite CPA®, 6’8″ Retired player, Owner of @pierrecpa, prayer warrior, civil rights, and mentoring advocate. Opinions expressed are mine alone **Tax Writers, Bloggers & Gurus (**[**Twitter list**](https://twitter.com/taxgirl/lists/tax-writers-gurus-2020)**):** 1. [@alexparkerDC](https://twitter.com/Law360) – Alex Parker – Taxsplainer for @Law360. Fan of Purdue, Butler, Colts, Pacers, Indians & free thinkers. Views here are my own, or Batman’s. Retweets are endorphins. 2. [@amyleerosen](https://twitter.com/amyleerosen/) – Amy Lee Rosen – Senior Tax Correspondent @Law360. PA/NJ @templelaw attorney who loves to pun, run, lift, eat and travel. Views are my own. 我说汉语 Hablo español. @wesleyan\_u grad. 3. @BillSheridan – Bill Sheridan – Cuba, NY, native. University at Buffalo alum. Adopted son of Baltimore and St. Louis. Not a CPA, but I play one on TV. EOS implementer, speaker, author, writer. 4. [@CentristinIdaho](https://twitter.com/CentristinIdaho) – David Morse – Tax Policy Director @cpa\_tradereform; Total Geek. Forbes Top 100 #TaxTwitter to Follow 2020, 2019, and 2018. All opinions are my own. RT not endorsement 5. [@\_colleenmurphy)](https://twitter.com/_colleenmurphy_)\_- Editing news at @tax, talking about Minnesota, going to bed early. She/her. 6. [@Darla\_Mercado](https://twitter.com/Darla_Mercado) – Darla Mercado, CFP – Reporter, @CNBC‘s personal finance team. Mom. CERTIFIED FINANCIAL PLANNER™. Triathlete. A regular shmegular degular girl from The Bronx. 7. [@dashching](https://twitter.com/dashching) – Chye-Ching Huang – Tax, budget, economy, law, policy. US & NZ. Director Federal Fiscal Policy @CenteronBudget. Tweets not about US fiscal policy aren’t for CBPP. 8. @jbuhl35 – John Buhl – Media @BudgetHawks Prev: @PewStates @TaxFoundation @TaxNotes. Likes: econ, tax, policy and complaining about sports. Extreme centrist. Opinions mine only. 9. [@LenBurman](https://twitter.com/lenburman) – Len Burman – Father, grandfather, @taxpolicycenter cofounder, Syracuse University prof. For fun, I cycle, cook, and sing. Retweets≠endorsement. 10. [@M\_SullivanTax](https://twitter.com/m_sullivantax) – Martin Sullivan – Chief Economist, Tax Analysts. Former Treasury, JCT staff. Grateful for bio by Steven Pearlstein (link below). 11. [@ManasaSogNadig](https://twitter.com/ManasaSogNadig) – Manasa Sogal Nadig – Enrolled Agent&CEO at MNTaxBiz;Tax Geek & Blogger at thebuzzabouttaxes.com;Mom&Wife@ ChezNadig;Forbes #TaxTwitter Accounts 2018, 2019 & 2020& 2019 12. [@MariaKoklanaris](https://twitter.com/MariaKoklanaris) – Maria Koklanaris – Senior tax correspondent @Law360. Steelers fanatic. Proud Penn Stater. Tweets mine only. RTs not endorsements #Ijustmetagirlnamed #Howdoyousolveaproblemlike 13. [@njagoda](https://twitter.com/njagoda) – Naomi Jagoda – Tax reporter @thehill. @Penn alum. N.Y. native. My last name is pronounced like Pagoda with a J. 14. [@RenuZ](https://twitter.com/RenuZ) – Renu Zaretsky (Tax Hound) – #TaxHound and #DailyDeduction writer @TaxPolicyCenter. Indian-American wife, parent to 2 kids, 1 Scottish Deerhound. Views mine alone, RTs not endorsements 15. [@RichardRubinDC](https://twitter.com/RichardRubinDC) – Richard Rubin – I cover U.S. tax policy for the @WSJ. There is ALWAYS a tax angle. Retweets are not endorsements or tax advice. 16. [@Saunderswsj ](https://twitter.com/Saunderswsj)– Laura Saunders – I write about taxes for The Wall Street Journal 17. @SoongJohnston – Stephanie Johnston – Chief correspondent @TaxNotes Today Int’l @MedillSchool MSJ06 stephanie.johnston@taxanalysts.org RTs≠endorsements. She/her 18. @TaxAddict – Tracy Shannon Levey – All Things #Tax, #Accounting & #Finance. Forbes Top 100 #Tax Twitter to Follow 2020. Co-Founder Parker Tax Publishing. Opinions are my own. 19. [@TaxMama](https://twitter.com/TaxMama) – TaxMama® – Award winning author – Top 100 accountant and tax blog – dean of TaxMama’s® #EnrolledAgent (EA) Time for Self-Study! 20. [@TylerEvilsizer](https://twitter.com/TylerEvilsizer) – Tyler Evilsizer – Tax nerd, budget wonk, & Deputy Policy Director for @BudgetHawks. Formerly at @MoneyInPolitics. In DC for now, permanent Montanan. Thoughts are my own. **Media, Publishers, Networks and Think Tanks (**[**Twitter list**](https://twitter.com/i/lists/1344766936417243138)**):** 1. [@AccountingToday](https://twitter.com/AccountingToday) – Accounting Today – Accounting Today, an Arizent brand, is the independent news and information resource for tax and accounting professionals. 2. [@OECDTax](https://twitter.com/OECDtax) – Latest #tax news & data from the #OECD Centre for Tax Policy and Administration. Follow our senior leadership @PSaintAmans & @GPerezinParis 3. [@Tax](https://twitter.com/tax) – Bloomberg Tax – Leading source of accounting & tax news #TaxTwitter Find us on Flipboard: btaxgo.com/id4i7wm \| Our journalists: btaxgo.com/xbXrabe[te](https://twitter.com/search?q=%23TaxTwitter&src=hashtag_click) 4. @Tax\_Alerts – Tax Alerts – News and guidance covering all Tax issues – corporate, personal. Written by the nation’s leading tax lawyers for CPAs, financial planners, etc. A @JDSupra feed. 5. [@taxfoundation](https://twitter.com/taxfoundation) – Tax Foundation – Your #1 resource for trusted, independent tax policy research & analysis \| Coronavirus relief: taxfoundation.org/covid19 \| Subscribe for tax/economics updates 6. [@TaxNotes](https://twitter.com/taxnotes) – Tax Notes – Your #1 source for everything tax. News, commentary, analysis. Nonprofit, nonpartisan organization. #letstalktax 7. [@TaxPolicyCenter](https://twitter.com/TaxPolicyCenter) – Tax Policy Center – Independent, timely, accessible analyses of current and emerging tax policy issues. (Links/RTs/favorites/follows/etc. are not endorsements.) **Tax Professors and Other Learned Tax Geeks (**[**Twitter List**](https://twitter.com/i/lists/1344765339226284036)**):** 1. [@BW\_Johnson](https://twitter.com/BW_Johnson) – Ben Johnson – Associate Dean/ Accounting Professor @UEBusiness. Tax guy. I live life in a highly caffeinated state. 2. [@book\_leslie](https://twitter.com/book_leslie) – Leslie Book – Villanova Law Prof. Tax, poverty law and tax procedure/admin Author: Saltzman & Book, IRS Practice & Procedure. 3. [@EOTaxProf](https://twitter.com/EOTaxProf) – Philip Hackney – #TaxProf, fmr DC IRS chief counsel atty, fmr Baker Botts atty; #nonprofits, IRS, public policy, tax, campaign finance, #darkmoney, Art Law; #LawProf @Pittlaw 4. [@JudithFreedman](https://x.com/JudithFreedman) – Judith Freedman – Oxford Professor of Tax Law, British Tax Review editor, school governor, grandmother of 4. Here in personal capacity, not representing views of any organisation 5. [@lilybatch](https://x.com/lilybatch) – Lily Batchelder – Robert C. Kopple Family Professor of Taxation at @nyulaw. Former Deputy Director @WhiteHouse NEC; former Chief Tax Counsel @SenateFinance. 6. [@Narfnampil](https://twitter.com/Narfnampil) – Francine Lipman – Tax/poverty law prof/LLM/MBA/CPA @UNLVLaw All views& comments are solely my own 7. [@ProfAfield](https://twitter.com/ProfAfield) – Ted Afield – Director, Philip C. Cook Low Income Taxpayer Clinic and Mark and Evelyn Trammell Associate Clinical Professor of Law, @GeorgiaStateLaw, @GSULawClinics 8. [@SeanSteinSmith](https://twitter.com/seansteinsmith) – Dr Sean Stein Smith – @LehmanCollege Prof, @WallStreetBTC Adv Board, @GildedFinance Board, @NYSSCPA 40 under 40 @NJCPA ‘19 Ovation Award @AIER Fellow ‘19, @ForbesCrypto Contributor 9. @smbrnsn – Sam Brunson – Georgia Reithal Professor Law, Loyola University Chicago. Mostly, but not entirely, taxes, jazz & cooking And don’t forget me: [@taxgirl](https://twitter.com/taxgirl). ## The IRS on Twitter The IRS has grown its presence on Twitter, so I’ve separated those accounts here for easy reference: - [@IRSnews](https://twitter.com/IRSNews) – We’re helping taxpayers, businesses, tax-exempt orgs and others affected by COVID-19. - [@YourVoiceAtIRS](https://twitter.com/YourVoiceatIRS) – The Taxpayer Advocate Service is your voice at the IRS. [taxpayeradvocate.irs.gov](http://t.co/vMqCZFUh?amp=1). - [@IRStaxpros](https://twitter.com/IRStaxpros) – IRS news and guidance for tax professionals. - [@IRStaxsecurity](https://twitter.com/IRStaxsecurity) – IRS Tax Security - @RecruitmentIRS – The official IRS Recruitment account for [@IRSnews](https://twitter.com/IRSnews). - [@IRSSmallBiz](https://twitter.com/IRSsmallbiz) - [@IRS\_CI](https://twitter.com/IRS_CI) – IRS Criminal Investigation news. The IRS also has a number of media spokespersons, including some for individual regions. Here are some of the most active on Twitter: - @ChristopherIRS – Christopher – IRS Media Relations for Wisconsin, Iowa and Nebraska. - @David\_IRS – David Tucker – IRS Media Relations – AK, AZ, HI, MT, NM, Northern CA, OR, WA and WY. - @KC\_IRS – Karen Connelly – IRS contact for CO, ID, UT, SD, MN - @Luis\_IRS – Luis Garcia – IRS Spokesman for MI, IN, OH, KY, WV, OK, NB, NC, SC. - @raphyIRS – raph t – San Diego-based IRS Spokesman for So Cal, SF Bay Area & NV. - [@MichaelD\_IRS](https://twitter.com/MichaelD_IRS) – Michael Devine – IRS Media Relations. - @IRS\_Patricia – Patricia Russomagno – IRS Public Relations Specialist. - @Sanford\_IRS – Clay Sanford – IRS Media Relations. ## Subscribing To subscribe to all of the accounts in a category, click on the **Twitter list** link following the category head. Note that the category heads are for convenience – in practice, some folks could fall in more than one category. To subscribe to all 100 Twitter accounts (ok, 101 if you include me) on the list, [click here](https://twitter.com/i/lists/1344781713847758848). ## More About The Lists Keep in mind that this list is subjective. As every year, there’s no fancy algorithm or poll. I don’t count tweets or followers, though I do consider the type and timeliness of tweets, as well as engagement. I also target feeds with a clear focus on tax as opposed to finance or economics. The goal is to present a wide range of tax professionals from different parts of the world, offering different perspectives (I’ve even included Patriots fans). This year in particular, I took your feedback and nominations to heart. I received a lot of suggestions (and some of you suggested *a lot* of folks at once). Each year, I receive emails critiquing and questioning the list. Please keep in mind that the list changes every year. And this year, it changed a **lot** – which is a good thing. If you’ve been on lists in prior years but aren’t on this year, don’t take it personally. Again, I wanted to grow the list to include new voices in the tax world. One more thing: if you tweet about tax and I’m not following you, please [@taxgirl](https://x.com/taxgirl) on Twitter and let me know. Also, if you are a tax pro and aren’t on my [Twittering Tax Pro list](https://twitter.com/taxgirl/lists/twittering-tax-pros), please @taxgirl and let me know so I can add you. **Wishing you all very happy in 2021!** [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Top%20100%20Tax%20Twitter%20Accounts%20to%20Follow%20in%202021&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2009%2F05%2Fperson-holding-silver-iphone-7-887751.jpg&p%5Btitle%5D=Top%20100%20Tax%20Twitter%20Accounts%20to%20Follow%20in%202021 "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Top%20100%20Tax%20Twitter%20Accounts%20to%20Follow%20in%202021 "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Top%20100%20Tax%20Twitter%20Accounts%20to%20Follow%20in%202021&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Just for Fun, Tax Professionals **Tags:** #taxtwitter, Must Follow Twitter Accounts, Tax Twitter, Twitter --- ### [Entertainer Lauryn Hill Posts Bail, Awaits Tax Evasion Sentence](https://www.taxgirl.com/2012/07/09/entertainer-lauryn-hill-posts-bail-moves-closer-to-sentencing-on-tax-evasion/) **Published:** July 9, 2012 **Author:** Kelly Phillips Erb **Content:** As expected, entertainer Lauryn Hill has pleaded guilty to charges of tax evasion. Ms. Hill did not speak after the recent hearing but her attorney indicated that she was prepared to pay the tax due on the nearly $2 million she failed to report in 2005, 2006, and 2007. As a result, her sentencing was moved to allow her the opportunity to arrange for payment. With the plea, Ms. Hill faces up to a year in prison on each of the charges. Most agree that it’s highly unlikely that she’ll see that kind of time since the mother of six has been cooperating with authorities. The award-winning singer raised eyebrows when she posted a lengthy public response to the charges on Tumblr, saying that she had gone “underground” in order to live without “being manipulated and controlled by a media protected military-industrial complex with a completely different agenda.” While her fans decried the idea that she might have some mental health issues, the judge apparently believes differently, requiring Ms. Hill to undergo mental health counseling as a condition of her bail; she also posted $150,000 as security. This time, Ms. Hill did not offer a statement about the plea or the charges, saying when asked if she had a comment: “Indirectly, I’ve been advised my ability to speak out directly is for another time, at sentencing.” Her sentencing is scheduled for November 27.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Entertainer%20Lauryn%20Hill%20Posts%20Bail%2C%20Awaits%20Tax%20Evasion%20Sentence&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Entertainer%20Lauryn%20Hill%20Posts%20Bail%2C%20Awaits%20Tax%20Evasion%20Sentence "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Entertainer%20Lauryn%20Hill%20Posts%20Bail%2C%20Awaits%20Tax%20Evasion%20Sentence "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Entertainer%20Lauryn%20Hill%20Posts%20Bail%2C%20Awaits%20Tax%20Evasion%20Sentence&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Pop culture, Prosecutions, Felonies and Misdemeanors, Taxes of the Rich and (In)famous **Tags:** Lauryn Hill, tax evasion --- ### [Top 100 Must-Follow Tax Twitter Accounts For 2018](https://www.taxgirl.com/2017/12/31/top-100-must-follow-tax-twitter-accounts-for-2018/) **Published:** December 31, 2017 **Author:** Kelly Phillips Erb **Excerpt:** Want to know what's happening in the tax world? Here are the top 100 must-follow tax Twitter accounts for 2018. **Content:** Some of the best conversations about tax and tax reform in 2017 weren’t found in conference rooms or the halls of Congress: They were on [Twitter](http://www.twitter.com). Twitter is a great way to stay on top of tax news, tax information, and tax policy all over the world. You can instantly share links, data, policy updates, and photos – or simply lurk and watch your feed (though it’s certainly more fun when you engage). Think of it like a virtual cocktail party: you can network and exchange stories at your convenience – only you don’t have to dress up if you don’t want to. Just in time for the new year, here are the top 100 must-follow tax Twitter accounts for 2018: **IRS\* ([Twitter list](https://twitter.com/taxgirl/lists/irs-2018)):** (1) [@IRSnews](https://twitter.com/IRSNews) – IRS – IRS news and guidance for the public, the press and practitioners. IRS does not collect comments or messages on this site. Privacy Policy: http://go.usa.gov/VgO (2) @AnnyPachnerIRS – Anny Pachner – IRS Media Spokesperson. View our privacy policy: http://go.usa.gov/VgO (3) [@YourVoiceAtIRS](https://twitter.com/YourVoiceatIRS) – Taxpayer Advocate – The Taxpayer Advocate Service is your voice at the IRS. <http://taxpayeradvocate.irs.gov>. TAS does not collect comments/messages on this site. http://irs.gov/privacy. **Forbes Tax Writers & Regular Contributors ([Twitter list](https://twitter.com/taxgirl/lists/forbes-tax-writers-2018)):** (4) [@ashleaebeling](https://twitter.com/ashleaebeling) – Ashlea Ebeling – Associate Editor, Forbes (5) [@janetnovack](https://twitter.com/janetnovack) – Janet Novack – Forbes Washington Bureau Chief & Personal Finance Editor / I follow tax, budget and retirement policy & planning. (6) @nittiaj – Tony Nitti – Tax Partner for @WithumCPA. Tax Writer for @Forbes and @goingconcern. Don’t blame me, I voted for Kodos. (7) [@peterreillycpa](https://twitter.com/peterreillycpa) – Peter Reilly – If you don’t have documentation, at least have a plausible story. -Don’t just like, also retweet. (8) [@TheBudgetGuy](https://twitter.com/TheBudgetGuy) – Stan Collender – Forbes contributor, Georgetown U. adjunct prof, author of The Guide To The Federal Budget, stand-up comedian wannabee, all tweets my own **Tax-Related Orgs ([Twitter list](https://twitter.com/taxgirl/lists/tax-related-orgs-2018)):** (9) [@ABATaxSection](https://twitter.com/ABATAXSECTION) – ABA Tax Section – The ABA Section of Taxation (10) [@AICPA](https://twitter.com/AICPA) – AICPA – We’re the American Institute of Certified Public Accountants. Follow this account for Accounting news, Institute announcements, and other updates. (11) [@FICPA](https://twitter.com/FICPA) – FICPA – The Florida Institute of Certified Public Accountants is the premier professional organization representing Florida’s CPAs. (12) [@MACPA](https://twitter.com/MACPA) – MACPA – We’re the Maryland Association of CPAs, nearly 9,000 members strong. Bill Sheridan (@BillSheridan) updates this account. (13) [@NATPTAX](https://twitter.com/NATPTAX) – NATP – The National Association of Tax Professionals (NATP) serves professionals through tax education, research, updates, publications and office supplies. (14) [@NSAtax](https://twitter.com/NSAtax) – NSA – National Society of Accountants (NSA) is the association for Main Street tax and accounting professionals. (15) [@Tax\_Experts](https://x.com/Tax_Experts) – NAEA – The official feed of the National Association of Enrolled Agents (NAEA). #EnrolledAgents are America’s Tax Experts—find one at http://www.eaTax.org. (16) [@WomenInTax](https://twitter.com/WomenInTax) – Women in Tax – Women In Tax is a network for women working in tax – in the profession, in-house, academia, HMRC, NGOs or anywhere else. Tweets currently by @hselftax **Tax Professionals, Firms & Companies ([Twitter list](https://twitter.com/taxgirl/lists/tax-pros-2018)):** (17) [@AlloyCPAs](https://twitter.com/AlloyCPAs) – Alloy Silverstein – Regional accounting, tax, & advisory services since 1959 \| Cheering for #TeamAlloy on PGA, WebCom & Symetra Tours \| Managing Partner @RenCicalese (18) [@AthleteCPA](https://twitter.com/AthleteCPA) – Chris Cicalese, CPA – Tax Professional @AlloyCPAs • Professional Athletes • Family Entertainment and Amusements » Former Pine Valley Caddie (19) [@AthleteTax](https://twitter.com/AthleteTax) – K Sean Packard, CPA – Director of Tax @OFS, specializing in athlete tax planning, part-time writer – opinions all mine (20) [@Avalara](https://twitter.com/avalara) – Avalara – Tax compliance done right. Cloud-based solution for various transactional taxes, including sales and use, VAT, excise, communications, and other tax types. (21) [@BDO\_USA\_Tax](https://twitter.com/BDO_USA_Tax) – BDO USA Tax – Our professionals help companies and individuals navigate complex tax issues. A 2017 @Forbes Must-Follow Tax Twitter Feed. (22) [@BrandonHarbeke](https://twitter.com/BrandonHarbeke) – Brandon Harbeke, CPA – Tax CPA specializing in partnerships and corporations; sci-fi watcher and reader; classical and country music listener (23) [@bstonercpa](https://twitter.com/bstonercpa) – Brian T. Stoner, CPA – Award Winning Burbank, CA CPA Quoted on MarketWatch & CNN – Tax Preparation & Planning for Small Business http://briantstonercpa.com (24) [@CariWestonCPA](https://twitter.com/CariWestonCPA) – Cari Weston – Wife, mom to 3, #CPA, #Tax Director @AICPA by day, like to get my hands dirty (but nothing else), always learning, probably reading 3 books right now (25) @ChaimGordon – Chaim Gordon – Tax lawyer. Favorite cases: Lochner v. New York and Citizens United v. FEC. Brainchild: Loving v. IRS. Grand-brainchild: Steele v. United States. (26) [@CPA\_Trendlines](https://twitter.com/CPA_Trendlines) – Rick Telberg – Live links to breaking news for tax, accounting and finance professionals. Sign up for free email updates at http://cpaclick.com/4alerts (27) [@DonnaLCPA](https://twitter.com/DonnaLCPA) – Donna Laubscher – Tax CPA, especially fond of Form 1040; avid outside-of-tax-season reader, live theater, baseball & football spectator; iced tea addict (hydrate in the desert) (28) [@HowardGinsberg](https://twitter.com/HowardGinsberg) – CPA, Tax, Financial & Accounting Services. Wealth Management. http://www.ginsbergcpa.com Voted Best of Long Island. Nassau County (29) [@iHeartTax](https://twitter.com/iHeartTax) – Rosalind Sutch, CPA – They call us @TaxWarriors, but personally, I prefer Tax Goddess. LGBT Ally. T1D Athlete. RSutch@dscpas.com (30) @JasonMBlumer – Jason M. Blumer, CPA – CPA specializing in Creatives, Founded @THRIVEalCPAs, @BlumerCPAs, family man, jesus lover. Get e-book at http://www.jasonblumer.com . Luv @jenniferblumer (31) [@JodyPadarCPA](https://twitter.com/JodyPadarCPA) – Jody Padar – Tax Quickbooks CPA Adjunct Professor Xero Firm Partner Sage Networker MACPA Professional Speaker Accounting Today Freshbooks The Radical CPA (32) [@joebwan](https://twitter.com/joebwan) – Joe Kristan – Tax guy. Former proprietor, Tax Update Blog. Currently with Eide Bailly LLP. Views are mine (who else would want them?) (33) @kerryfreemanea – Kerry Freeman, EA – Tax Professional, Member of National Association of EAs, Arizona Society of EAs and owner of Freeman Income Tax Service in Anthem, AZ. Licensed by U.S. Treasury (34) [@lypierceCPA](https://twitter.com/lypierceCPA) – Lykethia Pierce, CPA – CEO of Pierce, CPA & Associates LLC\| Check out what I have a flair (e.g., accounting, biz, people, life…) for \| Phone no. (205) 370-4508/@AuthenticCPA (35) [@LTWLAW](https://x.com/LTWLAW) – Louis T. Wierenga – Tax return DIYers, IRS allows 3 yrs. to amend. See if you overpaid in ’14, ’15, or ’16. Ltw@LtwLaw.com to learn more. (36) @MaineTaxGuru – Bill – Maine tax law wonk, bad guitar player, cool uncle, three time @taxgirl top 100 must follow tax twitter feeds. (37) @MD\_Herbert – Michael Herbert – State Tax Person of the Year 2012 for Gillette v FTB. Tweets are my own and not from PwC. (38) [@MissTaxCat](https://twitter.com/MissTaxCat) – Jina Etienne – Champion of Inclusion & Meaningful Diversity. Love my family. Always curious. Eternally grateful. Formerly: NABA CEO & AICPA Director-Taxation (39) [@NathanPClark](https://twitter.com/NathanPClark) – Nathan Clark – Tax geek, beer aficionado, dog lover, boardgamer, marathon runner. Prone to extreme sarcasm and dry humor. Opinions are my own. (40) @RachelASimonTax – Rachel Simon – Forbes Top 100 #Tax Twitter to Follow. MBA/EA, Int’l/Expat Tax. Combat vet (really!), Tax Manager @RSMUSLLP // Views expressed are mine; tweets ≠ tax advice. (41) [@raniacombs](https://twitter.com/raniacombs) – Rania Combs – Attorney with a completely web-based Law firm who helps Texans prepare their wills, trusts and estate plans online, without the usual overhead. (42) [@rileytaxtweets](https://twitter.com/rileytaxtweets) – Peter J. Riley CPA – Peter Riley is the author of “The New Tax Guide for Writers, Artists, Performers & Other Creative People” and specializes in taxation for creative individuals. (43) [@RobKovacev](https://twitter.com/RobKovacev) – Rob Kovacev -Tax Partner at Steptoe & Johnson LLP. Ex-DOJ Senior Litigation Counsel. #Tax controversy, int’l tax, tax policy for #innovation/#AI/#robotics. Views are my own. (44) [@rokumar1918](https://twitter.com/rokumar1918) – Rohit Kumar – @PwC\_LLP Tax Policy Leader & Former Dep. CoS @SenateMajLdr. Proud grad @DukeU. YMMV, some assembly required & other caveats apply. (45) [@SalesTaxInst](https://twitter.com/SalesTaxInst) – Sales Tax Institute – Sales Tax Institute offers expert courses in sales & use tax that teach the practical & actionable skills needed for success. (46) [@SandraFeinsmith](https://twitter.com/SandraFeinsmith) – Sandra Feinsmith – work with nonprofits and for profit companies regarding tax issues. It is a lot of fun and never boring (47) [@ShaynaCPA](https://twitter.com/ShaynaCPA) – Shayna Chapman – CPA.CITP, CGMA, tech addict, tax geek, mom, entrepreneur. (48) [@SportsTaxMan](https://twitter.com/SportsTaxMan) – Robert Raiola, CPA – Director of Sports & Entertainment Group at PKF O’Connor Davies, LLP -Co-author of AICPA book, Winning Tax Strategies & Planning for Athletes & Entertainers (49) [@SylviaDionCPA](https://twitter.com/SylviaDionCPA) – Sylvia F. Dion – #CPA, Founder & Managing Partner #SALT Consulting Firm, MA #Tax Columnist for Tax Notes, #SalesTax Blogger, PROUD Mexican #LATINA & Happy Mom of 3 Awesome Kids (50) [@TaxBuzzOnline](https://twitter.com/taxbuzzonline) – Official Account: Get #tax & #accounting help from highly-rated professionals. Easy & free service for individuals & #smallbusiness. #cpa #fintech #finance (51) [@taxguru](https://twitter.com/taxguru) – Amit Chandel CPA CTC – Certified Tax Planner/Exit Strategies/Tax Resolution/Business Valuations (52) @TaxHatchet – Brent A. Aubrey – Attorney, Faegre Baker Daniels, focusing on State & Local Tax (property, sales/use, income) (Tweets are my own & not legal advice; RTs not endorsements). (53) [@TaxJar](https://twitter.com/TaxJar) – Tax Jar – Making sales tax filing simple for online sellers. (54) [@TaxPro10018](https://twitter.com/TaxPro10018) – Patrick Murphy – Enrolled Agent at Block Advisors. Forty-one years of tax professional experience. http://www.linkedin.com/in/hrbtaxpro/ 2017 Forbes Top 100 Tax Twitter Account (55) [@TropicalTax](https://twitter.com/tropicaltax) – Founder/CEO Tropical Tax Solutions: Headquartered in Paradise, Serving Clients Everywhere \| #EnrolledAgent \| @DaveRamsey ELP \| @Forbes Must-Follow Tax Account (56) [@VertexInc.](https://twitter.com/vertexinc) – Vertex – The official Twitter account of Vertex, Inc. the company that allows you to unleash the strategic power of tax. (57) [@VLJeker](https://twitter.com/VLJeker) – V. La Torre Jeker – US Tax – Dubai since 2001. NYS Bar over 30 yrs; admitted US Tax Court. US/int’l tax planning, expatriation, OVDP, FATCA. 2017 Forbes Top 100 Tax Twitter Account **Tax Writers, Bloggers & Gurus ([Twitter list](https://twitter.com/taxgirl/lists/tax-writers-gurus-2018)):** (58) @AislingTax – Aisling Donohue – Tax nerd living all over the place in Ireland. Dublin, Longford (despite being from Westmeath) etc (59) @alhstn – Amy Hamilton – Chief Correspondent (State) for Tax Analysts. Tweets are my own. amy.hamilton@taxanalysts.org (60) @BillSheridan – Bill Sheridan – EOS implementer, keynote speaker, communicator, author, blogger, son of a son of a sailor. Opinions are his alone. (61) [@BrightTax](https://twitter.com/brighttax) – Greg Dewald – CEO of Bright!Tax, the go-to cloud based US income tax preparation firm for the estimated 9 million Americans living overseas. Expat Tax Provider of the Year. (62) [@CentristinIdaho](https://twitter.com/CentristinIdaho) – David Morse – Tax Policy Analyst with [http://SalesFactor.org](http://salesfactor.org); Geek through and through. All opinions are my own. RT not endorsements… email: Morse AT salesfactor DOT Org (63) [@dashching](https://twitter.com/dashching) – Chye-Ching Huang – Tax, budget, economy, law, policy. US & NZ. Deputy Director Federal Tax @CenteronBudget. Tweets not on US fiscal policy aren’t for CBPP (64) [@DCTaxNerd](https://twitter.com/DCTaxNerd) – DC Tax Nerd – I loved Alexander Hamilton before it was cool. Views are my own, and the only thing I endorse is the general principle of tax reform. (65) [@Howard\_Gleckman](https://twitter.com/howard_gleckman) – Howard Gleckman – Author, Caring for Our Parents, Urban Institute (66) @jberryjohnson – Janet Berry-Johnson – I’m Janet Berry-Johnson. Freelance writer and CPA. Contributor at Forbes, Credit Karma, FreshBooks, Magnify Money, Accounting Principals & more. (67) @JoeTaxpayerBlog – Joe Taxpayer – Father, Husband, Puppy Person, Friend, Financial Blogger, in that order, mostly. Likes are good, ReTweets are Great! (68) [@juliepmagee](https://twitter.com/juliepmagee) – Julie P. Magee – Director, Tax Regulatory Affairs Credit Karma Tax https://www.creditkarma.com Former Commissioner of Revenue for the State of Alabama (69) [@LenBurman](https://twitter.com/lenburman) – Len Burman – Father, grandfather, [@taxpolicycenter](https://x.com/taxpolicycenter) cofounder, Syracuse University prof. For fun, I cycle, cook, and sing. Retweets≠endorsement. (70) [@M\_SullivanTax](https://twitter.com/m_sullivantax) – Martin Sullivan – Chief Economist, Tax Analysts. Former Treasury, JCT staff. PhD Northwestern. See Washington Post feature by Pulitzer Prize-winning journalist Steven Pearlstein. (71) [@ManasaSogNadig](https://twitter.com/ManasaSogNadig) – Manasa Sogal Nadig – Mom;Wife; Enrolled Agent;Tax Geek & Blogger; Volunteer! Not always in that order! http://thebuzzabouttaxes.com (72) [@MariaKoklanaris](https://twitter.com/MariaKoklanaris) – Maria Koklanaris – Senior tax correspondent [@Law360](https://x.com/law360). Steelers fanatic. Proud Penn Stater. Tweets mine only. RTs not endorsements #Ijustmetagirlnamed #Howdoyousolveaproblemlike (73) [@njagoda](https://twitter.com/njagoda) – Naomi Jagoda – Tax reporter @thehill. @Penn alum. N.Y. native. My last name is pronounced like Pagoda with a J. http://SeeDisclaimer.com (74) [@NKaeding](https://twitter.com/NKaeding) – Nicole Kaeding – Economist at Tax Foundation. Mom. Wife. State fiscal policy wonk. Views expressed are my own. (75) [@phdskat](https://x.com/phdskat) – Rasmus Christensen – PhD Fellow @CBScph \| Research: International taxation, professionals, expertise, international political economy, economic sociology (76) [@RichardRubinDC](https://twitter.com/RichardRubinDC) – Richard Rubin – I cover U.S. tax policy for the @WSJ. RTs are not endorsements or tax advice. #TRIH (77) [@SteveForbesCEO](https://twitter.com/SteveForbesCEO) – Steve Forbes – Chairman & Editor-In-Chief, Forbes Media. Co-Author of REVIVING AMERICA. (78) @TaxAddict – Tracy Shannon Levey – All Things #Tax, #Accounting & #Finance. Forbes Top 100 #Tax Twitter to Follow. Co-Founder Parker Tax Publishing. Opinions are my own. (79) @TaxMama – TaxMama® – TaxMama.com – \* Winter Special – Save Over $500 \* TaxMama’s® #EnrolledAgent (EA) 2017 Exam ends Feb 28th Sign up now! https://goo.gl/hW5aFZ (80) [@taxmOuth](https://twitter.com/taxmOuth) – Free Tax Help – Tax help, answers, tips and news from federal and state tax officials, gurus, experts & authors for CPAs, tax attorneys and other tax pros. #taxes #tax #IRS (81) [@taxtweet](https://twitter.com/taxtweet) – Kay Bell – Native Texan. Journalist. Tax Geek. Blogger. Dallas Cowboys fan. Birder. Wife. Not always in that order. Follows and RTs = intrigue, not necessarily agreement. **Media, Publishers, Networks, and Think Tanks ([Twitter list](https://twitter.com/taxgirl/lists/media-think-tanks-2018)):** (82) [@AccountingToday](https://twitter.com/AccountingToday) – Accounting Today – Accounting Today, a SourceMedia brand, is the independent news and information resource for tax and accounting professionals. (83) [@Bloombergtax](https://twitter.com/BloombergTax) – Bloomberg BNA Tax – @BloombergTax is the top source for tax research, analysis, news, and practice tools for attorneys, CPAs, corporations, and estate planners. (84) [@CheckpointTax](https://twitter.com/CheckpointTax) – Checkpoint Tax – Thomson Reuters Checkpoint® is the industry leader for research, guidance, news, CPE/training and marketing for tax, accounting and finance professionals. (85) [@OECDTax](https://twitter.com/OECDtax) – Latest #tax news & data from the #OECD Centre for Tax Policy and Administration. RTs and follows are not endorsements. (86) @Tax\_Alerts – Tax Alerts – News and guidance covering all Tax issues – corporate, personal. Written by the nation’s leading tax lawyers for CPAs, financial planners, etc. A @JDSupra feed. (87) @TaxAnalysts – Tax Analysts – Your #1 source for everything tax. News, commentary, analysis. Nonprofit, nonpartisan organization and proud publisher of @TaxNotes. #letstalktax (88) [@taxfoundation](https://twitter.com/taxfoundation) – Tax Foundation – Sound Tax Policy since 1937. Subscribe to updates here: http://tax.foundation/2nZbLu1 (89) [@TaxPolicyCenter](https://twitter.com/TaxPolicyCenter) – Tax Policy Center – Independent, timely, accessible analyses of current and emerging tax policy issues. (Links/RTs/favorites/follows/etc. are not endorsements.) (90) [@WKTAAUS](https://twitter.com/WKTAAUS) – WK TAA US – Official Twitter account for Wolters Kluwer Tax and Accounting in the United States. **Tax Professors and Other Learned Tax Geeks ([Twitter List](https://twitter.com/taxgirl/lists/tax-profs-2018)):** (91) @AndyGrewal – Andy Grewal – LawProf @uiowa. Interests: public law, tax law, politics. Tweets are often silly/snarky. @YaleJReg and @SSRN have my serious stuff. Views mine only. (Grey-wall) (92) [@BW\_Johnson](https://twitter.com/BW_Johnson) – Ben Johnson – Associate Dean/Accounting Professor @UEBusiness. Tax guy. I live life in a highly caffeinated state. (93) @DeathNTaxesProf – Goldburn P. Maynard Jr. – Law professor @louisvillelaw. I teach tax, elder law, and gratuitous transfers. (94) [@EOTaxProf](https://twitter.com/EOTaxProf) – Philip Hackney – #LawProf #taxprof, fmr DC IRS chief counsel atty & fmr Baker Botts atty; write & speak abt tax, #nonprofits, IRS, public policy, campaign finance, #darkmoney (95) [@jason\_s\_oh](https://twitter.com/jason_s_oh) – Jason Oh – Tax law expert. UCLA Law School Professor. Chronic 3-putter. Hearthstone arena chum. From the home of the Wire. (96) [@JudithFreedman](https://x.com/JudithFreedman) – Judith Freedman – Oxford Professor of Tax Law, British Tax Review editor, school governor, grandmother of 4. Here in personal capacity, not representing views of any organisation (97) [@lawproftodd](https://twitter.com/lawproftodd) – Tim Todd – Assoc Dean for Academic Affairs & Law Professor (@LibertyLaw) teaching tax, business, & transactional law \| @Forbes Contributor (98) [@lilybatch](https://x.com/lilybatch) – Lily Batchelder – Frederick I. and Grace Stokes Professor of Law at @nyulaw. Former Deputy Director @WhiteHouse NEC; former Chief Tax Counsel @SenateFinance. (99) [@professortax](https://twitter.com/professortax) – David Herzig – Professor of Law writing on tax, charities, corporations, and estate planning. Bylines: @nytimes, @wsj, @washingtonpost, @slate, @voxdotcom, and @forbes. (100) [@XavierRoberson](https://twitter.com/xavieroberson) – Xavier Oberson – Prof. of Swiss/International Tax Law at Geneva University; Partner, Oberson Abels SA; #TaxTwitter; board member, Montreux Jazz Festival; electric guitar player. **And don’t forget me:** [@taxgirl](https://twitter.com/taxgirl) – Kelly Phillips Erb – @Forbes editor for Investing & @ForbesBankable. Tax lawyer, coffee drinker, sports mom, dirt lover, & runner. Former Southerner, converted mostly for the snow. To subscribe to accounts in the list by category, just click on the **Twitter list** link following the category head. Keep in mind that the category heads are for convenience – in practice, some folks could fall in more than one category. To subscribe to all 100 Twitter accounts on the list, [click here](https://twitter.com/taxgirl/lists/must-follow-tax-2018). Keep in mind that this list is totally subjective. There’s no fancy algorithm. I didn’t count tweets or followers, though I do take into consideration the type and timeliness of tweets. I didn’t do any kind of scientific poll. If you find yourself on this list, er, congrats. That’s all there is. There are no fancy badges or banners, nothing that makes you any more special than you were a few moments ago, except that you know that I like you, I really, really like you. I’m sure that I left out some tax accounts that you enjoy. There were a number of great accounts, and it was extremely tough to choose. I wanted to capture a variety of accounts that provide great information from many different sources and perspectives. I also wanted to target feeds with a hyper-focus on tax as opposed to the economy. If I didn’t include an account that you believe deserves consideration for next year, you can kindly let me know (kindly being the operative word). One more thing: if you tweet about tax and I’m not following you, please [@taxgirl](https://x.com/taxgirl) on Twitter and let me know. Additionally, if you are a tax pro and are not included on my [Twittering Tax Pro list](https://twitter.com/taxgirl/lists/twittering-tax-pros), please @taxgirl and let me know to add you. Thanks and tweet on. --- \* The IRS has media spokespersons for individual regions. Here are some of the most active on Twitter: - [@Anabel\_IRS](https://x.com/Anabel_IRS) – Anabel Marquez – IRS Spokeswoman for L.A. County. Currently working as a congressional liaison for CA, AZ & HI. - @BillB\_IRS – William Brunson – IRS Spokesperson for AZ, MT, NM & UT. - @ChristopherIRS – IRS Media Relations for Wisconsin, Iowa and Nebraska. - @David\_IRS – David Tucker – IRS Media Relations – WA, AK, HI, OR and Northern CA. - @irmaIRS – Irma Trevino Alanis – IRS Spokesperson. - @JoeMunozIRS – Joe Munoz – IRS Spokesperson for Chicago, IL - @KC\_IRS – Karen Connelly – IRS contact for CO, ID, WY, ND, SD, MN media. - @Luis\_IRS – Luis Garcia – IRS Spokesman for MI, IN, OH, KY, PA, NH, RI, WV, NC, SC & MD - @MichaelD\_IRS – Michael Devine – IRS Media Relations. - @Sanford\_IRS – Clay Sanford – IRS Media Relations. 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Tax Professionals **Tags:** social media, Twitter --- ### [Free Doughnuts (With A Side Of Sales Tax Trivia) On National Doughnut Day](https://www.taxgirl.com/2017/06/02/free-doughnuts-with-a-side-of-sales-tax-trivia-on-national-doughnut-day/) **Published:** June 2, 2017 **Author:** Kelly Phillips Erb **Excerpt:** Did you get your free doughnut today? Here's where to get your free donuts on National Doughnut Day - with a side of sales tax trivia. **Content:** Did you get your free doughnut today? You should: it’s National Doughnut Day! I know what you’re thinking: this is some marketing ploy recently dreamed up by bakers to sell more doughnuts. But you would be wrong. National Doughnut Day is nearly 80 years old: the first National Doughnut Day was celebrated in Chicago in 1938. And it wasn’t dreamed up by bakers or marketers at all but rather [by the Salvation Army](http://www.salvationarmyusa.org/usn/donut_day) as a fundraiser. It was considered a way to commemorate the work of the “doughnut girls” or “donut lassies” who fed the treats to American soldiers during World War I (the “doughnut girls” also returned to their baking duties during World War II). Here’s how it happened. During wartime, the Salvation Army provided support for U.S. soldiers fighting in France during World War I. About 250 volunteers traveled overseas and set up small huts located near the front lines where they could give soldiers clothes, supplies, and, of course, baked goods. But foodstuffs were limited on battlefields. Doughnuts, however, were relatively easy to make, since they were composed mostly of sugar, water, flour, and lard (shh, that’s the secret). The doughnut girls began frying doughnuts in the field, seven at a time, to save on resources. Eventually, Salvation Army’s Ensign Margaret Sheldon and Adjutant Helen Purviance thought of frying the doughnuts inside soldiers’ helmets to save space, starting a tradition (that’s really using your head!). And although female Salvation Army volunteers also provided writing supplies, stamps, clothes-mending, and home-cooked meals to soldiers on the front lines, serving up those doughnuts was what really resonated with the troops. The memory of the doughnut girls inspired National Doughnut Day: it’s now a tradition on the first Friday of June to down a doughnut in honor of our troops. Today, many restaurants will celebrate by giving away doughnuts. Here are a few spots where you can get free treats on National Doughnut Day: - Cumberland Farms. Receive a FREE donut with purchase of any size Cumberland Farms coffee or Chill Zone beverage. Offer valid from 5 am – 10 am only. - Duck Donuts. Duck Donuts will be offering a FREE Donut of your choice with any purchase. Additionally, receipts printed on 6/2 will feature an exclusive BOGO coupon for a “Buy One Get One Free 1/2 Dozen” redeemable Mon thru Wed until Aug. 31. - Dunkin’ Donuts. Enjoy a FREE Classic Donut with any beverage purchase. - Entenmann’s. Entenmann’s is giving away tens of thousands of donuts today in Times Square. Fans will have the opportunity to sample donuts, take part in fun activities, and be wowed by the world-famous Harlem Globetrotters.  If you can’t make it to New York, you can join in the fun on [Entenmann’s Facebook page](https://www.facebook.com/Entenmanns/). - Krispy Kreme. Get one free doughnut of your choice, no purchase necessary. - LaMar’s Donuts. Celebrate with a FREE donut. Any donut with a hole, no purchase necessary. - Shipley Donuts. Stop by today till noon to get your free glazed with purchase, at participating locations. Of course, you can’t eat just one doughnut, right? If you decide to pick up a dozen (or three) extra doughnuts while you’re in the store, whether you will pay sales tax on those doughnuts depends on what you’re going to do with them… or at least what your state’s revenue department anticipates you’d do with them. Doughnuts are one of those quirky foods that confound merchants across the country because, in most states, the question of how to tax them rests on whether they are considered a “take out” or “eat-in” food. In most – but not all – states, sales tax is imposed on foods that are to be eaten on the premises, while those to be taken away are often exempt. In North Carolina, where Krispy Kreme first opened its doors in 1937, prepared foods “other than bakery items sold without eating utensils by an artisan bakery” are subject to state and local sales tax. And yes, bakery items specifically include doughnuts, though the NC legislature has come down solidly in favor of the alternative spelling “donut.” The sales tax compliance experts at Avalara note that utensils also matter in other states: in Utah, if a donut shop sells donuts but doesn’t provide utensils, the donuts are taxed at the reduced rate. If utensils are readily available or offered with the donut, the general rate of sales tax applies. In Richmond, Virginia, whether a sale is taxable [depends on how many doughnuts you order](http://rvanews.com/features/city-informs-sugar-shack-of-bizarre-doughnut-tax-policy/102372). If you order between one and five doughnuts, that’s considered a meal and is taxable. If you order six or more doughnuts, it’s assumed that you are not eating them as a single serving (apparently, no one on City Council was ever a college freshman). There’s a similar rule in [Wyoming](http://www.taxrates.com/blog/2014/07/17/wyoming-taxation-prepared-food-related-services/) – the multiple serving exception – which exempts an item containing four or more servings packaged and sold as one item (like a dozen donuts since you would never, *ever* eat them all at once, right?). In New York, [doughnuts are generally exempt from sales tax](http://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/st/food_sold_by_food_stores.htm) “unless sold under the conditions … that would render them taxable.” Those conditions include heated food; food sold for consumption on the premises; or food which “has been prepared by the seller and is ready to be eaten, whether for on-premises or off-premises consumption.” When it comes to doughnuts, the [warm food rule](http://dor.mo.gov/business/sales/foodtax.php) does have some holes: in Missouri, if a grocery store sells doughnuts in its bakery department, those are taxed at a reduced rate “even though these donuts may still be warm from baking.” And while some states treat food served at a drive-in as part of a restaurant and therefore taxable, doughnuts sold at a drive-in in California would be exempt – provided, of course, that the restaurant can substantiate the claim that the doughnuts weren’t intended to be consumed on the premises. The taxability of doughnuts is just another example of the tricky nature of sales tax systems across the country. From chocolate fondue to [pumpkins](https://www.taxgirl.com/iowa-tax-department-is-scrooge-for-halloween/) to [Pringles](https://www.taxgirl.com/you-say-potato-i-say-po-tah-dough/), companies and taxing authorities have squabbled about the taxable nature of food items. It’s a reminder of exactly how difficult it can be for a retailer to do business in more than one state. As it is, if retailers and taxing authorities can’t easily determine taxability inside one state, how can they easily determine taxability in fifty states? It’s a difficult question and one that isn’t likely agreed upon any time soon. When it comes to doughnuts, however, the thing we can all agree on? They’re delicious. 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** History, Just for Fun, State and Local Tax (SALT) **Tags:** National Doughnut Day, Salvation Army --- ### [15 Fun Facts About Wine & Tax On National Wine Day](https://www.taxgirl.com/2017/05/25/15-fun-facts-about-wine-tax-on-national-wine-day/) **Published:** May 25, 2017 **Author:** Kelly Phillips Erb **Excerpt:** If you're craving a glass of Pinot today, you're in good company: it's National Wine Day. Here are 15 facts about wine and tax to help you celebrate with your pour: **Content:** If you’re craving a glass of Pinot today, you’re in good company: it’s National Wine Day. Unlike [National Beer Day](https://www.taxgirl.com/15-fun-facts-about-beer-tax-on-national-beer-day/), it doesn’t appear that there’s a historically significant reason for the day – but that shouldn’t stop wine aficionados across the globe from enjoying a nice glass of wine. Here are 15 fun facts about wine and tax to help you celebrate with your pour: 1. Wine is about 8,000 years old. The exact beginnings are debated (with factions claiming “firsts” in both China and Mesopotamia), but most historians tend to agree that wine was discovered by accident. That’s likely why it is thought to come from the gods: it’s a natural product since it does not have to be manipulated in the same way as beer or whiskey. Grapes that fall from vines can eventually become wine – even if it’s not something that you and I would want to drink. 2. Wine production and wine trade were an important part of life and commerce in the Mediterranean by 3100 BC. But wine wasn’t considered a drink for the masses: only royals and those in the Church drank wine following early production (remember, it was considered a gift from the gods), while the rest of society was relegated to drinking beer. 3. The first known wine bottle dates back to 325 AD. It was found in 1867 near a vineyard in Speyer, Germany, inside one of two Roman stone sarcophagi. The bottle is now on permanent display at the Historisches Museum der Pfalz. Today, a standard wine bottle holds 750 ml of the good stuff, though most U.S. jurisdictions impose a tax by the gallon (in case you’re wondering, 750 ml = 0.19812903843149998 gallons). 4. According to the Tax Foundation, Kentucky has the highest wine excise tax rate at $3.18 per gallon, followed by Alaska ($2.50), Florida ($2.25), Iowa ($1.75), and New Mexico ($1.70). The five states with the lowest wine excise rates are Louisiana ($0.11), California ($0.20), Texas ($0.20), Wisconsin ($0.25), and Kansas and New York (tied at $0.30). Those rankings do not include states, like Pennsylvania, that control all sales of alcohol. 5. The growth of the wine industry exploded in Europe at the end of the Middle Ages. One reason was likely health-related. In 1400, due to the Black Plague, which claimed [more than half](http://www.historytoday.com/ole-j-benedictow/black-death-greatest-catastrophe-ever) of Europe’s population, wine was considered safer to drink than water. Hundreds of years later, the renowned scientist Louis Pasteur, who studied micro-organisms and their effect on foods and beverages, seemed to confirm this theory, saying, “Wine can be considered with good reason as the most healthful and hygenic of all beverages.” 6. Wine came to the Americas around the 16th century – by force. Upon his arrival in Mexico, Spanish explorer Hernán Cortés ordered the planting of grapes, which was a wildly successful endeavor. So why didn’t the Mexican wine market explode? Cortés’ edict made the acting King of Spain nervous: new plantings or vineyard replacements in Mexico were forbidden after 1595, forcing the country – and many other countries around the world – to depend solely on Spanish imports. 7. Champagne was invented in 1693. To be called Champagne, a sparkling wine must be produced from grapes grown in the Champagne region of France following very specific rules. Other wines can be called sparkling wine – but not Champagne – if they meet certain criteria. And of course, differences in styles mean that sparkling wine may also be taxed at varying rates from state to state. According to the Wine Institute, when you consider taxes, the most expensive state to grab some bubbly is Florida at $3.50 per gallon, followed by Alaska ($2.50/gallon), Hawaii ($2.12/gallon), and Oklahoma ($2.08/gallon). 8. As wine became more popular around the world, it became a revenue target. In addition to tariffs and import duties, European countries looked to finance infrastructure projects with the use of excise taxes. Those excise taxes, which are imposed directly on manufacturers, were easy to collect because the tax was built into the cost. According to J.W. Gerritsen, who wrote *The Control of Fuddle and Flash: A Sociological History of the Regulation of Alcohol and Opiates*, a British tax official addressed the Brewers’ Society in 1897, saying, “Through your agency I am enabled to extract from the pockets of the people a sum of money … and to do this without their knowing anything about it at all.” He then followed up by questioning, “Where ignorance produces such bliss, do you think it’s wise to enlighten?” 9. In 1862, President Lincoln signed the first income tax in the United States into law. The tax scheme wasn’t terribly popular, so Congress slashed income tax rates in 1867 and favored excise taxes instead. From 1868 until the modern income tax system was established in 1913, 90% of all federal revenue came from taxes on liquor, beer, wine, and tobacco. At the time, imported wine was taxed, but it was still cheaper to drink wine from France and Italy than California because railroad travel was relatively expensive. Higher tariffs instituted in the late 19th century – plus advances in transportation – changed that. 10. In 1919, the United States passed the Volstead Act, better known as Prohibition. The Act prohibited the manufacture, transportation, and sale of “intoxicating beverages,” including wine. Prohibition crushed the American wine industry: before 1919, more than 2,500 wineries were licensed to make wine in the United States, but by 1933, [less than 100 remained](http://www.thewinecellarinsider.com/california-wine/california-wine-history-from-early-plantings-in-1800s-to-today/). 11. On March 22, 1933, President Franklin Roosevelt signed the [Cullen–Harrison Act](http://legisworks.org/congress/73/publaw-3.pdf) (“An Act to provide revenue by the taxation of certain nonintoxicating liquor, and for other purposes”) into law, which moved the U.S. away from Prohibition by allowing the manufacture and sale of beer and some wines. The Cullen-Harrison Act was nixed after Prohibition was officially repealed on December 5, 1933. 12. After the repeal of Prohibition, lawmakers saw a chance to again raise revenues by taxing alcohol, and so they did, over and over. In 1934, the excise tax on alcohol was $2.00 per gallon, and by 1970, it was $10.50 per gallon (if merely adjusted for inflation, the tax would have been just half of that amount, or $5.79 per gallon). In 2015, the U.S. government collected 1.073 billion in excise taxes on domestic and imported wine alone. 13. According to a 2016 Gallup poll, 32% of Americans who drink alcohol say [they prefer](http://www.gallup.com/poll/194144/beer-reigns-americans-preferred-alcoholic-beverage.aspx?g_source=beer&g_medium=search&g_campaign=tiles) wine (trailing beer drinkers at 46%). Total U.S. wine sales (including imports) approached $60 billion in 2016, the 24th consecutive year of growth. 14. With 1.545 wine-related businesses per 10,000 residents, Portland, Oregon, is the most favorable U.S. city for wine lovers, according to Infogroup; it probably helps that Oregon has no state sales tax to boost prices. San Francisco ranks second on Infogroup’s list. Considered the wine production capital of the U.S., California boasts three cities (Sacramento and San Jose round out the group) on the list: according to the Wine Institute, the wine industry in California accounts for $15.2 billion in taxes each year, including annual local, state, and federal business, excise taxes & personal taxes. 15. The most expensive bottle of wine was reportedly a 1992 Screaming Eagle Cabernet which sold at a 2000 Napa Valley charity auction for $500,000. Although it was highly reviewed, it’s assumed the wine’s actual value was lower and that the bump was due to the auction. That’s good news for the buyer since donors who purchase items at a charity auction may claim a charitable contribution deduction only to the extent that the purchase price exceeds its fair market value (for example, if the wine was worth $400,000, the value of the deduction would be $100,000, or $500,000 price paid *less* $400,000 FMV). Still, at a purchase price of $500,000, with an estimated 34 glasses of wine in the 6-liter bottle, that works out to about $14,705 per glass. Chances are, you can pick up something a little more affordable this evening. Cheers! 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Just for Fun --- ### [Blackwater Goes On The Offensive](https://www.taxgirl.com/2007/12/04/blackwater-goes-on-the-offensive/) **Published:** December 4, 2007 **Author:** Kelly Phillips Erb **Content:** Not content to let the IRS and [Congress](https://www.taxgirl.com/blackwater-leaks/) [finish their investigation](https://www.taxgirl.com/we-dont-care-if-you-kill-anybody-just-dont-cheat-on-your-taxes/) first (and perhaps fearing a negative outcome), Blackwater has gone on the offensive. The company, which has found itself go from Blackwater to hot water (I know, bad pun) has recently issued a press release claiming that its “model of using independent contractors Is consistent with law and good practice. Maybe it seemed like PR but good law…? What tax attorney gave this a stamp of approval? Citing such evidence as “\[t\]hese men and women only work several months at a time” will certainly not bolster their claim of independent contractors. A first-year law student knows that length of time of service isn’t indicative of employment – you can be an employee for one day. Blackwater goes on to say, more or less, that if they did do something wrong – *and they’re not saying that they did* – but *if* they did, it wasn’t on purpose because they relied on an accountant. They won’t say who it is, but they do say it is “a large, nationally-recognized accounting firm.” Ooh, I hope it’s KPMG. Just saying. If you want to read the whole thing yourself, it’s more of a legal memorandum than a press release (I’m guessing they farm that out, too, from the looks of it). In fact, it’s broken into parts with Roman numerals and cites. What PR firm thought it was a good idea to do that? Or end the press release with this catchy conclusion: > For these reasons, and the ones set forth above, the Chairman’s allegations to the contrary are simply incorrect. 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Corporate --- ### [Former IRS Commish Forced Out Of Red Cross](https://www.taxgirl.com/2007/11/28/former-irs-commish-forced-out-of-red-cross/) **Published:** November 28, 2007 **Author:** Kelly Phillips Erb **Content:** Red Cross President and CEO – and former IRS Commissioner – Mark Everson has resigned after a request to do so by the Red Cross Board of Governors. His resignation was submitted following information that he was “engaged in a personal relationship with a subordinate employee.” The Board “concluded that the situation reflected poor judgment on Mr. Everson’s part and diminished his ability to lead the organization in the future,” according to a statement released by the organization on its website. The poor judgment apparently involved the fact that, at the time of the relationship, Everson was still married. Prior to his resignation, Everson had served as Commissioner of the IRS. He had been appointed by President Bush and only recently left the Service for the $500,000 per year job at Red Cross. He was the third person to serve at the helm of the Red Cross in six years; previous CEOs were forced out after criticisms of the handling of emergency services and funds following 9/11 and Hurricane Katrina. The Board has appointed Mary S. Elcano, general counsel and a five-year Red Cross employee, as interim president and CEO.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Former%20IRS%20Commish%20Forced%20Out%20Of%20Red%20Cross&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Former%20IRS%20Commish%20Forced%20Out%20Of%20Red%20Cross "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Former%20IRS%20Commish%20Forced%20Out%20Of%20Red%20Cross "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Former%20IRS%20Commish%20Forced%20Out%20Of%20Red%20Cross&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Charitable Organizations **Tags:** Red-Cross --- ### [Do Taxes Affect The Business Climate?](https://www.taxgirl.com/2007/11/26/do-taxes-affect-the-business-climate/) **Published:** November 26, 2007 **Author:** Kelly Phillips Erb **Content:** I think so. But Jim over at Small Business Boomers begs to differ – and he takes issue with the Small Business and Entrepreneurship Council’s criteria. And then I want to know what your own criteria are when deciding where to site your business: taxes? workforce? quality of life? proximity to transit?[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Do%20Taxes%20Affect%20The%20Business%20Climate%3F&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Do%20Taxes%20Affect%20The%20Business%20Climate%3F "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Do%20Taxes%20Affect%20The%20Business%20Climate%3F "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Do%20Taxes%20Affect%20The%20Business%20Climate%3F&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Corporate, Small Business **Tags:** taxes --- ### [Sales Tax Versus State Income Tax](https://www.taxgirl.com/2007/11/25/sales-tax-versus-state-income-tax/) **Published:** November 25, 2007 **Author:** Kelly Phillips Erb **Content:** Every year about this time, I get a lot of questions about deducting sales tax paid versus state and local income tax paid on your federal income taxes. Mostly, this comes up because your pockets are stuffed with receipts and you’re wondering whether you should keep them. **First, the important part: this option has been extended through 2007.** Here’s what to consider: 1. If you live in a state with a relatively high state income tax like Minnesota, North Carolina or Wisconsin, you’ll almost always choose the option to deduct your state income tax as opposed to your state sales tax. Of course, that depends on your spending habits. 2. If you live in a state with no state income tax, clearly you are going to choose the option to deduct your sales tax. Those states include Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. Everyone else has to do the math. 3. You can use the [IRS sales tax calculator](https://www.irs.gov/credits-deductions/individuals/use-the-sales-tax-deduction-calculator) to figure your average sales tax expended – or you can actually tally your receipts to make the determination. When you use the optional general sales tax tables, which is what the calculator figures for you, no receipts are required. The IRS just uses the average spending in your geographic area to figure the tax. You can add the tax on big purchases such as a car or home renovation to the total to figure your tax. In Philadelphia, where I live, sales tax is 7% – that’s 6% for Pennsylvania and an extra 1% tacked on by the City because… well, why not? State and local taxes on income are much higher, believe it or not. While the state of Pennsylvania is just over 3%, Philadelphia likes to ramp up our taxes by almost another 5%. Since the numbers are nearly the same, it doesn’t take a genius to realize that you’d have to spend roughly the amount that you make in order to hit the equilibrium. Clearly, that’s not the norm, so I decided to figure the difference between the sales tax using the IRS calculator and the state and local income taxes paid. I used $100,000 only because it’s a nice round number. And for my experiment, I also assumed two exemptions (a typical married couple). According to the calculator, the sales tax deduction using the tables would be $1,056. The income tax for PA for the same amount would be approximately $3,000, and the Philadelphia tax would be approximately $5,000. Clearly, in this case, you would opt for the state and local income tax deduction (I always do). But that “special items” exception keeps things interesting. If you do significant spending in your state during the year, you actually get a tax break – for shopping! Oh yeah. So in the interest of helping hubby out with his end-of-year tax planning, I would suggest that if we used the experimental numbers (which don’t really apply to us for a number of reasons, not the least of which is that we have five exemptions – and if I count my daughter’s imaginary friend who has been destroying our house, we qualify for six), the following would apply: the difference between the sales tax as calculated by the feds and the income tax works out to about $7,000. At a sales tax rate of 7%, this means that we’d need to spend more than $100,000 in order to benefit from this tax incentive – since that’s clearly what it is, an incentive. Why let it go to waste? I have to keep it both local and subject to sales tax. Hmm. That means no clothing or food – both are exempt in Pennsylvania. So what about: \* The Mini Cooper that I have my eye on is about $37k complete. I know, a little high. But it has GPS. And a girl needs her GPS. \* Improvements to the kitchen will run about $40k, if we play our cards right (let’s not be extravagant). And I need a new dishwasher anyway. \* iMac with printer – about $2,800 \* iPhone – about $400 \* Mac laptop – about $2,500 \* Canon digital camcorder – about $2,800 \* New Tiffany’s charm bracelet with charms – about $1,500 \* Prada bag and new shoes – about $1,100 \* Master bedroom suite – about $7,000, inclusive – after all, my old IKEA bed is wearing on me \* Lots and lots of new plants and hardscaping materials, since I’m a gardening junkie – about $5,000 And just like that, I’ve saved us a whole lot of cash!\* For more information about taking state and local sales tax as a deduction versus income tax, see IRS Pub 600. \* Yes, the spending part is meant to be tongue-in-cheek. And yes, I realize that spending money just in order to get a tax deduction won’t actually save us any money. And yes, I understand that some of the spending options are really extravagant. It’s merely to prove a point.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Sales%20Tax%20Versus%20State%20Income%20Tax&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Sales%20Tax%20Versus%20State%20Income%20Tax "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Sales%20Tax%20Versus%20State%20Income%20Tax "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Sales%20Tax%20Versus%20State%20Income%20Tax&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual, Sales Tax, State and Local Tax (SALT) **Tags:** income-tax, itemized-deductions, sales-tax, schedule-A, tax --- ### [Pay To Play](https://www.taxgirl.com/2007/11/21/pay-to-play/) **Published:** November 21, 2007 **Author:** Kelly Phillips Erb **Content:** One of the most closely guarded secrets in the history of sports is about to be revealed: exactly how much does JoePa get paid? The Pennsylvania Supreme Court has ruled that the Penn State University football coach’s salary must be made public. The request had initially been made by a newspaper (*The Patriot-News* in Harrisburg) to the State Employees’ Retirement System; employees enrolled in the system are covered by an open records law. The university had previously blocked attempts to make Paterno’s salary public. Speculations run rampant about exactly how much Joe Paterno is paid for his role as head coach at Penn State University. He holds more bowl victories than any coach in history. He has won each of the major bowls, the Rose, Orange, Fiesta, and Sugar Bowls, at least once. Those numbers put him in a class all by himself – will it be reflected in his salary? And more importantly, what does it have to do with tax? Plenty. As I reported previously, salaries for coaching collegiate sports outpace the salaries of college faculty. And the trend is continuing: the University of Alabama agreed to pay Nick Saban $4 million per year to coach their football team. In comparison, the average UA professor makes $108,000 and the average UA associate professor makes just under $75,000. That’s a pretty wide discrepancy. And it’s worth noting that [UA didn’t even crack the top 25 of the BCS](http://www.usatoday.com/sports/college/football/bcs.htm) for November. Colleges are increasingly [devoting more and more of their resources](https://www.taxgirl.com/the-shill-of-the-game/) to raising money through sports programs since sports programs bring in astounding amounts of revenue. Those schools are, however, not paying tax on this money – ostensibly from entertainment revenue and not related to the college’s primary purpose (education) because most colleges and universities are de facto tax-exempt. [Congress has conducted a ridiculously half-hearted inquiry](https://www.taxgirl.com/ncaa-ball-is-in-irs-court/) into the tax-exempt status of colleges and universities in light of accusations that these institutions are not using funds for education and are instead focusing on paying coaches, building stadiums and selling tickets. Critics have focused on the frenzy to collect dollars on the backs of student athletes when many of the student-athletes in top programs perform poorly in an academic setting; in that regard, those critics argue, NCAA sports programs are little more than pro-sport training camps. So far, no decision has been reached by Congress or the IRS with respect to the inquiry. If Paterno’s salary is as high as some speculate (numbers that have been bandied about go as high as $5 million per year in straight salary, not including perks), it may well accelerate the inquiry into coaching salaries and the tax-exempt status of the NCAA and educational institutions. Of course, it could be revealed that he was paid $20 million per year and no one would really care until the end of January. It is, after all, bowl season.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Pay%20To%20Play&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Pay%20To%20Play "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Pay%20To%20Play "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Pay%20To%20Play&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Charitable Organizations, Sports and Tax **Tags:** Alabama, athletes, college-sports, football, Joe-Paterno, NCAA, Nick-Saban --- ### [Tax & The Single Girl](https://www.taxgirl.com/2007/11/13/tax-and-the-single-girl-2/) **Published:** November 13, 2007 **Author:** Kelly Phillips Erb **Content:** When my husband saw a bright yellow Post-it with the word “divorce” on it tacked onto my Mac, he began to worry a little. Nothing to worry about (yet – he still owes me a trip to Europe) on his part, it was just a reminder to me that I needed to finish an article about divorce and taxes. You see, I met Helene Taylor at [BlogHer Chicago](https://www.taxgirl.com/blogher-i-hardly-knew-her/) over the summer. She asked if I might be interested in penning an article for her website, The Modern Woman’s Divorce Guide. I was, and I did.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Tax%20%26%20The%20Single%20Girl&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Tax%20%26%20The%20Single%20Girl "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Tax%20%26%20The%20Single%20Girl "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Tax%20%26%20The%20Single%20Girl&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual **Tags:** divorce, tax --- ### [Reinstate The Draft? At What Cost?](https://www.taxgirl.com/2007/11/07/reinstate-the-draft-at-what-cost/) **Published:** November 7, 2007 **Author:** Kelly Phillips Erb **Content:** There is no debate that the wars in Iraq and Afghanistan are costing U.S. taxpayers big bucks. The National Priorities Project has put the estimated cost of the war in Iraq alone at nearly $500 billion. The New York Times [puts the figure at $1.2 trillion](https://www.nytimes.com/2007/01/17/business/17leonhardt.html). Part of the discrepancy lies in how you classify spending: are costs to rebuild Iraq, for example, part of the cost of the war? Putting the actual dollars aside for a moment, there is no question that the wars in Iraq and Afghanistan are affecting our levels of troops in the military. Enlistment rates are down. Attrition rates from our military academies are up. Enrollment at those same academies is down. Reserves that have been made active (some for more than one term) are up. And the number of military personnel who have died in the Iraq War alone is staggering: 3,857. There are an additional 28,424 wounded troops. These kinds of numbers do not bode well for a continued strong military presence without some sort of change. So, what kind of change are we talking? We’ve already activated reserves numerous times (my colleague’s husband, an attorney, served two tours). We’ve increased bonuses. We’ve created more financial incentives. We’ve boosted our PR and media dollars on new ad campaigns. What next? You’ve heard the whispers: a draft. I know, I know. This is a tax blog. What does it have to do with the draft? Plenty. Michael Sabin, a professor at Harvard University, has reopened the dialogue about the conscription tax mainly because, as he points out, “Public debate about military draft is back in headlines” and “public finance and political science scholars never made a systematic evaluation of the draft” using tax policy. (hat tip: TaxProf Blog) Conscription is a fancy word for draft – maybe it’s easier for people to stomach when it’s crafted in those terms. But, basically, he’s talking about a draft tax. This idea of a conscription tax is not a novel idea. It was extensively considered in the Gates Commission report to Nixon in 1969 and the early 1970s about whether a return to an all-volunteer military was a good idea. The report was thought to have been ordered because of the rise in protests following the institution of the “draft lottery” to fill military needs in Vietnam; at one point, 40,000 men per month were being ordered to active military service. The Commission considered a number of factors when examining the role of the draft in our military. Surprisingly, economics, not patriotism, was at the center of the debate. In fact, the role of the conscription tax was so important to the Commission that they devoted a whole chapter (Chapter 3) to this argument. Namely, the Commission found: > Although the budget for a volunteer armed force will be higher than that for a mixed force (volunteers and conscripts), the actual cost will be lower… **Men who are forced to serve at artificially low pay are actually paying a form of tax, which subsidizes those who do not serve.** Furthermore, the output of the civilian economy is lower because more men serve in the military than necessary for an all-volunteer force of the same strength. (emphasis added) The Commission also considered: > This concept of the tax does not include the income loss suffered by true volunteers whose military compensation is held below the level which would be required to maintain an all-volunteer force, nor does it include the amount by which all-volunteer pay rates would exceed the pay levels at which some of the current draftees and draft-induced enlistees would enter on a voluntary basis. In other words, the likely economic result of the draft is that, over time, we will pay more money overall to “hire” non-voluntary military, and those who volunteer in our military will likely receive less money. When you consider the effects of displacing human capital, the economic picture gets even muddier. I will admit that I am more than a little interested in this notion of the economic tax consequences of the draft. Geeky interest over tax and politics aside, I am closely connected to the military. My older brother served in the US Navy for about 10 years – he was active during the first Gulf War. My younger brother has been in the US Navy for more than 10 years and is active military (in fact, he is currently out to sea “at an undisclosed location”). Add that to a plethora of uncles, grandparents, and in-laws, and we have quite the military history in our family. This means, necessarily, that I think about some of these things with a different point of view than I might otherwise. But that’s a good thing. It’s easy to think about war and military in terms of plain dollars. But that would be missing the bigger picture. We need to consider the impact not only on our taxpayers (would we be shelling out more?) but on our military families (are they to receive less?). What about the impact on our current economy if we reinstate the draft? Sabin is right that this kind of dialogue has been largely missing from our current debates about the role of the military in Iraq, Afghanistan, and other countries. We should not allow our politicians to restrict the conversation on these issues to one or two note sound bites. There’s far too much at stake.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Reinstate%20The%20Draft%3F%20%20At%20What%20Cost%3F&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Reinstate%20The%20Draft%3F%20%20At%20What%20Cost%3F "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Reinstate%20The%20Draft%3F%20%20At%20What%20Cost%3F "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Reinstate%20The%20Draft%3F%20%20At%20What%20Cost%3F&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Politics, Tax Policy **Tags:** Iraq, military --- ### [IRS Announces New Chinese, Korean, Russian & Vietnamese Tax Glossaries to Assist Taxpayers](https://www.taxgirl.com/2007/11/05/irs-announces-new-chinese-korean-russian-and-vietnamese-tax-glossaries-to-assist-taxpayers/) **Published:** November 5, 2007 **Author:** Kelly Phillips Erb **Content:** The Internal Revenue Service has announced that new tax glossaries are available in Chinese (simplified), Chinese (traditional), Korean, Russian, and Vietnamese. A [Spanish version was previously made available online to view](https://www.irs.gov/publications/p850/index.html) and as a pdf to download. The Chinese, Korean, Russian and Vietnamese versions of Publication 850 are only available as a download and not yet for online viewing. The point of the glossaries is to make tax terminology understandable for those taxpayers whose primary language is not English. The publications were developed in cooperation with professional translators and editors.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=IRS%20Announces%20New%20Chinese%2C%20Korean%2C%20Russian%20%26%20Vietnamese%20Tax%20Glossaries%20to%20Assist%20Taxpayers&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=IRS%20Announces%20New%20Chinese%2C%20Korean%2C%20Russian%20%26%20Vietnamese%20Tax%20Glossaries%20to%20Assist%20Taxpayers "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=IRS%20Announces%20New%20Chinese%2C%20Korean%2C%20Russian%20%26%20Vietnamese%20Tax%20Glossaries%20to%20Assist%20Taxpayers "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=IRS%20Announces%20New%20Chinese%2C%20Korean%2C%20Russian%20%26%20Vietnamese%20Tax%20Glossaries%20to%20Assist%20Taxpayers&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** IRS News **Tags:** IRS, tax --- ### [Is Dark Chocolate Really More Of A Tax Burden?](https://www.taxgirl.com/2007/11/05/is-dark-chocolate-really-less-of-a-tax-burden/) **Published:** November 5, 2007 **Author:** Kelly Phillips Erb **Content:** I’m such a sucker for Milky Ways – especially the Milky Way Midnight (note to readers contemplating holiday gifts…). And Iowa has brought to the forefront an issue that I’ve been claiming for years: all candy bars are not created equal. Iowa has stirred up some serious candy tax controversy with its definitions of “candy” and “taxable.” Apparently, a Milky Way Midnight is taxable while a classic Milky Way is not. Such injustice! Roth & Co. has the whole story here. Roth also reports that Iowa has reversed [its silly pumpkin tax rule](https://www.taxgirl.com/iowa-tax-department-is-scrooge-for-halloween/).[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Is%20Dark%20Chocolate%20Really%20More%20Of%20A%20Tax%20Burden%3F&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Is%20Dark%20Chocolate%20Really%20More%20Of%20A%20Tax%20Burden%3F "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Is%20Dark%20Chocolate%20Really%20More%20Of%20A%20Tax%20Burden%3F "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Is%20Dark%20Chocolate%20Really%20More%20Of%20A%20Tax%20Burden%3F&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Just for Fun, State and Local Tax (SALT) **Tags:** Iowa, sales-tax, tax --- ### [Are You The Next John Grisham?](https://www.taxgirl.com/2007/11/01/are-you-the-next-john-grisham/) **Published:** November 1, 2007 **Author:** Kelly Phillips Erb **Content:** If you think so, or even if you just want to give it a go, check out NaNoWriMo this November. I’m participating (user name is lawmummy, feel free to add me) – and yes, my non-tax writing still tends to be heavy on the legal side (it’s a curse). If you’re looking for inspiration, pay Anne a visit over at The Golden Pencil. Of course, if writing about tax is more your style (and you’re a student), you may want to [check out my contest](https://www.taxgirl.com/write-a-post-for-taxgirl-and-you-might-get-an-a-in-school/).[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Are%20You%20The%20Next%20John%20Grisham%3F&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Are%20You%20The%20Next%20John%20Grisham%3F "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Are%20You%20The%20Next%20John%20Grisham%3F "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Are%20You%20The%20Next%20John%20Grisham%3F&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Just for Fun, Law School **Tags:** NaNoWriMo, National-Novel-Writing-Month --- ### [It’s The Most Ring-a-Ding Time Of The Year](https://www.taxgirl.com/2007/10/31/its-the-most-ring-a-ding-time-of-the-year/) **Published:** October 31, 2007 **Author:** Kelly Phillips Erb **Content:** You probably think that I’m talking about the fact that, for some disturbing reason, retailers have packed the stores with Christmas goodies – and Halloween isn’t even over yet (who buys stuff this early anyway?). But I’m not. I’m talking about solicitations. It’s the time of the year when charitable organizations come calling. So far this month, I’ve received more than ten charitable solicitations from tax-exempt organizations: my daughter’s school, college, law school, the arboretum, PHS, the zoo, the art museum, public radio, public television and more. We’re sorting through all of them, trying to decide which ones to support. In addition, we’re plowing through piles of summer clothes since fall has finally decided to pay us a visit in the northeast… and putting them into piles: save, toss, and donate. Why the rush? Why now? Because you only have 62 days to incur additional charitable deductions for the calendar year 2007. Tax professionals know this. Charitable organizations know this. And now you do, too. Charitable donations are a good way for many taxpayers to increase deductions and get a warm fuzzy or two in the process. Whether you donate cash or goods (like our used clothes and toys), you can take these deductions on your tax return – but only if you itemize. Remember, cash deductions, regardless of the amount, must be substantiated by a bank record (such as a canceled check or credit card receipt) or a written statement from the organization. The writing must include the date, the amount and the organization that received the donation. In other words, loose change in the offering plate doesn’t count. My advice when making a financial donation? 1\. Get a receipt. Just ask. If the organization is taking your money, they should be able to provide a receipt. 2\. Consider using a check or credit card. 3\. And finally, **don’t let the tax tail wag the dog**. Those kids in the neighborhood who are collecting for UNICEF? C’mon, be charitable. It is, after all, the spirit of giving that should really matter and not the deduction. When it comes to donations of items, and not money, the rule is that you can generally take a deduction for the current FMV of the items donated to charity – not the purchase price, but rather what the item would sell for in its current condition. So if you can’t give that tiki bar away because it’s practically worthless, you may not attempt to take a deduction for $25 when you donate it to the qualified charity of your choice. I like to use the “thrift shop value” when I make a donation; in other words, what the item would likely sell for in a shop. *You should note that this information is for household items; special rules apply to appreciated goods like stock or jewelry, or hard-to-value items such as [artwork](https://www.taxgirl.com/ask-the-taxgirl-donating-my-art/).* To substantiate your deduction on your personal return, you need to obtain a receipt from the charitable organization that has: \* the name of the charity \* the date of the gift \* the location of the charity \* a detailed description of the property donated With respect to the description, I’ve said before that my mother is one of the best writers for lists of donated property I’ve seen. She writes “three men’s dress shirts, good condition; two pairs of work shoes, never worn” and so on, noting the condition. That level of description is practically perfect. The IRS now requires that noncash charitable contributions be considered to be in “good” condition or better, or the contribution is disallowed. There is an exception to the rule: if the item is valued over $500 but not in “good” condition, you may still take the deduction if you have an appraisal for the item. The law does not define what “good used condition or better” means, but use some common sense: clothing with holes or stains on them, books missing pages, or dish sets that are cracked or broken are not in “good condition.” To be safe, I use this rule of thumb: **would I want this?** Chances are if you would be embarrassed to put those clothes on yourself or your children or put those items in your house, it likely isn’t appropriate as a donation in “good used condition.” As the season approaches, I hope you’ll remember to be charitable; no matter your income level, you can likely do something good, from donating cash to a used prom dress. Several organizations could use your help.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=It%E2%80%99s%20The%20Most%20Ring-a-Ding%20Time%20Of%20The%20Year&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=It%E2%80%99s%20The%20Most%20Ring-a-Ding%20Time%20Of%20The%20Year "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=It%E2%80%99s%20The%20Most%20Ring-a-Ding%20Time%20Of%20The%20Year "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=It%E2%80%99s%20The%20Most%20Ring-a-Ding%20Time%20Of%20The%20Year&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Charitable Organizations, Individual **Tags:** charitable-donation, deduction --- ### [Blackwater Leaks](https://www.taxgirl.com/2007/10/27/blackwater-leaks/) **Published:** October 27, 2007 **Author:** Kelly Phillips Erb **Content:** Okay, not really leaks but it made for a clever headline. The Swamp has published a letter that Senator John Kerry (D – MA) wrote to the Senate Committee on Finance regarding the possibility that [Blackwater has misclassified employees](https://www.taxgirl.com/we-dont-care-if-you-kill-anybody-just-dont-cheat-on-your-taxes/) for tax purposes. The letter follows: > October 26, 2007 > > The Honorable Max Baucus > Chairman > Committee on Finance > 219 Dirksen Senate Office Building > Washington, DC 20510 > > The Honorable Charles Grassley > Ranking Member > Committee on Finance > 219 Dirksen Senate Office Building > Washington, DC 20510 > > Dear Senators Baucus and Grassley: > > Earlier in the week, I sent a letter to Small Business Administrator Stephen C. Preston regarding a press release issued by Blackwater Worldwide in response to House Committee on Oversight and Government Chairman’s Waxman inquiry about possible tax evasion by Blackwater Security Consulting, LLC. The letter inquired about the following statement by Blackwater: “The U.S. Small Business Administration has determined in an official finding applying ‘the criteria used by the IRS for Federal income purpose,’ that ‘Blackwater security contractors are not employees.’’’ > > I received a prompt response from SBA Administrator Preston indicating that the Small Business Administration issued a size determination regarding Presidential Airways, an affiliate of Blackwater. As expected, the letter states that “…SBA’s size determinations are solely for the purpose of ascertaining eligibility for our small business programs and have no applicability to tax liability matters.” > > I am troubled that Blackwater erroneously and inappropriately relied on an SBA size determination for the classification of its workers. SBA incorporates IRS tax criteria as an element in whether personnel are employees for determination of size. In March 2007, the IRS issued a letter to Blackwater ruling that it improperly misclassified a security guard in Afghanistan as an independent contractor. I am concerned that Blackwater is misclassifying its personnel for tax purposes. > > Since the Finance Committee has jurisdiction over revenue matters generally, I request that our Committee conduct an investigation of Blackwater to determine if they are evading taxes due to the erroneous misclassification of workers. I share your concerns about the tax gap and believe that the misclassification of workers is a contributing factor and that it is an issue which the Finance Committee should address. > > I am enclosing for your reference the letter I sent to the SBA and the response. In addition, I am enclosing a letter that I sent to Blackwater inquiring why they relied upon a SBA size determination for tax purposes. > > Thank you in advance for consideration of this important issue. Please keep me apprised of actions on this issue and let me know if you need any additional information from the Senate Committee on Small Business and Entrepreneurship. > > Sincerely, > John F. Kerry > Chairman You can read Senator Kerry’s letter to Blackwater on the blog, as well.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Blackwater%20Leaks&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Blackwater%20Leaks "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Blackwater%20Leaks "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Blackwater%20Leaks&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Corporate, Politics **Tags:** employees, IRS, tax --- ### [All Saints Church Doesn’t Bluff, Does The IRS?](https://www.taxgirl.com/2007/10/24/all-saints-church-doesnt-bluff-does-the-irs/) **Published:** October 24, 2007 **Author:** Kelly Phillips Erb **Content:** There’s a great post over at Election Law by Donald B. Tobin about the controversy surrounding a sermon preached by the Rev. Dr. George F. Regas, Rector Emeritus at All Saints Church on October 31, 2004. The sermon was thought to have crossed the line with respect to the prohibition against churches participating in election campaigning ([an issue that I’ve blogged about before](https://www.taxgirl.com/a-little-to-the-left-now-to-the-right-now-everybody/)), and the Church was called out by the IRS. The church didn’t back down. (Hat Tip: Tax Prof Blog)[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=All%20Saints%20Church%20Doesn%E2%80%99t%20Bluff%2C%20Does%20The%20IRS%3F&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=All%20Saints%20Church%20Doesn%E2%80%99t%20Bluff%2C%20Does%20The%20IRS%3F "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=All%20Saints%20Church%20Doesn%E2%80%99t%20Bluff%2C%20Does%20The%20IRS%3F "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=All%20Saints%20Church%20Doesn%E2%80%99t%20Bluff%2C%20Does%20The%20IRS%3F&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Charitable Organizations, Politics **Tags:** IRS, religion --- ### [Does Wal-Mart Want Your Child To Read?](https://www.taxgirl.com/2007/10/17/does-wal-mart-want-your-child-to-read/) **Published:** October 17, 2007 **Author:** Kelly Phillips Erb **Content:** Wal-Mart is the largest corporation in America, according to Fortune 500. According to Good Jobs First, Wal-Mart recently posted annual revenue of $350 billion and reported a profit of $11 billion (with a b). One thing is clear about Wal-Mart: they don’t like to spend money. My mom always said, “That’s how the rich stay rich.” I guess she was right. On its hike to the top, Wal-Mart dodged fair pay with illegal workers at more than 61 stores in 2003 and again in 2005, though Wal-Mart executives (of course) swear they don’t know a thing about it. In yet another blow to its image, an investigation of Wal-Mart’s local property tax records indicates that Wal-Mart systematically seeks to minimize its payment of taxes that support public schools and government services. Based on a large national sample of Wal-Mart stores and a review of all of its distribution centers open as of the beginning of 2005, [Good Jobs First](http://www.goodjobsfirst.org), a self-described “national policy resource center for grassroots groups and public officials, promoting corporate and government accountability in economic development and smart growth for working families,” has concluded that Wal-Mart has filed assessment challenges at more than one-third of its facilities around the country. Additionally, Good Jobs First reports that, at many facilities, there have been appeals in multiple years, totaling more than 2,100 property tax challenges nationwide. It seems that Wal-Mart doesn’t want to pay its fair share. This is interesting from a policy standpoint because there are many indications that Wal-Mart significantly damages the economic infrastructure of the communities that it enters. Think I’m kidding? Read [this article](http://stlouis.bizjournals.com/stlouis/stories/2006/05/15/daily29.html) that concludes that as smaller businesses close when Wal-Mart enters a community, poverty rates may rise. This is because, according to the Penn State University study, “retail workers displaced from existing mom-and-pop-type operations work for Wal-Mart at lower wages because they have no alternatives.” The additional fallout from these kinds of closures means that local businesses that supplied those stores, such as wholesalers, transporters, logistics providers, accountants, lawyers, and others also suffer financially – and may leave the community altogether. So let’s do the math. Giant Wal-Mart shows up. Smaller stores shut down. Those who can, leave the community in search of better opportunities. Those who stay work for Wal-Mart at lower wages than they were being paid before. And those who stay get the benefit of… anyone? anyone? Not higher wages. Not more benefits. And certainly not better opportunities for the community. Because in more than 2100 instances, Wal-Mart has chosen to challenge its tax assessment at a cost to the community. Its $11 BILLION profit doesn’t take a hit. But your local school might. Don’t get me wrong. I’m not anti-business. And I’m certainly not pro-tax. And I’m not against the free market. In fact, for the last several years, I’ve served on the Executive Committee for our local development corporation – and acted as President for the past two years. I have worked with developers and retailers to bring new businesses to our community. And while I’m not a fan of all chains, I understand the value that they can bring to a community. I have watched as LA Fitness, Applebee’s, Dunkin Donuts, and (coming) Starbucks have put down stakes in our neck of the woods. I am pleased to say that Wal-Mart has stayed away. And as a tax professional, I agree that businesses and individuals should not pay more taxes than they have to. But I wonder why the real “rollbacks” at Wal-Mart are challenges to property taxes on an extreme scale (again, more than 1/3 of their operations) – taxes that support the local community governments and schools – when the company is reporting profits in the billions. Billions. If other businesses and individuals in those same communities have to pay their fair share, why should Wal-Mart be different? Because it’s bigger? Because it employs more people (though, again, it generally replaces workers from other retailers)? It shouldn’t. When it comes to taxes, I agree that you shouldn’t line up and take whatever the government gives you if it’s not fair. But if every community that Wal-Mart encroaches upon has taxes that aren’t fair as far as Wal-Mart is concerned, maybe it’s not the communities. Maybe, just maybe, it’s a company that cares more about dollars than communities. I’m not telling you where to shop. You buy your tube socks wherever you want. But maybe you should think about where your money is going – remember, you’ve already paid your taxes when you take that money out of your wallet. Shouldn’t Wal-Mart pay its taxes?[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Does%20Wal-Mart%20Want%20Your%20Child%20To%20Read%3F&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Does%20Wal-Mart%20Want%20Your%20Child%20To%20Read%3F "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Does%20Wal-Mart%20Want%20Your%20Child%20To%20Read%3F "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Does%20Wal-Mart%20Want%20Your%20Child%20To%20Read%3F&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Corporate, Tax Policy **Tags:** CNN, Penn-State-University, taxes, Wal-Mart --- ### [Suddenly, Being Financially Irresponsible Pays Off!](https://www.taxgirl.com/2007/10/11/suddenly-being-financially-irresponsible-pays-off/) **Published:** October 11, 2007 **Author:** Kelly Phillips Erb **Content:** The House Ways and Means Committee has voted to permanently remove the income tax consequences for homeowners whose debt is partially forgiven by a lender after a foreclosure. The bill is likely to pass the House and Senate, and President Bush has already spoken publicly about his approval of the measure. Great. Now homeowners have yet another incentive to spend beyond their means – as if interest-only and subprime mortgages aren’t enough. Don’t get me wrong. I don’t love the idea of adding insult to injury. And I don’t think adding an income tax consequence to someone already saddled with debt is a terribly effective way to get out of debt. And I realize how easy it is to become saddled with debt (I say this as a homeowner with tons of student debt, trying to educate and feed three children). But this is the thing. I have people calling my office every week to tell me their stories. And a lot of times, it’s a combination of bad choices, bad luck, and bad timing. And those people I can help. But lately, I’ve been hearing more and more of the “I bought a house that I couldn’t afford at an interest-only mortgage and help, now I’m in trouble!” The answer? Take away the tax consequences. Whereas before, debt forgiveness was subject to taxation, the bill relieves all related consequences. The new “tax cut” means a significant loss of revenue to the Treasury. To make up for the shortfall, the committee has approved restrictions on capital gains tax benefits available to second homeowners who convert their vacation homes to primary residences. In other words, to paraphrase my colleague, Congress is offering a tax break to folks who can’t pay their debts by taking away a tax break for folks who can. Interesting concept, no?[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Suddenly%2C%20Being%20Financially%20Irresponsible%20Pays%20Off%21&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Suddenly%2C%20Being%20Financially%20Irresponsible%20Pays%20Off%21 "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Suddenly%2C%20Being%20Financially%20Irresponsible%20Pays%20Off%21 "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Suddenly%2C%20Being%20Financially%20Irresponsible%20Pays%20Off%21&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual, Tax Policy **Tags:** capital-gains, foreclosure, mortgage, second-home, tax-cut, vacation-home --- ### [Did You Read…?](https://www.taxgirl.com/2007/09/27/did-you-read/) **Published:** September 27, 2007 **Author:** Kelly Phillips Erb **Content:** A number of folks who do not believe that there is a law that requires taxpayers to pay an income tax have left comments throughout the site, accusing me and other tax professionals of blind ignorance. Now, I don’t mind a sound difference of opinion or a good debate, but this is my blog and I expect a little respect for the folks that stop by my site. If I let your comments stand, you should respect the rights of others to disagree with you. That means keep it civilized. No finger pointing. No name calling. No outright rudeness. Start your own blog if you want to attack others. If you’re confused, read [my comment policy](https://www.taxgirl.com/official-comment-policy/). Most of the comments about tax evasion tend to focus on what is perceived as “sheep mentality” of taxpayers. They are packed with a lot of the “did you even read?” variety. They also largely center around the [arguments made by Tommy Cryer](https://www.taxgirl.com/cryer-wins-one-sort-of/). So, to answer the cries of “did you read?”, the answer is “of course I did,” as did most of my colleagues. And for those of you who haven’t yet read the infamous memorandum, here it is, in full. Enjoy.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Did%20You%20Read%E2%80%A6%3F&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Did%20You%20Read%E2%80%A6%3F "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Did%20You%20Read%E2%80%A6%3F "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Did%20You%20Read%E2%80%A6%3F&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Site Info, Tax Policy **Tags:** Louisiana, tax evasion --- ### [Argh, A Pirate Tax.](https://www.taxgirl.com/2007/09/19/argh-a-pirate-tax/) **Published:** September 19, 2007 **Author:** Kelly Phillips Erb **Content:** It’s International Talk Like a Pirate Day. Really. And to “celebrate,” I went looking for real-life pirates that had some connection to tax. Know where I found them? The music industry. That’s right, modern-day “pirates” such as they are, have shed their pirate patches and parrots for grunge T-shirts and ripped jeans. More or less, our swashbucklers have been replaced by slackers. And, if you believe the RIAA, the weapon of choice of the modern-day pirates – the computer – is killing off the livelihoods of the rich, just as in the days of yore. Before computers were as disposable as tissues and almost as cheap, musical pirates depended upon the audio cassette or music tape (kids, ask your parents to tell you what it is). You could easily make recordings off of the radio or another friend’s record album (kids, ask your grandparents to tell you what it is) using a tape recorder and a fairly cheap cassette tape. It was wildly popular, so much so that the “mixtape” became the prerequisite to a successful high school or college social scene. Not surprisingly, the music industry wasn’t happy. If kids realized that they could “steal” music for free, why would they ever buy it? And so, quietly, without many musical pirates even aware, a pirate tax was levied on blank cassettes in the US. As of 2003, the Canadians did have such a tax, levying a rate of 22 US cents (worth a whopping 22 Canadian cents now, eh) on each blank audiocassette (apparently still sold in Canada) and 59 US cents on each CD-R audio (I’m guessing you can do the math here) – only it’s called a levy. Additionally, there have been variations on a $25 “levy”/pirate tax on any hard disk in an MP3 player following the announcement that Canadians led the way in MP3 piracy across the globe. Canadian pirates, who would have thunk it? Ultimately, there have been severe restrictions on these taxes/levies/tariffs in Canada – the most controversial being the [repeal of a tax on MP3 players](http://www.theinternetpatrol.com/canada-no-pirate-tax-on-ipods-mp3-players-theyre-players-not-recordershello), led by those stalwarts of Canadian tax reform, Apple and Dell. In the US, we don’t have such a tax on blank CDs and MP3 players. But maybe we should (as has been previously suggested). Maybe a few cents tax on each recordable medium would put an end to all of this music piracy… just as it did in the 1970s and 1980s with that audiocassette tax. Wait, that didn’t work, did it? But the recording industry got a lot more money out of the deal, which is what they want ultimately now – it was, as has been pointed out time and again – never about the little guy/artist (and no, I’m not referring to Prince). Or maybe they should just keep suing college kids.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Argh%2C%20A%20Pirate%20Tax.&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Argh%2C%20A%20Pirate%20Tax. "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Argh%2C%20A%20Pirate%20Tax. "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Argh%2C%20A%20Pirate%20Tax.&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual, Pop culture **Tags:** Canada --- ### [The Rich Pay Less In The UK, Too?](https://www.taxgirl.com/2007/09/16/the-rich-pay-less-in-the-uk-too/) **Published:** September 16, 2007 **Author:** Kelly Phillips Erb **Content:** Apparently, it’s not just US taxpayers complaining that people in lower tax brackets pay a higher percentage of tax overall. UK taxpayers are making a similar claim. According to the Sunday Times, the UK’s richest people are paying 4p in the pound less in tax than any other section of the population. While the tax brackets for income tax are higher, when mixed in with other taxes such as VAT (similar, though a bit different to a national sales tax), the top 1% of households pay 31% of their income to tax, compared with an average of 35% for the remaining 99%. There have also been complaints about the low tax burdens for private equity “tycoons”. This summer, there was controversy in Britain over the low rates of tax paid by these folks, when it became public that they may pay tax on as low as 10% on their earnings. This argument sounds a wee bit familiar, no? The US Congress is reviewing a similar issue this fall. And finally, confirming what [my colleague has previously written](https://www.taxgirl.com/apparently-being-middle-class-in-the-uk-sucks-as-well/), at the other end of the spectrum, those in the middle bracket appear to be hit the most: households on the median income of £24,700 (@$50,000) pay 35.3% in tax. I guess the “rich get richer” is a universal truth.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=The%20Rich%20Pay%20Less%20In%20The%20UK%2C%20Too%3F&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=The%20Rich%20Pay%20Less%20In%20The%20UK%2C%20Too%3F "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=The%20Rich%20Pay%20Less%20In%20The%20UK%2C%20Too%3F "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=The%20Rich%20Pay%20Less%20In%20The%20UK%2C%20Too%3F&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual, International, Tax Policy **Tags:** middle-class, tax, tax policy, UK, US --- ### [Looking To Jump Start Your Business?](https://www.taxgirl.com/2007/08/30/looking-to-jump-start-your-business/) **Published:** August 30, 2007 **Author:** Kelly Phillips Erb **Content:** Keep an eye out for the b5 media Business Channel “Jump Start Your Business” contest. You can win fabulous prizes including software, web hosting, tee shirts, books, and the best prize of all, advice from b5 media’s Business Channel experts. You’ll find details here and at many of the Business Channel blogs and (shortly) on our Business Channel home page. Or go directly to the blog of your choice: - Behind the Buzz - Brandcurve - Business and Blogging - Buzz Networker - Common Sense PR - Contract Worker - Copy Blogger - Digital Money World - Franchise Pick - Home Biz Notes - Interview Chatter - Just Make Money Online - Leadership Turn - Life Dev - Linked Intelligence - Pimp Your Work - Property Crossroads - Slacker Manager - Small Business Boomers - Start Up Spark - Successful Blog - [Taxgirl](https://www.taxgirl.com) - Work Boxers - Yielding Wealth [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Looking%20To%20Jump%20Start%20Your%20Business%3F&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Looking%20To%20Jump%20Start%20Your%20Business%3F "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Looking%20To%20Jump%20Start%20Your%20Business%3F "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Looking%20To%20Jump%20Start%20Your%20Business%3F&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Contests and Events **Tags:** contest, small-business --- ### [Dog Inherits $12 Million From Leona Helmsley](https://www.taxgirl.com/2007/08/29/dog-inherits-12-million-from-leona-helmsley/) **Published:** August 29, 2007 **Author:** Kelly Phillips Erb **Content:** There’s Trouble in New York. And he’s rich. Trouble, the beloved Maltese belonging to Leona Helmsley, is the beneficiary of a $12 million trust fund, according to her will, which was made public Tuesday in surrogate court. Helmsley’s brother, Alvin Rosenthal, was named Trouble’s caretaker. Helmsley’s only child, Jay Panzirer, died at the age of 42 of a heart attack. Helmsley successfully sued his estate to repay borrowed funds. Jay’s wife, Mimi, and Helmsley were not on good terms after Jay’s health (Helmsley had Mimi evicted). There is speculation that Helmsley’s relationship with Mimi led to a troubled relationship with Helmsley’s grandchildren: two of the four, Craig and Meegan Panzirer, were disinherited in Helmsley’s will. The majority of Helmsley’s estate will be sold and the money distributed to the Leona M. and Harry B. Helmsley Charitable Trust. The tax savings for the donation will easily be in the billions.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Dog%20Inherits%20%2412%20Million%20From%20Leona%20Helmsley&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Dog%20Inherits%20%2412%20Million%20From%20Leona%20Helmsley "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Dog%20Inherits%20%2412%20Million%20From%20Leona%20Helmsley "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Dog%20Inherits%20%2412%20Million%20From%20Leona%20Helmsley&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Estate and Gift Tax, Taxes of the Rich and (In)famous **Tags:** dog, Jay Panzirer, leona helmsley, will --- ### [The IRS Doesn’t Care What You Think](https://www.taxgirl.com/2007/08/29/the-irs-doesnt-care-what-you-think/) **Published:** August 29, 2007 **Author:** Kelly Phillips Erb **Content:** Okay, maybe they *do* care (maybe a little), but they certainly won’t pay you for your opinion. The IRS is warning about a new phishing scam involving an email to taxpayers that purports to issue a tax credit of $80 in exchange for completing an online survey. It’s not going to happen. The IRS will **not** give you money for a survey. The IRS ***does not*** send [unsolicited e-mail](https://www.taxgirl.com/cmon-the-irs-isnt-that-internet-savvy/) ever. And [the IRS will not ask you for PIN numbers, passwords, or similar secret access information for credit card, bank or other financial accounts](https://www.taxgirl.com/go-phish/). If you receive such garbage, don’t open it. It’s one of [many scams using the name of the IRS](https://www.taxgirl.com/re-youre-being-investigated-for-tax-fraud/). Forward it to phishing@irs.gov.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=The%20IRS%20Doesn%E2%80%99t%20Care%20What%20You%20Think&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=The%20IRS%20Doesn%E2%80%99t%20Care%20What%20You%20Think "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=The%20IRS%20Doesn%E2%80%99t%20Care%20What%20You%20Think "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=The%20IRS%20Doesn%E2%80%99t%20Care%20What%20You%20Think&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** ID Theft and Scams, IRS News **Tags:** email, IRS, phishing, scams --- ### [Go Directly To Jail. Do Not Pass Go.](https://www.taxgirl.com/2007/08/23/go-directly-to-jail-do-not-pass-go/) **Published:** August 23, 2007 **Author:** Kelly Phillips Erb **Content:** Are good works enough to mitigate jail time? Is a nice resume an excuse to skip prison? Probably not. The 3rd U.S. Circuit Court of Appeals has ruled, in *United States v. Tomko*, that a sentence given to William Tomko that did not include prison time was not appropriate considering his crime. The case illustrates continuing confusion about federal sentencing guidelines now that the U.S. Supreme Court has ruled that they are merely “advisory.” William Tomko Jr., the owner of a construction company, pleaded guilty to tax evasion charges for persuading the contractors who built his luxurious new home to send their bills to his company, W.G. Tomko & Sons, Inc., a la [Leona Helmsley](https://www.taxgirl.com/maybe-only-the-little-people-pay-taxes-but-everybody-dies/). He also allegedly wrote off expenses for other luxury items, like his Rolls-Royce and his custom motorcycle, as company expenditures. This was allegedly easy for Tomko because many of his company’s projects were otherwise linked to big-ticket expenditures for schools and government. As a result, Tomko illegally defrauded the government of almost a quarter million dollars in taxes. Federal sentencing guidelines called for a prison term in the range of 12 to 18 months – Helmsley served similar time, remember? But Tomko had the kind of lawyers that could get him out of such a pickle. They argued that putting Tomko in jail would be harmful to his employees and, after all, he was *really* a good guy. They cited his “exceptional” charitable and community activities. And for some reason, the judge bit, sentencing Tomko to three years of probation, including one year of house arrest (in the **$5 million** mansion that he built for himself and billed to his company), 28 days of in-house treatment for alcohol abuse, 250 hours of community service, and a $250,000 fine. The judge ruled that the offense was nonviolent, not ongoing in nature, not part of a larger pattern of criminal activity, and that there were no identifiable victims of the offense (er, other than taxpayers who do pay their taxes and therefore supplement Tomko’s ongoing lifestyle, but who’s counting them?). The judge also noted Tomko’s “good family history, educational attainment, gainful employment, and negligible criminal history” (hmm… what’s negligible these days?) and claimed that Tomko could benefit from treatment for his drinking problem. Hmm. I really don’t want to make this into a class war… but let’s make this into a class war. Is the judge saying that because Tomko was rich, well-educated, and from a good family that jail wasn’t *fair*? Is jail only for the under-educated and poor? That’s sure what it sounds like. And I, for one, find that offensive. The 3rd Circuit has agreed that the failure to include at least some prison time in his sentence was unreasonable (though I’m not sure that they agree with my logic). Judges writing for the majority opinion stated: > “Tomko’s sentence of probation included home confinement in the very mansion built through the fraudulent tax evasion scheme at issue in this case — an 8,000-square-foot house on approximately eight acres, with a home theater, an outdoor pool and sauna, a full bar, $1,843,500 in household furnishings, and $81,000 in fine art. The perverse irony of this gilded-cage confinement was not lost on the government, it is not lost on us, and it would not be lost on any reasonable public observer of these proceedings, including those would-be offenders who may be contemplating the risks associated with willful tax evasion.” Adding to the reasoning for a reduction in Tomko’s sentences was evidence of Tomko’s charitable acts. However, the 3rd Circuit was not impressed by character references or what one judge called Tomko’s “well-timed interest in Habitat for Humanity.” The case now goes back to the District Court for sentencing. What do you think? Should white-collar criminals escape jail time if they are rich, educated, and a source of income for others? Is a history of charity activities sufficient evidence of good character to merit merely house arrest and probation?[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Go%20Directly%20To%20Jail.%20%20Do%20Not%20Pass%20Go.&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Go%20Directly%20To%20Jail.%20%20Do%20Not%20Pass%20Go. "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Go%20Directly%20To%20Jail.%20%20Do%20Not%20Pass%20Go. "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Go%20Directly%20To%20Jail.%20%20Do%20Not%20Pass%20Go.&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Prosecutions, Felonies and Misdemeanors, Tax Policy, Taxes of the Rich and (In)famous **Tags:** fraud, tax evasion --- ### [Here We Go Again](https://www.taxgirl.com/2007/08/18/492/) **Published:** August 18, 2007 **Author:** Kelly Phillips Erb **Content:** The attorneys for Marrita Murphy just aren’t going quietly. On August 17, 2007, they filed a Petition for Rehearing *En Banc* for Ms. Murphy’s tax case. I’ve [posted](https://www.taxgirl.com/whats-a-little-pain-and-suffering-between-friends/) *and* [posted](https://www.taxgirl.com/precedent-schmecedent/) *and* [posted](https://www.taxgirl.com/mea-culpa-sort-of/) about the case on the blog previously. And that’s all I’m going to say about that. (hat tip: TaxProf Blog)[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Here%20We%20Go%20Again&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Here%20We%20Go%20Again "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Here%20We%20Go%20Again "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Here%20We%20Go%20Again&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Tax Policy **Tags:** tax, whistleblower --- ### [Feds Say Encouraging Others Not To Pay Tax Is Abusive](https://www.taxgirl.com/2007/08/15/feds-say-encouraging-others-not-to-pay-tax-is-abusive/) **Published:** August 15, 2007 **Author:** Kelly Phillips Erb **Content:** When you hear the words “abusive tax shelter,” you tend to think about large scale operations a la [KPMG](https://www.taxgirl.com/the-largest-tax-fraud-ever-over/). But that may be changing. Recently, a federal judge has ruled that groups that distribute materials claiming that people have a right not to pay federal income taxes (so-called “tax protestors”) are doing little more than “promoting an abusive tax shelter.” The ruling was the result of a lawsuit filed in April against Robert L. Schulz and his two groups, We the People Foundation for Constitutional Education Inc. and We the People Congress. In his ruling, Senior Judge Thomas J. McAvoy of the Northern District of New York permanently enjoined Schulz and his groups from continuing to promote schemes that encourage the nonpayment of taxes. Judge McAvoy reasoned that Schulz and his groups are inviting people to break the law. More importantly, Judge McAvoy has also ruled that those groups must turn over to the U.S. government the names, Social Security numbers, and other identifying information about people who received the “Tax Termination Packages” from the groups. The packages are available for a $20 “donation” on Schulz’ site. It’s also worth noting that, despite Schulz’ insistence that his beliefs are legal, he makes no such representation in his materials. In fact, he has disclaimers on the materials that it is not legal advice and is “presented solely for educational purposes.” The judge noted, however, that such a disclaimer, taken together with the other information in the package, does not provide a legal protection for Schulz. He also ordered that the groups provide copies of his ruling to all people who had bought or received tax plans; post a copy of his ruling on its websites and provide the U.S. government with the names of people provided with We the People materials. Schulz has appeared in court several times before arguing the merits of his belief that the federal income tax system is voluntary. He was nominated as a “tax scam artist” on quatloose.com – you can visit the site for some interesting tidbits.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Feds%20Say%20Encouraging%20Others%20Not%20To%20Pay%20Tax%20Is%20Abusive&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Feds%20Say%20Encouraging%20Others%20Not%20To%20Pay%20Tax%20Is%20Abusive "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Feds%20Say%20Encouraging%20Others%20Not%20To%20Pay%20Tax%20Is%20Abusive "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Feds%20Say%20Encouraging%20Others%20Not%20To%20Pay%20Tax%20Is%20Abusive&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Prosecutions, Felonies and Misdemeanors **Tags:** IRS, tax scam --- ### [Fix The Tax Code Friday: Highway/Gas Tax](https://www.taxgirl.com/2007/08/10/fix-the-tax-code-friday-highwaygas-tax/) **Published:** August 10, 2007 **Author:** Kelly Phillips Erb **Content:** Despite pressure following the bridge collapse in Minneapolis, President Bush will not agree to raise gas taxes to pay for highway improvements. Officials in many states – including Pennsylvania, where I now live – have vowed to inspect and repair bridges nonetheless (Pennsylvania has one of the highest concentrations of road bridges in the country). And in my mom’s home state, North Carolina, where I am visiting, they are discussing the conditions of bridges, labeling one of the most traveled merely “fair” in condition. But let’s face it, the highway system already receives billions and billions of federal dollars each year. Will throwing more money at the problem make it go away? With all of that in mind, today’s Fix the Tax Code Friday question is: > **Should the federal government provide more dollars to the individual states through an increase in the gas tax for purposes of inspecting and repairing bridges?** [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Fix%20The%20Tax%20Code%20Friday%3A%20Highway%2FGas%20Tax&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Fix%20The%20Tax%20Code%20Friday%3A%20Highway%2FGas%20Tax "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Fix%20The%20Tax%20Code%20Friday%3A%20Highway%2FGas%20Tax "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Fix%20The%20Tax%20Code%20Friday%3A%20Highway%2FGas%20Tax&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Fix the Tax Code Friday **Tags:** fix the tax code friday, gas-tax, infrastructure --- ### [When You Want To Give Religiously. Really.](https://www.taxgirl.com/2007/08/08/when-you-want-to-give-religiously-really/) **Published:** August 8, 2007 **Author:** Kelly Phillips Erb **Content:** With a click of a mouse, you can now pay your power bill, reconcile your checking account, and donate to your church. Yep, you read the last part correctly. In response to recent changes that now require a taxpayer to have a bank record or written communication from a qualified charity to prove donations, many churches are going high-tech. Unlike years prior, when a taxpayer could self-document charitable donations under $250, a taxpayer must now provide a bank record that includes canceled checks, bank or credit union statements, and credit card statements with the charity’s name and the transaction posting date printed clearly. This has proven difficult for many taxpayers who are used to dropping cash into a collection plate and who don’t use checks to make payments. The answer? Companies like Mychurchdonations.com let churchgoers pay online from the comfort of their own home using credit or debit cards and electronic checks. But the proverbial buck doesn’t stop there. Some churches now offer kiosks in their foyers through companies like Secure Give, which allow electronic transactions with ATM-like ease. To be fair, churches aren’t the only charities using these options. Many charities accept online donations, and other organizations have used Secure Give kiosks (the YMCA is featured on their site). But for some reason, churches have been slow to embrace many technology-based donation options. This is curious to me, as churches are probably more publicly supported than most other charitable organizations, many of which also benefit from government grants. Churches, however, generally rely on the generosity of a cross-section of their own members and not single donors or unusual grants. My guess is that many churches would see such blatant donation requests as ungodly and worry that it might make their members uncomfortable. But I also think the virtual anonymity of these services might encourage those who feel a little self-conscious to throw only a dollar or two into the collection plate. So, I want to know. Have you ever used a kiosk or online service to donate to church? If not, would such a service make you more or less likely to give? Is there something appealing about knowing only that God, the IRS, and the folks at the bank are watching? Or does technology not have a place in church?[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=When%20You%20Want%20To%20Give%20Religiously.%20%20Really.&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=When%20You%20Want%20To%20Give%20Religiously.%20%20Really. "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=When%20You%20Want%20To%20Give%20Religiously.%20%20Really. "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=When%20You%20Want%20To%20Give%20Religiously.%20%20Really.&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Charitable Organizations, Technology **Tags:** deduction, income, nonprofit, religion, tax --- ### [Does This Apartment Make My Tax Return Look Big?](https://www.taxgirl.com/2007/08/02/does-this-apartment-make-my-tax-return-look-big/) **Published:** August 2, 2007 **Author:** Kelly Phillips Erb **Content:** A lot is going on in the tax world this week. Much of it bores me, so take what you will. But the case of *Finzer v. United States*, No. 06-C-2176, about medical expenses and assisted living facilities caught my eye because, well, lots of folks that I know are considering assisted living facilities. My aunt and uncle lived in one eons ago, in the 1980s. They were sooo ahead of their time. Now, assisted living facilities are almost trendy, and many older folks see them as attractive options. This case involved the Finzers, who paid an entrance fee for an Illinois assisted living facility, Classic Residence by Hyatt – this is not your grandmother’s nursing home! Classic Residence informed the Finzers that almost 20% of the fee (in their case, $136,798) might qualify as a deductible medical expense. Relying on this information, the Finzers deducted the amount in 2002 and went about their way. A year later, the Finzers got another letter from Classic Residence informing them that 41% of the fee might be deductible as a medical expense. The couple did what anyone in a similar situation would do: they filed an amended return claiming an increased medical expense deduction. The IRS denied the refund. The Finzers sued in court and lost. The court found that though the Finzers paid $723,800 for their Classic Residence unit, they would have received the same access to medical care had they selected a smaller unit that required an entrance fee of only $275,000. In other words, the size of the apartment (and thus, the size of the fee) did not directly impact the amount of medical care provided. The percentage-based calculation therefore did not adequately reflect the medical expense. Additionally, the residency agreement that the Finzers signed with Classic Residence states that the proceeds of the entrance fees are *not* used to provide services (such as medical expenses) to the residents. There is no evidence that any portion of the Finzers’ entrance fee was used to pay medical expenses; in fact, the entrance fee is actually structured as a loan. Hyatt testified that they usually returned about 90% of the fee to the residents. Taking all of this into consideration, the Finzers could not prove that 41% adequately reflected the actual amount attributable to medical expenses. I feel for the Finzers, I really do. They clearly acted upon information provided to them by Hyatt. And the thing I don’t get is this: where were Hyatt’s attorneys? If the entrance fee is structured as a loan (which apparently is spelled out quite specifically in the agreement) and is typically refunded, how in the world did they arrive at this 41% figure as a medical expense? Or even the 18.9% figure before that? It sounds like either insanely bad lawyering or poor judgment on the part of Hyatt. Either way, it’s bad news for the Finzers. I hope that they are at least compensated, in part, by Hyatt for relying on this advice. As for the rest of us? What should we take from this? Well, for one, medical expenses have to be related to, um, medical expenses. Any other thoughts?[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Does%20This%20Apartment%20Make%20My%20Tax%20Return%20Look%20Big%3F&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2020%2F05%2Fjoyful-adult-daughter-greeting-happy-surprised-senior-mother-3768131.jpg&p%5Btitle%5D=Does%20This%20Apartment%20Make%20My%20Tax%20Return%20Look%20Big%3F "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Does%20This%20Apartment%20Make%20My%20Tax%20Return%20Look%20Big%3F "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Does%20This%20Apartment%20Make%20My%20Tax%20Return%20Look%20Big%3F&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Healthcare, Individual **Tags:** medical-expense --- ### [I’m At BlogHer!](https://www.taxgirl.com/2007/07/26/im-at-blogher/) **Published:** July 26, 2007 **Author:** Kelly Phillips Erb **Content:** I have finally arrived in Chicago for the BlogHer conference – despite a sequence of events that included thunderstorms, Air Force One, and a rude man in a gray suit on Randolph Avenue conspiring to thwart my plans. I’m on the panel for Art and Commerce: > The other side of the professional blogging coin is looking at the business ramification of making money with your blogging. This session will cover the things to consider and that you may regret if you wait to long to address: copyright protection, tax ramifications, managing personal vs. paid-for blogging, your site policies, and blogging ethics. Nina Smith moderates, Denise Howell is our in-house legal expert and Liz Gumbinner’s background in marketing, advertising and blogging gives her insights into how to set and disclose consistent blogging policies, in other words: how to blog and take advantage of business opportunities without selling your soul. Finally, Kelly Erb (aka [TaxGirl](https://www.taxgirl.com)) will be on hand to discuss, gulp, your taxes. Hopefully, many of you will be at the conference (please stop by and say hello!) – otherwise, if you have a specific question about blogging and tax, post it below. I’ll try to answer it here (time permitting). I’ll also link to the BlogHer live blogger (identity as yet unknown to me) at the panel so that you can read what I have to say (as well as Nina, Denise, and Liz!).[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=I%E2%80%99m%20At%20BlogHer%21&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=I%E2%80%99m%20At%20BlogHer%21 "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=I%E2%80%99m%20At%20BlogHer%21 "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=I%E2%80%99m%20At%20BlogHer%21&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Contests and Events **Tags:** income, tax --- ### [And…. Roll ‘Em!](https://www.taxgirl.com/2007/07/11/and-roll-em/) **Published:** July 11, 2007 **Author:** Kelly Phillips Erb **Content:** I will admit to being more than a little biased about filmmaking in Pennsylvania. I love movies. I love movie stars. And the thought of both in my home state? Sigh. And yes, maybe it has to do with the dreams that I secretly harbored of becoming a movie star after I was an extra in “[Hiding Out](http://www.imdb.com/title/tt0093186/)” while in high school… And it’s true that, while in law school, I cut class to try to meet Brad Pitt when he was filming “Twelve Monkeys” (ironically, while trying to spot him, I literally bumped right into Bruce Willis). I watched “The Sixth Sense” and tried to match all of the scenes with the real locations in Philly. I was ecstatic to learn that “Trading Places” was filmed in the Union League of Philadelphia (I’m a member). So, I guess you could say I’m a Pennsylvania movie junkie. As a result, I was excited to see that Pennsylvania not only fixed its budget crisis, but also increased tax incentives in the budget to attract filmmaking. I’ve known this has been in the works for a while. Sharon Pinkenson, head of the Greater Philadelphia Film Office, was a guest speaker at the RDC business breakfast series a couple of years back and mentioned then that she was trying to increase the available incentives. I don’t know all of the details yet, but I do know that the package included $75 million in tax credits for producers making movies, television shows, and commercials. The budget for the projects has to be at least $2 million, and at least 60% of the budget must be earmarked to be spent in Pennsylvania. States like Pennsylvania have been searching for incentives to offer producers to compete with Canadian provinces that have been luring movie makers with promises of lower costs and taxes.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=And%E2%80%A6.%20Roll%20%E2%80%98Em%21&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=And%E2%80%A6.%20Roll%20%E2%80%98Em%21 "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=And%E2%80%A6.%20Roll%20%E2%80%98Em%21 "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=And%E2%80%A6.%20Roll%20%E2%80%98Em%21&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Pop culture, State and Local Tax (SALT) **Tags:** movies, Pennsylvania --- ### [Whatcha Gonna Do When They Come For You?](https://www.taxgirl.com/2007/06/26/whatcha-gonna-do-when-they-come-for-you/) **Published:** June 26, 2007 **Author:** Kelly Phillips Erb **Content:** > I read with unlimited glee and profound satisfaction the US Department of Justice press release of the nineteen count indictment of Steve Yagman. As a retired Los Angeles Police detective and a proud past member \[sic\] the Special lnvestigations Section (The “Death Squad” as referenced by Mr. Yagman), I would like to wish Mr. Yagman lots of luck after he is convicted and sent to a federal prison. > I sincerely hope “BUBBA” rips you a new asshole, Yagman. May you rot in hell, you despicable excuse for a human being. One last piece of advice…get a nose lob! > Jerry LeFrois, LAPD Retired Not exactly the kind of jailhouse reading that Paris Hilton is getting these days, is it? This letter was sent by Jerry LeFrois, a retired LAPD officer, after hearing about the indictment last year of Stephen Yagman, who describes himself on his firm’s website as “\[h\]eld to be expert in civil rights litigation.” Yagman subsequently filed suit in federal court claiming that the letter had caused him ‘extreme emotional distress’ (hat tip: [Patterico’s Pontifications](http://patterico.com/2006/08/16/stephen-yagmans-emotional-distress-lawsuit-against-retired-cop-tossed-out-of-court-the-exclusive-inside-story/)). Yagman’s case was eventually dismissed for lack of federal jurisdiction, but the dismissal was “without prejudice” – in other words, Yagman can try again in state court or prove damages greater than $75,000. All of this circus for a tax case isn’t the “norm,” but then civil rights attorney Stephen Yagman is hardly about the status quo. For years, Yagman has filed lawsuits claiming that the LAPD abused and framed suspects and made false arrests – so you can see why Le Frois has no love for Yagman. Yagman has also sued President Bush on behalf of detainees at Gitmo, alleging constitutional rights violations. As a result, he has claimed that the charges filed against him are politically motivated and retaliatory. Despite his protestations, Yagman was convicted this week on 19 counts of tax evasion, money laundering, and bankruptcy fraud. The 62-year-old Yagman may well spend his last days in jail; he is expected to be sentenced to between six and seven years in prison. He could also lose his law license. Prosecutors successfully argued that Yagman was guilty of tax avoidance for more than $100,000 in federal income taxes while he continued to live well. When he filed for bankruptcy, prosecutors allege that he failed to disclose his Venice Beach home yet continued to claim the mortgage interest deduction on his tax returns. He continued to rack up credit card debt and take expensive trips to Europe. Yagman was also found guilty of not paying his income taxes from 1994 to 1997 while he hid money from the IRS. Yagman is currently free on $100,000 pending his sentencing, scheduled for September 24.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Whatcha%20Gonna%20Do%20When%20They%20Come%20For%20You%3F&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Whatcha%20Gonna%20Do%20When%20They%20Come%20For%20You%3F "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Whatcha%20Gonna%20Do%20When%20They%20Come%20For%20You%3F "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Whatcha%20Gonna%20Do%20When%20They%20Come%20For%20You%3F&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Prosecutions, Felonies and Misdemeanors, Taxes of the Rich and (In)famous **Tags:** Bush, tax, tax evasion --- ### [The Greening Of The Senate](https://www.taxgirl.com/2007/06/20/the-greening-of-the-senate/) **Published:** June 20, 2007 **Author:** Kelly Phillips Erb **Content:** From the popularity of Al Gore’s uber-PowerPoint “An Inconvenient Truth” to the explosion of [hybrid and energy-efficient vehicles](https://www.taxgirl.com/what-drives-tax-policy/), the US population is paying more attention to the environment. And Congress is finally catching on (well, sort of). One driving force behind the interest in going green is rising oil and energy prices. As the conflict in the Middle East heats up, gas prices are edging ever upwards. In the US, some states are seeing gas prices reach $4/gallon – $3/gallon in Philly, where I live – making [websites like this one](http://www.phillygasprices.com/) popular. With no relief in sight, people are noticing our dependence on foreign oil; the US has only 3% of the world’s oil but consumes 25% ([UDelaware](http://www.udel.edu/PR/UDaily/2006/apr/global040606.html)). So, amid growing pressures to address energy issues, it was a surprise to hear that Senate Finance Committee Chair Max Baucus (D-MT) was releasing a $13.7 billion package of energy tax incentives for markup by the Finance Committee just after it had been announced that the bill was to be temporarily shelved last week. I haven’t heard any official word regarding why the decision was made to shelve and then release the bill, but it was on the docket for review on June 19. Rumors suggest GOP opposition to the bill contributed to the delay in its release. The bill, S. 1419, has several goals: – to promote the development of wind and solar power; – expand alternative vehicles and biofuels; – focus on uses for coal that control carbon; – energy savings for homes and “green” buildings; and – expanded refinery capacity. A central feature of the bill is the repeal of major oil companies’ big tax breaks that were pushed through in recent years – thought to be worth over $9 billion. Those tax breaks have proven unpopular in a year when big oil has reported record profits. The bill also includes provisions to extend the production tax credit for wind power projects; create a 30% investment tax credit for residential wind energy projects, and extend tax credits for solar and fuel cell installations. The plan also includes several provisions to promote “clean coal” projects and establish Clean Coal Bonds to encourage clean coal efforts by co-ops, tribes, and municipalities. Taxpayers driving hybrids would see extensions of existing credits for hybrids and the creation of a $2,500 credit for plug-in hybrids. Residents and companies who used energy-efficient building materials and “green” technology would also receive tax incentives. Alternative fuel producers would be rewarded with fifty-cent/gallon credits for cellulosic ethanol production (works like ethanol and is produced from sugar or corn) and an extension of credits to cover the cost of the installation of E85 ethanol – a blend of ethanol and gas – pumps. The bill would also extend the $1/gallon biodiesel credit for fuels produced from soy, camelina, and other plant materials and extend the $1/gallon renewable diesel credit. The latter is the fuel created from such compounds as… chicken fat. Who knew? The Bush administration has reportedly threatened to veto the bill. Specifically, the administration opposes language that would make gasoline price gouging a federal crime and the proposed increase in fuel economy standards. Much of the remainder of the bill is, according to the administration, “uneconomic, impractical, counterproductive, or unnecessarily duplicative of existing authority.”[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=The%20Greening%20Of%20The%20Senate&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=The%20Greening%20Of%20The%20Senate "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=The%20Greening%20Of%20The%20Senate "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=The%20Greening%20Of%20The%20Senate&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Environment, Politics, Tax Policy **Tags:** environment, gas, Max Baucus, Senate, tax --- ### [Being Middle Class In America Sucks](https://www.taxgirl.com/2007/06/20/being-middle-class-in-america-sucks/) **Published:** June 20, 2007 **Author:** Kelly Phillips Erb **Content:** I filed my taxes today. Yeah, they are late. I almost always file with an extension because I’m so busy in April – I’m not recommending it, I’m just saying it happens. Anyhow, this year, it really hit me how much being middle class in America sucks. And as the words were coming out of my mouth during my rant to my husband, I thought, *this* would make a good post… It’s not often that you get an Op-Ed piece from me, but then you haven’t seen my tax return. First of all, defining the middle class is hard, so I’m not going to try. I’m not going to draw a line in the sand and tell you who actually qualifies as middle class or not. I’m just going to talk about tax policy and how it more or less affects those that don’t seem to fit in as “poor” or “rich”. You can figure out for yourself where you think you land. And this isn’t going to be a discussion about tax rates (though effective rates are a different story). The progressive nature of our tax system actually doesn’t bother me. I don’t buy the argument that a flat tax serves everyone the same way, because it’s much harder to give up 10% of your income for taxes when you’re at the bottom of the scale than when you’re at the top. But again, that’s not my point. What does bother me is our priority system – what we choose to allow as deductions and how we limit those deductions. Here are some examples: **Home mortgage interest.** This is almost always deductible – up to $1 million for a mortgage. Rental payments are not. The more that you pay your mortgage down, the worse off you are for tax reasons. It almost always pays to have a high mortgage, speaking strictly about taxes. Why do you think home sales and re-fis are driving the economy of late? **Home mortgage interest on second homes.** If you keep it merely as a vacation home, it’s deductible. But if you have to rent it out in order to keep the house? Not fully deductible. **Dependent Care Credits.** Your deductions are limited to the least-paid spouse’s income or a cap of $6,000. Looked into childcare lately? For full-time care, you should expect to pay $20,000/year or more. This doesn’t include payroll taxes, which you must withhold for in-home childcare. And your deduction? $6,000. Also, the deduction is subject to income phase-outs. **Student Loan Interest.** This is the deduction that I cringe about the most. This year, my husband and I paid twice as much in student loan interest this year as we paid for the mortgage. Why? Because, like most kids I know, I didn’t grow up rich, my parents didn’t pay for my education, my scholarships didn’t cover the cost of my entire education, and college and grad school are ridiculously expensive. And what do I get for it? Practically nothing. If you’re single, the deduction begins to phase out if your AGI is over $50,000; it disappears if your AGI is over $65,000; you can double those limits if you’re married. **Child Tax Credits.** To qualify, you must have an income of less than $110,000 when filing a joint return with your spouse; $75,000 if you are filing as a single head of household; or $55,000 if you are married but filing separately. **Educational Expenses for Elementary and High School Students.** Oh, that’s right. There is none. If you’re like me and you pay for private school because you lack confidence in your local schools (ahem), there’s no deduction. However, if I kept my children out of school with a private nanny, that *is* deductible. And if I buy a more expensive home in a better school district, that *is* deductible. But not tuition. For what it’s worth, I wrote my Congressman (Chaka Fattah, who sits on the Appropriations Committee) about this years ago and never received a response… I actually think it’s one of the more despicable omissions in the tax code. **IRA Contributions.** Your contributions to an employer-managed plan are only fully deductible if your AGI is less than $34,000 for a single person and $54,000 for married persons. It phases out completely if your AGI is more than $44,000 and $64,000, respectively. **Medical Expenses.** Medical expenses are subject to a floor: 7.5% of AGI. That means you can deduct only medical expenses that exceed 7.5% of your AGI. Here’s an example: You have $4,000 in medical expenses and your AGI is $50,000. Your deduction is… $250. That’s right. 7.5% of $50,000 is $3,750. So, you can only deduct the expenses over $3,750 – in this case, $250. **Miscellaneous Expenses.** Also subject to a floor: 2% of AGI. Don’t get me started. And **AMT**? A direct hit for the middle class – who were never intended to be subject to AMT. So what does all of this mean? A [Congressional Budget Office](http://www.cbo.gov/) study found that the wealthiest 20% of taxpayers (average incomes of $182,700), saw their share of federal taxes drop. The top 1% (average incomes of $1.1 million) also saw their share fall. However, taxpayers with incomes in the range of $51,500 to $75,600 saw increases in their share of federal tax payments. The biggest leap was for households earning around $75,600. In terms of effective federal tax rates, the numbers are even more telling. Rates for the top 1% of taxpayers have fallen by 20%. The poorest taxpayers saw their taxes drop 16%. The smallest drop? The middle 20% of taxpayers with average incomes of $51,500 – their drop was less than half of the wealthy. And yes, the web is full of statistics that prove any point. So, I’m not relying just on stats and policy reports. I’m relying on my own experiences and those of my clients, many of whom are professionals and small business owners – solidly middle class. And this isn’t about politics – many of these tax issues have been around for several administrations – so it’s not a liberal versus conservative argument. It’s really about how hard it is, increasingly, to be middle class in America. We work hard, and we don’t mind paying our share. We just don’t understand why our share of the burden keeps growing while our services shrink. I don’t receive free medical benefits, I can’t rely on our public schools to educate my children, public transit is phasing out and getting more expensive, energy prices are rising… I guess I’m just not sure what I’m paying for anymore. — *Editor’s note:*  This was one of my highest commented posts for 2007.  Unfortunately, when I made the transition to a different server in 2008, some of the posts lost comments; sadly, this was one of them.  Don’t let it stop you from commenting.  The omissions were totally unintentional![![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Being%20Middle%20Class%20In%20America%20Sucks&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Being%20Middle%20Class%20In%20America%20Sucks "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Being%20Middle%20Class%20In%20America%20Sucks "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Being%20Middle%20Class%20In%20America%20Sucks&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Politics, Tax Policy **Tags:** middle-class, tax, tax policy, US --- ### [Larger Than Life*](https://www.taxgirl.com/2007/06/18/larger-than-life/) **Published:** June 18, 2007 **Author:** Kelly Phillips Erb **Content:** The man who was responsible for creating the business empire that managed the careers of ‘N Sync, the Backstreet Boys, and O-Town is singing a different tune these days. Lou Pearlman was arrested last week at the Westin Hotel in Bali and turned over to U.S. law enforcement officials. He was flown to Guam to appear before a judge on one felony count of bank fraud. He was expected to be returned to Florida, where more charges likely await, including possible tax evasion charges. Pearlman is believed to have bilked about 1,000 investors of more than $300 million, as well as an additional $150 million from banks. He claimed he would invest the money for the investors’ profit. Records indicate that Pearlman likely pocketed the money. This isn’t the first time that Pearlman has been accused of mismanaging funds; he was sued by the Backstreet Boys and ‘N Sync regarding his control over their finances. This may, however, be the biggest accusation he’s faced in his plummeting career. After suits by the boy bands he managed, Pearlman’s fortunes in the music world took a dive. He then offered investments in one of his companies to private investors. It appears, however, that the investment plan was bogus. Clients received quarterly reports audited by the accounting firm of Cohen & Siegel. Cohen & Siegel, however, was fake. In November 2006, suspicion began to mount about Pearlman’s activities when Frankie Vasquez Jr. committed suicide. Vasquez had been one of Pearlman’s most trusted partners. A few months later, one of Pearlman’s entities – one that Vasquez had been involved with – filed for bankruptcy even as the investigation around Pearlman’s finances grew. Pearlman has asked for a public defender but has refused to disclose his finances. Attorneys familiar with the case have theorized that he is hesitant to expose his finances because any disclosed assets could be seized to satisfy judgments against him; additionally, his failure to disclose could lead to a perjury charge. I think that’s the least of his worries. To secure funding for these alleged business activities, Pearlman offered fake tax returns for 2003 and 2004, allegedly prepared by the nonexistent Cohen & Siegel. He never actually filed those returns, which has piqued the IRS’s interest. Charges have not yet been filed by the IRS, but it doesn’t take a psychic to see that it’s coming. In the meantime, music fans all over the world may well be wondering: > Show me a reason, give me a sign > Tell me the way we, fall out of line\* Cause to most of us, it makes no sense how a man with a private Gulfstream jet, a Rolls-Royce Phantom, and a $12 million Florida home could end up with nothing but a bad reputation. \* And kudos to anyone who got both Backstreet Boys references – not that I was a fan or anything…[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Larger%20Than%20Life%2A&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Larger%20Than%20Life%2A "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Larger%20Than%20Life%2A "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Larger%20Than%20Life%2A&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Pop culture, Prosecutions, Felonies and Misdemeanors, Taxes of the Rich and (In)famous **Tags:** Backstreet Boys, Lou-Pearlman --- ### [7 Random Facts About Taxgirl](https://www.taxgirl.com/2007/06/13/7-random-facts-about-taxgirl/) **Published:** June 13, 2007 **Author:** Kelly Phillips Erb **Content:** I’ve been tagged by Dexie over at She Knows Best to do a meme. I’ve never done a meme for Taxgirl before – it’s never seemed to fit. But I thought I’d give it a go, incorporating facts about me that have to do with tax. Here we go: 1\. In law school, I swore that I would never take a tax class. I ended up getting my Masters in Tax. The lesson I learned? Never say never. 2\. I won my first audit when I interned with IRS. I was young, female, and scared to death. The audit was in a bank – we were auditing an estate. The bank brought all of its “people” and its attorney, who was an older, male attorney. I had written a letter presenting my findings, and I basically summarized it at the table. The attorney looked at me very seriously, looked at the bank VPs, and said, “Gentlemen, she’s exactly right.” I almost passed out. 3\. For years, I prepared tax returns pro bono at our local senior center as part of the IRS’ Volunteer Income Tax Assistance program. It was great fun. My favorite client was an older gentleman who wanted me to list his occupation as “Spy”. 4\. I don’t prepare tax returns for clients anymore. I’m far too busy. Instead, I focus on compliance and planning. 5\. I rarely file my return in April. I almost always have to get an extension because we’re so busy. 6\. I’m writing a book about taxes, specifically focusing on the history of income tax in the US. It’s neither a dry historical perspective nor a policy-driven book, it’s kind of both. 7\. My oldest daughter believes that I work with taxis, not taxes. I should be so lucky! Whew, that was actually fun. You can find out more about me by reading [my GTKYT interview here](https://www.taxgirl.com/getting-to-know-you-tuesday-me/) or reading my b5 bio. And now, I’m supposed to call some folks out to do the meme over at their blogs. So here is my eclectic mix, some business-related, some fun, some both: - Chris at Hopsreport - Sally at Living Without Meat - Dave at PopBuzzUK - Kim at Zoot! - Madeline at Hogwarts Herald - Mary Emma at Home Biz Notes - Darlene at Interview Chatter Here are the rules: > Each player starts with 7 random facts/habits about themselves. People who are tagged need to then report this on their own blog with their 7 things as well as these rules. They then need to tag 7 others and list their names on their blog. They are also asked to leave a comment for each of the tagged, letting them know they have been tagged and to read the blog. And there you go: my first Taxgirl meme! Hopefully, it wasn’t too random, and you’re learning that even tax geeks are people, too. If you have questions about a tax career, feel free to ask or comment. If you have specific tax-related questions, [ask the taxgirl](https://www.taxgirl.com/ask-the-taxgirl/)![![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=7%20Random%20Facts%20About%20Taxgirl&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=7%20Random%20Facts%20About%20Taxgirl "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=7%20Random%20Facts%20About%20Taxgirl "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=7%20Random%20Facts%20About%20Taxgirl&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Interviews and People, Just for Fun **Tags:** tax, taxgirl --- ### [Getting To Know You Tuesday: Wendi Kotzen](https://www.taxgirl.com/2007/06/12/getting-to-know-you-tuesday-wendi-kotzen/) **Published:** June 12, 2007 **Author:** Kelly Phillips Erb **Content:** It’s Getting to Know You Tuesday! Today’s guest is Wendi Kotzen. Wendi is a partner in the tax and real estate groups at Ballard Spahr Ingersoll Andrews LLP. When I entered the practice, it became apparent to me that tax law was not exactly chock full of female attorneys. In fact, at any given Tax CLE, you were bound to see mostly grey-haired men. That’s why I was thrilled to be invited to participate in the Tax Supper Club in Philadelphia, then chaired by Wendi Kotzen. Wendi was one of the first successful female tax attorneys outside of law school that I had the honor to meet. I’m so pleased that she agreed to play along today! And onto the interview… **1. Where are you now?** In my office. **2. What’s your official title and what does it mean?** Partner. **3. What books are on your nightstand?** The Good German, Fit or Fat. **4. If you weren’t working in the tax profession, what would your dream job be?** Talking Head. **5. What’s the last movie that you saw (DVD or in the theatre)?** The Good Sheppard. **6. Tax is a huge subject. What’s your area of special interest?** Real estate-related tax issues. **7. What’s the best tax or financial advice that anyone ever gave you?** Invest for the long term. **8. Coffee or tea?** Hot black coffee and iced tea. **9. Name five artists on your iPod (or mp3 player).** James Taylor, Cat Stevens, Carole King, Crosby, Stills, Nash & Young, Jeff Buckley **10. What would I be surprised to know about you?** I play the lottery regularly and love daydreaming about what I’d do if I won enough to have a BIG bank account. **11. What college did you attend (in what subject)?** University of Pennsylvania, political science **12. If you had the opportunity to make one change in the tax code tomorrow – an extra credit, a disallowed deduction, whatever – what would it be?** I’d reduce the AMT rates to 40% of the regular tax rates and allow state and local taxes to be deducted for AMT purposes. I think that when the AMT was passed, the top regular tax rate was 50% and the AMT rate was 20%. When the Bush tax cuts were passed, the AMT rates were not reduced accordingly. **13. What’s the best thing on TV right now?** I watch a lot of TV, most of it bad, but generally I try not to miss the Law and Orders, CSI: NY and CSI: 24 (but it’s a bad season), and The Sunday Talks. **14. What do you think Congress will repeal first: estate tax or AMT?** I don’t think that Congress will repeal either – I think that Congress will conclude that the AMT is too expensive to repeal and everyone should pay some tax (see answer to 12), and that the estate tax credit should be increased as opposed to the estate tax being repealed. **15. If Uncle Sam handed you a huge refund check right now, what would you do with it?** Save it toward my retirement. **16. Biggest tax newsmaker: KPMG, Jenkens Gilchrist or Richard Hatch?** For the tax community, KPMG **17. And, other than taxgirl, what’s your favorite tax-related website?** Taxprof blog and taxsites.com Thanks, Wendi![![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Getting%20To%20Know%20You%20Tuesday%3A%20Wendi%20Kotzen&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Getting%20To%20Know%20You%20Tuesday%3A%20Wendi%20Kotzen "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Getting%20To%20Know%20You%20Tuesday%3A%20Wendi%20Kotzen "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Getting%20To%20Know%20You%20Tuesday%3A%20Wendi%20Kotzen&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Getting to Know You Tuesday, Interviews and People **Tags:** getting to know you tuesday --- ### [126 Billion Reasons That The Immigration Bill Failed To Pass The Senate](https://www.taxgirl.com/2007/06/11/126-billion-reasons-that-the-immigration-bill-failed-to-pass-the-senate/) **Published:** June 11, 2007 **Author:** Kelly Phillips Erb **Content:** When Senate Majority Leader Harry Reid (D-Nevada) pulled the immigration bill last week, the blame game started immediately. Conservatives blamed Liberals. Liberals blamed Conservatives. But nobody pointed the finger where it rightly belonged: at the American people. While most surveys indicate that Americans aren’t opposed to an immigration bill that offers some form of amnesty to qualifying immigrants (though who qualifies has hardly been a consensus vote), most Americans oppose the cost of an immigration bill. In a recent poll, 70% of Americans agreed that illegal immigrants use more public services than they pay for in taxes. In a year in which [government spending is increasing](https://www.taxgirl.com/war-and-piece-of-legislation/), and the projected revenues are not, that means that Americans are loath to embrace legislation that hits where it hurts the most: their own pockets. And what a hit this bill would be. The Congressional Budget Office estimated that the bill as introduced would have cost the government as much as $126 billion over the next decade. Where would the dollars go? Law enforcement measures, including hiring additional workers and building the controversial fence along the US-Mexico barrier alone, would cost $3.3 billion. In fact, more than half of the bill would fund law enforcement measures that will likely happen whether a comprehensive bill passes or not. The remainder of the bill (nearly $50 billion) would be paid out to newly legalized immigrants in federal benefits. Over the next decade, it is estimated that legalized workers, guest workers, and their families would claim $24.5 billion in tax refunds through the earned income credit and child credit, $15.4 billion in Medicare and Medicaid, $5.2 billion in Social Security benefits and $3.7 billion in food stamps and child nutrition programs. All billions with a b. While it is estimated that there are between 11 and 15 million illegal immigrants currently in the United States, it’s difficult to gauge their cost because much of the financial details are undocumented. Many employers are paying illegal immigrants “under the table,” and that income escapes taxation not only on the immigrant level but also on the employer level. As much as it is popular to blame immigrants, large-scale companies like Wal-Mart fail to verify employment again and again – even after they were fined for federal employment violations – ostensibly because of economics. As long as Americans want to buy 10 tube socks for $1, companies like Wal-Mart will continue their hiring, subcontracting, and importing practices. Despite the subversive nature of employing illegal immigrants, the conservative think tank, The Heritage Foundation, has made an attempt to quantify the cost. They estimate that for every dollar that an illegal immigrant receives, the US spends three dollars in services. This amount is, of course, disputed by those who again cite the undocumented nature of the income and claim that illegal immigrant taxpayers are on the rise. A story cited by the Tax Foundation indicates that undocumented workers are increasingly filing taxes, claiming that last year, 1.4 million people filed tax returns using ITINs (Individual Tax Identification Number) – a 40% increase. This bolsters the claim by proponents of the immigration bill that, in the long run, tax revenue from new workers would offset virtually all the additional upfront spending. They advocate that it is likely that many of the immigrants who are legalized will become taxpayers and not tax consumers, just as many of those before them have done. In fact, Forbes reported encouraging news about second-generation immigrant families. The difficulty is finding the data to support those claims on a wide scale – not because success stories don’t exist, but because they are rarely documented. Senator Ted Kennedy (D-Massachusetts) said that if immigrants “work hard and play by the rules and work in very tough and menial jobs, they may have an opportunity to be a part of the American dream.” After all, America was founded on that very basis. But when it affects current American fiscal policy, we’re a little less likely to embrace that idea. I want to know what you think: are American tax dollars a good investment in our future in a bill such as this? It’s your money, after all.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=126%20Billion%20Reasons%20That%20The%20Immigration%20Bill%20Failed%20To%20Pass%20The%20Senate&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=126%20Billion%20Reasons%20That%20The%20Immigration%20Bill%20Failed%20To%20Pass%20The%20Senate "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=126%20Billion%20Reasons%20That%20The%20Immigration%20Bill%20Failed%20To%20Pass%20The%20Senate "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=126%20Billion%20Reasons%20That%20The%20Immigration%20Bill%20Failed%20To%20Pass%20The%20Senate&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Politics, Tax Policy **Tags:** amnesty, Harry Reid, immigration, Kennedy, Wal-Mart --- ### [Not A Dynasty](https://www.taxgirl.com/2007/06/09/not-a-dynasty/) **Published:** June 9, 2007 **Author:** Kelly Phillips Erb **Content:** Joan Collins has expressed her outrage at a fraud scheme which has been confirmed in the UK involving children’s charities. The charity in question was founded by Trevor England, 60, of Carmarthenshire, and Mary Johnson, also 60, of Warrington, who were both jailed after a judge found they stole more than £500,000 (about $985,000 US as of today) from donations. The charity involved Swansea-based Catch, founded by England and Johnson. Ms. Collins, the star of the television show Dynasty (my mom was a big fan), was not involved in running the charity but did lend her celebrity to the cause. She said in a statement: > I’m shocked and saddened that a charity I believed was benefiting needy children could have been so badly abused. [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Not%20A%20Dynasty&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Not%20A%20Dynasty "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Not%20A%20Dynasty "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Not%20A%20Dynasty&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Charitable Organizations, Pop culture --- ### [Suddenly Green Has A Whole New Meaning](https://www.taxgirl.com/2007/06/05/suddenly-green-has-a-whole-new-meaning/) **Published:** June 5, 2007 **Author:** Kelly Phillips Erb **Content:** Going green is all the rage these days – even in the tax world. And I’m not just talking about [hybrid vehicles](https://www.taxgirl.com/what-drives-tax-policy/) and tax credits for energy-efficient home improvements. I’m talking as green as it gets: vegetarian green. That’s right, People for the Ethical Treatment of Animals is calling on congressional leaders to give vegetarians a tax break. PETA President Ingrid Newkirk has sent a letter to Congressional leaders claiming that “vegetarians are responsible for far fewer greenhouse-gas emissions and other kinds of environmental degradation than meat-eaters” and should, as a result, have the benefit of a tax break. And while Congressional leaders haven’t shown any apparent interest in the plan, PETA is not deterred. They’ve launched a website to encourage the taxation of meat à la our “sin taxes” like those on cigarettes, alcohol, and other bad behaviors that Congress wants to discourage. I have to say, it’s an interesting theory. If you pop by PETA’s main website, you can check out their information about estate planning (very clever) and vote for the sexiest vegetarian celebrity.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Suddenly%20Green%20Has%20A%20Whole%20New%20Meaning&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Suddenly%20Green%20Has%20A%20Whole%20New%20Meaning "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Suddenly%20Green%20Has%20A%20Whole%20New%20Meaning "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Suddenly%20Green%20Has%20A%20Whole%20New%20Meaning&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Pop culture, Tax Policy **Tags:** sin-tax --- ### [The Devil & Mr. Romney](https://www.taxgirl.com/2007/06/04/the-devil-and-mr-romney-2/) **Published:** June 4, 2007 **Author:** Kelly Phillips Erb **Content:** A lot of people have harsh things to say about politicians. You have to have pretty thick skin to run for office these days. You’ll get called every name in the book… including, apparently, Satan. Liveprayer.com is making news these days because of a widely quoted public statement that a vote for Mitt Romney is a vote for Satan. That’s right, Satan. You can pop on over and read the whole post yourself if you’d like, it’s definitely interesting reading. Here’s a select quote: > If Romney gets elected as the next President of the United States, the Mormon cult will finally have the mainstream acceptance they have been striving for these past 200 years. Romney winning the White House will lead millions of people into the Mormon cult. Those who follow the false teachings of this cult, believe in the false jesus of the Mormon cult and reject faith in the one true Jesus of the Bible, will die and spend eternity in hell. \*ROMNEY GETTING ELECTED PRESIDENT WILL ULTIMATELY LEAD MILLIONS OF SOULS TO THE ETERNAL FLAMES OF HELL!!! And if you’re like most folks, your first reaction is probably, “Who cares?” Well, the IRS cares. The IRS cares because this isn’t Joe Blogger posting about what he feels like. The site, liveprayer.com, is a public charity. That’s right, it’s part of Bill Keller Ministries, a 501(c)(3) organization, and as such, all donations to Liveprayer.Com are tax-deductible. That means the organization is prohibited from distributing statements for or against candidates. Last year, [the IRS posted a list of political activities and related prohibitions](https://www.taxgirl.com/election-season-starts-early-for-irs/) in anticipation of this very issue. And not coincidentally, the IRS released additional guidelines which were distributed to exempt organizations this week. This case is attracting some serious publicity as the elections creep forward, mostly because of the potential for an early precedent in terms of what will be acceptable – and what won’t. The IRS is not excited about the kinds of publicity generated by its examination of [Reverend Bacon’s speech](https://www.taxgirl.com/irs-finds-religion/) during the 2004 Presidential elections and the spate of accusations on both sides of the political aisle, conservative and liberal, about speeches and literature from churches and those [controversial 527 organizations](https://www.taxgirl.com/fix-the-tax-code-friday-527-organizations/). After its investigations, the IRS found that [3 out of 4 targeted organizations had violated the rules against political campaigning](https://www.taxgirl.com/a-little-to-the-left-now-to-the-right-now-everybody/). So it’s not surprising that the IRS has immediately gone on the offensive in this case. And for those reasons, it couldn’t have been a surprise to the owner of liveprayer.com. My guess is that he was counting on it. So, who is this guy anyway? Bill Keller is a former felon who served time in the federal pen for insider trading before, as he put it, “God got his attention.” Bill then went on to get his degree from Jerry Falwell’s [Liberty University](http://www.liberty.edu/) in Lynchburg, Virginia, apparently while still in prison. After prison, he started Bill Keller Ministries, which received 501(c)(3) status in 1993; liveprayer.com was added to the corporation in 1999. Liveprayer.com claims to average 20,000 daily visitors and 2,400,000 email subscribers. Clearly, Keller loves the publicity that this has brought him. He’s even posted reactions to the post on his site, including his audio exchange with radio personality Howard Stern. He is also scheduled to appear on Hardball with Chris Matthews to discuss his position. He feels, apparently, that it’s his God-given mission to stop the spread of Mormonism (and thus, in his mind, devil/pagan worship) through the use of this charitable organization. And from his posts, “blasting Microsoft and the UK blacklist company” for preventing the distribution of his email requests for money (though he’s quick to point out that it’s not about the money – in the same breath that he posts about the budget shortfall), he doesn’t feel that he’s done anything wrong. I don’t care what your religious or political beliefs are. Just stay within the law when you’re espousing them. It looks like Mr. Keller somehow missed that part. What do you think? Should the IRS revoke liveprayer.com’s charitable status? If not, where is the line?[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=The%20Devil%20%26%20Mr.%20Romney&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=The%20Devil%20%26%20Mr.%20Romney "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=The%20Devil%20%26%20Mr.%20Romney "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=The%20Devil%20%26%20Mr.%20Romney&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Charitable Organizations, Politics **Tags:** Bill-Keller, IRS, liveprayer.com, Mitt-Romney --- ### [Tax Talk 2007: Sam Brownback](https://www.taxgirl.com/2007/05/17/tax-talk-2007-sam-brownback/) **Published:** May 17, 2007 **Author:** Kelly Phillips Erb **Content:** Our next presidential candidate to be featured in our series of interviews is **Sam Brownback**, a Republican and Kansas Senator. Here are his unedited answers to my six questions: **1. What’s the single most important tax issue facing Americans today?** The most important tax issue facing Americans today is Social Security reform because the majority of Americans believe it has to be reformed to remain solvent. And so we can do something about it if the majority of voters favor taking action on the right plan. Secondly, a rewarding solution in SS can lead to the best solutions, strengthening individuals and families, in income tax and Medicare taxation, in order to make certain seniors will get their promised benefits, and younger Americans will have brighter futures. **2. If you could only make one “quick fix” in terms of an extra credit, a disallowed deduction, whatever – what would it be?** Your second question has the terms wrong. We don’t need another tax credit in the existing income tax system. We need choice: file your income taxes with all your current deductions, or with your new flat-rate, at an anticipated rate of 17% of your income without any deductions, but with generous exemptions (a family of four, as an example, would have upwards of $40-50,000 in income before taxes would apply), whichever is best for you. But you decide, just like in Brownback’s Social Security solution: stay in the current pay-as-you-go System, or choose to have your own account with real mutual fund-like assets you will own and can leave to your loved ones. **3. Which is a more egregious tax on the American public: the AMT or the federal estate tax?** The Alternative Minimum Tax (AMT) is a tax which, based on inflation alone, will soon represent a tax increase every year, without any act of Congress. And by 2008, it is estimated that 23 million American taxpayers will have deductions, such as their home mortgage interest expense, disallowed under the AMT. Additionally, the federal and state estate taxes are like paying to play golf your entire life, and then having the government look at your total score when you die and charging you another enormous greens fee. It makes no sense and causes lots of problems within families, especially when there are businesses that should not be sold, like farms, but the AMT is the worse threat of the two, currently. **4. It has been suggested that the IRS should be eliminated. Do you believe that this makes sense, and if you do, what would you establish in its place?** We will probably need some form of IRS as long as we have a government. But if we offer Americans a choice of filing with all their current deductions, or with the alternative flat-tax Senator Brownback is proposing, then we will have the best of both worlds: a shrinking and less corrupt IRS, and the growth and wealth that variations of flat-taxation have proven over and over again to deliver all over the world (Hong Kong since WWII, and now all the Eastern European countries, Ireland and Iceland, too). **5. Do you think that significant tax cuts are possible considering the current state of the economy, specifically the escalating cost of the war in Iraq?** Do you like to get a discount when you buy your clothes, groceries, or a new car? If you do, then you probably love the discounts the Bush Administration put in place in 2003: the same amount of government for a lower price, tax-wise. The war in Iraq and its costs are peanuts compared to the hills we have to climb with our unfunded liabilities in Social Security ($12 trillion, est.) and Medicare (at least $40 trillion, and climbing). If you think of the countries of the world as stores instead of nations, then you would want to be Lowe’s, Home Depot, Costco, or Wal-Mart, because they have discounted and allowed their customers to keep more of their money, but they have prospered, too. And that’s what all the countries cited in your previous question have done: “discounted” their taxes and the cost of government through a simple flat tax that allows taxpayers to keep more of their money. And the economies grow because the lower prices/taxes attract more customers/taxpayers (“taxpayers” means “productive people”). **6. And just for fun, if Uncle Sam handed you a huge refund check right now, what would you do with it?** If you have any funds you can put to work for the long term, put them in the stock market in a well-diversified portfolio of dividend-paying shares. The world’s population is expected to double again in the next 70-80 years, and technology is expected to advance as much in the next 30 years as it has in the past 200 years. So as long as population rises and demand for everything is increasing, good businesses will be worth owning. And as long as technology is advancing, good managers will use it to maintain their margins or improve their profits, making the market something like a guaranteed lottery built for you to win. And with Sam Brownback’s rewarding Social Security reform, younger Americans can tap into that wealth-building potential with a portion of their own money while making certain seniors get their benefits on time and in full without delays or tax increases. — Thanks, Senator![![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Tax%20Talk%202007%3A%20Sam%20Brownback&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Tax%20Talk%202007%3A%20Sam%20Brownback "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Tax%20Talk%202007%3A%20Sam%20Brownback "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Tax%20Talk%202007%3A%20Sam%20Brownback&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Interviews and People, Politics **Tags:** GOP, tax --- ### [The GOP Candidates & Taxes](https://www.taxgirl.com/2007/05/07/the-4-1-1-on-the-gop-tax-speak-that-is/) **Published:** May 7, 2007 **Author:** Kelly Phillips Erb **Content:** I’ve noted before that [nobody likes a partisan tax blogger](https://www.taxgirl.com/housecleaning/). But you also can’t talk about tax policy in any meaningful way without considering the political ramifications. So throughout the next year (oh my God, is it really a whole year?), I plan to visit and, no doubt, revisit the tax stances of various political candidates. After all, taxes and the economy are probably the most significant issues facing the political candidates, after Iraq. The GOP candidates addressed taxes in a big way during their May 3 debate. Here are some highlights from the debate: Senator John McCain (AZ) – Senator McCain originally voted against extending President Bush’s tax cuts but now supports extending them. His initial concerns about the bill were the lack of provisions relating to Social Security or controls on spending. He wants to repeal the AMT. He also suggests a $3,000 tax credit to help people purchase health insurance. Like many of the other candidates, he supports a flat tax. Governor Mitt Romney (MA) – Governor Romney touts a zero rate on capital gains, interest, and dividends. Senator Sam Brownback (KS) – Senator Brownback wants to consider a flat tax as an alternative. He suggests allowing a choice between the current tax code and the flat tax. Governor Jim Gilmore (VA) – Governor Gilmore stressed that he ran in Virginia on eliminating the car tax and the result was the elimination of the tax. He says that he will do the same in this race by proposing the elimination of the AMT. Governor Mike Huckabee (AR) – Governor Huckabee was touting what he calls a “fair tax”: flatter, fairer, finite, family-friendly. He wants to eliminate the IRS. He also wants to eliminate all capital gains, including individual and corporate, and rely on a consumption tax. Representative Duncan Hunter (CA) – Rep. Hunter says that he wants to eliminate manufacturing taxes by eliminating “all taxes on Americans who will stay in the United States and make products and hire American workers.” This is consistent with his stance on immigration issues. Governor Tommy Thompson (WI) – Governor Thompson believes that the AMT is our biggest problem and would have it repealed. He also suggests creating a flat tax to give taxpayers “the option of paying whichever is least.” This is similar to Senator Brownback’s suggestion. Representative Ron Paul (TX) – Rep. Paul says he wants to do away with the “inflation tax,” though it wasn’t clear to me what that meant. Mayor Rudy Giuliani (NY) – Mayor Giuliani wants to reduce AMT. He also proposes a complete repeal of the federal estate tax, which he calls the “death tax,” and suggests the current federal estate tax scheme will result in “one of the biggest tax increases in history in 2011.” Rep. Tom Tancredo (CO) – Supports the FairTax, which appears to be some form of consumption tax, together with the repeal of the 16th Amendment, which states, “The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.” In short, he wants to repeal income taxes. Whew. So here’s my take on the candidates: Most of them don’t seem to have any real plans for tax reform, except Senator McCain, who appeared (during the debate, at least) to have put the most thought into this issue. I found it interesting that Giuliani was the only candidate to suggest repeal of the federal estate tax, which is a traditional GOP platform. However, under the current economy, many politicians have backed off of complete repeal, favoring a higher personal exemption instead, since the tax really affects the wealthiest Americans. The target audience seemed to be the middle class. Promises for reform largely centered on a fairer, simpler tax. This seems represented by the idea of a flat tax. I’d be surprised to see that idea again next year after the primary races because, while a flat tax is popular, it has never fared well in political races in theory (think Steve Forbes). This idea of a consumption tax is an interesting foray into tax policy. Europe has something similar (the VAT), but the US has never seriously considered it (other than for specific uses like the gas tax). A consumption tax is the equivalent of a national sales tax and has, over the years, been panned as regressive. I’m curious to see whether it makes any real headway in this year’s races. Some of the ideas were so “out there” that they are clearly just rhetoric. I’m still not sure what Rep. Paul was talking about… inflation tax? Is that his complete tax reform platform? And Governor Huckabee’s comments about the IRS are pretty innocuous. It won’t happen in the next few years, and if it does, it would largely be replaced with a similar government agency with another name (just like the INS being reincarnated as the BCIS and then the USCIS). Some agency somewhere has to collect and administer the tax. We can’t just have a system where we mail checks to the Treasury and hope for the best. So, his thinking is largely to share buzz phrases that might appeal to folks frustrated with the current system. I’m thinking that’s as much play as that idea will get. Rep. Tancredo’s espousal of the FairTax likewise makes me giggle. According to the website, the plan will resolve all of our tax problems – ever. This includes issues with Social Security and Medicare. This is the result that we can expect: > Job creation booms. Residential real estate booms. Financial services boom. Exports boom. Retail prospers. Farming and ranching prosper. Churches and charities prosper. Civil liberties are enhanced. In short, it is difficult to imagine the far-reaching, positive effects of this change. Though this tax policy is exactly what our Founding Fathers counseled us to do with the Federalist Papers and the Constitution. Right. Hey, I don’t claim to know all of the answers. But then, I’m also not running for President. I think it’s fair to say a lot of this debate talk was just that: talk. I suspect that real tax reform will not be the focus of this presidential race. But it sure makes for nice headlines.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=The%20GOP%20Candidates%20%26%20Taxes&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=The%20GOP%20Candidates%20%26%20Taxes "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=The%20GOP%20Candidates%20%26%20Taxes "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=The%20GOP%20Candidates%20%26%20Taxes&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Politics, Tax Policy **Tags:** FairTax, GOP, John-McCain, Mike Huckabee, Mitt-Romney, presidential-debate, Ron Paul, tax, tax-reform --- ### [Fix The Tax Code Friday: 527 Organizations](https://www.taxgirl.com/2007/05/04/fix-the-tax-code-friday-527-organizations/) **Published:** May 4, 2007 **Author:** Kelly Phillips Erb **Content:** It’s Fix the Tax Code Friday! In the last presidential election, we heard quite a bit about the so-called 527 organizations like “Swift Boats for Truth”. To recap, 527 organizations are named after 26 U.S.C. § 527 – basically section 527 of the Tax Code (the Tax Code is Title 26). Generally, tax-exempt organizations may not participate in significant political activities. Yet, a 527 organization has as its purpose to influence the nomination, election, appointment, or defeat of candidates for public office. They are also not regulated by the Federal Election Commission and are not subject to the same contribution limits as PACs. 527 organizations are garnering a lot of attention again (of course, it’s election time!) – especially in my home city of Philadelphia. In the midst of our mayoral primary (which, to be honest, is really the mayoral race – Republican candidates rarely have a chance in Philly), 527s have moved into the spotlight. A key campaign operative for Democratic Party machine favorite Robert Brady quit in April after acknowledging he had been working to create committees to attack fellow candidate Tom Knox while working for Brady. This violates one of the few rules that govern 527 organizations: candidates or committees affiliated with them cannot coordinate such committees. Another 527 organization, Working People for Truth, set up by Donald Dinan, has also surfaced to attack Knox. All of this drama brings me to today’s Fix the Tax Code Friday question: > **Should 527 organizations be allowed to attack political candidates and remain tax exempt?** [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Fix%20The%20Tax%20Code%20Friday%3A%20%20527%20Organizations&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Fix%20The%20Tax%20Code%20Friday%3A%20%20527%20Organizations "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Fix%20The%20Tax%20Code%20Friday%3A%20%20527%20Organizations "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Fix%20The%20Tax%20Code%20Friday%3A%20%20527%20Organizations&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Charitable Organizations, Fix the Tax Code Friday, Politics **Tags:** fix the tax code friday --- ### [The Last Audit](https://www.taxgirl.com/2007/04/30/the-last-audit/) **Published:** April 30, 2007 **Author:** Kelly Phillips Erb **Content:** The American Red Cross Board of Governors has announced that Mark W. Everson, currently serving as Commissioner of the Internal Revenue Service, will become the next president and CEO of the Red Cross, effective May 29, 2007. Mark Everson has served as the 46th Commissioner of the Internal Revenue Service since May 5, 2003. He was effectively the CEO of a company in this regard, managing the $10 billion, 100,000-person agency; Red Cross only has 35,000 employees but utilizes the services of nearly 1 million volunteers. It is unclear how Mr. Everson’s success in one field prepares him for life in the other. Nonetheless, he appears eager to approach his next job, stating, “It is an honor and a privilege to become part of such a vital and enduring humanitarian service organization. The Red Cross reaches out to those in need in communities across the nation and around the world. I look forward to working with the outstanding volunteers, staff and Board during this defining period in the history of the Red Cross.” The announcement did not say who is next in line to lead the IRS. An announcement is conspicuously missing from the IRS website about Mr. Everson’s departure or his replacement.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=The%20Last%20Audit&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=The%20Last%20Audit "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=The%20Last%20Audit "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=The%20Last%20Audit&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Charitable Organizations, IRS News **Tags:** Red-Cross --- ### [Taxgirl’s Gone Wild!](https://www.taxgirl.com/2007/04/25/taxgirls-gone-wild/) **Published:** April 25, 2007 **Author:** Kelly Phillips Erb **Content:** A reader once posted the following about me on metafilter.com: > Unless she takes her top off, I’m fairly well convinced she will fail in making me excited about tax codes. Well, sorry to disappoint, but I do have tantalizing tax news from the world of topless girls. Really. In addition to his other legal woes, “Girls Gone Wild” founder Joe Francis added to his rap sheet earlier this month when a federal grand jury in Reno, Nevada, indicted him on tax evasion charges. The Department of Justice and the IRS announced that they served indictments on Francis. The indictments allege that Francis’ companies, Mantra Films Inc. and Sands Media Inc., claimed more than $20 million in false deductions on the companies’ 2002 and 2003 corporate income tax returns. The indictment also charges that Francis used offshore bank accounts and entities to hide income from taxation. It’s really important to note that there is no prohibition against having an offshore account or entity. However, the US takes the position that citizens may be taxed on their worldwide income, which means that concealing income for the purposes of evading taxation is a crime. Francis has been ordered to appear on May 22 before U.S. Magistrate Robert A. McQuaid. The charges could result in up to 10 years in prison and $500,000 in fines for the multimillionaire. If convicted, it wouldn’t be the only legal obstacle for Francis in the last month. He was just released from a Florida jail on a contempt charge, and this week he was charged with a misdemeanor sexual battery for allegedly groping an 18-year-old woman. Life in the fast lane just took an interesting turn.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Taxgirl%E2%80%99s%20Gone%20Wild%21&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Taxgirl%E2%80%99s%20Gone%20Wild%21 "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Taxgirl%E2%80%99s%20Gone%20Wild%21 "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Taxgirl%E2%80%99s%20Gone%20Wild%21&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Prosecutions, Felonies and Misdemeanors, Taxes of the Rich and (In)famous **Tags:** tax evasion --- ### [Getting To Know You Tuesday: Sheila Livingston](https://www.taxgirl.com/2007/04/17/getting-to-know-you-tuesday-sheila-livingston/) **Published:** April 17, 2007 **Author:** Kelly Phillips Erb **Content:** It’s Getting to Know You Tuesday, where I introduce folks in the biz! Today’s guest is one of my favorite tax bloggers, Sheila Livingston. **1.  Where are you now?** I work for a local CPA firm in a small town near where I grew up. I went to the CA Bay Area for a bit to work for KPMG and then in industry. It took moving away to truly appreciate small-town living. **2.  What’s your official title and what does it mean?** Ha! Titles are a big deal at KPMG. In a small local firm? Not so much. My official title is “Accountant,” “CPA” if I am feeling stuffy. In a small firm, you do everything. **3.  What books are on your nightstand?** None right now. I have fallen into the RSS reader trap. I miss books. When tax season is over, I am heading straight to the murder-mystery section of my local lending library. **4.  If you weren’t working in the tax profession, what would your dream job be?** If I knew that, I would be doing it! **5.  What’s the last movie that you saw (DVD or in the theatre)?** Just watched “The Long Kiss Goodnight” starring Geena Davis & Samuel L. Jackson again. LOVE that movie! **6.  Tax is a huge subject.  What’s your area of special interest?** It used to be Corporate tax, but now that I am back at a small firm, I am a Jack-of-all-trades again. (Hey, I heard you add “master of none.” How rude!) **7.  What’s the best tax or financial advice that anyone ever gave you?** If you have a 401K, max your contributions. **8.  Coffee or tea?** Darjeeling tea, with milk and sugar **9.  Name five artists on your iPod (or mp3 player).** I am not a big music junkie. I am more into audiobooks: Julia Sweeney (Letting Go of God audiobook), Sarah McLachlan (music), Eddie Izzard (comedy), Nora Ephron (I Feel Bad About My Neck audiobook), Michael Crichton (Next audiobook) **10.  What would I be surprised to know about you?** I have a secret obsession with Vincent D’Onofrio. **11.  What college did you attend (in what subject)?** California State University, Stanislaus. I started as a French major, switched to Spanish, and ended up with a B.S. in Business with a concentration in Accounting. Go figure. **12.  If you had the opportunity to make one change in the tax code tomorrow – an extra credit, a disallowed deduction, whatever – what would it be?** I would eliminate the benefit of the Married Filing Jointly tax rates. Taxpayers with no difference other than their marital status should be taxed at the same rate. **13.  What’s the best thing on TV right now?** “Medium” on NBC, starring Patricia Arquette as a mom of three who talks to dead people. “Medium” has a few hunky men on it, too. Always a plus. **14.  What do you think Congress will repeal first:  estate tax or AMT?** Oh god, I hope it’s the AMT. **15.  If Uncle Sam handed you a huge refund check right now, what would you do with it?** Buy a house. With a pool! Guess it’d have to be a pretty big refund. **16.  Biggest tax newsmaker:  KPMG, Jenkens Gilchrist or Richard Hatch?** Sadly, Richard Hatch, though KPMG has been giving him a run for his money. **17.  And, other than taxgirl, what’s your favorite tax-related website?** Kay Bell’s “[Don’t Mess With Taxes](http://dontmesswithtaxes.typepad.com/dont_mess_with_taxes/)” Don’t forget to check out Sheila’s site at www.getsheila.com. Thanks, Sheila![![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Getting%20To%20Know%20You%20Tuesday%3A%20Sheila%20Livingston&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Getting%20To%20Know%20You%20Tuesday%3A%20Sheila%20Livingston "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Getting%20To%20Know%20You%20Tuesday%3A%20Sheila%20Livingston "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Getting%20To%20Know%20You%20Tuesday%3A%20Sheila%20Livingston&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Getting to Know You Tuesday, Tax Professionals --- ### [Free File Only Available Through IRS](https://www.taxgirl.com/2007/04/15/free-file-only-available-through-irs/) **Published:** April 15, 2007 **Author:** Kelly Phillips Erb **Content:** The IRS is warning taxpayers to avoid a site claiming to assist taxpayers in filing for free through the “Free File Alliance.” You can ***only*** access Free File through the IRS website at [www.irs.gov](http://www.irs.gov). In the scam, various web sites claim to work with the Free File Alliance, a partnership between 19 tax software companies and the IRS. The websites have allegedly accepted tax information from taxpayers, changed the taxpayers’ bank account numbers to their own, and then filed the return through a legitimate Free File partner. Seventy percent of taxpayers are eligible to use the IRS Free File program.  To qualify, your adjusted gross income must be $52,000 or less. If you qualify, visit www.irs.gov and click on the Free File link.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Free%20File%20Only%20Available%20Through%20IRS&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Free%20File%20Only%20Available%20Through%20IRS "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Free%20File%20Only%20Available%20Through%20IRS "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Free%20File%20Only%20Available%20Through%20IRS&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** ID Theft and Scams, IRS News **Tags:** Free File Alliance, free-file, IRS --- ### [Ask The Taxgirl: Charitable Deductions](https://www.taxgirl.com/2007/04/12/ask-the-taxgirl-charitable-deductions/) **Published:** April 12, 2007 **Author:** Kelly Phillips Erb **Content:** ***Taxpayer asks:*** Hi,I rescue stray cats and take them to my vet to get them fixed. Can I deduct vet bills, disinfectant, feed and so on from my Income Tax Return?  Thanks. ***Taxgirl says:*** Good question, but unfortunately the answer is no.  You can’t deduct charitable acts like helping animals, giving a homeless person cash, or even donating cash to a parent to help with a child’s medical bills unless you pay the funds directly to a qualified charitable organization recognized by the IRS.  If you’re not sure if an organization qualifies, ask them for verification or [check them out on the IRS website](https://www.irs.gov/charities-non-profits/tax-exempt-organization-search). What you’re doing is certainly charitable, just not deductible! \[NOTE: There’s an update to this question. See [this article (https://abcnews.go.com/Business/cat-rescue-worker-triumphs-irs/story?id=13840880).\]](https://abcnews.go.com/Business/cat-rescue-worker-triumphs-irs/story?id=13840880) Before you go: be sure to read my [disclaimer](https://www.taxgirl.com/ask-the-taxgirl-disclaimer/). Remember, I’m a lawyer and we love disclaimers. If you have a question, here’s how to [Ask The Taxgirl](https://www.taxgirl.com/ask-the-taxgirl/). [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Ask%20The%20Taxgirl%3A%20Charitable%20Deductions&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Ask%20The%20Taxgirl%3A%20Charitable%20Deductions "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Ask%20The%20Taxgirl%3A%20Charitable%20Deductions "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Ask%20The%20Taxgirl%3A%20Charitable%20Deductions&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Ask the Taxgirl, Charitable Organizations **Tags:** ask the taxgirl, charitable-donation --- ### [Getting To Know You Tuesday: Me](https://www.taxgirl.com/2007/04/10/getting-to-know-you-tuesday-me/) **Published:** April 10, 2007 **Author:** Kelly Phillips Erb **Content:** Yeah, I know it’s cheating a little, but I’m the first tax professional featured in GTKYT… **1.  Where are you now?** At my home computer in the family room. **2.  What’s your official title and what does it mean?** I’m a tax attorney. Who knows what that means? **3.  What books are on your nightstand?** Okay, my nightstand literally cannot stand under the weight of all of the books on it.  I have such good intentions of reading lots of books, so I keep picking them up.  I just don’t have time.  I’ll try and remember what’s there:  Alan Titschmarsh’s *How to Be a Gardener*, Nathalie Dupree’s *Southern Memories*, John Grisham’s *The Brethren*, Sophie Kinsella’s *Shopaholic Ties the Knot*, Jan Karon’s *At Home in Mitford*, a *lot* of gardening magazines, and a little journal for jotting down my thoughts. **4.  If you weren’t working in the tax profession, what would your dream job be?** A writer.  I mean, a published writer.  I write a lot now, but I’d love to publish a book or screenplay. **5.  What’s the last movie that you saw (DVD or in the theatre)?** *North Country*. Charlize Theron was terrific. **6.  Tax is a huge subject.  What’s your area of special interest?** A tie: estates and non-profits. **7.  What’s the best tax or financial advice that anyone ever gave you?** I’ll tell you the worst instead:  when I was a student, a bank teller told me that I shouldn’t bother paying anything on my credit card if I couldn’t make my full payment.  I’ve learned since then that you should always pay *something*, even if it’s a little bit. **8.  Coffee or tea?** Coffee.  Black. **9.  Name five artists on your iPod (or mp3 player).** Gosh, I have so many. I did a random shuffle, and these are the top five: The Almost, Tim McGraw, Eminem, Jennifer Hudson, and Shawn Mullins. **10.  What would I be surprised to know about you?** I have two tattoos. **11.  What college did you attend (in what subject)?** Meredith College (History) and Temple University School of Law (JD and LLM Taxation). I also studied abroad at Hull University in the UK. **12.  If you had the opportunity to make one change in the tax code tomorrow – an extra credit, a disallowed deduction, whatever – what would it be?** I think that all charitable contributions should be deductible whether or not you itemize. **13.  What’s the best thing on TV right now?** My TV watching is so scattered, depending on the season. I love *The Amazing Race,* and I have never missed an episode, which I believe is the only show that I could ever say that about. I’m looking forward to the return of *Project Runway* and *Top Chef*. *Scrubs* is consistently brilliant. **14.  What do you think Congress will repeal first:  estate tax or AMT?** AMT. **15.  If Uncle Sam handed you a huge refund check right now, what would you do with it?** Plan a massive summer vacation for my family to Italy. **16.  Biggest tax newsmaker:  KPMG, Jenkens Gilchrist, or Richard Hatch?** Gosh, as a blogger, I am grateful for all of them. 🙂  But the biggest news in terms of a surprise for me was Jenkens folding so quickly. **17.  And, other than taxgirl, what’s your favorite tax-related website?** IRS.gov[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Getting%20To%20Know%20You%20Tuesday%3A%20Me&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2019%2F05%2FHeadshotKPE.jpeg&p%5Btitle%5D=Getting%20To%20Know%20You%20Tuesday%3A%20Me "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Getting%20To%20Know%20You%20Tuesday%3A%20Me "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Getting%20To%20Know%20You%20Tuesday%3A%20Me&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Getting to Know You Tuesday **Tags:** getting to know you tuesday, taxgirl --- ### [Ask The Taxgirl: Installment Plans](https://www.taxgirl.com/2007/03/29/ask-the-taxgirl-installment-plans/) **Published:** March 29, 2007 **Author:** Kelly Phillips Erb **Content:** ***Taxpayer asks:*** After filing my taxes, the end result was that I owe just over $800. Gasp! This is three weeks pay for me and I have NO savings at all. Can I make payments to the IRS? Is there any help they offer for people in my situation? ***Taxgirl says:*** Absolutely! You can establish a payment plan with IRS to pay taxes that you cannot pay in full. Since you owe less than $25,000, you can [complete an online application](https://www.irs.gov/payments/online-payment-agreement-application) or manually fill out a federal Form 9465, available on the IRS website. If you owed more than $25,000, not only would you personally be in a complete panic attack now (since you’re already freaked out about the possibility of $800), but you could not complete the online application. You would still complete a federal Form 9465, but you might also need a federal Form 433F. The interest on most of these agreements is relatively low. However, here’s the rub: there’s now a fee for these agreements. The fee for new installment agreements entered into after January 1, 2007, is $105 or $52 for direct debit agreements.  If that’s too steep and you think you qualify, taxpayers with income at or below established levels, based on the Department of Health and Human Services poverty guidelines (starting at $10,000 for one-person households), can pay a reduced user fee of $43 for establishing new agreements. For a sum as low as $800, you might consider borrowing the money from a friend or family member in order to avoid the user fees. If that doesn’t work, the fee and interest aren’t that bad if you can pay it off within a year, so it’s a good option. Before you go: be sure to read my [disclaimer](https://www.taxgirl.com/ask-the-taxgirl-disclaimer/). Remember, I’m a lawyer and we love disclaimers. If you have a question, here’s how to [Ask The Taxgirl](https://www.taxgirl.com/ask-the-taxgirl/). [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Ask%20The%20Taxgirl%3A%20Installment%20Plans&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Ask%20The%20Taxgirl%3A%20Installment%20Plans "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Ask%20The%20Taxgirl%3A%20Installment%20Plans "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Ask%20The%20Taxgirl%3A%20Installment%20Plans&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Ask the Taxgirl, Individual --- ### [Hey Delaware, We Don’t Mean You…](https://www.taxgirl.com/2007/01/29/hey-delaware-we-dont-mean-you/) **Published:** January 29, 2007 **Author:** Kelly Phillips Erb **Content:** Or any other resident of a state with no sales tax. But the rest of you? Listen up. You can deduct your local and state income tax or sales tax on your federal income tax return. Most folks automatically choose income tax because it’s easier to calculate. However, the IRS is now making the sales tax calculation a little easier, too. On the one hand, you could save all of your receipts and add up the tax.  Don’t laugh, this makes a lot of sense if you’ve purchased several big-ticket items during the year. Consider whether you renovated your home with new appliances, furniture, etc., or whether you bought a new car. But if you didn’t save those receipts, you’re not out of luck. You can use the IRS’ handy [sales tax calculator](https://www.irs.gov/credits-deductions/individuals/use-the-sales-tax-deduction-calculator). They don’t collect or save personal information, so give it a whirl. You might be surprised at the results.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Hey%20Delaware%2C%20We%20Don%E2%80%99t%20Mean%20You%E2%80%A6&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Hey%20Delaware%2C%20We%20Don%E2%80%99t%20Mean%20You%E2%80%A6 "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Hey%20Delaware%2C%20We%20Don%E2%80%99t%20Mean%20You%E2%80%A6 "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Hey%20Delaware%2C%20We%20Don%E2%80%99t%20Mean%20You%E2%80%A6&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual, State and Local Tax (SALT) **Tags:** sales tax deduction, sales-tax --- ### [Over Hill, Over Google](https://www.taxgirl.com/2007/01/25/over-hill-over-google/) **Published:** January 25, 2007 **Author:** Kelly Phillips Erb **Content:** Chances are, you didn’t Google your way here today.  At least, if Gregory Hill of Devon, PA, has his way, you didn’t. Mr. Hill is a middle-aged builder in neighboring Chester County, Pennsylvania. He was recently sentenced for a conviction for payroll-tax fraud for paying transient workers under the table. The damage? According to the *Philadelphia Inquirer*, he paid $80,000 in restitution and a $20,000 fine. Mr. Hill’s attorney asked Chester County Court Judge William P. Mahon to order Google to block the 2005 news release about the case. He claims the release could embarrass his family (hmm… and he didn’t think the actual payroll-tax fraud charges would do that?). The judge refused to sign such an order, claiming that Hill could sue Google to achieve those results. However, Hill’s attorney then produced an email from Google that said, “You are correct that a court order would be sufficient in us removing from our search results the press release concerning your client.” The judge still refused to sign the order. And, of course, in Mr. Hill’s zeal to protect his privacy, his case was broadcast before a standing-room-only courtroom. It made the newspapers. It appeared on my blog, and I’m sure it did on other sites. One wonders if he really did want to just “move forward” after taking responsibility for his actions, why didn’t he do just that?[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Over%20Hill%2C%20Over%20Google&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Over%20Hill%2C%20Over%20Google "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Over%20Hill%2C%20Over%20Google "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Over%20Hill%2C%20Over%20Google&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual, Prosecutions, Felonies and Misdemeanors **Tags:** Google --- ### [When Life Gives You Lemons…](https://www.taxgirl.com/2005/12/21/when-life-gives-you-lemons/) **Published:** December 21, 2005 **Author:** Kelly Phillips Erb **Content:** Don’t assume that you can just make lemonade. The IRS announced that it will not recognize certain deductions related to the sale/auction of used vehicles. Here’s the PR in its entirety: > IRS Warns of Questionable Deductions for Donated Vehicles > IR-2005-145, Dec. 22, 2005 > WASHINGTON — Internal Revenue Service officials announced today that the IRS will not recognize certain deductions that taxpayers may be claiming relating to donated vehicles sold at auction. > IRS officials took this step after becoming aware of questionable practices that have surfaced recently. Some charities have sold donated vehicles at auction and claimed that the sales are to needy individuals at prices significantly below fair market value. By doing so, these charities have claimed that the sales trigger an exception to the general rule that the deduction allowed to the donor is limited to the proceeds from the charity’s sale. > The IRS’ position is that vehicles sold at auction are not sold at prices significantly below fair market value. Therefore, the IRS will not treat vehicles sold at auction as qualifying for the exception for sales to needy individuals at prices below fair market value. > If a charity sells a donated vehicle at auction, the IRS will not accept as substantiation an acknowledgment from the charity stating that the vehicle is to be transferred to a needy individual for significantly below fair market value (Box 5b on IRS Form 1098-C). In such cases, the donor may claim a deduction of more than $500 only to the extent that the gross proceeds from the sale exceed that amount and the donor substantiates the contribution with an acknowledgment from the charity that indicates the gross proceeds from the sale (Box 4c on IRS Form 1098-C). > The rules for determining the amount that a donor may deduct for a charitable contribution of a qualified vehicle, including an automobile, with a claimed value of more than $500 changed at the beginning of 2005 as a result of the American Jobs Creation Act of 2004. In general, that Act limits a donor’s deduction to the amount of the gross proceeds from the charity’s sale of the vehicle. > Under an exception to this general rule, a donor may be eligible to claim a fair market value deduction if the vehicle is sold at a price significantly below fair market value to a needy individual, in direct furtherance of a charitable purpose of the recipient organization of relieving the poor and distressed or the underprivileged who are in need of a means of transportation. In this case, the charity provides to the donor an acknowledgment indicating that the donor may claim a fair market value deduction for the vehicle. > Because this exception does not apply to sales at auction, a charity may be subject to penalties under sections 6701 and 6720 of the Internal Revenue Code if the charity sells a donated vehicle at auction and provides to the donor an acknowledgment that indicates anything other than the deduction may not exceed the gross proceeds from the sale. [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=When%20Life%20Gives%20You%20Lemons%E2%80%A6&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=When%20Life%20Gives%20You%20Lemons%E2%80%A6 "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=When%20Life%20Gives%20You%20Lemons%E2%80%A6 "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=When%20Life%20Gives%20You%20Lemons%E2%80%A6&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Charitable Organizations, Individual, IRS News **Tags:** charitable-donation, deductions --- ### [Taxes From A To Z (2018): W Is For W-9](https://www.taxgirl.com/2018/04/10/taxes-from-a-to-z-2018-w-is-for-w-9/) **Published:** April 10, 2018 **Author:** Kelly Phillips Erb **Excerpt:** It's Taxes from A to Z. W is for W-9. **Content:** It’s my annual “Taxes from A to Z” series! If you’re wondering whether you can claim home office expenses or whether to deduct a capital loss, you won’t want to miss a single letter. ## **W is for W-9.** A Form W-9, *Request for Taxpayer Identification Number and Certification*, is used to provide your taxpayer identification number, such as your Social Security Number (SSN), your Individual Taxpayer Identification Number (ITIN), or your Employer Identification Number (EIN), to certain payers. The form is typically completed by a U.S. person. For this purpose, a U.S. person includes an individual (citizen or resident alien), domestic trust or estate, and a partnership, corporation, company, or association created or organized in or under the laws of the United States. The information on a form W-9 is used to satisfy certain Internal Revenue Service (IRS) reporting requirements and/or to issue a federal form 1099. Forms 1099 may be issued to report payments for income not included on a Form W-2 (for wages) or another tax form. That might include earnings from stocks and dividends, distributions from a pension, annuity, profit-sharing or stock bonus plan, canceled debts, and certain real estate transactions. Taxpayers often don’t blink when asked to complete a Form W-9 by a bank or financial institution, but they may wonder why other companies ask. The short answer is that it’s part of doing business under our current tax laws. Companies that may ask you to complete a form W-9 include resale platforms, sites where you sell goods or services (like Etsy), and companies that offer affiliate or ad revenue (like Google or Amazon). You may also be asked to complete a form W-9 if you provide services as an independent contractor or a freelancer, since the person or company who pays you for those services may be required to report the payments to the IRS on a Form 1099-MISC (for more on Form 1099-MISC, click [here](https://www.taxgirl.com/understanding-your-tax-forms-2016-1099-misc-miscellaneous-income/)). Filling out the form is fairly simple. ![W 9](https://www.taxgirl.com/wp-content/uploads/2018/04/Screen-Shot-2019-11-14-at-10.34.27-AM.png) (*Note that the numbers in the blue circles referenced below may only be viewed in the full-sized version, depending on your browser.*) - First, you’ll enter your name at the top along with any D/B/A or trade name. - Next, check the box that mirrors your federal tax classification. For most individual taxpayers, that will be simply an individual, sole proprietor, or a single-member limited liability company (SMLLC) disregarded for federal income tax purposes – that’s the first box. - Third, you’ll enter your address. - Fourth, enter your tax identification number, or TIN. If you are an individual taxpayer, your TIN is your Social Security Number (SSN), or if you don’t have an SSN, it’s your individual taxpayer identification number (ITIN). If you are a sole proprietor and you have an employer identification number (EIN), you can enter either your SSN or EIN. If you’re organized as an SMLLC that is disregarded for federal income tax purposes, enter your SSN (*do not* enter the disregarded entity’s EIN). - Read over the certification and make sure that you understand and agree. - Finally, sign and date and return the form to the requestor – you don’t have to do anything else. While you may submit copies of various Forms 1099 to the IRS (as with a Form W-2), you typically do not transmit Form W-9 to the IRS. The party that requested the Form W-9 must keep it on file in case of a discrepancy or reporting issue, and to confirm or substantiate [backup withholding](https://www.taxgirl.com/2016/03/16/taxes-from-a-to-z-2016-b-is-for-backup-withholding/). You may be subject to a penalty if you refuse to complete a Form W-9. It can also complicate business, banking, and other relationships. If you have a question about whether it’s appropriate to fill out a Form W-9 or what to include on the form, check with your tax professional. For your taxes from A to Z, here’s the rest of the series: - [A is for Annual Contribution Limits](https://www.taxgirl.com/taxes-from-a-to-z-2018-a-is-for-annual-contribution-limits/) - [B is for Bonus](https://www.taxgirl.com/taxes-from-a-to-z-2018-b-is-for-bonus/) - [C is for Choate](https://www.taxgirl.com/taxes-from-a-to-z-2018-c-is-for-choate/) - [D is for Direct Deposit](https://www.taxgirl.com/taxes-from-a-to-z-2018-d-is-for-direct-deposit/) - [E is for Enrolled Agent](https://www.taxgirl.com/taxes-from-a-to-z-2018-e-is-for-enrolled-agent/) - [F is for Found Money](https://www.taxgirl.com/taxes-from-a-to-z-2018-f-is-for-found-money/) - [G is for Ghost Preparer](https://www.taxgirl.com/taxes-from-a-to-z-2018-g-is-for-ghost-preparer/) - [H is for Hobby Loss Rules](https://www.taxgirl.com/taxes-from-a-to-z-2018-h-is-for-hobby-loss-rules/) - [I is for Installment Agreement](https://www.taxgirl.com/taxes-from-a-to-z-2018-i-is-for-installment-agreement/) - [J is for Joint Accounts](https://www.taxgirl.com/taxes-from-a-to-z-2018-j-is-for-joint-accounts/) - [K is for Kin (Crypto)](https://www.taxgirl.com/taxes-from-a-to-z-2018-k-is-for-kin-crypto/) - [L is for Line of Credit](https://www.taxgirl.com/taxes-from-a-to-z-2018-l-is-for-line-of-credit/) - [M is for Mileage](https://www.taxgirl.com/taxes-from-a-to-z-2018-m-is-for-mileage/) - [N is for NIIT](https://www.taxgirl.com/taxes-from-a-to-z-2018-n-is-for-niit/) - [O is for Organ Donations](https://www.taxgirl.com/taxes-from-a-to-z-2018-o-is-for-organ-donation/) - [P is for Private and Parochial Schools](https://www.taxgirl.com/taxes-from-a-to-z-2018-p-is-for-private-parochial-schools/) - [Q is for Qualifying Relative](https://www.taxgirl.com/taxes-from-a-to-z-2018-q-is-for-qualifying-relative/) - [R is for Relief Funds](https://www.taxgirl.com/taxes-from-a-to-z-2018-r-is-for-relief-funds/) - [S is for Surviving Spouse](https://www.taxgirl.com/taxes-from-a-to-z-2018-s-is-for-surviving-spouse/) - [T is for Taxpayer Bill of Rights](https://www.taxgirl.com/taxes-from-a-to-z-2018-t-is-for-taxpayer-bill-of-rights/) - [U is for Unused Sick Leave](https://www.taxgirl.com/taxes-from-a-to-z-2018-u-is-for-unused-sick-leave/) - [V is for Voluntary Bankruptcy](https://www.taxgirl.com/taxes-from-a-to-z-2018-v-is-for-voluntary-bankruptcy/) [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Taxes%20From%20A%20To%20Z%20%282018%29%3A%20W%20Is%20For%20W-9&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2019%2F05%2FTaxesAtoZ_md-768x768-e1557113210426.png&p%5Btitle%5D=Taxes%20From%20A%20To%20Z%20%282018%29%3A%20W%20Is%20For%20W-9 "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Taxes%20From%20A%20To%20Z%20%282018%29%3A%20W%20Is%20For%20W-9 "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Taxes%20From%20A%20To%20Z%20%282018%29%3A%20W%20Is%20For%20W-9&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Tax Forms, Taxes From A to Z® **Tags:** taxes from a to z, W-9, withholding --- ### [Social Security Checks Will Increase In 2019](https://www.taxgirl.com/2018/10/12/social-security-checks-to-get-big-increase-in-2019/) **Published:** October 12, 2018 **Author:** Kelly Phillips Erb **Excerpt:** More than 63 million Americans will see an increase in their Social Security and SSI benefits in 2019. **Content:** Rising interest rates may be wreaking havoc on the markets, but they mean good news for those relying on Social Security: More than 63 million Americans will see an increase in their Social Security and SSI benefits in 2019. Why is this happening? Inflation appears to be on the way up. Typically, higher inflation rates reflect higher interest rates, and you might have already seen the impact on variable mortgage and credit card bills. To keep up with those changes, federal benefits automatically increase when the cost of living rises, as measured by the consumer price index (CPI). The CPI is published by the Bureau of Labor Statistics and reflects “changes in the prices paid by urban consumers for a representative basket of goods and services.” The latest annual inflation rate for the United States is 2.3%, as reported by the Bureau of Labor Statistics (BLS) for September of 2018. That’s the highest rate recorded in September since 2011. It should not surprise you, then, to learn that the 2.8% boost to Social Security and SSI benefits in 2019 will mark the highest increase since 2012. For comparison, the adjustment for 2018 was 2% and 0.3% in 2017 – there was no change in 2016. A 2.8% increase would translate into an average Social Security benefit of $1,461 per month, up $39. The increase would boost the current maximum benefit to $2,861 per month, up $73. The increase would tick the average up for disabled workers to $1,234. How do the increases for payouts compare to contributions? Other benefit amounts also rely on cost of living numbers. For workers paying into the system, the contribution base for Social Security is expected to increase more than 3% to $132,900. The base is the amount of wages used to calculate contributions to the system (the same limits apply for purposes of figuring benefits). The amount of tax paid on the base amount is set by statute at 6.2%. The employee pays that amount (6.2%), and the employer also pays that amount (6.2%) for a total of 12.4% per worker up to the cap. That extra you see in your payroll withholding is attributable to Medicare tax. Medicare is taxed at 1.45% on wages for both employees and employers, for a total of 2.9%. There is no cap on wages for Medicare tax purposes. And, don’t forget that as of 2013, individuals who earn more than $200,000 ($250,000 for married couples filing jointly) pay an additional 0.9% in Medicare taxes. (For more on how Social Security works, click [here](https://www.taxgirl.com/2018/06/05/trustees-predict-that-social-security-will-be-insolvent-in-16-years/). For more on understanding what’s reported on your Form W-2, click [here](https://www.taxgirl.com/2018/02/21/understanding-your-tax-forms-2018-form-w-2-wage-and-tax-statement/).) The 2019 earnings base will be $132,900, compared to $128,400 for 2018. You can see the historical increases in the chart below (data via [SSA.gov](http://www.ssa.gov/oact/cola/cbb.html)): ![Ssa history](https://www.taxgirl.com/wp-content/uploads/2018/10/SSA-HISTORY.png)[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Social%20Security%20Checks%20Will%20Increase%20In%202019&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2018%2F10%2FSSA-HISTORY.png&p%5Btitle%5D=Social%20Security%20Checks%20Will%20Increase%20In%202019 "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Social%20Security%20Checks%20Will%20Increase%20In%202019 "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Social%20Security%20Checks%20Will%20Increase%20In%202019&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Government and Federal Agencies **Tags:** COLA, cost of living, Social Security benefits, Social Security checks --- ### [Fix The Tax Code Friday: Estate Tax](https://www.taxgirl.com/2007/02/23/fix-the-tax-code-friday-estate-tax/) **Published:** February 23, 2007 **Author:** Kelly Phillips Erb **Content:** When Congress first introduced the wacky legislation that created the current federal estate tax situation (an exemption that gradually rises to $3.5 million per person, is eliminated in 2010, and returns in 2011 to its “old self”), most folks assumed we had plenty of time to fix it. 2010 seemed years away. Now, 2010 is a lot closer than 2001 (the year the change took effect), and we have no real plan. What should we do? So this week’s question is: > **What should happen to the federal estate tax? Should it be eliminated? Should we keep the exemption at the top rate ($3,500,000)? Should we keep the exemption in its 2011 rate ($1,000,000)? Or is the answer somewhere in the middle?** [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Fix%20The%20Tax%20Code%20Friday%3A%20Estate%20Tax&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Fix%20The%20Tax%20Code%20Friday%3A%20Estate%20Tax "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Fix%20The%20Tax%20Code%20Friday%3A%20Estate%20Tax "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Fix%20The%20Tax%20Code%20Friday%3A%20Estate%20Tax&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Estate and Gift Tax, Fix the Tax Code Friday **Tags:** federal-estate-tax --- ### [Fix The Tax Code Friday: Corporate Tax Incentives](https://www.taxgirl.com/2016/12/02/fix-the-tax-code-friday-corporate-tax-incentives/) **Published:** December 2, 2016 **Author:** Kelly Phillips Erb **Excerpt:** It's Fix The Tax Code Friday! Today's question focuses on corporate tax incentives. **Content:** It’s Fix The Tax Code Friday! Earlier this week, air conditioning and furnace giant Carrier Corporation, a brand of United Technologies Corporation Building & Industrial Systems, agreed not to ship out 800 jobs that it had previously planned to move out of one of its Indiana plants to a facility in Mexico (about 600 jobs from that plant will still be moved to Mexico together with jobs from a second plant that is closing). The announcement that some jobs would remain in the Hoosier state was met with a mix of euphoria and skepticism. While Carrier’s decision to stay in-state was initially characterized as the result of a cordial phone call from President-elect Donald Trump, it turns out it was a bit more than that. In exchange for keeping jobs and promising future investment in the state, the company will receive about $7 million in state tax incentives. Those incentives include up to $6 million in tax credits and $1 million in training grants to support workforce development. The tax incentives were described as a “standard package” of tax credits, and Vice President-elect Mike Pence said it was not much different from what the company had been offered before. Tax incentives for companies have long been controversial. While providing companies with financial and tax assistance can result in retained jobs (as here) or growth in areas which might not otherwise attract industry, some view such breaks as government interference in the free market. The latter appears to include Sarah Palin, who wrote in an opinion piece for the Young Conservatives website that “\[w\]hen government steps in arbitrarily with individual subsidies, favoring one business over others, it sets inconsistent, unfair, illogical precedent.” She went on to write that “fundamentally, political intrusion using a stick or carrot to bribe or force one individual business to do what politicians insist… isn’t the answer. Trump, however, has indicated that the free market won’t actually make much progress without a hand from the government. Pence agrees, telling *The New York Times*, “The free market has been sorting it out and America’s been losing.” That philosophy clashes with many in Congress, especially traditional fiscal conservatives who tend to publicly reject government interference in such matters. The two competing issues – trying to preserve both jobs and the free market inside the country – have raised difficult questions about how much government should be involved in private corporate matters. That, of course, brings us to today’s Fix The Tax Code Friday question: > *Should state or federal authorities provide targeted tax incentives to encourage (or discourage) certain corporate behaviors? If so, what sorts of behaviors?* [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Fix%20The%20Tax%20Code%20Friday%3A%20Corporate%20Tax%20Incentives&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Fix%20The%20Tax%20Code%20Friday%3A%20Corporate%20Tax%20Incentives "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Fix%20The%20Tax%20Code%20Friday%3A%20Corporate%20Tax%20Incentives "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Fix%20The%20Tax%20Code%20Friday%3A%20Corporate%20Tax%20Incentives&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Corporate, Fix the Tax Code Friday, Politics --- ### [Tax, Tax Baby](https://www.taxgirl.com/2007/02/14/tax-tax-baby/) **Published:** February 14, 2007 **Author:** Kelly Phillips Erb **Content:** And I thought my tax contest was cool. TurboTax is hosting a tax contest with none other than… Vanilla Ice? Yep, it’s true. Rap about taxes and get some free software. Taxgirl isn’t involved in any way except to be agog at the news. It’s nice to see that Vanilla Ice finally got work in the corporate world, huh? Perhaps I should contact Eminem to host my contest? Or someone who’s had a hit in the last 15 years?[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Tax%2C%20Tax%20Baby&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Tax%2C%20Tax%20Baby "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Tax%2C%20Tax%20Baby "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Tax%2C%20Tax%20Baby&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Contests and Events, Just for Fun **Tags:** TurboTax --- ### [Ask The Taxgirl: Charitable Values](https://www.taxgirl.com/2007/02/13/ask-the-taxgirl-charitable-values/) **Published:** February 13, 2007 **Author:** Kelly Phillips Erb **Content:** ***Taxpayer asks***: I would like some help to finding a website that could help me find amount that your can use for charitable items such as clothes and household items. We sold our house this year and really down sized to what we are taking.  For example I gave 42 shirts to a nonprofit thrift shop ***Taxgirl says***: The rule of thumb is to value the item at what a willing buyer would pay (a willing buyer would not pay $25 for your used Gap jeans; they’d likely pay $5 if they’re in good condition). You should note that this information is for household items; special rules apply to appreciated goods like stock or jewelry, or hard-to-value items such as artwork. Before you go: be sure to read my [disclaimer](https://www.taxgirl.com/ask-the-taxgirl-disclaimer/). Remember, I’m a lawyer and we love disclaimers. If you have a question, here’s how to [Ask The Taxgirl](https://www.taxgirl.com/ask-the-taxgirl/). 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Ask the Taxgirl, Charitable Organizations **Tags:** charitable-donation, deduction --- ### [Mnuchin Suggests Payroll Tax Deferral Will Be Discretionary](https://www.taxgirl.com/2020/08/13/mnuchin-suggests-payroll-tax-deferral-will-be-discretionary/) **Published:** August 13, 2020 **Author:** Kelly Phillips Erb **Content:** (Updated to add the letter from the Chamber.) Last week, President Trump took Presidential action to act on payroll tax collections. Specifically, he ordered that the employee’s share of Social Security taxes be deferred beginning September 1, 2020, through December 31, 2020, for workers earning up to $104,000 per year. **While it has been touted as a cut, the Executive Order only allows for deferral.** That means – without further action – that the taxes have to be paid. The deferral is effective from September 1, 2020, through December 31, 2020. You can find out more about the order here. After the directive was signed, tax professionals and taxpayers had questions about how the deferral might work. Today, Treasury Secretary Steven Mnuchin gave FOX Business’ Maria Bartiromo a first look into how that might work, and it appears that the deferral will be voluntary. Specifically, Bartiromo addressed the cuts, saying, “But there is some worry about the cost of this. Employers are talking about facing a series of costs, uncertainties, and headaches.” She went on to ask, “How does that money get generated if not through this tax cut? Where does the money come from to replace it?” Mnuchin responded, “Well, we’re going to create a level of certainty for employers that want to participate. We can’t force people to participate. But I think many small businesses will do this and pass on the benefits. But I think the President would like to do a payroll tax cut so he’ll go back to Congress when he wins the election and ask Congress to have this money forgiven and have the Social Security trust fund fully topped up so that in no way does this impact Social Security.” You can watch [the whole exchange here](https://www.foxbusiness.com/money/steven-mnuchin-white-house-coronavirus-aid-negotiations). (The payroll tax bit is around the sixth minute.) To clarify, these were comments made on television. No official guidance has been issued yet. But Mnuchin’s comments, echoed by FOX in the article, that “\[w\] e’re going to create a level of certainty for employers that want to participate” clearly sound as though the deferrals will be voluntary – and that the decision to withhold for *employees* will rest with the employer. Under the CARES Act, employers can already elect to defer the deposit and payment of the *employer’s* portion of Social Security taxes. The deferral applies to deposits and payments of the employer’s share of Social Security tax that would otherwise be required to be made during the period beginning on March 27, 2020, and ending December 31, 2020, with half being due on December 31, 2021, and the remainder due on December 31, 2022. The CARES Act-related relief also applies to self-employed persons. It is also unclear what Mnuchin means when he said Congress would keep the Social Security trust fund “topped up.” Social Security trust fund solvency remains a concern. Last year, Sen. Mitt Romney (R-UT) [introduced legislation](https://www.congress.gov/bill/116th-congress/senate-bill/2733) that would take a closer look at the Social Security Old-Age and Survivors Insurance, Social Security Disability Insurance, Medicare Hospital Insurance, and Highway Trust Fund. The bill was called the Time to Rescue United States’ Trusts, or TRUST Act. The proposal was reintroduced this year as part of the Senate HEALS Act. The confusion over solvency bubbled up when the President said, on August 8, 2020: > *If I’m victorious on November 3rd, I plan to forgive these taxes and make permanent cuts to the payroll tax. So I’m going to make them all permanent.* A few minutes later, he appeared to backtrack, saying, *“But if I win, I may extend and terminate. In other words, I’ll extend it beyond the end of the year and terminate the tax. And so, we’ll see what happens.”* On August 10, the President was asked to clarify whether he wanted to permanently cut the payroll tax. He said, “*It may be permanent. We’re looking into it. Right now, we have it cut. It’s going to a certain time, as you know. And we’ll take it out until the end of the year, and then I’m going to make a decision as to, number one, an extension; and, number two, making it permanent and no reimbursement.*” When asked, as a follow-up, about Social Security, the President said, “*Well, what we’re doing is we reimburse through the general fund, not through Social Security. This will have no impact on Social Security. We’re going to impact — we’re going to, through the general funds, reimburse. This will have zero impact on Social Security.*” On August 12, 2020, the U.S. Chamber of Commerce sent a letter to Secretary Mnuchin asking for further clarity about the payroll tax deferral. The letter raised concerns about who elects this deferral, who is ultimately liable for repaying the deferred taxes, when repayment will be due, and what mechanism will be used to collect it. The letter also raises questions about what happens when employees have fluctuating salaries or receive bonuses; when employees are employed for a short term, such as seasonal holiday workers; and when employees leave employment before the end of the deferral period. You can [read the letter here](https://www.uschamber.com/comment/us-chamber-letter-secretary-mnuchin-implementation-of-the-executive-order-deferring-payroll). 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Payroll Taxes, Politics **Tags:** payroll tax, payroll tax cuts, President Trump, temporary payroll tax cuts --- ### [How To Handle Uncashed Tax Checks & Other IRS Issues During COVID](https://www.taxgirl.com/2020/08/14/how-to-handle-uncashed-tax-checks-other-irs-issues-during-covid/) **Published:** August 14, 2020 **Author:** Kelly Phillips Erb **Content:** If you have an uncashed tax check at the Internal Revenue Service (IRS), you’re not alone. Scores of taxpayers and tax professionals have been reaching out about uncashed checks. Making matters worse, the IRS has been sending out underpayment or failure-to-pay notices for those payments. First, **you should know that this is clearly a systemic issue**. It’s not you, it’s them. What exactly is to blame? A combination of unopened mail and the pandemic. The IRS recently noted that “If a taxpayer mailed a check (either with or without a tax return), it may still be unopened in the backlog of mail the IRS is processing due to COVID-19.” Second, **you should not panic**. If you mailed your payment, it will eventually be posted. The IRS says that “Any payments will be posted as the date we received them rather than the date the agency processed them.” Whatever you do, don’t cancel your original check. Just because it hasn’t been cashed or credited doesn’t mean that it has gone missing: it’s likely just temporarily diverted. Also, **don’t spend that money**. If you’ve written a hefty check, assume that the IRS will cash it any day now. Don’t assume that you can write other checks on the same funds. While the IRS is providing relief from bad check penalties for dishonored checks the agency received between March 1 and July 15 due to delays in this IRS processing, interest and penalties may still apply. Remember: when the IRS reopened (sort of) in June, the estimated backlog of unopened IRS mail stood at 11 million. The IRS has been tasked with sorting through that mail – and opening new mail – while relying on reduced or stay-at-home staffing. Finally, **don’t call.** Due to high call volumes, the IRS says you should wait to contact the agency about any unprocessed paper payments still pending. As a tax professional, it makes me nervous to wait – and the IRS has asked us not to call – so I’ve been sending correspondence on behalf of my clients. I don’t expect to receive an immediate response (that mail is just going into the pile, too) but I’m sending it anyway since I like to have a paper trail. The IRS says it will make things right (eventually), so there’s no need to call, file a second return, or (again) cancel any outstanding checks. If you have a payment to make and you’re worried about it going missing, there are electronic payment options. - **You can pay your taxes directly from your checking or savings account.** To make a payment, click on over to the [Direct Pay page](https://directpay.irs.gov/directpay/payment?execution=e1s1). You can schedule a payment or pay the same day, but IRS Direct Pay won’t accept more than two payments within 24 hours. And if you owe bunches, note that each payment must be less than $10 million. - **Consider a same-day wire from your bank or financial institution**. Contact your bank or financial institution – not the IRS – for details, including fees and deadlines. To make a payment, download and complete the [Same-Day Payment Worksheet](https://download.eftps.com/SameDayPaymentWorksheet.pdf) to take with you to make the wire. For information on making international wire transfers, [check out this prior post](https://www.taxgirl.com/2015/04/07/taxes-from-a-to-z-2015-z-is-for-zloty/). - **Electronic Funds Withdrawal (EFW) is an option that you can use to pay by direct debit from your bank account.** The IRS doesn’t charge a fee to use EFW, but your financial institution might (check first to avoid a last-minute panic). You’ll need to know your bank routing and account numbers (more on those [here](https://www.taxgirl.com/2018/03/12/taxes-from-a-to-z-2018-d-is-for-direct-deposit/)). For more information about EFW, click [here](https://www.irs.gov/payments/pay-taxes-by-electronic-funds-withdrawal). - **You can pay what you owe by** [**debit or credit card**](https://www.irs.gov/payments/pay-your-taxes-by-debit-or-credit-card). Most approved IRS payment processors accept Visa, MasterCard, Discover, and American Express. Generally, there’s no limit on the amount you can pay, but you are limited to [two credit card payments in one year for the same individual tax bill](https://www.irs.gov/uac/frequency-limit-table-by-type-of-tax-payment). High-balance payments of more than $100,000 may require coordination with your credit card or debit card provider. - **Use the Electronic Federal Tax Payment System (EFTPS) to pay by phone or online.** To make a payment using EFTPS by phone, call 1.800.555.3453. People who are deaf, hard of hearing, or have a speech disability and who have access to TTY/TDD equipment can call 1.800.733.4829. To make a payment using EFTPS online, log in, and follow the prompts. You can schedule your payment by 8 p.m. EST at least one calendar day in advance of the due date. Your tax payment is due even if the website is not available, so plan ahead. For more information, see www.irs.gov/payments for options to make payments other than by mail. Taxpayers who mail tax returns and other correspondence to the IRS should expect to wait longer than usual for a response. While the IRS is now receiving mail, mail processing remains scaled back to comply with social distancing recommendations. The IRS’ ability to correspond with taxpayers about various issues, including requests for information needed to process a tax return, remains limited. So what about those tax returns? - **If you haven’t filed your return yet**, the IRS advises that it is still experiencing processing delays for paper tax returns. Taxpayers should file electronically through their tax preparer, tax software provider, or IRS Free File. Remember, the extension deadline is October 15 (six months from the ORIGINAL filing date, [not the extended filing date](https://www.taxgirl.com/2020/05/08/tax-deadline-remains-july-15-during-covid-19-crisis/)). - **If you have already filed a paper return** but have not yet heard from the IRS, don’t panic: the IRS will process your tax return in the order it receives it. Do not file a second tax return or contact the IRS about your return’s status. What if you receive an outdated notice? In June, the IRS advised that it would begin mailing more than 20 million backlogged letters and notices to taxpayers as part of its steps to return to normal operations. But, because of the COVID-19 shutdown, many of the notices were mailed with past-due payment or response dates. In most cases, the IRS will not generate a new notice. Instead, the IRS will include Notice 1052, *Important! You Have More Time to Make Your Payment*, as an insert that will provide a new, updated payment or response date. Check your notice and: - Review the **last** page of the insert to determine if there is a new due date. - Disregard the notice if you’ve already resolved your issue. - If you have additional questions, contact the IRS using the number on the notice. Keep in mind that phone lines remain extremely busy as the IRS resumes operations. - Visit [IRS.gov/coronavirus](https://www.irs.gov/coronavirus-tax-relief-and-economic-impact-payments) for more information. And if you’re still looking for information about your stimulus check (economic impact payment or EIP), you’re in luck: as of August 10, 2020, the Taxpayer Advocate can help. Things are slowly getting back to normal; it’s just taking time. Remember, patience is key. 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** IRS News **Tags:** COVID-19, IRS, IRS problems, uncashed checks --- ### [IRS Promises To Stop Sending Outdated Past-Due Tax Notices](https://www.taxgirl.com/2020/08/21/irs-promises-to-stop-sending-outdated-past-due-tax-notices/) **Published:** August 21, 2020 **Author:** Kelly Phillips Erb **Content:** Feeling overwhelmed and not sure how to handle those overdue notices from the Internal Revenue Service (IRS)? You aren’t the only one. Taxpayers have been complaining about receiving notices showing a balance due with impossible deadlines. How many notices went out? [According to the Taxpayer Advocate](https://taxpayeradvocate.irs.gov/news/nta-blog-mailbox?category=Tax%20News), during the pandemic-related shutdown, the IRS generated more than 20 million notices; however, these notices were not mailed to taxpayers. So, the IRS started mailing them out. Simultaneously, in June, the estimated backlog of unopened IRS mail stood at 11 million. That means that taxpayer checks remained uncashed. The IRS [recently noted](https://www.irs.gov/newsroom/irs-operations-during-covid-19-mission-critical-functions-continue?fbclid=IwAR2WJODMoIiaQLFbrIcp5WVsge_p9GLa1Cgupg3Iv_n-iQjsx7BQi-ai4NY) that “If a taxpayer mailed a check (either with or without a tax return), it may still be unopened in the backlog of mail the IRS is processing due to COVID-19.” The combination of unopened mail and past-due notices has heightened anxiety and tempers. On August 19, 2020, House Ways and Means Committee Chairman Richard E. Neal (D-MA) sent a letter to the IRS demanding that the notices stop. “These notices impose unnecessary stress on taxpayers who, upon receipt, must contact the IRS for assistance,” Neal wrote. “This is particularly troubling at a time when the IRS is telling taxpayers who need to call the agency ‘to expect long waits due to limited staffing.’ Taxpayers reaching out for assistance on the telephone must hope someone can answer their call and that all payments they have made have been opened, processed, and indicated on their account. Certainly, any additional correspondence generated by these notices can prove difficult for the IRS to handle and cause significant delays for taxpayers seeking fair resolution.” The IRS has now announced that they have suspended the mailing of three notices: 1. the [CP501](https://www.irs.gov/individuals/understanding-your-cp501-notice) (typically, a balance due); 2. the [CP503](https://www.irs.gov/individuals/understanding-your-cp503-notice) (you still have an unpaid balance and the IRS hasn’t heard from you); and 3. the [CP504](https://www.irs.gov/individuals/understanding-your-cp504-notice) (you still have an unpaid balance, you REALLY haven’t responded, and the IRS intends to levy). These follow-up notices are typically sent automatically to taxpayers who don’t respond to an initial notice of balance due (called a [CP14](https://www.irs.gov/individuals/understanding-your-cp14-notice)). However, the IRS will temporarily stop these automatic follow-up notices until it reduces the mail backlog. **There is no current deadline to resume the follow-up notices.** The IRS says that it will make the determination as the backlog is cleared. As for those unopened checks? They will be posted and credited on the date the IRS received them – rather than the date the agency opened and processed them. **That means that you should not cancel your original check.** Just because it hasn’t been cashed or credited doesn’t mean it’s missing; it’s likely only temporarily diverted. And **don’t spend that money**. Assume that the IRS will cash your check any day now. While the IRS is providing relief from bad check penalties for dishonored checks the agency received between March 1 and July 15 due to delays in this IRS processing, interest and penalties may still apply. Finally, save yourself some time and energy and **don’t call.** The IRS says it will make things right (eventually), so there’s no need to call, file a second return, or cancel any outstanding checks. If you have any questions about your next steps, reach out to your tax professional. But if you get a notice this week from the IRS, be prepared to cut the agency some slack. Some taxpayers and tax professionals may still receive these notices over the next few weeks because they’re already in the mail. 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual, IRS News **Tags:** CP14, CP501, CP504, IRS tax bills, outdated past-due notices, tax notices --- ### [Questions Raised After IRS Rolls Out Payroll Tax Deferral Guidance](https://www.taxgirl.com/2020/08/28/businesses-have-questions-after-irs-rolls-out-payroll-tax-deferral-guidance/) **Published:** August 28, 2020 **Author:** Kelly Phillips Erb **Content:** On August 8, 2020, President Trump directed the Department of the Treasury to allow deferral of payroll taxes for the period September 1, 2020, through December 31, 2020. Details were scarce, but a few days later, Treasury Secretary Steven Mnuchin suggested to Fox Business’ Maria Bartiromo that the deferral would be voluntary. Today, the Department of the Treasury and the IRS finally issued official guidance for taxpayers. For many, it raised more questions than answers. First, a little context and background. The President’s Order called for **a deferral of the employee’s share of Social Security taxes for the time period beginning September 1, 2020, through December 31, 2020, for certain workers.** Specifically, the deferral is restricted to “any employee the amount of whose wages or compensation, as applicable, payable during any bi-weekly pay period generally is less than $4,000, calculated on a pre-tax basis, or the equivalent amount concerning other pay periods.” That generally works out to a restriction on those making more than $100,000 annually. To be clear, **no deferral is available for any payment to an employee of taxable wages of $4,000 or above for a bi-weekly pay period.** It’s not deferral “up to” that amount with no relief for the overages. Rather, the deferral only applies to workers under the income threshold. For those qualifying workers, the deferral applies to the employee’s portion of Social Security taxes. You may think of your payroll taxes as one lump sum, but the non-income tax bits are actually two separate taxes. Together, Social Security and Medicare taxes are known as FICA (Federal Insurance Contributions Act) taxes and are taken right out of your paycheck. If you’re employed, you pay Social Security tax (6.2%) and Medicare tax (1.45%) as the employee, subject to certain limits. **The deferral would apply to the Social Security portion of employee wages only.** Employers are also subject to payroll taxes. But under the CARES Act, employers can already elect to defer the deposit and payment of the *employer’s* portion of Social Security taxes. The deferral applies to deposits and payments of the employer’s share of Social Security tax that would otherwise be required to be made during the period beginning on March 27, 2020, and ending December 31, 2020, with half being due on December 31, 2021, and the remainder due on December 31, 2022. The CARES Act-related relief also applies to self-employed persons (keep that in mind towards the end). The IRS has now released [Notice 2020-65](https://www.irs.gov/pub/irs-drop/n-20-65.pdf), which is ostensibly intended to shed some light on how the deferral will work. In this tax professional’s opinion, it does not. Let’s start with what is clear. The Notice begins: *On August 8, 2020, the President of the United States issued a Presidential Memorandum directing the Secretary of the Treasury (Secretary) to use his authority pursuant to section 7508A of the Internal Revenue Code (Code) to defer the withholding, deposit, and payment of certain payroll tax obligations.* You can find the legalese bits in [section 7508A here.](https://www.law.cornell.edu/uscode/text/26/7508A) But basically, that section of the Code allows the President to postpone the collection of the tax during a national disaster. On March 13, 2020, the President of the United States issued an emergency declaration under the Robert T. Stafford Disaster Relief and Emergency Assistance Act in response to the ongoing Coronavirus Disease 2019 (COVID-19) pandemic (Emergency Declaration). In other words, everywhere in the United States currently qualifies as a disaster. But it’s important to understand that section 7508A only allows the President to defer collecting the tax. **It does not allow for forgiveness.** That’s critical because while folks (including me) assumed that the “payroll tax cuts” initially touted were really cuts – like those we’ve seen before – these are not the same. However, these do not have a blessing from Congress, and there is no reduction or cut: it’s just a deferral. That context is so important because of the next part of the Notice. The Notice makes it clear that this is the obligation of “*employers that are required to withhold and pay the employee share of social security tax under section 3102(a) or the railroad retirement tax equivalent under section 3202(a).*“ Further, “*\[t\]he deposit obligation for employee social security tax does not arise until the tax is withheld*.” That’s a fancy way of saying that so long as the employer isn’t withholding any tax on behalf of the employees, the employer doesn’t have to make a deposit to the feds (payroll taxes are typically deposited on a particular schedule) during the deferral period. The employer doesn’t have to start making deposits until the deferral is no longer in place. Specifically, the Notice postpones those deposits “until the period beginning on January 1, 2021, and ending on April 30, 2021.” So far, most of this is expected. The tax is postponed for a certain period, and then it must be repaid. That’s deferral in a nutshell. So what’s the thing that caught many by surprise? It’s this: **The Notice defines Affected Taxpayers not as employees, but as employers.** Here’s why that matters. The Notice states that “*An Affected Taxpayer must withhold and pay the total Applicable Taxes that the Affected Taxpayer deferred under this notice ratably from wages and compensation paid between January 1, 2021 and April 30, 2021 or interest, penalties, and additions to tax will begin to accrue on May 1, 2021, with respect to any unpaid Applicable Taxes.*“ **That’s the repayment obligation.** And what it says is that the employer must recover those taxes from employees over a few months – or interest, penalties, and additions to tax will become due. Ouch, right? And what if the employee balks at repayment? According to the Notice, that doesn’t matter. It makes clear that “*Taxpayer may make arrangements to otherwise collect the total Applicable Taxes from the employee.*“ But what if the employee leaves the company? What if the employee doesn’t make enough money to ratably pay back the tax? **The Notice doesn’t address what happens in those circumstances, but it would appear that the obligation to make those payments remains with the employer.** (NB: After I posted this, there was a lively discussion on Twitter with some tax professionals disagreeing with this interpretation, but the fact that there is no clarity or consensus on this issue is telling.) It’s also not evident how this will be reported for tax purposes. I assume we’ll see a revamped version of Form 941 (that’s a payroll tax form). But is it opt-in? Opt-out? Tellingly, the Notice did not reference Treasury Secretary Mnuchin’s “optional” language. And if you’re scratching your head because you feel like something else is missing, you’re right: **the Notice does not address Social Security tax for self-employed persons.** I had noted on Twitter – after the Order was released – that [section 3101(a)](https://www.law.cornell.edu/uscode/text/26/3101) was tied to employment-related taxes only, and not self-employment taxes (that’s typically found at [section 1401](https://www.law.cornell.edu/uscode/text/26/1401)). I assumed, as many tax professionals did, that we’d find out it was simply an oversight. That doesn’t appear to be the case: the portion of self-employment tax not covered by the CARES Act isn’t eligible for deferral under the Order. There are so many unanswered questions. With just days to go before the deferral period begins – that’s Tuesday – I don’t see how this will actually roll out on time. If employers were looking for clear direction from Treasury and the IRS, this isn’t it. 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** IRS News, Payroll Taxes **Tags:** IRS, payroll tax, payroll tax cuts, payroll tax deferral, President Trump --- ### [For Now, IRS Okays E-Signatures On Tax Forms That Can't Be Filed Electronically](https://www.taxgirl.com/2020/08/31/for-now-irs-okays-e-signatures-on-tax-forms-that-cant-be-filed-electronically/) **Published:** August 31, 2020 **Author:** Kelly Phillips Erb **Content:** The Internal Revenue Service (IRS) has [announced](https://www.irs.gov/newsroom/irs-approves-temporary-use-of-e-signatures-for-certain-forms) that it will allow e-signatures on certain tax forms that cannot be filed electronically. This temporary move is intended to reduce in-person contact and lessen risk to taxpayers and tax professionals during COVID. What does that mean? Well, some forms, like Form 1040, *U.S. Individual Income Tax Return*, are already set up to allow e-signatures when filed electronically. More than 90% of Form 1040s are filed electronically. But others, like Form 3115, are not: they’re intended to be signed on paper. Forcing tax professionals and taxpayers to sign on paper – and then asking the IRS to process that paper – just isn’t practical right now. As a result, the IRS is taking these temporary steps. “We take the health and safety of the nation’s taxpayers, the tax professional community and our employees very seriously,” said IRS Commissioner Chuck Rettig. “Expanding the use of digital signatures is an important step during COVID-19 to help tax professionals. We understand the importance of digital signatures to the tax community, and we will continue to review our processes to determine where long-term actions can help reduce burden for the tax community, while appropriately balancing that with critical security and protection against identity theft and fraud.” **So, which forms can you sign digitally (for now)?** For now, the following forms can be submitted with digital signatures: - Form 3115, Application for Change in Accounting Method; - Form 8832, Entity Classification Election; - Form 8802, Application for U.S. Residency Certification; - Form 1066, U.S. Income Tax Return for Real Estate Mortgage Investment Conduit; - Form 1120-RIC, U.S. Income Tax Return For Regulated Investment Companies; - Form 1120-C, U.S. Income Tax Return for Cooperative Associations; - Form 1120-REIT, U.S. Income Tax Return for Real Estate Investment Trusts; - Form 1120-L, U.S. Life Insurance Company Income Tax Return; - Form 1120-PC, U.S. Property and Casualty Insurance Company Income Tax Return; and - Form 8453 series, Form 8878 series, and Form 8879 series regarding IRS e-file Signature Authorization Forms. This is a temporary measure and applies to those tax forms that are signed and postmarked beginning on or after August 28, 2020, through December 31, 2020. The IRS plans to monitor the submissions and determine if additional steps are needed. And if you’re wondering whether you have to use a specific brand or type of e-signature, the answer is no. According to an IRS memorandum, electronic and digital signatures may be created using many different technologies, and the IRS does not specify a particular technology for this purpose. 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** IRS News, Tax Forms **Tags:** digital signatures, e-filing, e-signature, electronic filing, pandemic, tax filing --- ### [File Away](https://www.taxgirl.com/2007/01/22/file-away/) **Published:** January 22, 2007 **Author:** Kelly Phillips Erb **Content:** The IRS announced last week that the Free File program for eligible taxpayers is now available. The program lets taxpayers with an Adjusted Gross Income (AGI) of $52,000 or less for tax year 2006 e-file their federal tax returns for free (and here you thought that nothing was free). This means that 70% of all taxpayers – 95 million taxpayers – will have the opportunity to file their federal income tax return for free (there may be a charge for state returns). Free File is also available in Spanish. If you had hoped to use Free File to get a little extra cash via a Refund Anticipation Loan (RAL), don’t plan on it… Given public opinion (and the judiciary) toward these kinds of loans, the IRS will not allow companies that participate in Free File to offer RALs. Each company that participates in Free File may have its own criteria – read carefully before getting started. 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual, IRS News **Tags:** free-file, IRS, RAL --- ### [Another Arrest As Fraudulent PPP Loan Total Hits $1 Billion](https://www.taxgirl.com/2020/09/03/another-arrest-as-fraudulent-ppp-loan-total-hits-1-billion/) **Published:** September 3, 2020 **Author:** Kelly Phillips Erb **Content:** The feds have made another arrest in a Paycheck Protection Program (PPP) loan fraud case. This time, it’s an attorney facing charges. Jae H. Choi, who has an office in Fort Lee, New Jersey, [has been accused](https://www.justice.gov/opa/pr/new-jersey-attorney-charged-fraudulently-obtaining-9-million-loans-meant-help-small) of fraudulently obtaining nearly $9 million in PPP loans. Choi has been charged with three counts of bank fraud and one count of money laundering. According to the complaint, Choi submitted three fraudulent PPP loan applications to three different lenders on behalf of three businesses that allegedly provided educational services. The Department of Justice did not release the companies’ names, but a LinkedIn profile matching Choi’s educational and legal info tags him as the CEO of Homeschool Buyers Co-op and MathCloud. Choi allegedly told lenders the companies had hundreds of employees and paid over $3 million in monthly wages. To do this, he reportedly fabricated the existence of those employees, manipulated bank and tax records, and falsified a driver’s license on the applications. According to the Department of Justice, based on those representations, each lender funded the three businesses with approximately $3 million in PPP loans. As a result, the complaint alleges that Choi received nearly $9 million in total. The feds claim that Choi did not use the PPP loans for those businesses. Instead, they claim that he used loan proceeds to pay for personal expenses, including purchasing a nearly one-million-dollar home in Cresskill, New Jersey, and approximately $30,000 in remodeling and other improvements. Choi also allegedly invested millions more in the stock market through an account held in his spouse’s name. It’s unclear what kind of law Choi practiced before his arrest, but a lawyer.com profile indicates that Choi [focuses on patent law](https://www.lawyer.com/firm/law-office-of-jae-choi-associates-p-c-nj.html). According to the New York State Unified Court System and the New Jersey Courts, Choi has no previous record of public discipline. The PPP, which was part of the CARES Act, consists of billions of dollars in forgivable loans guaranteed by the Small Business Administration (SBA) intended to keep workers on the payroll. But mistakes have been made. A recent report by the House Select Subcommittee on the Coronavirus Crisis advised that over $1 billion in COVID relief went to companies in violation of the program’s rules. Specifically, 10,856 loans (totaling more than $1 billion) appeared to be multiple loans to the same recipient. The report also found more than 600 loans (totaling more than $96 million) went to companies that have been debarred or suspended from doing business with the federal government. And there were also more than 350 loans (totaling more than $195 million) that went to government contractors previously flagged by the federal government for performance or integrity issues. The feds promise more cases like this as they investigate fraud allegations. Other high-profile arrests have been tied to PPP loan fraud. In May of this year, David A. Staveley (a/k/a Kurt D. Sanborn) of Andover, Massachusetts, and David Butziger of Warwick, Rhode Island, were accused of conspiring to illegally obtain funds through the PPP loan program. Shortly after his indictment, Staveley disappeared. According to federal authorities, David A. Staveley apparently cut off his GPS-monitoring device. The U.S. Attorney’s office said Staveley then faked his own death by staging a suicide with a note in his car. The United States Marshals Service eventually apprehended him in Alpharetta, Georgia, on July 23, 2020. And in July, I reported the arrest of a Florida man charged with fraudulently obtaining $3.9 million in PPP loans and using those funds, in part, to purchase a 2020 Lamborghini Huracan sports car. As part of my reporting on these stories, I spoke with Jeff Grant, who said he understood them all too well: he served almost fourteen months in federal prison for a white-collar crime. That crime involved improperly taking a low-interest SBA loan after 9/11 (similar to the PPP loans but without the forgiveness part). Grant and I discussed the temptation to cheat the system and the consequences (you can [listen to it here](https://www.taxgirl.com/2020/07/12/desperation-and-loans-in-a-time-of-crisis/)). This won’t be the last of these kinds of arrests: the authorities have indicated that investigations are ongoing. This case was investigated by IRS Criminal Investigation, the U.S. Postal Inspection Service, the Small Business Administration Office of the Inspector General, and the Social Security Administration Office of the Inspector General. The government asks anyone with information about attempted fraud involving COVID-19 to report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the [NCDF Web Complaint Form](https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form). 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Prosecutions, Felonies and Misdemeanors **Tags:** IRS-CI, Jae Choi, PPP fraud --- ### [How The Pandemic Has Impacted Job Growth In The Tax & Accounting Fields](https://www.taxgirl.com/2020/09/07/the-pandemic-impact-on-employment-growth/) **Published:** September 7, 2020 **Author:** John Luckenbaugh **Content:** One of the biggest fears right now for students and recent grads is finding a decent job. Job opportunities vary drastically with the economy. The projected job outlook for 2018-2028 was expected to be a relatively healthy 6%. However, COVID is expected to change those numbers even more. Where do we stand today with employment growth and opportunities? The uncertainty may leave many employees and employers fearful. Kelly invites master’s student Ryan O’Keefe, who is currently interning in tax and accounting. Ryan shares an inside look at how things are currently operating during this unique time. # **How Ryan Continues to Build His Career During The Pandemic**   Ryan O’Keefe is studying for his master’s in tax and accounting and is also currently interning on an eight-week contract with Rubin Brown. Ryan is living the experience of seeking new opportunities and building his career in tax and accounting, while the economy and career landscape remain uncertain and constantly changing. Tune in to this week’s episode to hear what Ryan is experiencing, how he’s handling it, and what he hopes and expects as he moves forward in his career. ## **Listen to Kelly and Ryan O’Keefe discuss Employment & COVID-Related Challenges, including:**  - How Ryan Gravitated to Tax and Accounting - Ryan’s College Experience - Ryan’s Internship with Rubin Brown Las Vegas - CPA Exams Affecting Hire - Dealing with Anxiety of the Current Unknown Employment Opportunities - Will School Uptick Due to Employment Pauses - Relocating for Job Opportunities - Pros and Cons of Virtual Learning and Zoom Conferences - Networking and Staying Involved During Covid-19 - Pressure of Working During Pandemic as a New Employee ### **About Kelly:**  Kelly Phillips Erb created and hosts the Taxgirl podcast, your home for tax news, tax info, and tax policy. In each episode, she shares conversations about taxes, money, and the choices we make. Kelly is a tax attorney who works with taxpayers and tax practitioners like you every day. She helps folks out of tax jams, and hopefully, keeps others from getting into them. You can find out more about Kelly [here](https://www.taxgirl.com/about-taxgirl/) and you can follow her on [Twitter](https://x.com/taxgirl), [Facebook](https://www.facebook.com/taxgirl), [Instagram](https://www.instagram.com/therealtaxgirl), and [Linkedin](https://www.linkedin.com/in/taxgirl/). ****To subscribe to the podcast (it’s free!) using Apple, Spotify, or your favorite listening app,** [**click here**](https://www.taxgirl.com/taxgirl-podcast/podcast-subscription/)**.**** ### **Links:**  Kelly’s Website: [Taxgirl](https://www.taxgirl.com/) [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=How%20The%20Pandemic%20Has%20Impacted%20Job%20Growth%20In%20The%20Tax%20%26%20Accounting%20Fields&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2020%2F08%2FEp-9-Feature.jpg&p%5Btitle%5D=How%20The%20Pandemic%20Has%20Impacted%20Job%20Growth%20In%20The%20Tax%20%26%20Accounting%20Fields "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=How%20The%20Pandemic%20Has%20Impacted%20Job%20Growth%20In%20The%20Tax%20%26%20Accounting%20Fields "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=How%20The%20Pandemic%20Has%20Impacted%20Job%20Growth%20In%20The%20Tax%20%26%20Accounting%20Fields&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Careers, Podcast, Tax Professionals **Tags:** COVID, employment, IRS, job growth, kellyerb, kellyphillipserb, pandemic, podcast, Rubin Brown, Ryan O'Keefe, tax, tax jobs, tax profession, taxcode, taxgirl --- ### [Helping Out After Hurricane Harvey: Where, What & How To Donate (UPDATED)](https://www.taxgirl.com/2017/08/28/helping-out-after-hurricane-harvey-where-what-how-to-donate/) **Published:** August 28, 2017 **Author:** Kelly Phillips Erb **Excerpt:** Looking to help out after Hurricane Harvey? Here are some tips to get started, including how and where to donate, as well as what you need to know to claim a tax deduction. **Content:** (Author’s note: Updated to include more volunteer and donation opportunities. I’m continuing to update this post as information becomes available.) Hurricane Harvey made landfall over the weekend. The Category 4 hurricane crashed into the Texas coast, devastating families and businesses. At least two people have been reported dead, and estimates place the total cost of property damage and lost business in the tens of billions. If that isn’t bad enough, Harvey hung on after it hit, dumping water on coastal Texas, including the Houston area. Many people are in danger from flooding, while others have lost homes and property. Houston is the fourth most populous metropolitan area in the country: over two million people call the city home, while the metropolitan area counts nearly 6.7 million as residents. By geography, the Houston metropolitan area covers 9,444 square miles, larger than the state of New Jersey. I know that many of you, like me, want to know what you can do to help out. Some of the tax rules that apply to charitable donations – like checking to see that the organization has its paperwork in order – are good rules to follow even if you’re not claiming a tax deduction. So with that in mind, here are a few tips to keep in mind when helping out during Harvey: - **Cash is king.** While you may want to send food and other items, the infrastructure may not support those donations. Many organizations have been clear that cash, or cash equivalent, is preferred (but keep reading). Keep receipts if you intend to claim those donations on your tax return. - **Stay put.** Yes, we all want to get in our cars and help, but don’t rush to help without checking first. Professionals and trained volunteers are already on the scene, and because of the potential for more flooding, relief officials have asked folks to stay off the roads where possible. If your services are needed and you volunteer, remember you can claim a tax deduction for out-of-pocket expenses, but not for your time. - **Be smart.** Be wary of personal solicitations on your doorstep or over the phone. Make sure that gifts made by check or credit card are secure. And don’t send money by text or using apps like Venmo without first verifying the organization and the contact information. If you don’t want to donate online or by text, most organizations offer alternatives, like donation forms you can mail with a check (never send cash through the mail). Always keep excellent records of donations since the IRS requires that you do so for tax purposes – and having the information available is handy if you want to follow up with another donation. - **Do your homework.** Check out the credentials of a potential donee/charitable organization before you donate. [Charity Navigator](https://www.charitynavigator.org) is useful for gathering information about existing charities and has a Hurricane Harvey-specific section. Forbes has its own list of the largest charities in the US complete with details on revenues, corporate pay, fundraising efficiency, and more (just click on the individual charity’s name for more info). Finally, you can always confirm charitable status through the IRS website using the [EO Select Check Tool](https://apps.irs.gov/app/eos/). Remember that some organizations (like churches) may not be listed, so don’t be afraid to ask organizations that don’t appear on the list for more information. - **Check with the organization first.** While most organizations prefer cash, some solicit in-kind donations (see below). Those wish lists may change as needs are assessed and storage for items may be limited. Check with the organization before you send or drop off anything. And if you’re planning to claim a tax deduction for any in-kind goods, be sure to keep receipts showing what you paid for the items. - **Use caution when donating to individuals.** For tax purposes, you can only deduct contributions to qualified tax-exempt charitable organizations. Donations to individuals are never deductible for tax purposes, even if the individuals are really deserving. But there’s another, non-tax reason to use caution: money solicited for individuals could be part of a scam, and even if it’s not, the money might not be spent as advertised. Keep in mind that once you hand over the cash, you have no control over how it’s used. - **Rely on oldies but goodies.** There’s nothing wrong with new charitable organizations, but there is something to be said for those that have been around for a while – like the [Red Cross](http://www.redcross.org). Brand new organizations may not have the facilities in place to offer the most effective relief – or they could be scams. Use caution before handing over your cash. - **Pay attention to the rules.** The rules for charitable giving apply even in extraordinary situations, although sometimes those rules may be tweaked to allow for more generosity. Stay informed. Be sure to document your gifts and get receipts. And never hesitate to ask the charitable organization or your tax professional if you have questions. (For more tips on making your charitable donations count for tax purposes, check out [this article](https://www.taxgirl.com/12-tips-for-making-your-charitable-donation-tax-deductible/)). If you want to help but aren’t sure where to start, tax-exempt charities that have indicated they are accepting Harvey-specific donations include: - **American Red Cross.** To make a financial donation, visit [their website](http://www.redcross.org), call 1.800.RED CROSS, or text HARVEY to 90999 to make a $10 donation for those in need. - **Catholic Charities of USA.** To make a financial donation, visit CCUSA’s disaster-specific website or text 71777 to donate. - **Donors Choose** has a fundraising campaign earmarked specifically for classrooms affected by Harvey. To donate or find out more, click [here](https://www.donorschoose.org/hurricane-harvey). - **Global Giving.** To make a financial donation, visit [their website](https://www.globalgiving.org/projects/hurricane-harvey-relief-fund/) or text HARVEY to 80100 to donate $10 to the Hurricane Harvey Relief Fund. - **Hurricane Harvey Relief Fund.** Houston Mayor Sylvester Turner established the Hurricane Harvey Relief Fund, which accepts tax-deductible donations. The Greater Houston Community Foundation, a 501(c)(3) public charity, administers the fund. To donate, visit [the GHCF website](http://www.ghcf.org). - **Salvation Army.** To make a financial donation, visit [www.helpsalvationarmy.org](http://www.helpsalvationarmy.org), call 1.800.SAL ARMY, or text STORM to 51555. - **Save the Children** opened a child-friendly space in San Antonio and will open additional spaces in the coming days; these safe, well-supervised areas within shelters let children play, socialize, and begin to recover from the disaster. To support Save the Children’s response efforts, visit [their website](https://www.SavetheChildren.org) or text Hurricane to 20222 to donate $25 to the Hurricane Harvey Children’s Relief Fund. - **United Way of Greater Houston** has established a Flood Relief Fund to help with recovery needs of those most impacted. To give to the United Way Flood Relief Fund, visit unitedwayhouston.org/flood or text UWFLOOD to 41444. (Please note that these are not endorsements of a specific charity. If you’re not a fan of the organizations listed, many other charities would welcome your support.) Corporate donor sites and giving challenges include: - **GoFundMe** has created a landing page that aggregates the campaigns already created to help those affected by Harvey. - **4 Paws Farm**, a 501c(3) charity, will be providing aid for animals affected by Hurricane Harvey. - **AKC Reunite** has announced that Barbara and Bob Amen (Delegate, Greater St. Louis Training Club) will match dollar-for-dollar donations up to $10,000 to AKC Reunite’s Pet Disaster Relief Fund. The fund helps families safely evacuate with their pets. The challenge applies to any donations received between August 29 and September 20, 2017. - **American Humane** is providing emergency aid, including first responders and a specialized 50-foot rescue vehicle to Texas to help the animal victims of the disaster. - Peer-to-peer payment app **Circle Pay** is making it easy for users to donate. Circle has donated $50,000 to the Red Cross and will match every dollar sent through the app for anything (dinner, rent, a taxi, etc.) up to $150,000 through September 1. - **J.J. Watt** of the **Houston Texans** has created a fundraiser for the Houston Flood Relief Fund. Watt contributed $100,000 of his own money, and together with donors including other NFL organizations, players, and the owner of the Tennessee Titans, Amy Adams Strunk, who made a million-dollar donation earlier today, the fund has surpassed $10 million. - **Lowe’s** has activated its customers’ donation program in Texas stores. Customers can also donate to the American Red Cross online. Lowe’s Heroes volunteers from area stores will join the First Response Team of America to help Aransas Pass residents recover from Hurricane Harvey. - **Lyft** has added the American Red Cross to their Round Up & Donate feature, enabling riders to round up their Lyft fares and donate the difference to the American Red Cross from now until the end of September with just one tap. Lyft is also donating $100,000 to the Hurricane Harvey Relief Fund. - **Panda Express** will offer in-store donation boxes through September 15. Donations, including $500,000 from the Panda Cares Foundation, will be split between the American Red Cross and the Tzu-Chi Foundation. Open Panda Express locations are helping to provide food to the American Red Cross and shelters, as well as hospital staff, doctors, and patient families at Texas Children’s Hospital. - **Starbucks** has donated $250,000 to relief efforts.  Customers in any U.S. company-operated store who want to help can donate to the American Red Cross at the register. Additionally, Starbucks employees who make a personal contribution to the relief efforts can request matching funds through the company’s Partner Match program (pro tip: ask your company if they have a donor match program). - **Tito’s Vodka** is partnering with the American Red Cross and will match dollar for dollar all donations up to $50K. - Dan Friedkin, chairman of Houston-based Gulf States **Toyota**, has established the Friedkin Disaster Relief Fund and has guaranteed at least $1 million in funding from the Friedkin Family, The Friedkin Group, and Gulf States Toyota. - **United Airlines** will match the first $100,000 raised through its [charitable campaign](https://www.crowdrise.com/uaharveyrelief). United MileagePlus members who donate at least $50 to any of United’s charitable partners will receive up to 1,000 bonus miles. Remember that for tax purposes, if you receive something of value in exchange for a donation, your charitable deduction must be reduced accordingly. Beyond financial donations, what else can you do? - **Austin Pets Alive** is seeking families that can foster cats and large dogs. In addition to cash donations, the organization can also use *in-kind donations* like large plastic or metal bins with lids. Space is limited, so check with the organization before you gather supplies. If you can help with fostering or in-kind donations, check out their website for details. (Vodka for Dog People, **Tito’s Vodka** pet cause program, is also donating $10K to Austin Pets Alive) - The [**SPCA of Texas**](http://www.spca.org) has also issued a call for foster homes to help care for animals already in shelters and those coming from the Gulf Coast. The organization is also accepting financial donations and in-kind donations, including cat litter, litter boxes, towels, blankets, large wire crates, toys, treats, pet beds, newspaper, and gas gift cards. - The **Houston Food Bank** is looking for volunteers. Registered volunteers can now sign up for shifts. To be notified when volunteers are needed, text DisasterVol to 51555. - In addition to donations, **Samaritan’s Purse** is looking for volunteers in the coming days to assist homeowners affected by Hurricane Harvey. Work will include tearing out damaged drywall, removing flooring, tarping roofs, and clearing debris. - The **Texas State Bar** is connecting Texas lawyers adversely affected by the storm with other lawyers who can help with needs including temporary housing, office space, and cleanup services. Additionally, the Texas Supreme Court has amended its orders to allow out-of-state lawyers to practice temporarily in Texas to assist with disaster relief. - The **Missouri City Recreation & Tennis Center** needs the following items: blankets and towels, Pillows, Air mattresses, Toiletries, and Pre-packaged, non-perishable snacks. - If you have a spare room and can host someone, you can list your home on **Airbnb** for free, with no service fees. If you are in Austin, Dallas, San Antonio, or another part of Texas not experiencing flooding, consider listing your space so displaced people have more options. - Donations of *blood* are also needed. You can’t claim a tax deduction for giving blood, but it sure is a terrific way to help. Find your nearest donation center by entering your zip code [here](http://www.redcrossblood.org/rcbmobile/drive/driveSearch.jsp?utm_campaign=rco_search&utm_medium=rco_blood&utm_source=redcross.org). - I know from past disasters that if you’re able to write a handwritten note or two and send it to those who are on the front lines of these disasters, including police and fire departments, schools, and churches, to offer your good wishes, it is typically appreciated. If you know of other specific requests, please let me know by leaving them in the comments below, sending an email, or messaging me on [Twitter](www.twitter.com/taxgirl). I’ll update this post as information becomes available. (*Last updated*: August 31 at 11:23 a.m. EST)[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Helping%20Out%20After%20Hurricane%20Harvey%3A%20Where%2C%20What%20%26%20How%20To%20Donate%20%28UPDATED%29&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Helping%20Out%20After%20Hurricane%20Harvey%3A%20Where%2C%20What%20%26%20How%20To%20Donate%20%28UPDATED%29 "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Helping%20Out%20After%20Hurricane%20Harvey%3A%20Where%2C%20What%20%26%20How%20To%20Donate%20%28UPDATED%29 "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Helping%20Out%20After%20Hurricane%20Harvey%3A%20Where%2C%20What%20%26%20How%20To%20Donate%20%28UPDATED%29&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Charitable Organizations **Tags:** disaster relief, Hurricane Harvey, natural disaster --- ### [Here's What’s In The ‘Skinny’ Senate Stimulus Bill](https://www.taxgirl.com/2020/09/12/heres-whats-in-the-skinny-senate-stimulus-bill/) **Published:** September 12, 2020 **Author:** Kelly Phillips Erb **Content:** It looks like Senate Majority Leader Mitch McConnell (R-KY) may bring a vote on the Senate “skinny” bill – the latest coronavirus relief bill. Why is it skinny? It has a slimmer price tag – and fewer benefits – than before. ### Some Quick History In May, House Speaker Nancy Pelosi (D-CA) announced a $3 trillion COVID-19 economic relief proposal known as the Health and Economic Recovery Omnibus Emergency Solutions Act, or HEROES Act. The Senate countered in July with a series of proposals called the Health, Economic Assistance, Liability Protection, and Schools Act, or HEALS Act, which weighed in at about $1 trillion. The idea was to meet in the middle. That’s how we arrived at the “Delivering Immediate Relief to America’s Families, Schools and Small Businesses Act” introduced by the Senate, which is [estimated to cost](https://www.bloomberg.com/news/articles/2020-09-08/mcconnell-aims-for-vote-on-senate-republican-stimulus-this-week) (checks notes) $500 billion. The bill largely reflects a draft proposal that the GOP introduced in August. ### Tax & Small Business Highlights **Protection against litigation.** Near the top of the Act, the Senate established, as a priority, barring certain lawsuits due to COVID, writing that, “CARES Act funds cannot be diverted from these important purposes to line the pockets of the trial bar.” And hammering home their intent, the Senate bill claims that “\[t\]hese lawsuits also risk diverting taxpayer money provided under the CARES Act and other coronavirus legislation from its intended purposes to the pockets of opportunistic trial lawyers.” Several pages later, we get to the meat of the provision, which states that Congress “must act to set rules governing liability in coronavirus-related lawsuits.” The rationale for the protections and the definitions which would offer liability protections for employers, schools and health care providers go on for about 70 pages. **Extension of Unemployment Benefits.** The bill would extend the program that ended on July 31, 2020, to December 27, 2020. However, it would reduce the amount from $600 per week to $300. **Paycheck Protection Program Continuation.** The bill would allow for another round of PPP loans totaling about $258 billion. As before, the proposal would expand the definition of allowable expenses to include those used to pay for any software, cloud computing, human resources, payroll, billing and accounting; costs related to “property damage and vandalism or looting due to public disturbances” that occurred during 2020 not covered by insurance; supplier costs; and worker protection related to social distancing, sanitation or other safety requirements. The Senate proposal also clarifies that lenders may rely on loan certification or documentation submitted by borrowers and would extend the covered period and allow the borrower to elect a covered period between eight weeks after origination and December 31, 2020. **PPP Second Draw Loans**. The Senate proposal would allow the hardest-hit small business owners to receive a second PPP loan – and still qualify for forgiveness. **PPP Loan Caps.** The Senate proposal officially reduces the maximum amount borrowers may receive under the first round of PPP funding from $10 million to $2 million but allows borrowers eligible for a bigger loan as a result of “any interim final rule that allows for covered loan increases” to ask for an increase even if the initial covered loan amount has been fully disbursed, or if the lender has already submitted a report. **PPP Targets.** The Senate proposal creates specific PPP loan calculations for certain farmers and ranchers, allowing lenders to recalculate previously approved loans, and would expand eligibility to include 501(c)(6) organizations – with some restrictions, generally related to size and lobbying. **Postal Service Assistance.** The Senate proposal would also forgive a $10 billion loan to the United States Postal Service (USPS) under certain circumstances. The USPS [does not rely on tax dollars](https://www.taxgirl.com/2018/04/04/us-post-office-will-be-busy-on-tax-day-but-wont-use-taxpayer-dollars/), and the CARES Act money was a loan. **Emergency Education Freedom Grants.** The proposal would allow emergency appropriations funding for scholarship-granting organizations in each state. Any funds received as a scholarship would not be considered income to the recipient for tax purposes or for purposes of determining the eligibility for benefits or assistance under any federal program or under any state or local program funded with federal dollars. **529 Account Funding.** The proposal would allow 529 account distributions through 2028 for expenses “in connection with enrollment or attendance at, or for students enrolled at or attending, an elementary or secondary public, private, or religious school.” Expenses would be expanded to include tuition for tutoring or educational classes outside of the home, including at a tutoring facility (subject to some restrictions); fees for standardized norm-referenced achievement tests, advanced placement (AP) exams, or any exams related to college or university admission; fees for dual enrollment in an institution of higher education; and educational therapies for students with disabilities. It would also include homeschool expenses – you may recall that provision failed to make it into the TCJA at the last minute. But with more homeschoolers now, who knows? **Back to Work Child Care Grants.** The proposal offers assistance to help child care providers stay open. **Charitable Giving Deduction.** Remember the above-the-line $300 deduction authorized under the CARES Act? The Senate bill would double it – and make clear that you get two times the deduction for joint returns (that wasn’t quite clear before). **More, more, more.** Yes, my eyes were watering at this point, too, but there are pages and pages to go, including provisions for “Critical Minerals” (funding the coal industry) and appropriations (largely for schools and medical expenses). Those are less tax-focused so I won’t summarize them here – you can read them on your own if you have interest (the link to the bill is at the bottom of the piece). ### What’s Not In The Bill **Stimulus Checks.** The Senate proposal *does not* include funding for a second round of stimulus checks at any dollar amount. **State & Local Funding.** It also includes no additional funding for state and local governments (something Democrats wanted). ### Does It Have A Chance? The bill is expected to win a majority vote in the Senate, with GOP leaders claiming they have the votes. However, it’s not expected to garner the 60 votes needed to overcome any filibuster. It almost doesn’t matter what happens, since it won’t get far in the House: Senate Minority Leader Chuck Schumer (D-NY) and Speaker Pelosi [have already declared](https://www.speaker.gov/newsroom/9820), “Senate Republicans appear dead-set on another bill which doesn’t come close to addressing the problems and is headed nowhere.” [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Here%E2%80%99s%20What%E2%80%99s%20In%20The%20%E2%80%98Skinny%E2%80%99%20Senate%20Stimulus%20Bill&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Here%E2%80%99s%20What%E2%80%99s%20In%20The%20%E2%80%98Skinny%E2%80%99%20Senate%20Stimulus%20Bill "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Here%E2%80%99s%20What%E2%80%99s%20In%20The%20%E2%80%98Skinny%E2%80%99%20Senate%20Stimulus%20Bill "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Here%E2%80%99s%20What%E2%80%99s%20In%20The%20%E2%80%98Skinny%E2%80%99%20Senate%20Stimulus%20Bill&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Politics **Tags:** CARES Act, HEALS Act, Mitch McConnell, Senate Skinny Bill --- ### [IRS Offers Reward For Code Crackers As It Ramps Up Crypto Efforts](https://www.taxgirl.com/2020/09/14/irs-offers-reward-for-code-crackers-as-it-ramps-up-crypto-efforts/) **Published:** September 14, 2020 **Author:** Kelly Phillips Erb **Content:** When the IRS signaled that it was getting serious about cryptocurrency, the agency wasn’t kidding. The IRS is now offering cash to anyone who can “reliably produce useful results on a variety of real-world CI cryptocurrency investigations involving Monero and/or Lightning.” That’s right: they are looking for code crackers. The IRS has made no secret that it believes that taxpayers are not correctly reporting cryptocurrency transactions. An IRS dive into the data showed that for the 2013 through 2015 tax years, when the IRS matched data collected from Form 8949, Sales and Other Dispositions of Capital Assets, which were filed electronically, they found that just 807 individuals reported a transaction using a property description likely related to bitcoin in 2013; in 2014, that number was only 893; and in 2015, the number fell to 802. ### Cryptocurrency Compliance Efforts A new cryptocurrency compliance measure for taxpayers was [introduced in 2019](https://www.taxgirl.com/2019/10/12/irs-adds-cryptocurrency-question-to-form-1040/) as a checkbox at the top of Schedule 1, Additional Income and Adjustments to Income (Schedule 1 is used to report income or adjustments to income that can’t be entered directly on the front page of Form 1040). In 2020, the IRS noted that it would post a cryptocurrency question right on the front page of your Form 1040. In 2019, the IRS also announced that it was sending letters to taxpayers who might have failed to report income and pay the resulting tax from virtual currency transactions or did not report their transactions properly. The IRS obtained these taxpayers’ names through various ongoing compliance efforts. ### Pilot IRS Cryptocurrency Tracing Now, the IRS is offering what some call a “bounty” to those who can help trace cryptocurrency transactions. Specifically, the IRS has created a pilot that will pay cash (up to $625,000) to anyone who can trace Monero or other anonymity-enhanced cryptocurrency, or Lightning or other Layer 2 off-chain cryptocurrency protocols. The deadline for submissions is Wednesday, September 16, 2020, at 08:00 EDT. No late submissions will be accepted, considered, or evaluated. ### About Privacy Coins This proposal focuses on privacy coins. Privacy coins allow users more anonymity when using cryptocurrency. According to the IRS-CI, privacy coins are becoming more popular not only among investors but also among illicit actors. For example, according to the IRS-CI, in April 2020, a RaaS (Ransomware as a Service) group called Sodinokibi (a former affiliate of the GrandCrab RaaS group) stated that future ransom payments would be in Monero (XMR) rather than Bitcoin (BTC) because of transaction privacy concerns. Bitcoin has become increasingly common since it’s easy to use – even for relative crypto newbies. Bitcoin transactions are on an open ledger (blockchain): that means that the record-keeping system is “public” through a series or chain of blocks, even though the exact identities of the participants (as well as their other details, like account balances) may remain private. This kind of open system encourages transparency but also means that, with some effort, hackers and others – like the authorities – can track down the players in a chain of transactions. The result has been a push in some crypto sectors to completely anonymize all parts of a transaction. Enter privacy coins. Monero is considered the largest privacy coin on the market right now; its technology extends privacy to senders, receivers, and transaction amounts. Other popular privacy coins include Cash (ZEC) and Dash. ### IRS-CI Is Looking For Solutions Now, IRS-CI is looking for solutions which provide “information and technical capabilities for CI Special Agents to trace transaction inputs and outputs to a specific user and differentiate them from mixins/multisig actors for Monero and/or Lightning Layer 2 cryptocurrency transactions with minimal involvement of external vendors” as well as “technology which, given information about specific parties and/or transactions in the Monero and/or Lightning networks, allows Special Agents to predict statistical likelihoods of other transaction inputs, outputs, metadata, and public identifiers with minimal involvement of external vendors.” In other words, they are looking to crack privacy coins. If this sounds out of the ordinary, you’re not wrong. And the IRS acknowledges as much, stating, “For those who are familiar with traditional government procurements, Pilot IRS will appear substantively different from how the government normally buys technology. To be fair, it is… This type of approach is more often used in research and development environments, but there are existing regulations that allow federal agencies to buy commercial items in a manner similar with how the private sector would. Pilot IRS will aggressively pursue a streamlined and cost-effective approach to testing and deploying technology solutions that will have an immediate impact on the government’s mission.” IRS-CI has noted an uptick in criminal syndicates using privacy coins. And authorities have to be able to keep up. An IRS-CI spokesperson stated that, “IRS-CI is responsible for investigating potential criminal violations of the U.S. Internal Revenue Code and related financial crimes. We are also a global leader in cyber-criminal investigations involving cryptocurrency and have played a lead or key role in the takedown of numerous major Darknet Marketplaces and other transnational criminal organizations facilitating identify theft, narcotics trafficking, money laundering, terrorist financing, sex trafficking, and child prostitution.” As a result, he explained, “The IRS Cryptocurrency pilot was developed to create and promote innovation in response to ongoing challenges within IRS-CI in hopes of quickly testing, piloting and/or deploying solutions. Privacy coins continue to be a challenge to law enforcement due to their increased anonymity and specific technological enhancements. Currently, there are limited investigative resources for tracing transactions involving privacy cryptocurrency coins such as Monero, Layer 2 network protocol transactions such as Lightning Labs, or other off-chain transactions that provide privacy to illicit actors. The pilot will look to leverage the knowledge of public/private sector and academia to address these specific challenges.” [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=IRS%20Offers%20Reward%20For%20Code%20Crackers%20As%20It%20Ramps%20Up%20Crypto%20Efforts&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=IRS%20Offers%20Reward%20For%20Code%20Crackers%20As%20It%20Ramps%20Up%20Crypto%20Efforts "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=IRS%20Offers%20Reward%20For%20Code%20Crackers%20As%20It%20Ramps%20Up%20Crypto%20Efforts "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=IRS%20Offers%20Reward%20For%20Code%20Crackers%20As%20It%20Ramps%20Up%20Crypto%20Efforts&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Cryptocurrency, IRS News, Technology **Tags:** cryptocurrency, Lightning, Monero, privacy coins --- ### [What You Need To Know About The Paycheck Protection Program (PPP)](https://www.taxgirl.com/2020/04/08/what-you-need-to-know-about-the-paycheck-protection-program-ppp/) **Published:** April 8, 2020 **Author:** Kelly Phillips Erb **Content:** As COVID-19 continues to impact the United States, the federal government is taking action to ease the burden on taxpayers. Most recently, Congress passed a massive stimulus package that the President signed into law. The stimulus bill (also called the Coronavirus Aid, Relief, and Economic Security Act, or the CARES Act) includes several measures for taxpayers, including stimulus checks. But the law also offers some provisions intended to help businesses. One provision that has gotten a lot of attention is the Paycheck Protection Program, or PPP. The program is precisely what it sounds like: nearly $350 billion in (potentially) forgivable loans to keep workers on the payroll. The coverage has made the loans sound overwhelming. But, for some, it’s just a matter of breaking down the details. For example, to be eligible, a business must meet some essential criteria: - Have no more than 500 employees; - Principal place of business is physically in the United States; and - Operational as of February 15, 2020. So far, so good, right? Here are some answers to more questions about the program: **How do I count employees?** The Small Business Administration (SBA) counts all individuals employed full-time, part-time, or otherwise. You can find out more in the Regulations [here](https://www.law.cornell.edu/cfr/text/13/121.106). **Are there any exceptions to the 500 employee rule?** Yes. Some exceptions apply. Specifically, restaurants and hospitality businesses may qualify if they have 500 or fewer employees per *location*. **Okay, I get it. Exceptions for the hospitality industry. Otherwise, does it matter what my business does or what I do for a living?** Yes, [it matters](https://www.law.cornell.edu/cfr/text/13/120.110). You can’t apply for a business that is engaged in illegal activities, lobbying, significant gambling (more than 1/3 of your revenue), or if you engage in “live performances of a prurient sexual nature or derive directly or indirectly more than *de minimis* gross revenue through the sale of products or services, or the presentation of any depictions or displays, of a prurient sexual nature.” Also, the owners can’t be more than 60 days delinquent on child support obligations, or household employers. **What about farming?** A provision would have excluded farmers and agricultural businesses and instead directed them to Farm Service Agency (FSA) loan programs. However, that’s been changed. **I work for myself. Can I get a loan?** Yes. Sole proprietorships, independent contractors, gig-economy workers, and self-employed individuals are also eligible for a PPP loan. **How much can I get?** You can borrow up to your average total monthly payroll costs during the one year immediately before the loan multiplied by 2.5, or 250% of average monthly payroll expenses. The cap is $10 million. **Even for highly compensated individuals?** Payroll costs are capped at $100,000 (annualized) for each employee. The $100,000 limit does not include healthcare, retirement benefits, and state and local taxes. **What are payroll costs?** Payroll costs include what you’d think: salary, wages, commissions, or similar compensation, as well as tips, for employees in the United States. They also include payments for leave (including vacation, parental, family, medical, or sick leave, but not leave you get a credit for under the Families First Coronavirus Relief Act); severance packages; employee group health care benefits; and state and local taxes on compensation. If you’re an independent contractor or sole proprietor, it refers to your wage, commissions, income, or net earnings. **What about payroll taxes?** Payroll costs do not include federal employment taxes imposed or withheld between February 15, 2020 and June 30, 2020, including Federal Insurance Contributions Act (FICA) and Railroad Retirement Act taxes, as well as income taxes withheld from employees (but you probably already guessed that). **Do payroll costs include the money I pay to independent contractors?** No. **So what can I use the money for?** You can use the money for employee salaries, paid sick or medical leave, insurance premiums, and mortgage, rent, and utility payments. You can also use the funds for family, medical, and sick leave. But you can’t double-dip: no using PPP for qualified sick and family leave wages if you’re taking a tax credit for those costs under the Families First Coronavirus Response Act. **How much will this cost?** There are no [standard 7(a) fees](https://www.sba.gov/sites/default/files/articles/7a_Fees_Effective_for_the_Period_December_21_2019_through_September_30_2020.pdf) on the loan. There may be fees charged by your tax or other professionals to assemble and submit the application. **What about collateral?** Nope. **Personal guaranty?** Nope. **So, long story short, I have struggled with getting a loan before because I got into a little legal trouble years ago. Does that disqualify me?** Not necessarily. But the business would be excluded from the program if one of the owners who holds at least 20% of the equity of the company is currently incarcerated, on probation, on parole; subject to an indictment, criminal information, arraignment, or other means by which formal criminal charges are brought in any jurisdiction; or, has, within the last FIVE years, been convicted or pleaded guilty or *nolo contendere* (no contest) to a felony, or been placed on pretrial diversion, parole or probation (including probation before judgment) for a felony. When looking at ownership, affiliation rules apply. **What is the interest rate?** The interest rate is 1%, and loan payments for any non-forgivable bits will be deferred for six months. **Wait, what’s that part about it being forgiven? Does this mean I don’t have to pay it back?** The loan can be forgiven if all employees are kept on the payroll for eight weeks, AND the loan proceeds are used as intended – that means payroll, rent, mortgage interest, or utilities. **For real?** Yes. That’s the best part. **With no strings?** Of course, there are strings. For example, no more than 25% of the loan forgiveness can be related to non-payroll costs. And since the whole point is to encourage businesses to keep employees, the amount of the loan available for forgiveness will decrease if full-time headcount declines or if salaries and wages fall. You’ll want to pay attention to the details. **What happens when the loan is forgiven? Is that income?** A forgiven loan is typically treated as taxable income, but that is not the case for the PPP. The amount of any forgiven PPP loan will be excluded from gross income. **How long is the program available?** Lenders may begin processing loan applications as soon as April 3, 2020. The Paycheck Protection Program will be available through June 30, 2020. There is some talk that it could be extended (since the money – $349 billion – is going quickly), but that’s the scoop for now. **So can I apply now?** It depends on who you are. Small businesses and sole proprietors could apply as of April 3, 2020. Starting April 10, 2020, independent contractors and self-employed individuals can apply. **Can I apply for two PPP loans?** No. **Let’s say that my business is healthy, but I need to prop up my shore home. Can I say that my business is failing and just use the money for something else? Like a new boat dock?**  No, if you’re caught using loan proceeds for things not related to payroll costs, you’ll have to pay it back. And if the behavior is willful, you could be on the hook for bigger problems, like fraud charges. **Okay, I’m totally using the money for the right reasons. Where can I sign up?** Officially, you can sign up for a PPP loan at any lending institution approved to participate through the existing SBA 7(a) lending program, or through any participating federally insured depository institution, federally insured credit union, or Farm Credit System institution. However, rumor has it that some banks aren’t excited about issuing loans to new customers: consider one that you have an existing relationship with – or a local bank. Check [the SBA tool](https://www.sba.gov/paycheckprotection/find) for a lender near you. **This doesn’t sound that bad… but I’ve been hearing horror stories about the applications. What gives?** I’m just serving up the best bits. The devil is in the details. This is a real loan, so there are some restrictions, and you must provide supporting documentation. Check with your lender or tax professional for more information. **And you knew I was going to ask this, but where can I find the official details in writing?** Check the SBA website for the application and details. **Are there other loan programs available?** Yes, if you don’t want a PPP loan, consider the Economic Injury Disaster Loan program (EIDL). **I’m not sure about a loan. What else can I do to keep my employees on the payroll?** If a loan doesn’t appeal to you, other options are available. One option is the Employee Retention Credit, or ERC, which is designed to help businesses keep employees on the payroll. 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Small Business **Tags:** COVID-19, Paycheck Protection Program, PPP, small business interruption loan --- ### [Man Shoots Fiancee’s Parents, Resulting In Arrests - For Tax Charges](https://www.taxgirl.com/2020/09/18/man-shoots-fiancees-parents-resulting-in-arrests-for-tax-charges/) **Published:** September 18, 2020 **Author:** Kelly Phillips Erb **Content:** On September 23, 2018, police in York County, Pennsylvania, responded to reports of a shooting. When they arrived, they learned that a couple had been shot: Kimberly Forney was struck in her lower leg, and Matthew Forney had been hit twice in his upper chest. The culprit? The couple’s son-in-law, Robert Hedrick. Hedrick [told police](https://www.yorkdispatch.com/story/news/crime/2019/06/21/da-drops-case-against-lower-windsor-man-who-shot-fiancees-parents/1528660001/) that he had been discussing his relationship with Morgan Forney, the couple’s daughter, when the argument turned physical. When Kimberly and Morgan attempted to intervene, a struggle ensued. At that point, Hedrick took possession of Kimberly’s handgun and fired several times, resulting in injuries to Kimberly and Matthew. *Yes, he shot his in-laws. Both of them.* ### Assault Charges Dropped Hedrick was initially charged with two felony counts of aggravated assault and other charges. But in 2019, prosecutors dropped the charges. Hedrick’s attorney, Chuck Hobbs, told a local news outlet that’s likely because of a defense motion to suppress statements Hedrick made to police after the shooting: Hobbs says that Lower Windsor Township Police didn’t advise Hedrick of his Miranda rights before questioning him. Adding to the difficulty in prosecuting the case, Matthew Forney claimed that he couldn’t remember what happened. So, Hedrick didn’t have to face a trial. That feels like enough for a Lifetime TV movie on its own. But it gets more bizarre. ### Tax Charges According to United States Attorney David J. Freed, while securing the residence after the shooting, police officers observed bloody footprints leading through the house to an outside pool house. So off they went to investigate. Inside the pool house, they found a garbage bag which contained a large amount of bundled United States currency. Police obtained and executed a search warrant and found additional bundles of cash attached to daily receipts inside a large gun safe in the residence. The officers then seized the cash and receipts. The investigation ended up with the Internal Revenue Service – Criminal Investigation (IRS-CI). IRS-CI determined that the cash – $817,713 – was actually income that the Forneys earned through their business, but did not report on their federal income tax returns for the years 2014 through 2017. The Forneys reported checks and credit card sales as taxable income on their tax returns but kept the cash and did not report it to the tax authorities. The unreported income for these years totaled $817,713, resulting in $292,066 in unpaid taxes. ### Guilty Pleas Last month, Matthew Forney pleaded guilty to four counts of tax evasion, and Kim Forney pleaded guilty to four counts of aiding in the preparation of false tax returns. According to court documents, Matthew Forney faces a maximum sentence of 20 years in prison for all charges, plus fines totaling $1,000,000, three years of supervised release, the costs of prosecution, denial of certain federal benefits, and an assessment totaling $400. A pre-sentence conference is set for December 15, 2020. According to the York Dispatch, as of last year, Hedrick was still living with Morgan Forney at her mother’s home (yes, that’s Kimberly Forney). Kimberly and Matthew, however, are no longer together. 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Prosecutions, Felonies and Misdemeanors **Tags:** Kimberly Forney, Matthew Forney, tax evasion --- ### [What It Means To Be A Minority In The Tax Industry](https://www.taxgirl.com/2020/09/21/being-a-minority-in-the-tax-industry/) **Published:** September 21, 2020 **Author:** John Luckenbaugh **Content:** Women only make up one-third of the CPA population. But the numbers for people of color are even more scarce. Kelly found that the tax firm industry is made up of about 80% white people, less than 8% Black people, 6% Latino, and 6% Asian American. Those numbers aren’t encouraging. Kelly invites Eric Pierre, a successful Black CPA, to talk about how the numbers show that there is still work to be done. # **Eric’s Success in the Profession While a Minority** Statistically, Eric Pierre is an anomaly: he’s a Black CPA and a tax firm owner. Eric joins Kelly this week to share his success story. Together, they discuss what it means to be a minority in the tax profession, steps to beat the odds, and the importance of making an impact while doing so. ## **Listen to Kelly and Eric Discuss Being a Minority in the Tax and Accounting Profession, including:** - Eric’s Venture from Basketball to CPA - How the Glass Ceiling Led Eric to Firm Ownership - Does Being a Minority Reflect on Work Ethic or Recognition? - Being Seen and Not Heard - Eric’s Outlook on Loving and Forgiving Neighbors - Why Diversity and Trust Make a Difference - The Reasons for the Number Drops in Law Professionals - Individually Focusing Leads to Success - How to Disrupt the Industry for Visibility - Be a Leader & Make a Legacy That Inspires…Make a Change - How to be a Role Model - Understanding Business Cycles - Various Tax Platforms and Professions - Turning Resentment into Challenges ### **About Kelly:** Kelly Phillips Erb created and hosts the Taxgirl podcast, your home for tax news, tax info, and tax policy. In each episode, she shares conversations about taxes, money, and the choices we make. Kelly is a tax attorney who works with taxpayers and tax practitioners like you every day. She helps folks out of tax jams, and hopefully, keeps others from getting into them. You can find out more about Kelly [here](https://www.taxgirl.com/about-taxgirl/) and you can follow her on [Twitter](https://x.com/taxgirl), [Facebook](https://www.facebook.com/taxgirl), [Instagram](https://www.instagram.com/therealtaxgirl), and [Linkedin](https://www.linkedin.com/in/taxgirl/). ****To subscribe to the podcast (it’s free!) using Apple, Spotify, or your favorite listening app,** [**click here**](https://www.taxgirl.com/taxgirl-podcast/podcast-subscription/)**.**** ### **Links:** Kelly’s Website: [Taxgirl](https://www.taxgirl.com/) Eric Pierre: [LinkedIn](https://www.linkedin.com/in/pierreaccounting/) \| [YouTube](https://www.youtube.com/channel/UCO1XWRM-KZpjtlrbHnrYGFg/feed) \| [Instagram](https://www.instagram.com/pierreaccounting/) Pierre Accounting: [Facebook](https://www.facebook.com/pierreaccounting/) [NABA](https://www.nabainc.org/) [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=What%20It%20Means%20To%20Be%20A%20Minority%20In%20The%20Tax%20Industry&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2020%2F09%2Fs1e11.jpg&p%5Btitle%5D=What%20It%20Means%20To%20Be%20A%20Minority%20In%20The%20Tax%20Industry "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=What%20It%20Means%20To%20Be%20A%20Minority%20In%20The%20Tax%20Industry "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=What%20It%20Means%20To%20Be%20A%20Minority%20In%20The%20Tax%20Industry&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Podcast, Tax Professionals **Tags:** CPA, Eric Pierre, kellyerb, kellyphillipserb, minorities, minorities in tax, Pierre Accounting, pierreaccounting, podcast, relationships, smallbusiness, success, tax, taxgirl, taxgirlpodcast --- ### [Nursing Homes & Assisted Living Facilities May Not Seize Your Stimulus Check](https://www.taxgirl.com/2020/05/15/nursing-homes-assisted-living-facilities-may-not-seize-your-stimulus-check/) **Published:** May 15, 2020 **Author:** Kelly Phillips Erb **Content:** There’s a recurring theme in the thousands of emails I’ve received from readers about stimulus checks over the past few weeks, and it goes something like this: *How do I keep my stimulus check from being taken?* The details may change from one taxpayer to the next, but it’s clear many taxpayers worry about their checks being seized. The CARES Act made it clear that the only reason a stimulus check might be offset is for past-due child support. The government may not seize your stimulus check for any other debt, including back taxes. However, once the check hits a taxpayer’s bank account, there is no protection from seizure. One such seizure is particularly egregious: those from nursing homes and assisted living facilities. The Federal Trade Commission (FTC) has [issued an alert urging consumers](https://www.ftc.gov/news-events/press-releases/2020/05/ftc-alerts-consumers-about-nursing-homes-assisted-living) to be on the lookout for nursing homes and assisted living facilities that are requiring residents who are on Medicaid to sign their stimulus checks over to the facilities. Specifically, nursing home and assisted living facilities have been accused of pressuring residents to sign the checks over, claiming that stimulus checks count as “resources” under the rules of federal benefit programs that must be used to pay for services. That’s not true. Remember, stimulus checks are really advanced tax credits. And Lois Greisman, the Elder Justice Coordinator for the FTC, reminds taxpayers that [tax credits don’t count as “resources”](https://www.law.cornell.edu/uscode/text/26/6409) for federal benefits programs like Medicaid. That means that nursing homes and assisted living facilities can’t take that money from residents just because they’re on Medicaid. If you need more legalese, Greisman references this link, which takes you to the Congressional Summary for the CARES Act and notes that tax credits aren’t countable as resources for federal government programs. Greisman advises that if a nursing home or assisted living facility has already taken your stimulus check, you should contact your state attorney general and ask them to help you get it back. Then, she says, tell the FTC. You can also talk with the nursing home or assisted living facility directly, but let’s be real: it can be scary to ask for your money back when you don’t feel like you’re in a position of power. If you feel like you need some muscle on your side, definitely reach out to [your state attorney general](https://www.naag.org/find-my-ag/). If you’re not sure what happened to a check belonging to a loved one who lives in a nursing facility, talk with them soon. I know this is happening because I’ve received many emails wondering how to handle this situation. Now you have your answer. You can find more helpful information from the National Center on Law & Elder Rights for people who live in nursing homes or assisted living facilities. 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual --- ### [The Tooth, The Whole Tooth & Nothing But…](https://www.taxgirl.com/2007/01/21/the-tooth-the-whole-tooth-and-nothing-but-2/) **Published:** January 21, 2007 **Author:** Kelly Phillips Erb **Content:** Okay, it’s a really bad pun. But I couldn’t help it. You see, the latest federal tax evasion trial to make the news involves… a dentist. Yes, not necessarily the profession that you tend to associate with an individual who also has a history with the militia. Let’s face it, dentists have as exciting a reputation as, well, lawyers. Elaine Brown is a former dentist who currently lives in Plainfield, New Hampshire.  She and her husband, Ed Brown, were found guilty of conspiring to defraud the government, conspiring to conceal large financial transactions, and concealing large financial transactions. Elaine Brown was also individually found guilty of fourteen additional felonies, including tax evasion and failure to pay employment taxes for the staff of her Lebanon dental practice. Brown failed to report more than $2 million in income to the IRS, filed false tax returns to conceal income, and eventually failed to file any tax returns. The Browns went so far as to pay their mortgage with money orders to avoid detection by the federal government. The Browns owe more than $625,000 to the IRS. The Browns argued that they were not required to pay taxes. As “tax protestors,” they believe the federal government does not have jurisdiction to tax the money they earn. In fact, rather than argue that the tax debts were the result of a mistake, Ed Brown took the opportunity during his opening statement to argue his own tax policy, claiming, “We will once and for all show beyond the shadow of a doubt – not reasonable doubt, beyond the shadow of a doubt – that the federal income tax system is a fraud.” Before the trial ended, Ed Brown decided not to return to court, charging that the entire procedure was “rigged.” Instead, he returned to his hilltop home to prepare for what he vows will be a fight.  His home is something of a fortress, with 8-inch-thick concrete walls and the ability to function without outside utilities. A bench warrant has been issued for his arrest. He has said on the internet and in radio interviews that he would die before he returned to court. Brown has a history with militia groups including the Constitution Defense Militia, the Constitution Rangers of the Continental Congress of 1777, and the Un-American Activities Investigations Committee. He has stated that he would not leave the home of his own volition to surrender to federal authorities. “Most Americans would cower and cringe and raise their hands and surrender like a good little slave. I won’t. Under no circumstances. I do not tolerate cowardliness, oppression, bulliness, and I certainly don’t tolerate a federal agency that has absolutely zero jurisdiction in my state, never mind in my county, in my town.” Elaine Brown, however, returned to court after her husband’s absence, with the help of a public defender. She considered a plea agreement but ultimately rejected it. After trial, Elaine Brown went to live with her son in Worcester, MA, where she is confined to modified home arrest with the assistance of an electronic monitoring bracelet. The Browns will be sentenced on April 24. Most likely, the Browns will be sentenced to 3 to 5 years in jail each. They will also be required to repay the back taxes, plus interest and penalties.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=The%20Tooth%2C%20The%20Whole%20Tooth%20%26%20Nothing%20But%E2%80%A6&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=The%20Tooth%2C%20The%20Whole%20Tooth%20%26%20Nothing%20But%E2%80%A6 "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=The%20Tooth%2C%20The%20Whole%20Tooth%20%26%20Nothing%20But%E2%80%A6 "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=The%20Tooth%2C%20The%20Whole%20Tooth%20%26%20Nothing%20But%E2%80%A6&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Prosecutions, Felonies and Misdemeanors **Tags:** Ed-Brown, Elaine-Brown, tax evasion --- ### [Fingers Gets Fingered](https://www.taxgirl.com/2007/01/03/fingers-gets-fingered/) **Published:** January 3, 2007 **Author:** Kelly Phillips Erb **Content:** According to blogger Michael Horne at www.milwaukeeworld.com, Major League Baseball pitcher and Hall of Famer Rollie Fingers owes Wisconsin $1,433,609 in income taxes.  That number makes him the seventh-largest tax delinquent in the state. You can see the entire list of delinquents at the [Wisconsin Department of Revenue’s website](https://www.revenue.wi.gov/Pages/Home.aspx). Fingers played in the majors for more than 15 years with the Oakland A’s and the Milwaukee Brewers.  He was inducted into the Baseball Hall of Fame in 1992.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Fingers%20Gets%20Fingered&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Fingers%20Gets%20Fingered "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Fingers%20Gets%20Fingered "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Fingers%20Gets%20Fingered&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Sports and Tax, Taxes of the Rich and (In)famous --- ### [Data, Data Everywhere… And Only A Few Dollars A Pop!](https://www.taxgirl.com/2006/12/18/data-data-everywhere-and-only-a-few-dollars-a-pop/) **Published:** December 18, 2006 **Author:** Kelly Phillips Erb **Content:** That’s right. The IRS has announced that Zip Code Area tables for Tax Years 2002 and 2004 are available for purchase. That’s right, purchase. If you’re racking your brain to remember, yes, this information used to be available for free. The cost is now $25 per state or the bargain bundle price of $500 for the entire United States. The IRS has graciously posted a sample of the data on its website. You can take a peek at the data for… North Dakota.  Yep, North Dakota. No offense to the folks who live in North Dakota, but I’m guessing the Service chose ND for its relatively small amount of data and, let’s face it, lack of demand for such statistics. At any rate, the sample gives you an idea of what you can find out from the reports.  If you’re interested in purchasing the data, contact the IRS Statistics of Income Statistical Information Services Office (say that really fast three times in a row) by phone at (202) 874-0410 or by email at sis@irs.gov.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Data%2C%20Data%20Everywhere%E2%80%A6%20And%20Only%20A%20Few%20Dollars%20A%20Pop%21&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Data%2C%20Data%20Everywhere%E2%80%A6%20And%20Only%20A%20Few%20Dollars%20A%20Pop%21 "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Data%2C%20Data%20Everywhere%E2%80%A6%20And%20Only%20A%20Few%20Dollars%20A%20Pop%21 "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Data%2C%20Data%20Everywhere%E2%80%A6%20And%20Only%20A%20Few%20Dollars%20A%20Pop%21&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** IRS News, Tax Stats **Tags:** tax data --- ### [IRS Announces Additional Tax Relief For Storm Victims](https://www.taxgirl.com/2011/09/08/irs-announces-additional-tax-relief-for-storm-victims/) **Published:** September 8, 2011 **Author:** Kelly Phillips Erb **Content:** We survived Irene. Five days without power and water felt like an eternity, but we were very lucky to otherwise not sustain any real damage. My kids were safe, albeit a little cranky. I realize that not everyone was so lucky, and my thoughts and prayers are with all of you who suffered injury or damage to property. The IRS is offering some relief to taxpayers affected by the storms. Here’s a quick rundown: - Taxpayers who wish to participate in the Offshore Voluntary Disclosure Initiative (OVDI) for foreign accounts have until **Friday, September 9, 2011,** to submit their paperwork. The previous deadline was August 31, 2011. - Taxpayers whose preparers were affected by Hurricane Irene have until **September 22, 2011**, to file returns normally due September 15, 2011. Those returns are largely corporate, partnership, and trust returns on extension – so your Forms 1120, 1120S (for S corporations), and the like. The taxpayer’s preparer must be located in an area that was under an evacuation order or a severe weather warning because of Hurricane Irene, even if the preparer is located outside of the federally declared disaster areas. The relief *does not* apply to payment requirements, just filing requirements. - Additional tax relief, including extensions for individual and business taxpayers impacted by Hurricane Irene in Connecticut, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Puerto Rico, and Vermont, is available. The relief includes additional time for businesses and individuals currently on extension, as well as estimated payments for the third quarter of 2011 (normally due next week, September 15, 2011). So far, specific tax relief applies to the following areas: In Connecticut: Fairfield, Hartford, Litchfield, Middlesex, New Haven, New London, Tolland and Windham; In Massachusetts: Berkshire and Franklin; In New Hampshire: Carroll and Grafton; In New Jersey: Atlantic, Bergen, Burlington, Camden, Cape May, Cumberland, Essex, Gloucester, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Salem, Somerset, Sussex, Union and Warren; In New York: Albany, Clinton, Delaware, Dutchess, Essex, Greene, Montgomery, Nassau, Orange, Otsego, Rensselaer, Rockland, Saratoga, Schenectady, Schoharie, Sullivan, Suffolk, Ulster, Warren and Westchester; In North Carolina: Beaufort, Bertie, Brunswick, Camden, Carteret, Chowan, Craven, Currituck, Dare, Duplin, Edgecombe, Gates, Greene, Halifax, Hertford, Hyde, Johnston, Jones, Lenoir, Martin, Nash, New Hanover, Northampton, Onslow, Pamlico, Pasquotank, Perquimans, Pitt, Tyrrell, Vance, Warren, Washington and Wilson; In Puerto Rico: Arroyo, Aguas Buenas, Caguas, Canovanas, Carolina, Cayey, Cidra, Coamo, Comerio, Humacao, Jayuya, Juncos, Loiza, Luquillo, Orocovis, Patillas, Ponce and San Juan; In Vermont: Addison, Bennington, Caledonia, Chittenden, Orange, Rutland, Washington and Windsor. Other locations are expected to be added following additional damage assessments by the [Federal Emergency Management Agency (FEMA)](http://www.fema.org). The IRS has not yet announced what, if any, relief will be available to those affected by recent flooding in the northeast. From where I sit, it’s pretty grim, and many of us in Pennsylvania are bracing ourselves for the worst. Please stay safe and check back for more details.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=IRS%20Announces%20Additional%20Tax%20Relief%20For%20Storm%20Victims&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=IRS%20Announces%20Additional%20Tax%20Relief%20For%20Storm%20Victims "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=IRS%20Announces%20Additional%20Tax%20Relief%20For%20Storm%20Victims "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=IRS%20Announces%20Additional%20Tax%20Relief%20For%20Storm%20Victims&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual, IRS News **Tags:** Canóvanas Puerto Rico, casualty loss, Federal Emergency Management Agency, Hurricane Irene, Internal Revenue Service, New-Hampshire, New-Jersey, New-York, North Carolina, storm relief, tax extensions, tax-relief, Vermont --- ### [She Doesn’t Want Your Stinkin’ Money…](https://www.taxgirl.com/2006/12/06/she-doesnt-want-your-stinkin-money/) **Published:** December 6, 2006 **Author:** Kelly Phillips Erb **Content:** During my first year of law school, one of my professors told us that the B students become judges. Maybe he was right. You see, it’s been reported that a Pennsylvania Superior Court Judge has taken a stand on statutory pay for judges – but her tax analysis seems to be a little off. Out of our sister city of Pittsburgh, PA, comes the news that Judge Joan Orie Melvin returned her entire paycheck this week to the Commonwealth because of an issue related to the much-disputed pay raise for judges and legislators. For those outside the Commonwealth, the issue involved a substantial pay raise that many legislators felt entitled to in mid-2005, despite concerns about rising taxes and budget shortfalls. Voters were not amused. The pay raise was eventually thrown out a few months later, though judges kept their raises. Melvin, a Pittsburgh native and graduate of the Duquesne University School of Law, received a $17,000 raise. She filed suit to avoid taking the raise, which I have to say was quite admirable. However, Court Administrators insist that she take the full salary, claiming that the salary was set by law. Melvin, however, has declined to take the full amount and this week actually returned her entire paycheck.  According to an account posted by the Pittsburgh Tribune-Review, Melvin won’t accept the checks because she does not want to pay taxes on them, claiming, “Our accountant told us this was the safest way to do it.” Did someone explain to the accountant that isn’t how the Tax Code works?  Income is income when received, or when constructively received. Constructive receipt means you are taxed on income when it’s made available to the taxpayer. You cannot avoid taxation by giving your paycheck to another person, squirreling away checks and not cashing them or, ostensibly, mailing them back to your employer. The technical tax term is that an individual may not “turn his back on income” in order to avoid tax on that income. Like many tax cases, this will probably hinge on the facts, which, granted, I have only gleaned through articles from sources like the *Pittsburgh Tribune-Review* and *Philadelphia Inquirer*. But one fact really stands out: that quote from the Tribune-Review attributed to Melvin’s brother, who said she returned the check because she didn’t want to pay taxes on the amount. On its face, that fact is a loser for Melvin. You can’t return income to avoid paying taxes. That said, I admire Melvin’s chutzpah. She apparently took a stand, and she’s willing to stick to her guns. Bravo. I just don’t think she has the tax part exactly right. I suspect, unless there’s something we don’t know yet, that she’ll be responsible for tax on the entire amount of her statutory pay. But thanks, Judge Orie Melvin, for trying to do the right thing by returning the check. I suspect voters will appreciate it come next year.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=She%20Doesn%E2%80%99t%20Want%20Your%20Stinkin%E2%80%99%20Money%E2%80%A6&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=She%20Doesn%E2%80%99t%20Want%20Your%20Stinkin%E2%80%99%20Money%E2%80%A6 "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=She%20Doesn%E2%80%99t%20Want%20Your%20Stinkin%E2%80%99%20Money%E2%80%A6 "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=She%20Doesn%E2%80%99t%20Want%20Your%20Stinkin%E2%80%99%20Money%E2%80%A6&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual, Prosecutions, Felonies and Misdemeanors, State and Local Tax (SALT) **Tags:** income, Pennsylvania --- ### [The Boy Who Cried Rape](https://www.taxgirl.com/2006/11/28/the-boy-who-cried-rape/) **Published:** November 28, 2006 **Author:** Kelly Phillips Erb **Content:** What’s worse than potentially cheating the US government out of millions of dollars?  Whining about it.  Yes, you guessed it.  There’s [more news on Wesley Snipes to report](https://www.taxgirl.com/just-the-facts-maam/). Wesley Snipes was [previously indicted](https://www.taxgirl.com/i-hear-that-namibia-is-nice-this-time-of-year/) for allegedly claiming more than $12 million in fraudulent refunds and failing to file any tax returns for several years.  A warrant for his arrest has been issued, yet the actor continues to shoot a movie in Namibia. He sent an email to an *Orlando Sentinel* columnist in which he claims that he is a “scapegoat” being persecuted by “a few individuals with access to power, making moves (trying to move up!) and less with some alleged crime against the whole population of the United States of America.”  He went on to compare himself to, yes, a rape victim, rambling, “This reminds me of rape cases where the ‘victim’ is flipped, turned or converted into the role of victimizer, the ‘architect conspirator.'”  Not content there, he goes on to play the race card by stating, “Being a black male who asks questions doesn’t help the situation either.”  Hmm.  He fails to point out that Eddie Ray Kahn, who was the chief co-conspirator in the tax fraud case, is not a black male. He further states that he “will abide by the law, seeking the protections the law affords me and as always seek the advice of competent council \[sic\] in effort to resolve this issue. I’m not running, I’m not a fugitive, despite the misrepresentations in the press.”  Apparently, there’s a little confusion (to the tune of $12 million) as to what “abide by the law means, especially as he opened the email by claiming that “this was almost (10) ten years ago. Why are they coming with this issue now? Were the statutes of limitation running out or what? We thought all issues had been resolved. Guess not, huh?”  The implication is that he was aware that there were issues, and it does beg the question who the competent counsel actually is, as there are exceptions to the statute of limitations rules in cases of fraud, non-filing, and gross under-reporting which any tax attorney would know. To bolster his contention that this is just a case of folks out to get him, Snipes cited two previous incidents:  a 2003 paternity suit filed against him in New York that was ultimately dismissed and the loss of his $1.7 million Florida home in a separate foreclosure case.  He fails to mention his detention last year at Johannesburg Airport when he was caught with a fraudulent passport; his visa status in South Africa is currently “undesirable.”  But maybe that’s part of the conspiracy, too? Just when you thought it couldn’t get any crazier…[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=The%20Boy%20Who%20Cried%20Rape&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=The%20Boy%20Who%20Cried%20Rape "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=The%20Boy%20Who%20Cried%20Rape "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=The%20Boy%20Who%20Cried%20Rape&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Prosecutions, Felonies and Misdemeanors, Taxes of the Rich and (In)famous **Tags:** tax-fraud, Wesley-Snipes --- ### [Street Fight](https://www.taxgirl.com/2006/11/28/street-fight/) **Published:** November 28, 2006 **Author:** Kelly Phillips Erb **Content:** Putting a period (or perhaps an ellipsis) at the end of a three-year investigation, T. Milton Street, Sr., the brother of Mayor John F. Street of my own City of Philadelphia, was indicted Tuesday on tax and fraud charges involving $2 million worth of city contracts. The indictment alleges that beginning in 2000, the same year that his brother, John Street, began his stint as Mayor of Philadelphia, Milton Street promoted himself as a paid consultant to area businesses who believed he could help them get city business because of his position. One such example involved contracts with companies doing business at two city-owned airports even though he had no experience in the field. Over the next four years, Milton and his company, the oh-so-cleverly named “Notlim,” received more than $2 million in “consulting” and other income. More or less, everyone in Philly knew this was happening, and publications like the Philadelphia Inquirer widely reported it. Milton apparently forgot to report it to the one that mattered: the IRS. On his 2000 tax return, in which he allegedly received at least $75,000 in income, Milton reported only $19,900. He is also charged with significantly underreporting his income in 2001. He allegedly failed to file a federal tax return for 2002, 2003, and 2004. Prosecutors charged Milton and two other businessmen with mail and wire fraud, filing false tax returns, and related counts. The always colorful Milton showed no remorse at the charges, saying, “I am not going to lose any sleep.  Let’s face it: They didn’t get John, they have to go after somebody.” Despite reports of income attributable to him, Milton filed for bankruptcy last November, claiming he had $75,000 in unsecured debt and income of only $900 a month.  A judge dismissed the bankruptcy claim, in part because Milton, who lives in Moorestown, New Jersey, filed the suit in Pennsylvania. Milton is no stranger to controversy. Long before the federal investigation, Milton has been at the center of many disputes involving such organizations as Live 8 and Ride the Ducks. In keeping with his history, Milton told *Inquirer* reporters, “I’ve been through lots of battles, lots of battle scars. I’ll be OK.”[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Street%20Fight&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Street%20Fight "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Street%20Fight "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Street%20Fight&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Prosecutions, Felonies and Misdemeanors, State and Local Tax (SALT) **Tags:** Milton Street, Philadelphia --- ### [Please Sir, Can I Have Some More?](https://www.taxgirl.com/2006/11/14/please-sir-can-i-have-some-more/) **Published:** November 14, 2006 **Author:** Kelly Phillips Erb **Content:** [As previously reported](https://www.taxgirl.com/fees-fees-fees/), the IRS appears to be on a fee-raising binge… And they’ve struck again! According to the IRS, as of the first of the year (January 1, 2007), fees for installment agreements will increase as follows: - The fee for new direct debit installment agreements, where payments are deducted directly from a taxpayer’s bank account, will increase from $43 to $52. - The fee for other new installment agreements will increase from $43 to $105. - The fee to restructure an existing or reinstate a defaulted installment agreement will increase from $24 to $45. These fees will also apply to the [online payment agreements](https://www.taxgirl.com/the-devil-er-irs-to-pay/). Averaged together, this represents an increase of nearly $12 per agreement. You think that doesn’t add up? Last year, taxpayers reached agreement on 2.8 million payment plans. At an average increase of $12 per plan, that adds up to $33.6 million – which is the total cost of the entire Housing and Urban Development budget for the fiscal year 2007.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Please%20Sir%2C%20Can%20I%20Have%20Some%20More%3F&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Please%20Sir%2C%20Can%20I%20Have%20Some%20More%3F "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Please%20Sir%2C%20Can%20I%20Have%20Some%20More%3F "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Please%20Sir%2C%20Can%20I%20Have%20Some%20More%3F&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Collections, Individual, IRS News --- ### [The Devil, Er, IRS, To Pay](https://www.taxgirl.com/2006/10/23/the-devil-er-irs-to-pay/) **Published:** October 23, 2006 **Author:** Kelly Phillips Erb **Content:** In part of its efforts to get more money faster and be more taxpayer-friendly, the [IRS](http://www.irs.gov) has finally brought its Installment Plan Agreement online. The OIA is not to be confused with the OIC, the Offer in Compromise, which lets you apply to reduce the total tax due because it is not your debt or because you cannot pay. The OIA is a mechanism that allows you to pay the total amount of tax due (including any applicable interest and penalties) over a timeframe agreeable to the IRS. More importantly, you must be compliant to file the OIA. Compliant means you are up to date on filing and paying all taxes (except, of course, the taxes you are applying for). The OIA is available to taxpayers who owe $25,000 or less to the IRS. The OIA may be available to taxpayers who owe more, but the IRS will likely require additional financial information filed together with a federal Form 433-F. Curiously, the OIA is not available 24 hours per day, but only at the following times: Monday – Friday     6:00 a.m. – 12:30 a.m. Eastern Time Saturday     6:00 a.m. – 10:00 p.m. Eastern Time Sunday     4:00 p.m. – 12:00 a.m. (midnight) Eastern Time[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=The%20Devil%2C%20Er%2C%20IRS%2C%20To%20Pay&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=The%20Devil%2C%20Er%2C%20IRS%2C%20To%20Pay "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=The%20Devil%2C%20Er%2C%20IRS%2C%20To%20Pay "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=The%20Devil%2C%20Er%2C%20IRS%2C%20To%20Pay&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Collections, Individual, IRS News **Tags:** collections --- ### [An Astor By Any Other Name… Might Still Smell of Urine?](https://www.taxgirl.com/2006/07/26/an-astor-by-any-other-name-might-still-smell-of-urine/) **Published:** July 26, 2006 **Author:** Kelly Phillips Erb **Content:** Following on the heels of the [Lillian Glasser saga](https://www.taxgirl.com/an-end-in-sight/), another member of a wealthy family in America is alleging mistreatment of the rich and famous at the hands of a child. In this case, it is multimillionaire Brooke Astor who is reportedly being mistreated by her 82-year-old son. Her grandson, Philip Marshall, claims the philanthropist sleeps in tattered gowns on a couch that smells of urine because her son, Anthony Marshall, who controls her fortune, will not release funds for better treatment. And if the Astor name isn’t sensational enough for the papers, the court papers filed by Philip Marshall are seeking to have other big names appointed Ms. Astor’s legal guardian in place of Anthony Marshall: Annette de la Renta, the wife of Oscar de la Renta, and J.P. Morgan Chase Bank. The name-dropping doesn’t stop there. According to reports, Henry Kissinger and David Rockefeller have contributed sworn statements used in the court filings. Hang on to your fancy hats, folks. This court battle, scheduled for an August 8 hearing, promises to be a doozy.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=An%20Astor%20By%20Any%20Other%20Name%E2%80%A6%20Might%20Still%20Smell%20of%20Urine%3F&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=An%20Astor%20By%20Any%20Other%20Name%E2%80%A6%20Might%20Still%20Smell%20of%20Urine%3F "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=An%20Astor%20By%20Any%20Other%20Name%E2%80%A6%20Might%20Still%20Smell%20of%20Urine%3F "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=An%20Astor%20By%20Any%20Other%20Name%E2%80%A6%20Might%20Still%20Smell%20of%20Urine%3F&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Estate and Gift Tax, Taxes of the Rich and (In)famous --- ### [H&R On The Chopping Block?](https://www.taxgirl.com/2006/03/22/hr-on-the-chopping-block/) **Published:** March 22, 2006 **Author:** Kelly Phillips Erb **Content:** H&R Block has become the target of several lawsuits alleging wrongdoing. Among them… [California is suing the company,](http://www.consumeraffairs.com/news04/2006/02/ca_hr_block.html) alleging it violated state and federal laws by marketing and providing high-cost refund anticipation loans with interest rates exceeding 500%. The laws that H&R Block is alleged to have broken include those regulating debt collection and contracts, false and deceptive advertising, unfair business practices, and the sharing of individuals’ tax return information. The complaint asks the court to pay restitution and fines, which could total hundreds of millions of dollars. New York has also brought a $250 million suit against the tax preparation giant, alleging that the company improperly marketed money-losing IRAs to its customers. The scheme, according to NY Attorney General Spitzer, has resulted in more fees than interest for 85% of NY customers who purchased the IRA. These lawsuits follow [a settlement filed in December 2005](http://www.consumeraffairs.com/news04/2005/hr_block_payday.html) to resolve claims in 22 states and the District of Columbia related to the company’s controversial payday loans. The settlement terms were not disclosed, but the company will pay claims to eight million customers who took out payday loans between 1989 and 2005. The lawsuits had alleged that the lending practices for these loans were deceptive, resulting in excessive fees and usurious interest rates. A similar lawsuit has [overcome legal challenges in Chicago](https://www.nytimes.com/2004/04/01/business/01tax.html?ex=1396242000&en=6d55ede1b0bc3ae5&ei=5007&partner=USERLAND), where a federal judge moved that racketeering charges against the tax company could stand. The suit, which started with one plaintiff and has landed in federal court, alleges fees and interest charged to consumers with annual rates of up to 2000%. And complicating an already questionable fiscal year, the company reported that it had miscalculated its own taxes, resulting in a $32 million liability. Despite all of the bad news, the company remains optimistic, noting that although its number of customers was lower, its higher rates have resulted in a slight revenue increase.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=H%26R%20On%20The%20Chopping%20Block%3F&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=H%26R%20On%20The%20Chopping%20Block%3F "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=H%26R%20On%20The%20Chopping%20Block%3F "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=H%26R%20On%20The%20Chopping%20Block%3F&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual, Prosecutions, Felonies and Misdemeanors **Tags:** H&R-Block, tax-preparer --- ### [IRS Reminds Taxpayers To Renew ITINs](https://www.taxgirl.com/2018/11/09/irs-reminds-taxpayers-to-renew-itins-before-tax-filing-season/) **Published:** November 9, 2018 **Author:** Kelly Phillips Erb **Content:** The IRS is reminding taxpayers whose Individual Taxpayer Identification Number (ITIN) is expiring to submit renewal applications. Failing to renew an ITIN by the end of the year will cause refund and processing delays in 2019. An Individual Taxpayer Identification Number (ITIN) is assigned to a taxpayer who is not eligible to obtain a Social Security Number (SSN). The IRS generally assigns SSNs to United States citizens and noncitizens authorized to work in the U.S. by the Department of Homeland Security. SSNs and ITINs are intended to be used only for tax and benefits purposes, but since banks, schools, and insurance companies use them as identification numbers, more folks want them for nontax purposes: Only a quarter of ITINs assigned since the program began in 1996 have been used to file tax returns. Concerns about misuse spurned changes, including [a law](https://www.taxgirl.com/irs-announces-new-changes-including-rolling-renewals-to-itin-procedures/) that now allows ITINs to expire. ITINs that have not been used on a federal tax return at least once in the last three years are not valid for use on a tax return unless renewed by the taxpayer. Expirations occur on a rotating cycle. That’s why the IRS mailed more than 1.3 million letters to taxpayers who have ITINs with middle digits 73, 74, 75, 76, 77, 81, or 82 this year. Those folks may need to renew. If you are a taxpayer with an ITIN with middle digits 71, 72, 78, 79, or 80 that has already expired, you will also need to renew your ITIN if you will have a filing requirement in 2019. When you renew your ITIN, you can choose to renew your family members’ ITINs at the same time, even if those ITINs are not yet set to expire. For this purpose, family members include your spouse and any dependents residing in the United States that you will claim on your tax return. (Remember that there is [no personal exemption amount](https://www.taxgirl.com/new-irs-announces-2018-tax-rates-standard-deductions-exemption-amounts-and-more/) for tax years 2018 through 2025. That means that spouses or dependents outside the United States who would have been claimed for this benefit—and no other benefit—do not need to renew their ITINs this year.) If your ITIN is not set to expire, or if it has already expired and you do not have a filing requirement, you do not need to take any action. Similarly, if your status has changed and you are eligible for an SSN, you should not apply for or renew an ITIN. If you have an expired ITIN, the IRS will process your federal income tax return, but it will disallow exemptions and certain tax credits. To renew your ITIN, complete federal Form W-7 with the required documentation. You can mail the form to the address on the instructions, work with Certifying Acceptance Agents (CAAs) authorized by the IRS, or call and make an appointment at a designated IRS Taxpayer Assistance Center. If you need more information, the IRS has several fact sheets available to help, including Pub 5259. In addition to English and Spanish, you can find Pub 5259 in Chinese, Korean, Haitian Creole, Russian, and Vietnamese. You can find other ITIN-related IRS publications [here](https://www.irs.gov/pub/irs-pdf/p5261.pdf)[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=IRS%20Reminds%20Taxpayers%20To%20Renew%20ITINs&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=IRS%20Reminds%20Taxpayers%20To%20Renew%20ITINs "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=IRS%20Reminds%20Taxpayers%20To%20Renew%20ITINs "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=IRS%20Reminds%20Taxpayers%20To%20Renew%20ITINs&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual, International, IRS News **Tags:** form W-7, Individual Tax Identification Number, ITIN, tax identification number --- ### [7 Reasons Not To Engage With Scammers, No Matter What Your Friends On Facebook Tell You](https://www.taxgirl.com/2020/08/03/7-reasons-not-to-engage-with-scammers-no-matter-what-your-friends-on-facebook-tell-you/) **Published:** August 3, 2020 **Author:** Kelly Phillips Erb **Content:** Earlier this week, I received complaints that our law firm was dialing random numbers. We followed up with our phone company and were advised that scammers were most likely masking or spoofing our number. The phone company filed a complaint with the authorities and advised us to report any further activity. Of course, we aren’t the only businesses affected by phone scams. The IRS has repeatedly warned about [phone scams](https://www.taxgirl.com/2019/03/17/irs-issues-warning-on-new-phone-scam/), including impersonation scams involving phishing or spoofing. It’s not surprising that taxpayers are getting fed up with these scams: since October 2013, the Treasury Inspector General for Tax Administration (TIGTA) has received complaints from more than 2.5 million people who reported receiving an impersonation call. More than 15,800 victims have reported that they paid the criminal impersonators a total amount of more than $80 million. And when it comes to all scam calls – even those not related to the I.R.S. impersonation scams – the F.T.C. reported that consumers lost more than $285 million in November of 2019. As the calls become more pervasive, taxpayers have offered advice on the best ways to deal with scammers. Many of these same taxpayers have posted tips on Facebook and other social media for dealing with scammers. The advice ranges from blowing whistles in the phone to trying to “catch” the scammers at their own game by challenging their questions. Many of those same pieces of advice are being re-posted as though they might be effective. They are not. The best advice? **Hang up.** Don’t engage. Why not? Here are seven reasons why those tips don’t work and why you should never engage with scammers: 1. ***When you engage with a scammer – even if you are blowing a whistle on the phone – you’ve just confirmed two pieces of information for the scammers: they’ve called a working phone number, AND you’ll answer the phone.*** Why does this matter? Because stealing money from taxpayers is only one part of the equation. Remember that identity theft isn’t just about getting money out of you once or stealing a tax refund check; it’s an [entire industry](https://www.taxgirl.com/what-if-tax-refund-theft-isnt-really-about-refund-theft/). Your data typically isn’t stolen in one fell swoop: your identity profile is built piece by piece. Key bits of information about you may be stored, repackaged, and sold from one scammer to the next. The fact that you answered the phone and were willing to engage? That’s valuable to scammers who might try it again later – or sell your number to the highest bidder. 2. ***When you tell scammers to stop calling you, you may inadvertently give out more information about your phone number.*** When you say things like “stop calling my house,” “don’t call me at work,” or “this is my cell phone,” you’ve just added to the database. Not only do scammers know it’s a good number and you’ll answer (see #1), you’ve also offered more details about the number they just called (i.e., it’s your house, workplace, or cell number). If they’re simply calling off of a stolen call list, you’ve just made your phone number more valuable. 3. ***When you tell scammers that you know you don’t owe anything, you might have confirmed your name, that you’re a taxpayer, and worse, possibly your Social Security Number (SSN).*** Remember, this isn’t some kid calling with a script: these are professional thieves who likely do this for a living. They know how to get what they want. It’s easy to give out or confirm additional information, even if you don’t intend to. For example, if a scammer says, “Our records indicate that Kelly Erb with SSN 123-45-6789 owes $5,400,” and I reply, “That’s not true, I always pay my taxes,” I might have inadvertently offered up more information. Not only does the scammer now know that my phone number is good (see #1), but they have a name to attach to it. And since I didn’t automatically say, “That’s not my Social Security Number,” that may indicate they have the right SSN, too. So now they might have the name and SSN of a taxpayer who claims to be current; that strongly suggests I have a job or other taxable income and enough assets to pay my bills regularly. I just became an even more valuable commodity to the scammer. 4. ***If you hesitate, you may give the scammers an opening.*** The entire point of calling you is to solicit information. If you hesitate, that might be the opening the thieves are waiting for to trick you. The longer you stay on the phone, the more likely you are to inadvertently say or reveal something that gives the thieves an “in.” Hanging up quickly is a better idea. 5. ***When you threaten back, you might offer valuable “out of wallet” information.*** It may be tempting to bring out the big guns like “I’ll get you, I’m a lawyer” or “How dare you, my dad is a cop” or “Just wait until my Army husband, Bill, gets home.” But think about what you’ve just said. Yes, more information about yourself. Those additional nuggets are helping form your profile. As law enforcement [told me](https://www.taxgirl.com/how-to-lose-your-identity-in-five-easy-steps-step-one-go-to-the-doctor/), data pieces are matched to other data. Suddenly, you’re no longer just a random phone number. You’re Jane Smith, SSN 123-45-6789. You’re a lawyer, and your dad is a cop. You live at 123 Elm Street, Anytown, USA 12345 (since that address matches your phone number). Your spouse’s name is Bill, and he works for the government. That data – especially once it’s been paired with more data which can be found in other places, such as social media sites or from a recent hack – is incredibly valuable. 6. ***You might be breaking the law.*** But they called you, right? It might not matter. Under federal law, you can record phone calls with the consent of just one party to the call ([18 U.S.C. § 2511](https://www.law.cornell.edu/uscode/text/18/2511)). That’s also the law in most states: you can record a phone call or conversation so long as you are a party to the discussion. If you are not a party to the conversation, you can record a conversation or phone call only if at least one party consents and has full knowledge that the communication will be recorded. The statute also prohibits recording conversations with criminal or tortious intent. But in 15 states (California, Connecticut, Delaware, Florida, Illinois, Maryland, Massachusetts, Michigan, Montana, Nevada, New Hampshire, Oregon, Pennsylvania, Vermont, and Washington), you need both parties’ consent to record a call. Exceptions exist for law enforcement investigations, emergency situations, or certain unlawful activities: scammers should fall into the latter category, but the rules aren’t always clear. I’m sure you’ve noticed that in the myriad of advice handed out by the IRS, TIGTA, and other law enforcement, it doesn’t include recording the call. If you haven’t been directed to record the call, don’t engage, and don’t record. 7. ***You’re never going to make them feel bad.*** I know it feels better to tell off a scammer, but at the end of the day, it doesn’t bother them. Understand that these people are thieves. They are preying on vulnerable people – typically the elderly, students, and immigrants – whom they can bully. They often use threatening language to scare taxpayers into giving up information or money: in one instance, an older victim was so distraught as a result of threats from the scammer that he crashed his car on the way to pick up a wire. These are not nice people. Your threats, bad language, telling them off? They’ve likely heard – and said – worse. You’re not fazing them one bit. Don’t waste your time. Don’t give away any personal information. Once identity thieves have your info, they can access your bank account, charge your credit cards, and open new accounts in your name. An identity thief can also file a tax refund in your name to get a bogus refund. Don’t play along. Don’t pick up calls from numbers you don’t recognize, and don’t trust caller ID (trust me: as we’ve learned firsthand, technology lets scammers spoof businesses and government agencies). And never – ever – transfer money to a government agency by wire or [gift card](https://www.taxgirl.com/2016/04/22/you-cant-pay-your-taxes-with-itunes-gift-cards-other-sage-advice/). Rather than rely on tips from your Facebook friends, **here’s advice from the professionals (IRS, TIGTA, and law enforcement) about how to best deal with the scammers**: If you receive a call from someone claiming to be from the I.R.S., and you do not owe tax, or if you are immediately aware that it’s a scam, don’t engage with the scammer and do not give out any information. **Just hang up.** If you receive a phone call from someone claiming to be with the I.R.S., and you owe tax or think you may owe tax, do not give out any information. Call the IRS at 1.800.829.1040 to find out more. You can also contact TIGTA to report scam calls by calling 1.800.366.4484 or by using the “IRS Impersonation Scam Reporting” form on their website. You may also want to report the scam to the Federal Trade Commission by using the “FTC Complaint Assistant” to report persons pretending to be from the government; please add “I.R.S. Telephone Scam” in the notes. The FTC has even made a video about how to handle these kinds of calls: ![YouTube thumbnail](https://www.taxgirl.com/wp-content/cache/wpo-youtube-thumbnails/yPY-HFXZS24-maxresdefault.webp)![YouTube icon](https://www.taxgirl.com/wp-content/plugins/wp-optimize-premium/images/icon/icons8-youtube-96.svg) While it won’t stop scammers, you can sign up for the [National Do Not Call Registry](https://www.donotcall.gov/) to block telemarketers. Thirty-one days after you sign up, you can file a complaint against telemarketers that keep calling. Don’t fall for the tricks. Keep your personal information safe by remaining alert. For tips on protecting yourself from identity theft-related tax fraud, [click here](https://www.taxgirl.com/11-tips-to-protect-you-from-identity-theft-related-tax-fraud/). [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=7%20Reasons%20Not%20To%20Engage%20With%20Scammers%2C%20No%20Matter%20What%20Your%20Friends%20On%20Facebook%20Tell%20You&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2020%2F08%2Fpexels-soumil-kumar-735911.jpg&p%5Btitle%5D=7%20Reasons%20Not%20To%20Engage%20With%20Scammers%2C%20No%20Matter%20What%20Your%20Friends%20On%20Facebook%20Tell%20You "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=7%20Reasons%20Not%20To%20Engage%20With%20Scammers%2C%20No%20Matter%20What%20Your%20Friends%20On%20Facebook%20Tell%20You "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=7%20Reasons%20Not%20To%20Engage%20With%20Scammers%2C%20No%20Matter%20What%20Your%20Friends%20On%20Facebook%20Tell%20You&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** ID Theft and Scams **Tags:** ID theft, impersonation scam, IRS Impersonation Scam, phone scam, scammers --- ### [All You Need To Know About Working From Home](https://www.taxgirl.com/2020/10/01/what-you-need-to-know-about-working-from-home/) **Published:** October 1, 2020 **Author:** Kelly Phillips Erb **Content:** **It’s very likely that you’re reading this from your home**—even if you’re working. As the coronavirus pandemic continues to spread across the country, many of us are finding that the new normal means not leaving the house, or at least not for work anyway. How dramatic are the numbers? A Federal Reserve Bank of Dallas report found that of all those employed in May, 35.2% worked entirely from home, compared to just 8.2% in February. Further, a whopping 71.7% of US workers who *could* work from home did so in May. Some folks stay home for safety and convenience, while others are required by their employer or by state or local government to remain at home; in Pennsylvania, for example, by Order of the Governor, “Telework Must Continue Where Feasible.” With big-name companies extending work-from-home until the end of the year, next summer, or as an option for a growing number of workers, forever, ad hoc accommodations no longer seem sufficient—on either a personal or a tax policy level. Here’s the latest on the sometimes confusing tax aspects of working from home, along with practical tips I’ve picked up as a tax lawyer and writer who has long worked from home. **Increasingly, the lines between employees and** independent contractors (or freelancers) are becoming blurred. To be clear, you are not self-employed just because you are working from home. If you receive a paycheck from an employer and those wages will be reported to you and the IRS on a W-2, you are an employee. Working from home alone is not enough to make you an independent contractor receiving a 1099. And while you certainly may receive a Form W-2 and a Form 1099 in the same tax year, you should not receive a Form W-2 and a Form 1099 for the same type of work from the same employer. Why does it matter? As a result of the Tax Cuts and Jobs Act (TCJA), a.k.a., the Trump tax cuts, for the tax years 2018 through 2025, *you cannot deduct home office expenses if you are an employee.* No hardship exemption or coronavirus waiver applies. It’s a very bright-line rule: employees who work from home can no longer claim the home office deduction. The IRS doesn’t care why you’re working from home. However, if you are self-employed – even as a gig worker – you can continue to deduct qualifying home office expenses. (More on that later.) **Clearly, you can’t take home** the snack bar. But if you’re missing out on some of your favorite things – like your office chair or your trusty stapler – ask your employer if you can take them home. That can save you (and your employer) money. The TCJA rules apply to all unreimbursed job expenses for employees, not just those for a physical home office.  If you’re an employee and your employer doesn’t reimburse costs, your out-of-pocket expenses – from the cost of a new laptop or printer to copy paper to that fancy new ergonomic chair – are not deductible for federal income tax purposes. But if your employer has already spent the money to buy them for you, simply relocating them to your house means everybody wins. **Does your employer offer you a monthly** reimbursement for cell phone costs? Is a stipend available for home office expenses? Is there a discount available for office supplies purchased through a particular vendor? If your costs are going up because you’re working from home, consider your options. Your company’s HR department may already offer some money-saving measures. If you don’t see what you’re looking for, just ask. An enlightened employer may find your reasonable requests much more economical than replacing you or realizing that, without the proper equipment, you’re less productive. **It’s not just the home office deduction that** is creating confusion among those working from home. Employees who normally work in an office in one state but live (and now work from) another may face additional tax-filing complications.  The messiness of being taxed in multiple states is at least on Congress’ radar; the HEALS Act proposed by Senate Republicans last month would allow employees who perform employment duties in multiple states to only be subject to income tax in their state of residence and any jurisdiction where the employee is present and working for more than 30 days during the calendar year—or 90 days for frontline health-care workers. (That 90-day provision is designed to protect nurses and doctors from other states who raced to New York in the spring to help out and now worry they’ll owe New York taxes.)  The HEALS provision would apply only through 2024 and wouldn’t cover professional athletes, professional entertainers, qualified approved film, television, or other commercial video production employees, or certain public figures. And even that bill, which is going nowhere, would still allow employees working from home during the pandemic to be taxed in their home state and the state where their normal office is. Bottom line: there is currently no national standard for withholding, filing, and paying state income taxes for employees who work in more than one state or work in one state and live in another. That means you may have tax requirements where you work and where you live. Usually, you can sort that out via withholding, tax agreements, and credits. So what if working from home in one state while your company is in another means you’re subject to tax in both places? If either state has a physical presence rule (most states do), figuring the split between the two can be confusing. Typically, you may have too much tax withheld from your paycheck for your nonresident state and not enough for your resident state. For example, if you live in Connecticut but you normally work in New York, you’ll likely have to file a resident tax return in Connecticut and a nonresident tax return in New York. If you worked in New York all year, it should be relatively easy: only New York withholds taxes, and then when you file your Connecticut tax return, you get a credit for the taxes paid to New York. But if you worked in New York through March – and then in Connecticut through August – and then back to New York? Not so simple. And remember the tax credit? To make it work, you have to file in the right order. You first file and report income to the state where you work and then claim the credit on your resident tax return. If you mix up the order, you may end up missing out on the credit and get stuck paying additional state tax, or miss out on a refund you’re otherwise entitled to. Moreover, that assumes that the states agree on the rules. It gets more complicated when states have differing tax rates and residency rules. So, you could try to figure it out yourself… but the American Institute of Certified Public Accountants (AICPA) just updated its guidance on state tax filings, and it’s 523 pages long: it’s a lot less stressful to hire a professional. **I know I just advised you to hire a tax professional, but you should still know the basic rules in your state so** you don’t get a nasty surprise next April.  During the pandemic, the AICPA developed recommendations that would allow businesses to continue to withhold state income tax from employees based on the employer’s location instead of the employee’s work-from-home location – in other words, under these recommendations, your tax and withholding wouldn’t change at all. To date, 13 states (AL, GA, IL, IN, MA, MD, MN, MS, NE, NJ, PA, RI, and SC) have issued guidance that follows the AICPA’s suggestion on withholding. That means employees in those states should be protected from paying double tax when one state uses the convenience of employer test (like CT, NY, DE, NJ, or PA) and the other state uses the physical presence standard (remember, states use different tests). But if you live in a state that has signed on to this recommendation – but work in a state that hasn’t (or vice versa) – you’re out of luck. In addition,  a slightly different list of 13 states (AL, GA, IA, IN, MA, MD, MN, MS, ND, NJ, PA, RI, and SC), as well as Washington, D.C. and Philadelphia, have followed AICPA’s recommendation that an employee working remotely in a state due to Covid-19 restrictions does not create nexus and apportionment for his or her employer for tax purposes. (In other words, by allowing you to work from home, the employer will not create corporate tax problems for itself in your home state.) Some states also have individual reciprocity with other states. For example, Pennsylvania has agreements with IN, MD, NJ, OH, VA, and WV. Remember, normally, if you earn income in one state and live in another, you file a tax return in both the state where you live and in the state where you work. However, if you’re lucky enough to live in a state with a reciprocity agreement with the state where you might work, you file and pay only in your home state: you don’t have to pay taxes – or even file – in the state where you work. So, if you live in Pennsylvania but work in Ohio, your employer would withhold tax for Pennsylvania, while Ohio takes a pass. Easy peasy. But if you live and work in states that don’t have reciprocity – and haven’t signed onto the AICPA recommendations – you may have to file tax returns (and possibly pay) in both states. You’ll need to know which rules apply to avoid a surprise—and maybe a big bill- at tax time. **Sure, there may be a day when** you want to look back on all of this with fondness, but there’s a more practical reason to keep good records: you may need to track your day-by-day work locations for tax reasons. Proving you were where you claim to be can help if you (or your employer) is audited. Plus, keeping a log could keep you from falling prey to the habit of working seven days a week. **Ask now – not later – about withholding.** Find out how much your employer withholds for the state where you live (and now work) and whether it will be enough to avoid a tax bill come Tax Day. If not, you may need to make estimated payments to avoid a penalty. Warning: If you normally work exclusively from an office in another state, work from home might increase your home state liability for 2020.  But it’s not all gloom and doom: if your home state has a lower tax rate than the rate where your office is located, working at home for much of 2020 could save you taxes. **The IRS recently** reminded tax professionals who work from home to secure remote locations by using a virtual private network (VPN) to protect against cyber intruders. That’s good advice for anyone who relies on the internet. A VPN provides a secure, encrypted tunnel that transmits data over the internet between a remote user and the company network. VPNs are critical to protecting and securing internet connections. Not using a VPN can lead to remote takeovers by cyber thieves, giving criminals access to your entire office network. **The loss of the home office deduction** for employees has some taxpayers wondering whether it makes sense to quit their day jobs and become self-employed. That’s an individual decision, but if you’re focusing simply on the home office piece,  the numbers probably don’t support that kind of shift. For more to consider when making business-related decisions in light of tax reform, check out this article. What if you really are self-employed—meaning you get a 1099 and not a W-2?  Then you would report the home office deduction on federal Form 8829, Expenses for Business Use of Your Home, which you file with Schedule C, *Profit or Loss From Your Business*, on your 1040. **My home office has changed** since March. With a full house, I found that I needed more soundproofing, so new carpeting and drapes were a must. I also needed better headphones. Don’t be afraid to spend where it makes sense. The TCJA *did not* change the home office expense rules for self-employed persons and independent contractors. Those expenses are deductible so long as they otherwise meet the home office deduction criteria. **I’m not just talking about virtual boundaries** (like turning off your phone after hours) but actual, real, physical barriers. Being able to shut a door, put up a room divider, or even put on noise-canceling headphones can be an essential way to create your workspace and signal that you shouldn’t be disturbed.  Moreover, if you’re self-employed and angling for a home office deduction, it’s not only desirable, it’s mandatory: to claim a federal income tax deduction for a home office, you must use a specific area of your home exclusively for your trade or business.  It doesn’t have to be a separate room (like mine), but it must be a separately identifiable space (like my husband’s desk). You do not meet the requirements if you use the area in question for both business and personal purposes: it must be space that is used solely for business and not, say, an office or desk or computer that is also used by your children for their virtual lessons or to play Fortnite. I’ve always had a separate home office and a separate phone line for my office, which makes it deductible as a business expense. But if my husband uses our primary phone for business, he’s out of luck: the IRS has consistently taken the position that your primary phone landline is never tax-deductible, even if you don’t use it for anything else. Our internet connection is shared, so, like my utilities, I can’t deduct the whole thing as part of my home office deduction; it must be pro-rated. An upgrade to a faster service could also be prorated. Also, I can confirm that relying on a stable connection with two teleworkers and three students in virtual school can be challenging at best. **Even if you – like me – spend time** working from home normally, you’re still likely used to seeing a friendly face or two. During the year, I attend conferences and bar functions, meet with clients, and chat with my paralegal. It is, quite frankly, weird to stay home when you’re used to having people around. It helps to have opportunities to meet up – even if it’s virtually – with your colleagues. Take time to engage on social media (I highly recommend #TaxTwitter for those who work in tax) and say yes to virtual events (like a #virtualtaxpro happy hour). Socializing is healthy, and you can learn a lot from fellow workers going through the same thing. We’re all learning as we go. **My hours are very nearly the same** as before. I make it a point to get up at the same time every morning and go to sleep around the same time each night (though a few late-night drops of thousand-plus-page coronavirus stimulus bills have admittedly kept me up reading). But normalcy is important to me. It also helps my kids know when it’s okay to ask questions for school or alert me that Bayern won the Bundesliga. [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=All%20You%20Need%20To%20Know%20About%20Working%20From%20Home&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2017%2F02%2Fpexels-burst-374831.jpg&p%5Btitle%5D=All%20You%20Need%20To%20Know%20About%20Working%20From%20Home "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=All%20You%20Need%20To%20Know%20About%20Working%20From%20Home "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=All%20You%20Need%20To%20Know%20About%20Working%20From%20Home&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual, Small Business **Tags:** COVID-19, pandemic, remote school, remote work, virtual work, working from home --- ### [An Offer You Can't Refuse: A Look At The Mob Museum](https://www.taxgirl.com/2020/10/12/explore-early-irs-criminal-cases-through-the-museum/) **Published:** October 12, 2020 **Author:** John Luckenbaugh **Content:** Some of the biggest crime cases in history involve financial disputes and tax evasion. Kelly introduces her favorite museum, *The Mob Museum*, in Las Vegas, Nevada. The museum focuses on mob crime history, including the St. Valentine’s Day Massacre in Chicago involving Al Capone. Capone refused to file a tax return, claiming that “They can’t collect legal taxes from illegal money.” The Internal Revenue Service’s then-new crime fighting division (now, IRS-CI) was ordered to “Get Capone” – and they did. You’ll find the story, along with artifacts, in the Mob Museum. The museum also does a great job of showing both sides of criminal cases: the criminal side and the law enforcement side. Tune into this week’s podcast with a special guest host to learn more about what the Mob Museum has to offer and the early days of IRS Criminal Investigations. # **The Mob Museum** Geoff Schumacher, Vice President of exhibits and programs at The Mob Museum, joins Kelly this week to explore interesting facts about the museum’s history and evolution. Geoff was a journalist at the Las Vegas Sun for 25 years. He is also a reporter, writer, editor, and author of two books. Geoff helps uncover interesting points on crime history, as well as the background and future endeavors of the Mob Museum. ## **Listen to Kelly and Geoff Discuss The Mob Museum, including:** - How the Museum got started - The location, build, and background of the Museum - Commitment to both stories – crime and law enforcement - Finding and deciding on displayed artifacts - Museum wish list and future hopes and plans - Authenticating items - Choosing exhibits and temporary exhibition spaces - Post-pandemic museum addition - Most popular attractions - Museum Events - The Underground and educating employees - Museum mysteries and layout - What is next for the museum - Expansion & Rebuilding Plans - 1941 Vegas turning point ### **About Kelly:** Kelly Phillips Erb created and hosts the Taxgirl podcast, your home for tax news, tax info, and tax policy. In each episode, she shares conversations about taxes, money, and the choices we make. Kelly is a tax attorney who works with taxpayers and tax practitioners like you every day. She helps folks out of tax jams, and hopefully, keeps others from getting into them. You can find out more about Kelly [here](https://www.taxgirl.com/about-taxgirl/) and you can follow her on [Twitter](https://x.com/taxgirl), [Facebook](https://www.facebook.com/taxgirl), [Instagram](https://www.instagram.com/therealtaxgirl), and [Linkedin](https://www.linkedin.com/in/taxgirl/). ****To subscribe to the podcast (it’s free!) using Apple, Spotify, or your favorite listening app,** [**click here**](https://www.taxgirl.com/taxgirl-podcast/podcast-subscription/)**.**** ### **Links:** Kelly’s Website: [Taxgirl](https://www.taxgirl.com/) Geoff Schumacher: [LinkedIn](https://www.linkedin.com/in/geoffschumacher/) [The Mob Museum](https://admission.themobmuseum.org/) The Mob Museum – [YouTube](https://www.youtube.com/user/TheMobMuseum?app=desktop) \| [Instagram](https://www.instagram.com/mobmuseum_underground/?hl=en) [St. Valentine Massacre in Chicago](https://www.history.com/this-day-in-history/the-st-valentines-day-massacre#:~:text=Four%20men%20dressed%20as%20police,Al%20Capone%20and%20Bugs%20Moran.) [Al Capone](https://www.fbi.gov/history/famous-cases/al-capone) Movie Referrals: [Casino](https://www.imdb.com/title/tt0112641/) [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=An%20Offer%20You%20Can%E2%80%99t%20Refuse%3A%20A%20Look%20At%20The%20Mob%20Museum&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2020%2F09%2Fmob-money.jpg&p%5Btitle%5D=An%20Offer%20You%20Can%E2%80%99t%20Refuse%3A%20A%20Look%20At%20The%20Mob%20Museum "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=An%20Offer%20You%20Can%E2%80%99t%20Refuse%3A%20A%20Look%20At%20The%20Mob%20Museum "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=An%20Offer%20You%20Can%E2%80%99t%20Refuse%3A%20A%20Look%20At%20The%20Mob%20Museum&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Podcast, Prosecutions, Felonies and Misdemeanors **Tags:** Al Capone, Capone, criminal investigations, criminal tax fraud, geoffschumacher, IRS, IRS-CI, IRS-Criminal Investigations, kellyphillipserb, las vegas, Mafia, Mob Museum, podcast, tax evasion, The Mob Museum --- ### [Sales Tax Takes A Holiday](https://www.taxgirl.com/2007/07/18/sales-tax-takes-a-holiday/) **Published:** July 18, 2007 **Author:** Kelly Phillips Erb **Content:** Each year, several states offer a “holiday” from sales tax to boost spending before school begins. Here are some sales tax holidays that I’m aware of. As the mother of three children, I can appreciate this nod towards back-to-school spending. And according to the [National Retail Federation](http://www.nrf.com), families with school-age children are expected to spend $563.49 in 2007 for school-related gear – or $18.4 billion nationwide. Clothing and accessories comprise the biggest chunk of that spending. With average state sales tax rates of between 4 and 7%, that can really add up. Since most parents start shopping for school 3-4 weeks before school begins (around Labor Day in most, but not all, states), it’s no wonder most sales tax holidays begin in the first week of August. If you know of additional state sales tax holidays or other back-to-school tax incentives, let us know – feel free to post in the comments! **Alabama** When? August 3, 4, and 5 What’s exempt? Clothing up to $100, computers up to $750, school supplies up to $50, and books up to $30 **Connecticut** When? August 19-25 What’s exempt? Clothing up to $300 **District of Columbia** When? August 4-12 What’s exempt? Clothing up to $100 and school supplies up to $100 **Florida** When? August 4-13 What’s exempt? Clothing up to $50, school supplies up to $10 **Georgia** When? August 2, 3, 4, and 5 What’s exempt? Clothing up to $100, school supplies up to $20, computers up to $1,500, and the ambiguously named “energy efficient products” of up to $1,500 **Iowa** When? August 3 and 4 What’s exempt? Clothing up to $100 **Louisiana** When? August 3 and 4 What’s exempt? Most individual items of tangible personal property for non-business use up to $2,500 **Missouri** When? August 3, 4, and 5 What’s exempt? Clothing up to $100, computers up to $ 3,500, and school supplies up to $50 **New Mexico** When? August 3, 4 and 5 What’s exempt? Clothing up to $100, computers up to $1,000, and school supplies up to $15 **North Carolina** When? August 3, 4 and 5 What’s exempt? Clothing, footwear, and school supplies up to $100, sports and recreation equipment up to $50 per item, computers up to $3,500 per item, and computer supplies up to $250 per item **Oklahoma** When? August 3, 4 and 5 What’s exempt? Clothing up to $100 **South Carolina** When? August 3, 4 and 5 What’s exempt? Clothing, school supplies, computers **Tennessee** When? August 3, 4 and 5 What’s exempt? Clothing up to $100, school supplies up to $100, and computers up to $1,500 **Texas** When? August 17, 18, and 19 What’s exempt? Most clothing and footwear priced under $100, backpacks under $100 used by elementary and secondary students **Virginia** When? August 3, 4 and 5 What’s exempt? Clothing up to $100, school supplies up to $20 Sadly, my own state of Pennsylvania is not participating. This is likely because clothing is already exempt from taxation in Pennsylvania – but c’mon, Governor Rendell, can’t we get a break on school supplies? Alaska, Delaware, Montana, New Hampshire, and Oregon have no state sales tax. \*\* Disclaimer: This information was culled from several sources. If you have any questions about your state’s sales tax holiday, please contact your local Revenue Department.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Sales%20Tax%20Takes%20A%20Holiday&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Sales%20Tax%20Takes%20A%20Holiday "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Sales%20Tax%20Takes%20A%20Holiday "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Sales%20Tax%20Takes%20A%20Holiday&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual, State and Local Tax (SALT) **Tags:** back-to-school, holiday, sales-tax, sales-tax-holiday --- ### [And The Winner Of Our Contest Is…](https://www.taxgirl.com/2007/10/11/and-the-winner-is-2/) **Published:** October 11, 2007 **Author:** Kelly Phillips Erb **Content:** **Aime Stewart**, of Maryland, the owner and operator of **Cutie Pies**, is our Grand Prize Winner! **Cutie Pies** is an individual single-serving pie business. Her Cutie Pies are 4 inches in diameter, and she bakes them in standard aluminum pot-pie containers. The idea is to give folks who love pie (c’mon, who doesn’t?) an option without needing an entire pie. Our judges thought that Aime’s idea was innovative, creative, and well presented. Aime has the beginnings of a successful business: she has a great idea, a plan to make it happen, a team to help her out, milestones for progress, and motivation. We think that the prizes and advice that she walks away with will help her reach her goal of getting Cutie Pies into retail outlets, including grocery stores, restaurants, and coffee shops. Our first runner-up is **Emilie Shoop**, of Illinois. Emilie just launched Shoop Fitness online at www.shoopfitness.com. Emilie’s concept is a fitness website focusing on the needs of pregnant women and new moms. As the mother of three small children, I can certainly relate to Emilie’s demographic! Our judges felt that Emilie had an interesting concept and a potentially big audience. We thought extra press and marketing advice would add value to Emilie’s already great idea. Our second runner-up is **Aaron Emerson**, of California. Aaron offers an online marketing service geared towards small businesses hoping to make a big impact. Our judges felt that Aaron had the potential, through his experience and enthusiasm, to make an impression in a crowded market. Congratulations to all of our winners! And again, we offer a huge **THANK YOU** to our sponsors! Please let them know we appreciate them! - 1 & 1 Internet, Inc. - Entrepreneur Magazine - Freshbooks, Inc. The entire b5 media Business Channel community: - Behind the Buzz - Brandcurve - Buzz Networker - Common Sense PR - Contract Worker - Copy Blogger - Digital Money World - Franchise Pick - Home Biz Notes - Interview Chatter - Just Make Money Online - Leadership Turn - Life Dev - Linked Intelligence - Pimp Your Work - Property Crossroads - Second Life Pros - Slacker Manager - Small Business Boomers - Start Up Spark - Successful Blog - [Taxgirl](https://www.taxgirl.com) - The Golden Pencil - Work Boxers - Yielding Wealth And thanks to Don at Archetype Digital Solutions for designing our promotional badge! **Thanks**, too, to the following professionals who have offered advice to our winners: - Tax tips from Kelly Phillips Erb of [taxgirl.com](https://www.taxgirl.com) - Consulting and marketing advice from Jim Norton of smallbusinessboomers.com - Marketing direction from Rico Masterson of contract-worker.com - Personal finance and blogging information from Miranda Marquit of yieldingwealth.com - Using a range of social media tools in marketing and connecting with a community from Rachel Clarke of behindthebuzz.com - Hiring practices and creating core competencies for positions from Darlene McDaniel of interviewchatter.com - Identifying business purpose and strategy for a blog from Des Walsh of deswalsh.com - Coaching from Miki Saxon, courtesy of rampupsolutions.com - LinkedIn makeover from Scott Allen of LinkedIntelligence.com - Marketing and brand identity critique from Sean Kelly of franchisepick.com - Copywriting tips from Brian Clark of copyblogger.com - Home business advice from Mary Emma Allen of homebiznotes.com - Copy editing, writing, or website usability advice from Eric Eggertson of CommonsensePR.com - Customer service and community relations advice from Douglas Hanna of ServiceUntitled.com - Tech marketing advice from Sunir Shah of Freshbooks, Inc. We look forward to offering updates on our winners, so check back! Thanks to all who participated, and keep an eye out for other exciting contests from our talented folks at the Business Channel.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=And%20The%20Winner%20Of%20Our%20Contest%20Is%E2%80%A6&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=And%20The%20Winner%20Of%20Our%20Contest%20Is%E2%80%A6 "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=And%20The%20Winner%20Of%20Our%20Contest%20Is%E2%80%A6 "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=And%20The%20Winner%20Of%20Our%20Contest%20Is%E2%80%A6&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Contests and Events --- ### [How Much Are You Worth?](https://www.taxgirl.com/2006/03/22/how-much-are-you-worth/) **Published:** March 22, 2006 **Author:** Kelly Phillips Erb **Content:** Or put another way, how much does your tax preparer think you’re worth? *The Philadelphia Inquirer* recently broke a story that the IRS has been keeping quiet…  It seems that in an action labeled “not a significant regulatory action,” the IRS included a change in privacy laws in proposed rules published in December. The change would allow tax preparers to sell information from tax returns, and quite possibly the entire returns, to third parties. The IRS defends the action, noting that tax preparers would require written consent before selling tax information. *Right.* Since in the normal course of business, folks read everything put in front of them. Trust me.  I have prepared a lot of tax returns. I don’t do personal returns anymore except at the local senior center, where I do them several times per tax season at an IRS-sponsored free clinic as part of the VITA (Volunteer Income Tax Assistance) program. And paid or free, the reaction is the same.  The public feels that taxes are complicated and generally don’t want to be bothered. They want to sign where you tell them and be done with the whole thing. And more or less, most folks would probably sign anything you put in front of them. The IRS, however, believes signing written consents is sufficient to protect your privacy. Absolutely not. The current regulations prohibit tax professionals from selling or releasing your private information to third parties. *That’s* sufficient. The IRS says it has received only about a dozen responses to the proposal. Perhaps that’s because nobody knew about it. As a tax professional, I can certainly say that I was unaware of the proposed changes until I read about them in the Inky – and I subscribe to several tax blogs and tax news services. The formal comment period has ended. However, late comments may still be reviewed if they are received timely. If you’ve got something to say, don’t delay. Send your letters to: CC:PA:LPD:PR (REG-137243-02) Room 5203 Internal Revenue Service, Box 7604 Ben Franklin Station, Washington, D.C. 20044[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=How%20Much%20Are%20You%20Worth%3F&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=How%20Much%20Are%20You%20Worth%3F "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=How%20Much%20Are%20You%20Worth%3F "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=How%20Much%20Are%20You%20Worth%3F&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual, IRS News **Tags:** privacy, tax-preparer --- ### [A Little To The Left, Now To The Right, Now Everybody!](https://www.taxgirl.com/2006/02/24/a-little-to-the-left-now-to-the-right-now-everybody/) **Published:** February 24, 2006 **Author:** Kelly Phillips Erb **Content:** We knew that it had to happen. After the IRS warned a church in California that it may lose its charitable status following a sermon critical of the current administration, those to the left and right alike began to scramble in their defense of political activism amongst 501(c)(3) organizations. For organizations with 501(c)(3) status, political campaigning or promoting candidates is prohibited. Full stop. But it happens. And it happens a lot. In fact, IRS investigations have revealed that nearly three out of four of 110 such organizations accused of violating the ban on “politicking” in the 2004 election did, in fact, do so. In three cases, however, none of which were churches, the IRS felt that the activities warranted revocation of the groups’ tax-exempt status. The remaining organizations received written warnings, and, in at least one case, a penalty. Among the prohibited activities, the examiners found that charities and churches had distributed printed material supporting a preferred candidate and assembled improper voter guides or candidate ratings. Religious leaders used the pulpit to endorse or oppose a particular candidate, and some groups showed preferential treatment by letting certain candidates speak at functions. Other charities and churches had made improper cash contributions to a candidate’s political campaign. Think it’s over?  Think again. The IRS has said it plans to continue using the special task force to review the activities of charitable organizations, with faster procedures for this year’s election and in the future. Charitable organizations and the professionals that represent them may wish to refer to newly released guidelines for the upcoming election year.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=A%20Little%20To%20The%20Left%2C%20Now%20To%20The%20Right%2C%20Now%20Everybody%21&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=A%20Little%20To%20The%20Left%2C%20Now%20To%20The%20Right%2C%20Now%20Everybody%21 "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=A%20Little%20To%20The%20Left%2C%20Now%20To%20The%20Right%2C%20Now%20Everybody%21 "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=A%20Little%20To%20The%20Left%2C%20Now%20To%20The%20Right%2C%20Now%20Everybody%21&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Charitable Organizations, Tax Policy **Tags:** charitable-deduction, donation, religion --- ### [Tax Schemes To Run Screaming From](https://www.taxgirl.com/2006/02/17/tax-schemes-to-run-screaming-from/) **Published:** February 17, 2006 **Author:** Kelly Phillips Erb **Content:** The IRS has recently announced its “Dirty Dozen” Tax Scams for 2006, including two new scams. Be on the lookout for the following, as pulled from the IRS website: > 1\. Zero Wages. In this scam, new to the Dirty Dozen, a taxpayer attaches to his or her return either a Form 4852 (Substitute Form W-2) or a “corrected” Form 1099 that shows zero or little wages or other income. The taxpayer may include a statement indicating the taxpayer is rebutting information submitted to the IRS by the payer. > An explanation on the Form 4852 may cite “statutory language behind IRC 3401 and 3121” or may include some reference to the paying company refusing to issue a corrected Form W-2 for fear of IRS retaliation. The Form 4852 or 1099 is usually attached to a “Zero Return.” (See number four below.) > > 2\. Form 843 Tax Abatement. This scam, also new to the Dirty Dozen, rests on faulty interpretation of the Internal Revenue Code. It involves the filer requesting abatement of previously assessed tax using Form 843. Many using this scam have not previously filed tax returns and the tax they are trying to have abated has been assessed by the IRS through the Substitute for Return Program. The filer uses the Form 843 to list reasons for the request. Often, one of the reasons is: “Failed to properly compute and/or calculate IRC Sec 83––Property Transferred in Connection with Performance of Service.” > > 3\. Phishing. Phishing is a technique used by identity thieves to acquire personal financial data in order to gain access to the financial accounts of unsuspecting consumers, run up charges on their credit cards or apply for new loans in their names. These Internet-based criminals pose as representatives of a financial institution and send out fictitious e-mail correspondence in an attempt to trick consumers into disclosing private information. Sometimes scammers pose as the IRS itself. In recent months, some taxpayers have received e-mails that appear to come from the IRS. A typical e-mail notifies a taxpayer of an outstanding refund and urges the taxpayer to click on a hyperlink and visit an official-looking Web site. The Web site then solicits a social security and credit card number. In a variation of this scheme, criminals have used e-mail to announce to unsuspecting taxpayers they are “under audit” and could make things right by divulging selected private financial information. Taxpayers should take note: The IRS does not use e-mail to initiate contact with taxpayers about issues related to their accounts. If a taxpayer has any doubt whether a contact from the IRS is authentic, the taxpayer should call 1-800-829-1040 to confirm it. > > 4\. Zero Return. Promoters instruct taxpayers to enter all zeros on their federal income tax filings. In a twist on this scheme, filers enter zero income, report their withholding and then write “nunc pro tunc”–– Latin for “now for then”––on the return. They often also do this with amended returns in the hope the IRS will disregard the original return in which they reported wages and other income. > > 5\. Trust Misuse. For years unscrupulous promoters have urged taxpayers to transfer assets into trusts. They promise reduction of income subject to tax, deductions for personal expenses and reduced estate or gift taxes. However, some trusts do not deliver the promised tax benefits, and the IRS is actively examining these arrangements. There are currently more than 200 active investigations underway and three dozen injunctions have been obtained against promoters since 2001. As with other arrangements, taxpayers should seek the advice of a trusted professional before entering into a trust. > > 6\. Frivolous Arguments. Promoters have been known to make the following outlandish claims: the Sixteenth Amendment concerning congressional power to lay and collect income taxes was never ratified; wages are not income; filing a return and paying taxes are merely voluntary; and being required to file Form 1040 violates the Fifth Amendment right against self-incrimination or the Fourth Amendment right to privacy. Don’t believe these or other similar claims. These arguments are false and have been thrown out of court. While taxpayers have the right to contest their tax liabilities in court, no one has the right to disobey the law. > > 7\. Return Preparer Fraud. Dishonest return preparers can cause many headaches for taxpayers who fall victim to their schemes. Such preparers derive financial gain by skimming a portion of their clients’ refunds and charging inflated fees for return preparation services. They attract new clients by promising large refunds. Taxpayers should choose carefully when hiring a tax preparer. As the old saying goes, “If it sounds too good to be true, it probably is.” And remember, no matter who prepares the return, the taxpayer is ultimately responsible for its accuracy. Since 2002, the courts have issued injunctions ordering dozens of individuals to cease preparing returns, and the Department of Justice has filed complaints against dozens of others. During fiscal year 2005, more than 110 tax return preparers were convicted of tax crimes. > > 8\. Credit Counseling Agencies. Taxpayers should be careful with credit counseling organizations that claim they can fix credit ratings, push debt payment plans or impose high set-up fees or monthly service charges that may add to existing debt. The IRS Tax Exempt and Government Entities Division is in the process of revoking the tax-exempt status of numerous credit counseling organizations that operated under the guise of educating financially distressed consumers with debt problems while charging debtors large fees and providing little or no counseling. > > 9\. Abuse of Charitable Organizations and Deductions. The IRS has observed increased use of tax-exempt organizations to improperly shield income or assets from taxation. This can occur, for example, when a taxpayer moves assets or income to a tax-exempt supporting organization or donor-advised fund but maintains control over the assets or income, thereby obtaining a tax deduction without transferring a commensurate benefit to charity. A “contribution” of a historic facade easement to a tax-exempt conservation organization is another example. In many cases, local historic preservation laws already prohibit alteration of the home’s facade, making the contributed easement superfluous. Even if the facade could be altered, the deduction claimed for the easement contribution may far exceed the easement’s impact on the value of the property. > > 10\. Offshore Transactions. Despite a crackdown by the IRS and state tax agencies, individuals continue to try to avoid U.S. taxes by illegally hiding income in offshore bank and brokerage accounts or using offshore credit cards, wire transfers, foreign trusts, employee leasing schemes, private annuities or life insurance to do so. The IRS and the tax agencies of U.S. states and possessions continue to aggressively pursue taxpayers and promoters involved in such abusive transactions. During fiscal 2005, 68 individuals were convicted on charges of promotion and use of abusive tax schemes designed to evade taxes. > > 11\. Employment Tax Evasion. The IRS has seen a number of illegal schemes that instruct employers not to withhold federal income tax or other employment taxes from wages paid to their employees. Such advice is based on an incorrect interpretation of Section 861 and other parts of the tax law and has been refuted in court. Lately, the IRS has seen an increase in activity in the area of “double-dip” parking and medical reimbursement issues. In recent years, the courts have issued injunctions against more than a dozen persons ordering them to stop promoting the scheme. During fiscal 2005, more than 50 individuals were sentenced to an average of 30 months in prison for employment tax evasion. Employer participants can also be held responsible for back payments of employment taxes, plus penalties and interest. It is worth noting that employees who have nothing withheld from their wages are still responsible for payment of their personal taxes. > > 12\. “No Gain” Deduction. Filers attempt to eliminate their entire adjusted gross income (AGI) by deducting it on Schedule A. The filer lists his or her AGI under the Schedule A section labeled “Other Miscellaneous Deductions” and attaches a statement to the return that refers to court documents and includes the words “No Gain Realized.” If you suspect tax fraud, you can contact the IRS using a federal form 3949-A, Information Referral.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Tax%20Schemes%20To%20Run%20Screaming%20From&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Tax%20Schemes%20To%20Run%20Screaming%20From "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Tax%20Schemes%20To%20Run%20Screaming%20From "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Tax%20Schemes%20To%20Run%20Screaming%20From&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual, IRS News **Tags:** Dirty-Dozen, IRS, phishing, tax-fraud --- ### [The Bare Facts](https://www.taxgirl.com/2006/02/08/the-bare-facts/) **Published:** February 8, 2006 **Author:** Kelly Phillips Erb **Content:** Scores, the New York strip club that has gained notoriety in recent years for its allegations of overcharging patrons, including celebrities and executives – and those that would rather not be recognized – has been hit with allegations of tax evasion. The 16-count indictment alleges that the defendants participated in a scheme involving dummy companies in order to reduce taxable income between 2001 and 2003. Scores Holding Company CEO Richard Goldring used one dummy company, Interactive Business Concepts Inc., to claim business-related deductions on New York State tax returns, though prosecutors allege the money was used for personal expenses. This isn’t the first criminal scandal involving top execs at Scores. Manager Harvey Osher, also named in the indictment, was convicted in 2001 of federal money laundering charges. Defense attorneys claim that the defendants were merely acting on the advice of professionals. The prosecution, however, maintains that this was a purposeful scheme meant to evade state income taxes. The tax evasion charges will not affect the ongoing investigation into the allegations that the club overcharged patrons.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=The%20Bare%20Facts&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=The%20Bare%20Facts "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=The%20Bare%20Facts "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=The%20Bare%20Facts&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? 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[ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Prosecutions, Felonies and Misdemeanors, Taxes of the Rich and (In)famous --- ### [IRS Finds Religion](https://www.taxgirl.com/2005/11/08/irs-finds-religion/) **Published:** November 8, 2005 **Author:** Kelly Phillips Erb **Content:** In one of the most appalling cases (IMHO) to come before the Service in recent years, a church has been warned it could lose its tax-exempt status because of a sermon.  Yes, I know you’re waiting for the inevitable statement that politics were involved.  And they were.  But the ideological kind.  Not a blatant “Vote for… (fill in the blank)” that riled so many after the last election.  Unlike other cases which have been called into question, this one involved no campaign literature, no organized rallies, no posted signs.  It was an anti-war sermon, which the Service is classifying as “intervening in political campaigns and elections.” Apparently, criticizing the current administration is enough to get your status revoked. The rector at the church, J. Edmund Bacon, called the threat “a direct assault on freedom of speech and freedom of religion.”  (source:  CNN.com) Even more telling, the Service has offered to drop the revocation proceedings if the church admitted wrongdoing, which the church has declined.  Their attorney vowed to fight the proceedings, saying they are not based on facts.  This practitioner agrees. It is nothing new that preachers and priests exhort their followers to uphold their own tenets.  Does the Catholic Church’s stance on abortion merit a revocation in that it’s a “conservative” position?  Does the Episcopal Church’s stance on homosexual priests merit a revocation for such a “liberal” doctrine?  I think we all agree that they don’t. The fact is that churches, which are practically de facto 501(c)(3) under the Internal Revenue Code, embrace ideology.  Without a doctrine, what would churches be?  Social organizations?  Taking a different position on the issues, no matter the timing, should not be enough to trigger a revocation of status.  Blatant campaigning is clearly prohibited, though I would note that such campaigning did happen during the last presidential election with very different results. This isn’t about liberal versus conservative.  It’s about the law being applied consistently and fairly.  It’s very disturbing to me, as a practitioner, to hear that tax-exempt organizations are being monitored for their statements, and not for their activities.  It’s a slippery slope – and as citizens, we should all be concerned.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=IRS%20Finds%20Religion&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=IRS%20Finds%20Religion "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=IRS%20Finds%20Religion "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=IRS%20Finds%20Religion&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Charitable Organizations **Tags:** J. Edmund Bacon, religion --- ### [Tax Relief For Rita](https://www.taxgirl.com/2005/10/04/tax-relief-for-rita/) **Published:** October 4, 2005 **Author:** Kelly Phillips Erb **Content:** The IRS has announced tax relief for Hurricane Rita victims. Briefly, the relief includes extensions (in some cases, automatic) to file returns and make estimated payments. In most cases, the extension date is February 28, 2006. Automatic extensions are granted for Texas residents of the following counties: Angelina, Brazoria, Chambers, Fort Bend, Galveston, Hardin, Harris, Jasper, Jefferson, Liberty, Montgomery, Nacogdoches, Newton, Orange, Polk, Sabine, San Augustine, San Jacinto, Shelby, Trinity, Tyler, and Walker. Automatic extensions are granted for Louisiana residents of the following parishes: Acadia, Allen, Ascension, Beauregard, Calcasieu, Cameron, Evangeline, Iberia, Jefferson, Jefferson Davis, Lafayette, Lafourche, Plaquemines, Sabine, St. Landry, St. Martin, St. Mary, Terrebonne, Vermilion, Vernon, and West Baton Rouge. In other areas affected by the storm, hurricane victims must request an extension by identifying themselves as a hurricane victim and writing “Hurricane Rita” in red ink at the top of all tax papers filed with the IRS. For more information, click on the link above or check with your tax professional.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Tax%20Relief%20For%20Rita&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Tax%20Relief%20For%20Rita "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Tax%20Relief%20For%20Rita "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Tax%20Relief%20For%20Rita&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** IRS News **Tags:** Hurricane-Rita, IRS --- ### [State & Federal Tax Offices Announce Closings and Filing Delays Due To COVID-19](https://www.taxgirl.com/2020/03/12/state-federal-tax-offices-announce-closings-and-filing-delays-due-to-covid-19/) **Published:** March 12, 2020 **Author:** Kelly Phillips Erb **Content:** (*Note*: Updated April 1, 2020) On March 20, 2020, Treasury Secretary Mnuchin extended the tax filing and payment deadline to July 15, 2020. You can find more information and guidance here. Some tax-related agencies and departments are closed: - The US Tax Court is closed to the public. You may still file petitions and use online services. - Social Security offices are closed to the public. You may still conduct some business by phone or online. - All [AARP Foundation Tax-Aide services](https://www.aarp.org/money/taxes/aarp_taxaide/) and most IRS Volunteer Income Tax Assistance (VITA) program sites have closed. Some states are extending filing and payment deadlines. Here’s what we know so far: **Alabama:** Governor Kay Ivey and the Alabama Department of Revenue announced that the state income tax filing due date is extended from April 15, 2020, to July 15, 2020. Taxpayers can also defer state income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations, and other non-corporate tax filers. For small businesses, restaurants, and other foodservice businesses unable to pay their state sales taxes due to the impact of the coronavirus (COVID-19), late payment penalties will be waived for taxes reported on returns filed for the February, March, and April 2020 reporting periods. Similar relief is being provided for state lodging taxes due for these same periods. **Arizona:** The Arizona Department of Revenue (ADOR) announced it moved the deadline for filing and paying state income taxes from April 15 to July 15, 2020, following direction today from Governor Doug Ducey. This includes individual, corporate, and fiduciary tax returns. Taxpayers who expect to need more time beyond the new July 15 deadline to file state income taxes should consider filing for an extension. **Arkansas:** Governor Hutchinson announced the state deadline to file and pay individual income taxes has been extended to July 15, matching the federal extension. **California**: FTB is postponing the filing and payment deadlines for all individuals and business entities for 2019 tax returns, 2019 tax return payments, 2020 1st and 2nd quarter estimate payments, 2020 LLC taxes and fees, and 2020 Non-wage withholding payments until July 15. **Colorado:** The income tax payment deadline has been extended for all Colorado taxpayers by 90 days until July 15, 2020. All income tax returns that were required to be filed by April 15, 2020, are granted a six-month extension and are due on or before October 15, 2020. **Connecticut:** At the direction of Governor Ned Lamont, the Connecticut Department of Revenue Services (DRS) is extending the filing and payment deadline for personal income tax returns by 90 days, to July 15, 2020. The extension also applies to Connecticut estimated income tax payments for the first and second quarters of 2020. **Delaware:** The Delaware Division of Revenue (DOR) announced the deadline for taxpayers to file their 2019 Delaware personal income tax returns has been extended to July 15, 2020. The filing deadline for corporate income taxes is tied to the federal income tax due date, which was recently extended to July 15, 2020. Under a Technical Information Memorandum 2020-01, DOR has also extended income tax filing deadlines for corporate final, corporate tentative, estimated personal income taxes, and fiduciary income taxes due in April to July 15, 2020. All other returns remain due without extension. Individuals who cannot meet the July 15 filing deadline may file an extension request online on or before July 15, by email to DOR\_PublicService@delaware.gov, or through their tax preparer. **Hawaii:** The Department of Taxation has issued Tax Announcement 2020-01 to grant special tax relief for State income taxpayers similar to the IRS. The due date for filing 2019 State income tax returns due from April 20, 2020 to June 20, 2020 is postponed to July 20, 2020. The due date for making 2019 State income tax payments due from April 20, 2020 to June 20, 2020 is postponed to July 20, 2020. The Tax Announcement applies to individuals, trusts and estates, corporations, and other non-corporate tax filers as well as those who pay self-employment tax. The relief provided in the Announcement applies solely to returns and payments for Tax Year 2019 due from April 20, 2020 to June 20, 2020, and does not include estimated income tax payments for the 2020 taxable year. **Indiana**: On March 19, 2020, Gov. Holcomb announced DOR is extending certain filing and payment deadlines to align with the IRS. Individual tax returns and payments, along with estimated payments originally due by April 15, 2020, are now due on or before **July 15, 2020**. Corporate tax returns and payments, along with estimated payments originally due by April 15 or April 20, are now due on or before July 15, 2020; those originally due on May 15, 2020, are now due on August 17, 2020. All other tax return filings and payment due dates remain unchanged. You can find these due dates on DOR’s tax filing deadlines webpage. **Iowa**: The Iowa Department of Revenue has extended the filing and payment deadline for several state tax types under an **order** signed by Director of Revenue Kraig Paulsen. The order extends filing and payment deadlines for income, franchise, and moneys and credits taxes with a due date on or after March 19, 2020, and before July 31, 2020, to July 31, 2020. **Kansas:** Gov. Kelly signed Executive Order #20-13, extending tax filing deadlines to July 15, 2020, and waiving any interest and penalties for returns and payments made on or before July 15, 2020. In the event the State of Disaster Emergency originally proclaimed on March 12, 2020, is lifted or expires prior to July 15, 2020, the Department of Revenue shall continue to exercise appropriate discretion to make effective the waivers of penalties and interest for payments made up to July 15, 2020. **Kentucky:** Kentucky will match the IRS with a 7/15 deadline for filing and payment per Governor Beshear. **Louisiana:** Businesses have additional time to file returns due this month for sales and excise taxes collected by the Louisiana Department of Revenue (LDR). The extended deadline is May 20, 2020, for applicable returns and payments that were due Friday, March 20. The extension applies to sales, beer excise, and wine excise tax returns and payments for the February 2020 tax period. This is an automatic extension and no extension request is necessary. LDR will waive penalties and interest for applicable returns and payments received by the extended May 20 deadline. **Maryland**: The deadline to file a 2019 income tax return for Maryland individual, corporate, pass-through entity, and fiduciary taxpayers is now July 15, 2020. Fiscal year filers with tax years ending January 1, 2020 through March 31, 2020 are also eligible for the July 15, 2020 extension for filing returns and payment. The due date for March quarterly estimated payments of 2020 taxes is also extended to July 15, 2020. The extension to July 15, 2020, for filing returns and paying 2019 taxes is automatic; no filing or request is required to take advantage of the extended deadline. **Michigan:** The Department of Treasury is waiving penalties and interest for late payment of tax or late filing of the return due on March 20, 2020. The waiver will be effective for 30 days; therefore, any return or payment currently due on March 20, 2020 may be submitted to the Department without penalty or interest through April 20, 2020. The waiver is limited to sales, use, and withholding payments and returns due March 20, 2020. Questions may be directed to the Department at (517) 636–6925. **Minnesota:** The state is providing additional time until July 15, 2020, for taxpayers to file and pay 2019 Minnesota Individual Income Tax without any penalty or interest. The state is also granting a 30-day Sales and Use Tax grace period for businesses required to suspend or reduce services under Executive Order 20-04.  The Minnesota due date has not changed for Corporation Franchise, S Corporation, Partnership, or Fiduciary taxes. However, under state law, C corporations receive an automatic extension to file their Minnesota return to the later of November 15, 2020, or the date of any federal extension to file, and S corporations, partnerships, and fiduciaries receive an automatic extension to file their state return to the date of any federal extension to file. **Mississippi:** The deadline to file and pay the 2019 individual income tax and corporate income tax is extended until May 15, 2020. The first quarter 2020 estimated tax payment is also extended until May 15, 2020. Penalty and interest will not accrue on the extension period through May 15, 2020. Withholding tax payments for April are extended until May 15, 2020. The extension does not apply to Sales Tax, Use Tax, or any other tax types. **Missouri**: The tax filing deadline is extended to July 15, 2020. **Montana:** Governor Steve Bullock extended the payment and filing deadlines for 2019 individual income taxpayers to July 15 in accordance with the new federal filing deadline. The deadline for those making estimated tax payments for the first quarter of 2020 has also been extended to July 15. The due date for the second quarter remains July 15. **Nebraska:** Governor Pete Ricketts announced that Nebraskans will have until July 15, 2020, to pay state income taxes. For Nebraskans impacted by COVID-19, this change will give them additional flexibility. Nebraskans who are not impacted by the virus should consider filing by the traditional April 15th date. **New Jersey:** We don’t have an update on the website, but we do have a tweet from the Governor: The New Jersey state tax filing deadline WILL BE EXTENDED from April 15th to July 15th. **New Mexico:** The New Mexico Taxation and Revenue Department (TRD) has announced that New Mexico taxpayers qualify for extended return and payment deadlines due to the COVID-19 statewide public health emergency declaration (Executive Order 2020-004) by Governor Michelle Lujan Grisham. Personal & corporate income tax returns and payments due between April 15, 2020 and July 15, 2020 may be submitted without penalty no later than July 15, 2020. Withholding tax returns and payments due between March 25, 2020 and July 25, 2020 may be submitted without penalty no later than July 25, 2020. TRD will not impose a penalty if a taxpayer complies with the extensions, but interest is imposed from the original statutory due date because TRD has no authority to waive interest under Section 7-1-13 NMSA 1978. **New York:** The Tax Department has extended the due date for New York State personal income tax and corporation tax returns originally due on April 15, 2020, to July 15, 2020. Sales tax payments and returns were due March 20, 2020; however, penalty and interest may be waived for quarterly and annual filers who were unable to file or pay on time due to COVID-19. **North Carolina:** The N.C. Department of Revenue (NCDOR) announced it will extend the April 15 tax filing deadline to July 15 for individual, corporate, and franchise taxes to mirror the Internal Revenue Service’s announced deadline change. In addition to the filing extension, the NCDOR will not charge penalties for those who file and pay their taxes after April 15, as long as they file and pay before the updated July 15 deadline. However, the department cannot offer relief from interest charged to filings after April 15. Unless state law is changed, tax payments received after April 15 will be charged accruing interest over the period from April 15 until the date of payment. These changes do not apply to trust taxes, such as sales and use or withholding taxes. **North Dakota:** The State of North Dakota is currently aligned with the IRS extension date. Individuals or businesses unable to file an income tax return or pay the tax by the April 15th deadline can file and pay through July 15, 2020, without penalty or interest. You have the ability to request additional time if you believe you will be unable to file a return or pay the tax in a timely manner because of a COVID-19-related situation; please contact the Office of the State Tax Commissioner. **Oklahoma:**  Oklahomans now have until July 15, 2020, to file and pay their 2019 Oklahoma income tax return. In response to Treasury Secretary Steven T. Mnuchin’s announcement on Friday that the Trump administration has decided to push the federal income tax filing date from April 15 to July 15, the Oklahoma Tax Commission (OTC) is likewise extending the 2019 Oklahoma income tax return due date from April 15 to July 15, 2020. **Oregon:** The department follows the Internal Revenue Service filing and payment due dates for personal income taxes. If the IRS extends the April 15 due date because of the COVID-19 pandemic, Oregon will automatically follow those dates for personal income tax filers. **Pennsylvania:** The Department of Revenue announced the deadline for taxpayers to file their 2019 Pennsylvania personal income tax returns is extended to July 15, 2020. This gives taxpayers an additional 90 days to file beyond the original April 15 deadline. The Department of Revenue will also waive penalties and interest on 2019 personal income tax payments through the new deadline of July 15, 2020. This extension applies to both final 2019 tax returns and payments and estimated payments for the first and second quarters of 2020. In certain cases, taxpayers may have additional time to appeal a tax assessment issued by the Department of Revenue or file a petition for a tax refund with the Board of Appeals. **South Carolina:** In response to the challenges of COVID-19 and in accordance with Executive Order 2020-12, the South Carolina Department of Revenue (SCDOR) is moving the due date for Income Tax returns and payments originally due April 15, 2020 to July 15, 2020 and is temporarily allowing retailers who meet certain requirements to sell sealed containers of beer and wine for curbside/drive-thru pickup for off-premises consumption. **Tennessee:** The Tennessee Department of Revenue has extended the due date for filing and paying franchise and excise tax from April 15, 2020 to July 15, 2020. **Utah:** The IRS has automatically extended the deadline for 2019 individual and corporate returns and payments to July 15, 2020, without penalties and interest, regardless of the amount owed. After consulting with the Governor, the President of the Senate, and the Speaker of the House, the Utah State Tax Commission intends to follow the federal government’s tax filing and payment actions in response to the COVID-19 outbreak. We are waiting to review the official instructions from the IRS to ensure we align properly with federal requirements. **Vermont:** The Vermont income tax filing due dates for the following taxes have also been extended from April 15, 2020, to July 15, 2020: Vermont personal income tax, Vermont Homestead Declaration and Property Tax Credit Claims, Corporate income tax, and Fiduciary income tax. Taxpayers may file and pay these taxes before July 15, 2020, without penalty or interest. **Virginia:** Businesses impacted by coronavirus can request a 30-day extension to file and pay their February 2020 sales tax return, due March 20, 2020. If granted, businesses can file and pay no later than April 20, 2020, with a waiver of any penalties. Any income tax payments due during the time period of April 1, 2020, to June 1, 2020, will now be due on June 1, 2020. This includes individual and corporate income taxes paid to Virginia Tax. All income tax filing deadlines remain the same, including the May 1, 2020 individual income tax filing due date. Late payment penalties will not be charged if payments are made by **June 1, 2020**. However, interest will still accrue, so you should pay by the original filing due date if you can. **Washington**: Revenue will work with businesses that cannot file or pay their taxes on time due to the COVID-19 outbreak. Businesses can request an extension or penalty waiver by sending a secure email in their **My DOR** account or by calling Revenue’s customer service staff at 360-705-6705, Monday through Friday 8 a.m. to 5 p.m. [**Wisconsin:**](https://www.revenue.wi.gov/Pages/News/2020/Tax-Deadline-Extended.pdf) Both federal and Wisconsin income tax payment and return due dates are automatically extended to July 15, 2020. Wisconsin law will automatically extend time and waive interest and penalties for taxpayers due to a presidentially declared disaster **Some states are also closing their tax offices to the public. So far, closures and recommended alternatives include:** **Alabama:** The Department is asking taxpayers to limit in-person visits to the taxpayer service centers. Use the website for information and answers to your questions; use My Alabama Taxes (MAT) to file and pay taxes; or call 334-242-1170 for additional assistance. **Colorado:** Offices are closed to the public through April 18. Help is available online. **Connecticut:** The Connecticut Department of Revenue Services (DRS) is suspending walk-in services to the public at its four branch offices (Hartford, Bridgeport, Waterbury and Norwich), effective at the end of business Tuesday, March 17, 2020. All business with the DRS can be conducted electronically, by telephone, or by written correspondence. **Delaware**: Delaware has temporarily closed all Public Service offices and discontinued face-to-face service statewide until further notice. All taxpayers are asked to use online services at Revenue.Delaware.gov to remain compliant with all tax filing and payment obligations. If you can’t find a solution through Revenue’s online services, call our public service group at 302-577-8200 for guidance. **Florida:** All Department of Revenue offices in Florida are temporarily closed to the public. Taxpayers adversely affected by COVID-19 are encouraged to send questions to COVID19TAXHELP@floridarevenue.com. Property taxpayers should contact their county property appraisers and tax collectors for information. **Georgia:** Department of Revenue is temporarily suspending in-person services effective Monday, March 23, 2020. Taxpayers can conduct all business with the Department via online services, telephone, or designated secure lockbox locations. **Hawaii:** DOTAX  offices are CLOSED to the public. Please use secure web messaging on Hawaii Tax Online or call us at (808) 587-4242 if you have questions or need assistance. **Illinois:** Illinois Department of Revenue taxpayer phone system agents are currently unavailable. Taxpayers can still check refund status, identify a PIN, or receive estimated payment information through our taxpayer assistance 800 number. During this time, a limited number of staff will also monitor and respond to emails. **Indiana:** Effective March 18, 2020, all Indiana Department of Revenue customer walk-in centers will temporarily close for in-person assistance. Customers are encouraged to call or email DOR directly in addition to using available online services. **Kansas:** All Kansas Department of Revenue offices are closed March 23rd – April 6th. **Kentucky:** The Kentucky Department of Revenue (DOR) will not receive walk-in customers for tax filing assistance, collections cases, or other tax-related issues. Previously scheduled appointments will be cancelled and rescheduled if possible. DOR representatives are available by phone or email. Taxpayer Service Center (TSC) locations and contact information may be found on the DOR Service Center page. **Maryland:** Comptroller Peter Franchot today announced that Taxpayer Services call center agents will no longer be staffing the 1-800-MD-TAXES phone lines following the close of business at 4:30 p.m. on Monday, March 23, 2020. Taxpayers must email their tax questions to taxhelp@marylandtaxes.gov. Response times may be affected as limited staff will be focused on processing tax returns and issuing refunds. **Massachusetts:** All DOR tax (including Estate Tax walk-in service) and child support walk-in centers are closed until further notice. **Maine:** Maine Revenue Services (“MRS”) facilities at 51 Commerce Drive in Augusta will only be available to the public for purposes of accepting tax payments. MRS’ facilities at 135 Presumpscot Street in Portland remain closed to the public. Taxpayers seeking telephone assistance may still call MRS during normal telephone assistance hours from 9:00 a.m. to 4:00 p.m. All MRS telephone and email contact information is available at: www.maine.gov/revenue/contact.html. This includes the Taxpayer Service Center at (207) 624-9784 and the Property Tax Division at (207) 624- 5600. At this moment, MRS does not expect the COVID-19 situation to significantly impact tax return processing. **Massachusetts:** All DOR tax and child support walk-in centers are closed until further notice. **Nevada:** All Taxation offices will be closed to the public. All taxpayers are advised to file and pay their taxes through the online portal, mail, or via drop box at the Taxation offices. **New Jersey:** Beginning on March 18th and continuing at least through March 31st, all walk-in services at Division of Taxation regional and Trenton offices will be closed to the public as a precaution to safeguard public health. We anticipate reopening on April 1st. Call centers and email servicing remain operational for any inquiries. **New Mexico:** All New Mexico Taxation and Revenue district offices are now open by appointment only. You can make appointments at district offices by phone or email. As always, the Department’s online services remain available at tax.newmexico.gov. **North Carolina:** NCDOR Service Centers remain closed to the public. Taxpayers are encouraged to utilize online and phone services to the greatest extent possible. Call 1-877-252-3052 for assistance. **Ohio**: Effective immediately, the Ohio Department of Taxation has closed its walk-in center due to Coronavirus concerns. **Pennsylvania**: The Department of Revenue’s offices and customer service call center are currently closed. That means anyone visiting a Revenue district office or calling the department by phone will not be able to reach a representative at this time. Find Revenue phone numbers and answers to common tax questions: www.revenue.pa.gov **South Dakota:** Due to the Governor’s executive order, Revenue offices will be closed until March 23rd. Staff is available via chat or at 800-829-9188 to answer your questions. **Tennessee:** The Tennessee Department of Revenue is not currently receiving walk-in customers at our Jackson, Cookeville, and Shelbyville offices. Walk-in service remains available at our Memphis, Nashville, Knoxville, Chattanooga, and Johnson City locations. Phone assistance is available at our Taxpayer Assistance Hotline at 615-253-0600 or Tax Practitioner Hotline at 615-253-0700, online at Revenue Help, or by email at revenue.support@tn.gov. **Texas:** Texas Enforcement Offices have reduced staffing and modified waiting-area configurations. Because this may result in longer in-person wait times, we strongly encourage you to use our online services below. Use Webfile to file and pay certain taxes electronically. **Utah:** Due to a significant earthquake, the Utah State Tax Commission’s main office in Salt Lake City is closed until further notice. The Ogden, Provo, and Hurricane offices remain open. Phone and email services statewide are closed until further notice. Our online services such as Taxpayer Access Point (TAP) remain functional. **Washington:** All DOR offices are temporarily closed to the public. Call center agents are available to assist by phone or chat Please understand that this situation is changing rapidly, and I’m posting information as quickly as I can confirm it. I’ve included links to Revenue websites, where possible. Please check with Revenue (and local government) websites and your tax professional for more information or if you have questions. Check back regularly: I’ll keep you updated as information becomes available. 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** State and Local Tax (SALT) **Tags:** state tax, tax extension --- ### [In Whom Do You Place Your Trust?](https://www.taxgirl.com/2005/09/20/in-whom-do-you-place-your-trust/) **Published:** September 20, 2005 **Author:** Kelly Phillips Erb **Content:** A lawsuit is brewing. The ugly kind. The kind where nobody wins, really. The kind that puts a child in the middle. The minor son of Herbalife founder Mark Hughes is Alexander Hughes, a 14-year-old California resident. He is the only child of Mark Hughes, who died early at the age of 44 years old after taking an antidepressant following a drinking binge (not the biggest promotion for Herbalife, huh?). His death was ruled “accidental.” Mr. Hughes had previously divorced his wife two years before his death, and thus the bulk of his estate was left to his minor son. The value of the trust estate is currently about $400 million. Alexander’s mother, Suzan Hughes, a former Hawaiian Tropic model and thrice-married, alleges that the Trustees of Alex’ trust, which include Alex’ paternal grandfather, have taken too many fees and otherwise refuse to provide for him. The Trustees have fired back that Suzan is seeking additional compensation for herself in the guise of payments and assets to Alex. Ms. Hughes had previously filed papers to oust the Trustees on the basis of breach of fiduciary duty – and was unsuccessful. Now, she is trying again, this time alleging other grounds, including excessive fees. It’s a sad saga for Alex, who has been involved in what attorneys for the Trustees have referred to as “one of the most contentious trust and estate proceedings on record.” Stay tuned to see what happens. 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Taxes of the Rich and (In)famous **Tags:** Alexander Hughes, Mark Hughes, Suzan Hughes --- ### [So Time Really IS Money…](https://www.taxgirl.com/2005/09/08/so-time-really-is-money/) **Published:** September 8, 2005 **Author:** Kelly Phillips Erb **Content:** From irs.gov: > Treasury, IRS Announce Special Relief to Encourage Leave-Donation Programs for Victims of Hurricane Katrina > IR-2005-97, Sept. 8, 2005 > > WASHINGTON — Department of the Treasury and Internal Revenue Service officials announced today special relief intended to support leave-based donation programs to aid victims who have suffered from the extraordinary destruction caused by Hurricane Katrina. > > Under these programs, employees donate their vacation, sick or personal leave in exchange for employer cash payments made to qualified tax-exempt organizations providing relief for the victims of Hurricane Katrina. > > Under Notice 2005-68, employees can forgo leave in exchange for employer cash payments made before January 1, 2007, to qualified tax-exempt organizations providing relief for Hurricane Katrina victims. Employees do not have to include the donated leave in their income. Employers will be permitted to deduct the amount of the cash payment. [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=So%20Time%20Really%20IS%20Money%E2%80%A6&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=So%20Time%20Really%20IS%20Money%E2%80%A6 "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=So%20Time%20Really%20IS%20Money%E2%80%A6 "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=So%20Time%20Really%20IS%20Money%E2%80%A6&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** IRS News **Tags:** Hurricane-Katrina --- ### [Cindy’s Boston Tea Party](https://www.taxgirl.com/2005/08/23/cindys-boston-tea-party/) **Published:** August 23, 2005 **Author:** Kelly Phillips Erb **Content:** Cindy Sheehan has already made a name for herself as a peace advocate, having lost her son in the war in Iraq. She’s now making the case for civil disobedience in the realm of taxes, stating: > “My son was killed in 2004. I am not paying my taxes for 2004. You killed my son, George Bush, and I don’t owe you a penny…you give my son back and I’ll pay my taxes. Come after me (for back taxes) and we’ll put this war on trial.” (quote attributed to the Drudge Report) [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Cindy%E2%80%99s%20Boston%20Tea%20Party&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Cindy%E2%80%99s%20Boston%20Tea%20Party "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Cindy%E2%80%99s%20Boston%20Tea%20Party "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Cindy%E2%80%99s%20Boston%20Tea%20Party&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Tax Policy **Tags:** Iraq, tax protest --- ### [A Little Trust Is All You Need](https://www.taxgirl.com/2005/08/01/a-little-trust-is-all-you-need/) **Published:** August 1, 2005 **Author:** Kelly Phillips Erb **Content:** Talk about a walking advertisement for trust law…  A German man won almost $1 million in the lottery and promptly spent most of it. Embarrassed, he turned to burglary rather than confess to the welfare office that he had no winnings left. He has now admitted to at least 60 offenses. Totally unbelievable? Not really. I had a client who, in addition to her mother’s estate, received some proceeds from litigation. While planning for the mother’s death, we implored the mother to put the money in a trust for the benefit of her daughter (and her daughter’s children). She only consented to put the insurance proceeds in a trust. The rest, over $1 million, went outright to the daughter. Two years later, the daughter was facing bankruptcy and was applying for welfare for her many children. She spent the money on luxuries like new bedroom suites for each child every year, cruises for the entire family, and pay-per-view (including boxing matches at $40-50/pop). She basically frittered away more than $1 million on silliness. The moral of these stories?  Not everyone can handle money (though most of us would sure like to give it a whirl).  A trust can be the difference between living well and living beyond your means.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=A%20Little%20Trust%20Is%20All%20You%20Need&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=A%20Little%20Trust%20Is%20All%20You%20Need "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=A%20Little%20Trust%20Is%20All%20You%20Need "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=A%20Little%20Trust%20Is%20All%20You%20Need&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Estate and Gift Tax --- ### [A Symbolic Gesture](https://www.taxgirl.com/2005/07/25/a-symbolic-gesture/) **Published:** July 25, 2005 **Author:** Kelly Phillips Erb **Content:** In what can only be considered an attempt to make a statement, a handful of Senators are introducing a new bill to make the federal estate tax repeal permanent. Those Senators have admitted they are several votes short of what’s needed to pass; nonetheless, the Boston Globe reported this morning that the vote will be pushed through this week. Earlier in the year, Senate Majority Leader Frist had vowed to vote on the legislation before the August recess (hmm, cutting it a little close, I see). What is puzzling about this zeal to push the bill through this week is that a compromise bill, perhaps permanently raising the exemption amount, would have likely had the support to pass. However, the permanent repeal of a revenue-generating tax that affects only the top 2% of Americans just doesn’t have a tremendous amount of appeal at a time when the U.S. is facing mounting deficits. And not to blur the discussion without actual facts (horrors!), the Congressional Budget Office released a study suggesting that keeping the exemption amount at 2009 levels would relieve almost all small family-owned businesses and farmers of the tax. Nonetheless, the push for repeal continues. I guess you can’t blame a Senator for trying…[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=A%20Symbolic%20Gesture&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=A%20Symbolic%20Gesture "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=A%20Symbolic%20Gesture "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=A%20Symbolic%20Gesture&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Estate and Gift Tax, Politics **Tags:** estate-tax, federal estate tax repeal --- ### [Renew Your PTIN Now For 2021](https://www.taxgirl.com/2020/10/22/renew-your-ptin-now-for-2021/) **Published:** October 22, 2020 **Author:** Kelly Phillips Erb **Content:** It feels like the last tax season just ended (okay, it kind of did), but the Internal Revenue Service (IRS) is already sending out reminders for tax professionals to start the upcoming 2021 filing season. Specifically, the IRS is reminding paid preparers to renew their Preparer Tax Identification Numbers (PTINs) now. **All current PTINs will expire December 31, 2020.** Any tax professional who prepares or helps prepare any federal tax return, or claim for refund, for compensation must have a valid PTIN from the IRS. Some forms used for informational purposes, like forms SS-4 and 2848, are excluded, as are specific information returns, like forms W-2 and 1099. You can see the entire list of excluded forms and returns [here](https://www.irs.gov/tax-professionals/frequently-asked-questions-do-i-need-a-ptin). Fees are $21 per PTIN application or renewal, plus a $14.95 fee payable to a contractor. According to the IRS, the third-party contractor fee pays for several functions, including processing applications, renewals, and operating a call center. **The PTIN fee is non-refundable.** “Large segments of the taxpaying public rely on tax return preparers to assist them in complying with their filing and payment obligations,” said IRS Return Preparer Director Carol A. Campbell. “Obtain or renew your PTIN now so you will be prepared to assist when filing season opens.” The IRS suggests that tax preparers with a 2020 PTIN use the online renewal process, which takes about 15 minutes to complete. Here are the quick and easy instructions: - Start at [IRS.gov/taxpros](https://www.irs.gov/tax-professionals). - Select the “Renew or Register” button. - Enter the user ID and password to log in to the online PTIN account. - Follow the prompts to verify information and answer a few questions. The online system not only allows PTIN renewal, but also lets tax preparers view a summary of the number of returns filed under their PTIN in the current year and receive communications through a secure mailbox from the IRS Return Preparer Office. First-time PTIN applicants can also apply for a PTIN online. Here’s how: - Start at [IRS.gov/taxpros](https://www.irs.gov/node/11). - Select the “Renew or Register” button and select “Create Account” in the New User box. - First-time users receive a temporary password and will be prompted to change it when they log in. - Select the appropriate “PTIN Sign Up” option once logged in. - Follow the prompts to obtain the PTIN online. If you don’t want to or can’t file online, you can file on paper using Form W-12. However, the paper form can take four to six weeks to process. Not having and using a valid PTIN may result in penalties. Taxpayers should avoid paid preparers who refuse to include a PTIN on a tax return. That might happen because the paid preparer isn’t eligible for a PTIN or doesn’t want to be responsible for the return. Either way, it’s bad news. Those who set up shop and refuse to get a PTIN are sometimes called ghost preparers or black market preparers (for more, click [here](https://www.taxgirl.com/taxes-from-a-to-z-2018-g-is-for-ghost-preparer/)). Seek out a competent tax preparer who will [answer your questions](https://www.taxgirl.com/12-questions-to-ask-when-choosing-a-tax-preparer/) and sign your tax return. You can also check the IRS public directory for a list of preparers in your area who currently hold professional credentials recognized by the IRS or an Annual Filing Season Program Record of Completion. [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Renew%20Your%20PTIN%20Now%20For%202021&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2020%2F10%2Fpexels-karolina-grabowska-4386292.jpg&p%5Btitle%5D=Renew%20Your%20PTIN%20Now%20For%202021 "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Renew%20Your%20PTIN%20Now%20For%202021 "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Renew%20Your%20PTIN%20Now%20For%202021&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** IRS News, Tax Professionals **Tags:** Preparer Tax Identification Number, PTIN, PTIN application, PTIN fees, PTIN renewal, tax professionals --- ### [How Low Income Taxpayer Clinics (LITCs) Can Help With Tax Disputes](https://www.taxgirl.com/2020/11/17/tax-dispute-law-assistance-through-the-litc/) **Published:** November 17, 2020 **Author:** John Luckenbaugh **Content:** All taxpayers deserve quality taxpayer support and representation. However, this can be a costly avenue to achieve. Many taxpayers who stumble into a tax dispute don’t know what help is available. In this week’s podcast, Kelly talks about options for taxpayer help. LITCs, also known as Low Income Taxpayer Clinics, are independent organizations that help taxpayers in need fight their disputes. # **Educating Taxpayers About LITC** Kelly talks with William Schmidt, Clinic Director at Kansas Legal Services, about the ins and outs of LITC and taxpayer assistance programs. William has co-authored a chapter for the American Bar Association on preparing clients for IRS disputes. William also hosts a podcast, *Tax Justice Warriors.* Kelly and William share how the public can find and benefit from tax assistance. ## **Listen to Kelly and William talk about:** - How William found his way to LITCS - LITCS affiliations - Three types of Taxpayer Clinics - Legal aid preparation problems - Types of cases William handles - Real Estate tax concerns - How clinics balance cases - Poverty levels and funding - Number of Taxpayers helped per year - Outreach and education to the Public - Tax mistakes and resolutions - Virtual Settlements - Case and Trial expectations ### **About Kelly:** Kelly Phillips Erb created and hosts the Taxgirl podcast, your home for tax news, tax info, and tax policy. In each episode, she shares conversations about taxes, money, and the choices we make. Kelly is a tax attorney who works with taxpayers and tax practitioners like you every day. She helps folks out of tax jams, and hopefully, keeps others from getting into them. You can find out more about Kelly [here](https://www.taxgirl.com/about-taxgirl/) and you can follow her on [Twitter](https://x.com/taxgirl), [Facebook](https://www.facebook.com/taxgirl), [Instagram](https://www.instagram.com/therealtaxgirl), and [Linkedin](https://www.linkedin.com/in/taxgirl/). ****To subscribe to the podcast (it’s free!) using Apple, Spotify, or your favorite listening app,** [**click here**](https://www.taxgirl.com/taxgirl-podcast/podcast-subscription/)**.**** ### **Links:** Kelly’s Website: [Taxgirl](https://www.taxgirl.com/) [LITC](https://www.irs.gov/advocate/low-income-taxpayer-clinics) William Schmidt: [LinkedIn](https://www.linkedin.com/in/william-schmidt-27b63816/) [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=How%20Low%20Income%20Taxpayer%20Clinics%20%28LITCs%29%20Can%20Help%20With%20Tax%20Disputes&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2020%2F10%2Fep19-scaled.jpg&p%5Btitle%5D=How%20Low%20Income%20Taxpayer%20Clinics%20%28LITCs%29%20Can%20Help%20With%20Tax%20Disputes "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=How%20Low%20Income%20Taxpayer%20Clinics%20%28LITCs%29%20Can%20Help%20With%20Tax%20Disputes "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=How%20Low%20Income%20Taxpayer%20Clinics%20%28LITCs%29%20Can%20Help%20With%20Tax%20Disputes&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual, Podcast, Tax Professionals **Tags:** IRS, kellyphillipserb, LITC, low income taxpayer clinic, podcast, taxdispute, taxes, taxgirlpodcast, taxjusticewarriors, taxlawyer, taxpayer disputes, William Schmidt --- ### [A Primer on How a Case Gets to the Supreme Court](https://www.taxgirl.com/2020/12/08/a-quick-primer-on-how-a-case-gets-to-the-supreme-court-and-what-happens-when-it-does/) **Published:** December 8, 2020 **Author:** Kelly Phillips Erb **Excerpt:** The Supreme Court of the United States - sometimes called SCOTUS - has been in the news a lot lately. As a result, one of my most popular questions is: How does a case get to the Supreme Court? **Content:** The Supreme Court of the United States – sometimes called SCOTUS – has been in the news a lot lately. As a result, one of my most popular questions is: How does a case get to the Supreme Court? I wanted to tackle that question, but in the context I know best: tax. Follows is a primer on how a tax case gets to SCOTUS. The process is more or less the same for all cases, but I’m focusing on tax because, well, you know. First, a couple of quick disclaimers. I am not a litigator. I am not a constitutional lawyer. I am a tax lawyer. That means that this discussion isn’t the result of years practicing law before SCOTUS: I have never personally appeared before SCOTUS. Instead, this is the equivalent of many years of tax practice, reading cases, and an admittedly painful year of Con Law in law school (with apologies to my professor). ## How A Tax Matter Gets To Court When it comes to federal tax matters, you typically begin hammering out disputes with the Internal Revenue Service (IRS) directly. If you can’t reach an agreement, you have the opportunity to take your case to court. You have a few options, depending on the issue, timing, and your resources: - One option is **Tax Court**. The Tax Court can hear tax matters, including requests for abatement of interest (since that’s not discretionary), review of collection actions, and determination of worker classification. The Tax Court is physically located in Washington, D.C., where you’ll file your petition and other documents; fortunately, Tax Court judges travel across the country for trials. But most Tax Court cases don’t make it to trial: they tend to settle. If a case does go to trial, you’ll have an opportunity to have your say, as will the government, and the judge will issue an opinion. (You can find out more about Tax Court [here](https://www.taxgirl.com/2017/04/12/taxes-from-a-to-z-2017-u-is-for-united-states-tax-court/?doing_wp_cron=1607468774.3662641048431396484375).) - Taxpayers can also sue in **U.S. District Court**. You’ve likely seen and remembered references to District Courts since the names relate to geography. For example, I’m located in the Pennsylvania Eastern District; there’s also a Pennsylvania Middle District and a Pennsylvania Western District. Most states have two or three districts except for California and New York, which have four each. To file a tax case in District Court, you have to pay the amount in dispute and sue for a refund. That’s why many taxpayers prefer Tax Court (you don’t have to pay in advance to go to Tax Court). - A third, and lesser-known option, is the **United States Court of Federal Claims**. The Court of Federal Claims is authorized to hear primarily money claims related to constitutional issues, federal statutes, executive regulations, or federal contracts. For tax purposes, that means many refund suits or complex tax cases. Since you have to pay before you can file suit – as you do with the U.S. District Court – this option isn’t as popular for taxpayers with limited resources. These three courts are sometimes called trial courts. Even though they may have impressive names, they are lower courts, and you can appeal their decisions (with some exceptions, like small cases under $50,000 heard in Tax Court, also called S cases, which may not be appealed). ## Appealing A Tax Decision You would appeal a case to the **U.S. Court of Appeals**. There are 13 Circuits in the Court of Appeals (cleverly named 1st, 2nd, and so on, through the 11th, plus the District of Columbia, which hears many agency cases); those courts hear cases from the Tax Court and the District Courts. The last circuit, the **U.S. Court of Appeals for the Federal Circuit**, hears cases from the U.S. Court of Federal Claims. A popular misconception is that an appeal is a do-over. That’s not how it works. Appeals aren’t new trials. Appeals typically review lower-court decisions based on arguments that the court made errors in procedure or in interpreting the law. You are generally barred from raising new arguments or issues on appeal. Even if the lower court made mistakes, the ruling may not be reversed; it depends on the nature of the error. If it were a harmless error – meaning one that didn’t prejudice your rights to a fair trial – the court may let the decision stand. In contrast, an error that is considered harmful may be grounds for reversal – but a reversal doesn’t mean the end game: the appellate court may send the case back down and order the trial court to take further action. ## Appealing To The Supreme Court The next stop after federal appeals courts is the **U.S. Supreme Court**. And as its name suggests, there is no higher court. While you generally have the right to appeal a case from a lower court to an appellate court, you don’t have the right to be heard at the Supreme Court. The Supreme Court has what is called **original jurisdiction** over certain kinds of cases. Those cases, which are defined by statute (28 U.S.C. §1251), go straight to the Supreme Court: they don’t have to wind their way up the lower and appellate court road. And no other court can hear these kinds of cases. An example of a case with original jurisdiction would be a dispute between the states. That said, most cases don’t have original jurisdiction. So, there’s a process for hearing cases that have already been heard in another court and now want a shot at SCOTUS. ## Certiorari To be heard, the losing party must file a petition seeking a review of the case: you’re petitioning for a **writ of certiorari** (that’s Latin meaning a written order “to be more fully informed” ). Typically, you file these in response to an appellate court decision. Less common, but still an option, is to appeal a decision by one of the state supreme courts (it’s rare that SCOTUS will consider one of these unless it involves a constitutional question). If SCOTUS decides to hear the matter, it’s called a **grant of certiorari** (by practice, at least four justices must vote to hear the case to be granted cert). Usually, SCOTUS grants cert when the case is of considerable importance or involves a **circuit split**. A circuit split happens when appellate courts disagree on a matter of federal law and reach different conclusions about its application. SCOTUS may grant cert to resolve the issue for consistency. If SCOTUS turns the petition down, it’s referred to as **certiorari denied**, denied certiorari, or denied cert (for the cool and brief among us – as well as those, like me, who can’t pronounce Latin). A denial does not necessarily mean SCOTUS agrees with the appellate court’s findings; it simply means the appellate decision will stand. Most cases never reach SCOTUS. The Court receives approximately 7,000-8,000 petitions for a writ of certiorari each term (terms begin, by law, on the first Monday in October and last until the first Monday in October, though it typically recesses in June). The Court only grants and hears oral argument in about 80 cases. You have a better chance of getting audited by the IRS – or getting into Harvard. ## How SCOTUS Works You’d think from the movies that arguing before SCOTUS would be exciting. And they are in the lawyer-and-other-geeks-among-us sense. But remember: most cases involve reviewing a decision from a lower court. That means that you typically aren’t going to see a full courtroom proceeding. You will, however, likely see a lot of briefs: both parties file written briefs with the Court, laying out arguments of why their side should win. Sometimes, folks who have an interest in a case – but aren’t a party to the litigation – also want to be heard. In that event, the Court allows those non-parties to also file briefs. These are referred to as amicus briefs written from amicus curiae (even more Latin, this time meaning “friend of the court”). After the briefs are filed, the justices hear oral arguments. They are typically short, and no witnesses testify. If you’ve ever watched one of the hearings, you’ll note that the justices often ask questions during the hearings: that’s to help them clarify any outstanding issues they may have after reviewing those briefs. Once they’ve heard the arguments, they meet as a group to decide the outcome of the case. ## SCOTUS Decisions SCOTUS decisions are made public by a written opinion. The Court used to issue separate opinions, a throwback to the English traditions. But Chief Justice John Marshall introduced the practice used today of issuing a single majority opinion to explain the Court’s decision. A justice may also write a **concurring opinion**, meaning he or she agrees with the outcome of the case but differs in the reasoning or approach in one or more parts of the decision. A **dissenting opinion**, by contrast, means that a justice disagrees with the outcome of the case and wants to explain why. Sometimes they do this with the hope that the dissent will lead to a change in the law in the future. A good example of how this works can be found in *Olmstead v. United States*, where Justice Brandeis dissented after a deeply divided court opinion: > Crime is contagious. If the Government becomes a lawbreaker, it breeds contempt for law; it invites every man to become a law unto himself; it invites anarchy. To declare that, in the administration of the criminal law, the end justifies the means — to declare that the Government may commit crimes in order to secure the conviction of a private criminal — would bring terrible retribution. Against that pernicious doctrine this Court should resolutely set its face. > > Chief Justice Brandeis, *Olmstead v. United States* *Olmstead* was a criminal case – not a tax case – involving wiretapping. But Brandeis’ passionate dissent became quite famous – and nearly forty years later, SCOTUS declared warrantless wiretapping unconstitutional in *Katz v. United States*. And, of course, it goes without saying that Ruth Bader Ginsburg was notorious for her dissents, as was her good friend and colleague, Antonin Scalia. ## Final. Sort Of. Supreme Court cases are the last stop. There’s nowhere else to go. That doesn’t mean that it’s always the last word. As you can tell, issues may be revisited in future years because circumstances or the law change, requiring another look (the [argument over Obamacare](https://www.taxgirl.com/2020/07/15/should-you-file-a-protective-claim-for-refund-in-2020/) after the elimination of the mandate penalty is a good example). But it does mean that a case may not be revisited simply because you don’t like the outcome. ## Tax Cases At SCOTUS Some of the most famous tax cases that made it to the Supreme Court include: - *[McCulloch v. Maryland](https://www.law.cornell.edu/supremecourt/text/17/316)* (1819) - [*Pollock v. Farmers’ Loan & Trust Company* (Rehearing)](https://www.law.cornell.edu/supremecourt/text/158/601) (1895) - *[Allen v. Wright](https://www.law.cornell.edu/supremecourt/text/468/737)* (1984) - *[Quill Corp. v. North Dakota](https://www.law.cornell.edu/supremecourt/text/504/298)* (1992) - *[South Dakota v. Wayfair, Inc.](https://www.law.cornell.edu/supremecourt/text/17-494)* (2018) ## More Info To learn what kinds of cases are currently before SCOTUS, search the Court’s docket on its [website](https://www.supremecourt.gov/docket/docket.aspx). For information and analysis about SCOTUS cases, check out the excellent [SCOTUSblog](https://www.scotusblog.com/). 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Law and the Courts, Supreme Court **Tags:** appellate court, circuit court, how to appeal a tax case, SCOTUS, Supreme Court, Supreme Court of the United States, Tax Court --- ### [Bill To Decriminalize Marijuana For Federal Purposes Passes House](https://www.taxgirl.com/2020/12/08/bill-to-decriminalize-marijuana-for-federal-purposes-hits-house/) **Published:** December 8, 2020 **Author:** Kelly Phillips Erb **Content:** As more and more states legalize marijuana, pressure has been growing for Congress to take some action. This week, the House passed legislation that would end the federal ban on marijuana. The Marijuana Opportunity Reinvestment and Expungement Act (MORE Act) garnered bipartisan support, passing with a 228-164 vote in the House. Under the terms of the bill, marijuana would be removed from the Controlled Substances Act. ## History Of the Criminalization Of Marijuana In the early part of the 20th century, booze was illegal during Prohibition, but marijuana was not. Under the 1937 Marihuana Tax Act, there was a two-part tax on the sale of marijuana, one which functioned like a sales tax and another which was more akin to an occupational tax for licensed dealers. Violations of the Act resulted in severe consequences. In 1969, Timothy Leary challenged his arrest for possession of marijuana under the Act; the case of Leary v. United States made it to the Supreme Court. The Court invalidated part of the Act as a violation of the Fifth Amendment (against self-incrimination). The result was a new law, the Controlled Substances Act, passed in 1970, which criminalized the possession or sale of marijuana. It remains so today. ## Marijuana Is Legal In Most States While still prohibited by federal law (possession can lead to fines and jail time), today, forty-four states and the District of Columbia currently have laws legalizing marijuana for either medical or recreational use. States which allow marijuana for medical use include Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Hawaii, Illinois, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Texas, Utah, Vermont, Washington, and West Virginia – as well as the District of Columbia (some states allow CBD oil use only, including Georgia, Indiana, Iowa, Kentucky, Texas, Virginia, and Wisconsin). And, one in three Americans lives in a state that allows for recreational use. ## Most Americans Think Marijuana Should Be Legal According to a 2019 Pew poll, a whopping 91% support making medical marijuana legal, and 67% of Americans think marijuana should be legal, full stop. Despite the trend, possession of marijuana remains a federal crime. Under federal law, marijuana is still classed as a Schedule I drug – on par with heroin, LSD, and ecstasy – which means that it is not legal in any form. It is against federal law to grow, sell, or use marijuana for any purpose, including medical purposes. ## The MORE Act The MORE Act would change that. The Act would also, among other things, impose a 5% tax on marijuana to fund community and small business grant programs, make Small Business Administration (SBA) loans and services available to cannabis-related legitimate businesses, and prohibit the denial of federal public benefits based on certain cannabis-related conduct or convictions. ## Economic Considerations Currently, taxpayers and the government bear the burden of costs (but do not enjoy the revenue) to investigate and prosecute marijuana crimes. The federal government spends approximately $33 billion a year on drug control, while state and local governments spend nearly the same on criminal justice expenditures related to drug crimes. According to the National Drug Intelligence Service, the war on drugs costs the United States almost $200 billion a year in indirect costs (downloads as a PDF). Current drug laws target users, peddlers, and hardcore dealers. In 2018, there were 1.65 million arrests for drug violations in the U.S. Of those related to marijuana, more than nine-in-ten arrests were for possessing marijuana (92%), rather than selling or manufacturing (8%). What does that mean to you? Tax dollars. In 2015, the total state expenditure – not including federal costs – on prisons among 45 reporting states was around $43 billion. In 2012, it was estimated that the legalization of marijuana (not just for medical purposes) could take $10 billion away from the cartels and dealers. A 2018 presentation before the Joint Economic Committee in Congress reported that the marijuana economy totaled more than $8 billion in sales in 2017, with sales estimated to reach $11 billion in 2018 and $23 billion by 2022. While marijuana sales are reportable – even if not legal – the Internal Revenue Service (IRS) has not always been successful in collecting the related revenue. As marijuana is increasingly legal in various states – while still illegal at the federal level – the IRS is taking steps to educate taxpayers about the tax consequences. The agency has even released a new marijuana business webpage to help business owners understand and meet their tax responsibilities. However, since marijuana remains illegal for federal purposes, the IRS still takes the position that some related expenses are disallowed under [Section 280E](https://www.law.cornell.edu/uscode/text/26/280E) of the Tax Code: > *§280E. Expenditures in connection with the illegal sale of drugs. No deduction or credit shall be allowed for any amount paid or incurred during the taxable year in carrying on any trade or business if such trade or business (or the activities which comprise such trade or business) consists of trafficking in controlled substances (within the meaning of schedule I and II of the Controlled Substances Act) which is prohibited by Federal law or the law of any State in which such trade or business is conducted.* Today, only the cost of goods sold is deductible for marijuana businesses. Traditional business costs, like employee payroll and marketing, remain non-deductible. The result is that marijuana businesses can be left with an effective tax rate between 40 and 70 percent. Of course, this would change if marijuana is made legal for federal tax purposes. And even though the MORE Act passed the House, there’s no guarantee that it will pass the Senate, where it’s expected to face some opposition. You can read the text of the bill [here](https://www.congress.gov/bill/116th-congress/house-bill/3884/text). 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Healthcare, History, Politics **Tags:** cannabis, legalizing marijuana, marijuana, medical marijuana, MORE Act --- ### [New Covid Stimulus Bill Has PPP Expansion, But No Stimulus Checks](https://www.taxgirl.com/2020/12/10/new-covid-stimulus-bill-has-ppp-expansion-but-no-stimulus-checks/) **Published:** December 10, 2020 **Author:** Kelly Phillips Erb **Content:** Congress is making some progress on a COVID relief package. If it advances, it would be Congress’s first significant stimulus action since the Coronavirus Aid, Relief, and Economic Security Act, or the CARES Act, was signed into law in March 2020. A second relief bill was introduced and passed in the House in May of 2020; the bill, known as the Health and Economic Recovery Omnibus Emergency Solutions Act, or HEROES Act, was not taken up by the Senate, with Senate Majority Leader Mitch McConnell (R-KY) suggesting that the timing was not right. In July 2020, the Senate unveiled a series of proposals called the Health, Economic Assistance, Liability Protection, and Schools Act, or HEALS Act, which also did not move forward. And then, mostly crickets. Now, a bipartisan group has rolled out a package that has garnered some interest. It’s called the Bipartisan Emergency COVID Relief Act of 2020 and is a considerably slimmed-down version of the CARES Act 2.0. ## What’s In. Here’s a look at some of what’s in the bill so far: **Unemployment Assistance.** The bill would extend the pandemic unemployment insurance programs – those created under the CARES Act – by 16 weeks. Those are set to expire in December and would, under the new relief package, now expire in April of 2021. The bill would also extend the federal supplement unemployment insurance benefits – but at half the former rate (just $300 per week) – from the end of December to April. **Paycheck Protection Program & Small Business Assistance.** The bill would expand the PPP program to allow some businesses to receive an additional loan (eligibility would be limited to small businesses with 300 or fewer employees that have sustained a 30% revenue loss in any quarter of 2020). Also included? Loan simplification for those borrowing $150,000 or less, and – you know you were waiting for it – business expenses paid for with the proceeds of PPP loans would be tax-deductible. **Transportation Funding.** The bill would extend the Payroll Support Program (PSP), which provides loans to the struggling airline industry, through March 31, 2021. The proposal would also provide additional funding for airports, motorcoach and bus companies (including school bus companies), public transit systems, and Amtrak. **Health Care, Including Vaccine Development & Distribution.** The bill would send more money to hospitals and health care providers, and provide more money for testing. The proposal would also provide $6 million in grants and funding for vaccine development, infrastructure, and distribution. **Education Funding.** The proposal would send $82 billion in additional funding to schools, including private schools. **Student Loan Extensions.** The bill would extend federal student loan forbearance provisions through April 30, 2021 (those are currently set to expire on January 31, 2021). **Rental Assistance.** The package would extend the eviction moratorium until January 31, 2021 (it’s currently set to expire on December 31, 2020). **Food Assistance.** The agreement would increase food stamp benefits (Supplemental Nutrition Assistance Program, or SNAP) by 15% for four months. It would also expand the Pandemic-EBT program to cover families with children in child care and support the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) so participants can purchase additional fruit and vegetables. Seniors are also included, with funding for senior nutrition services, including Meals on Wheels, and the Commodity Supplemental Food Program to provide food boxes to more senior citizens. **Post Office.** The proposal makes clear that the $10 billion of aid initially earmarked for the USPS in the CARES Act would not require repayment. **Excess Funds.** The bill would end the controversy over excess funds from the CARES Act by reallocating unused Treasury direct loans and excess funds from Federal Reserve facilities, and reinvesting unspent PPP balances back into the PPP. **Liability Protections.** Liability protections for corporations as a result of the pandemic have been a serious stumbling block between the Senate and the House. The framework suggests “\[a\]greement in principle as the basis for good faith negotiations.” ## What’s Out And here’s what’s not in the bill: **Stimulus Checks.** Despite calls for another round of stimulus checks, the bill includes no plan to issue a second stimulus check. On Tuesday, Treasury Secretary Steven Mnuchin proposed including $600 stimulus checks in the relief package, but in return, further reducing unemployment benefits. **CARES Act corrections/clarifications on stimulus checks.** Earlier this year, the House hoped to see some language which would replace the term “dependent” with “qualifying dependent” for purposes of the first stimulus check. Other corrections included coding payments to prevent offsets and making clear that representative payees could receive checks. There’s no indication that those corrections/clarifications will be included in this most recent relief package. ## Cost The bill’s total price tag is estimated at $908 billion. 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Politics **Tags:** PPP, stimulus bill, stimulus check, stimulus money, stimulus package --- ### [Congress Says There's an Agreement on New Stimulus Checks](https://www.taxgirl.com/2020/12/22/congress-say-theres-an-agreement-on-a-relief-package-and-it-includes-new-stimulus-checks/) **Published:** December 22, 2020 **Author:** Kelly Phillips Erb **Content:** (**Author’s Note**: The bill passed in the House and Senate on December 21, 2020, after this piece originally appeared.) Congress has finally agreed on a COVID relief package. It is the first significant stimulus action from Congress since the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act) was signed into law in March of 2020. There’s no text available yet (I’ll post a link when it’s available), but based on reports from those involved, here’s a quick look at what likely made it in the bill – and what didn’t. **Note that this could change**, since there hasn’t been a vote yet, and Sen. Mitch McConnell (R-KY) has promised to do it as soon as possible (I’ll update when I have more details). ## What’s In **Unemployment Assistance.** The bill would extend the pandemic unemployment insurance programs – those created under the CARES Act – by a reported 11 weeks through March of 2021. The bill would also extend the federal supplemental unemployment insurance benefits, but at half the former rate (just $300 per week). **Paycheck Protection Program & Small Business Assistance.** The bill would expand the PPP program to allow some businesses to receive an additional loan. Also included? Loan simplification for those borrowing $150,000 or less. However, it’s still unclear whether business expenses paid for with PPP loan proceeds would be fully tax-deductible. Some deductibility was expected, but with safeguards (we’ll need to wait for the final text for details). From Rep. Nancy Pelosi (D-CA): *The agreement includes over $284 billion for first and second forgivable PPP loans, expanded PPP eligibility for nonprofits and local newspapers, TV and radio broadcasters, key modifications to PPP to serve the smallest businesses and struggling non-profits and better assist independent restaurants, and includes $15 billion in dedicated funding for live venues, independent movie theaters, and cultural institutions. The agreement also includes $20 billion for targeted EIDL Grants, which are critical to many smaller businesses on Main Street.* **Employee Retention Tax Credit.** The agreement extends and improves the [Employee Retention Tax Credit](https://www.taxgirl.com/2020/04/02/how-the-employee-retention-credit-can-help-businesses-of-practically-any-size-keep-employees-on-payroll/). **Earned Income Tax Credit & Child Tax Credit Tweaks.** The agreement allows families to receive EITC and CTC based on their 2019 income. That significantly impacts those families whose incomes were reduced because of COVID. **Transportation Funding.** The bill is expected to extend the Payroll Support Program (PSP), which provides loans to the struggling airline industry. The proposal would also provide additional funding for airports, motorcoach and bus companies, public transit systems, and Amtrak. **Health Care, Including Vaccine Development & Distribution.** The bill would send more money to hospitals and health care providers, and provide more money for testing. The proposal would also provide millions in grants and funding for vaccine development, infrastructure, and distribution. **Education Funding.** The proposal would send billions in additional funding to schools, including private schools. **Student Loan Extensions.** The bill would extend federal student loan forbearance provisions (currently set to expire on January 31, 2021). **Rental Assistance.** The package would extend the eviction moratorium through January 31, 2021. The package also includes funds for rental relief, to be used for future rent and utility payments and back rent owed or utility bills. **Food Assistance.** The agreement is expected to increase food stamp benefits (Supplemental Nutrition Assistance Program, or SNAP). It would also expand the Pandemic-EBT program to cover families with children in child care, and provide support for the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) to allow participants to purchase additional fruit and vegetables. Seniors are also included, with funding for senior nutrition services, including Meals on Wheels, and the Commodity Supplemental Food Program to provide food boxes to more senior citizens. **Post Office.** The proposal makes clear that the $10 billion of aid initially earmarked for the USPS in the CARES Act would not require repayment. **Excess Funds.** The bill stalled over a controversy about what to do with excess CARES Act funds, with Democrats wanting to reallocate them and many Republicans siding with Treasury Secretary Mnuchin on sending the funds back to the general fund. The final bill is expected to include compromise language. **Stimulus Checks.** A last-minute push to include stimulus checks was successful. The new relief package includes checks worth $600 per person (yes, for children, too). As before, checks will begin to phase out for those who earn $75,000 ($150,000 for married couples filing jointly). According to reports, adult dependents – those over age 18 – still won’t qualify. However, individuals who file jointly with someone who uses an ITIN will be allowed to collect a check (though the person with the ITIN will not). **3-Martini Lunches Are Back.** The bill reportedly includes a provision to increase the business meals deduction to 100% (it’s currently 50%) for 2021 and 2022. ## What’s Out **State and local funding.** The bill originally included state and local funding, but it has been removed. However, Congress did extend the deadline for states and cities to use pre-approved money in the CARES Act. States like mine (Pennsylvania) that had not spent all their funding would lose it if they didn’t spend it by the end of the year; instead, the deal would extend the deadline to the end of next year. **Liability Protections.** Liability protections for corporations resulting from the pandemic have been a serious stumbling block between the Senate and the House. The framework originally suggested “\[a\]greement in principle as the basis for good faith negotiations,” but it faltered. **CARES Act corrections/clarifications on stimulus checks.** Earlier this year, the House hoped to see some language that would replace the term “dependent” with “qualifying dependent” for purposes of the first stimulus check. Other corrections included coding payments to prevent offsets and making clear that representative payees could receive checks. There’s no indication that those corrections/clarifications will be included in this most recent relief package. ## Cost The bill’s total price tag is estimated at $2.3 trillion, but that includes about $1.4 trillion in “catch-all” government spending. 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Politics **Tags:** CARES Act, relief package, stimulus check, stimulus money, stimulus package --- ### [President Trump Signs Stimulus Package/Spending Bill Into Law](https://www.taxgirl.com/2020/12/27/president-trump-signs-stimulus-package-spending-bill-into-law/) **Published:** December 27, 2020 **Author:** Kelly Phillips Erb **Content:** Earlier this week, the President suggested that he might not sign the stimulus package/spending bill (you can read about [what happened – and what it meant – here](https://www.taxgirl.com/2020/12/23/will-the-president-sign-the-stimulus-bill-heres-what-you-need-to-know/?doing_wp_cron=1609123282.5570690631866455078125)). However, tonight, the President did sign the bill into law. The bill would do a few things, including: - Issue stimulus checks of $600 per person; - Extend unemployment benefits; and - Expand PPP, offering more loans, and allowing for deductibility. On Monday, the House still intends to introduce a bill to raise the stimulus checks to $2,000 per adult. The Senate has not indicated it will take up the bill, though the President says, “The Senate will start the process for a vote that increases checks to $2,000, repeals Section 230, and starts an investigation into voter fraud.” Stay tuned! 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual, Politics **Tags:** stimulus check, stimulus money, stimulus package --- ### [What’s Section 230 and What Does It Have to Do With Stimulus Checks?](https://www.taxgirl.com/2021/01/03/whats-section-230-and-what-does-it-have-to-do-with-the-stimulus-checks/) **Published:** January 3, 2021 **Author:** Kelly Phillips Erb **Content:** I’ve been asked a lot recently about Section 230, a phrase that’s been tossed around a lot with respect to stimulus checks. Section 230 isn’t a tax provision (in fact, there isn’t even a Section 230 in the Tax Code). It’s actually a telecommunications law. And I’m not a tech or intellectual property lawyer: my focus is tax. But in the spirit of trying to explain what Section 230 has to do with stimulus checks – which are tax-related – I’m going to give you a quick summary. If you need a deeper dive, there’s some good stuff out there from tech lawyers. ## What is Section 230? Section 230 is part of a law – the Communications Decency Act (CDA of 1996) – which was passed in 1996. It provides liability protection for social media companies like Twitter and Facebook for content posted by their users. The meaty part is here: > No provider or user of an interactive computer service shall be treated as the publisher or speaker of any information provided by another information content provider. > > 47 U.S. Code § 230 And you can find the full text of the law [here](https://www.law.cornell.edu/uscode/text/47/230). What the law does, basically, is say that you can’t hold these companies – and other intermediaries like Internet Service Providers (ISPs) – legally responsible for things that other people post. There are some exceptions, including conduct that is criminal, as well as copyright and other intellectual property, but the idea is that you – not the platform – should be responsible for your conduct, not Twitter or Facebook. Without Section 230, companies might be so scared of being sued that they would either have to monitor everything posted all of the time – or they might just throw in the towel and decide not to provide the service at all. ## Why Does Section 230 Exist? The bill’s history dates back to a 1995 court ruling against the online service Prodigy. Prodigy isn’t around anymore, but back in the day, it was a top online service platform, along with CompuServe – another blast from the past. In 1994, an anonymous user created a post accusing Stratton Oakmont (a securities firm founded by Danny Porush, Brian Blake, and Jordan Belfort – if that last name rings a bell, you’ve likely seen *The Wolf of Wall Street)* of fraud. Stratton Oakmont sued the anonymous user and Prodigy for defamation. They won, and the court held that because Prodigy did some moderation, it should be treated as a publisher. The case was Stratton Oakmont, Inc. v. Prodigy Services Co. (N.Y. Sup. Ct. 1995). (Fun fact: In 1996, Stratton Oakmont shut down – for fraud – after [it was expelled](https://www.finra.org/sites/default/files/DisciplinaryAction/p007568.pdf) from the National Association of Securities Dealers (NASD) because it posed “an ongoing risk to the investing public.” A few years later, Porush and Belfort went to prison on securities fraud and money laundering charges.) In 1996, Section 230 was signed into law to rebut the presumption under *Stratton Oakmont* that companies should be treated as a publisher under the law. Now, if tech companies moderate some material – like keeping adult content away from children – they are protected from liability for other user content. In other words, if Facebook takes down sexually explicit content, I can’t use that as a justification to sue Facebook because my brother called me a name online. And, in the same vein, a restaurant can’t sue Facebook because it got a bad review from a customer. Not everyone is a fan of Section 230, including the President. ## Why Does The President Want To Repeal Section 230? In May 2020, Twitter fact-checked some of the President’s tweets about voting by mail. That resulted in a war of words with the President. On May 28, 2020, President Trump issued an Executive Order targeting tech companies, including Twitter, stating that “Twitter now selectively decides to place a warning label on certain tweets in a manner that clearly reflects political bias.” He called for legislation to fix what he saw as a problem, specifically calling for a repeal of Section 230, but Congress did not act. ## The Stimulus/Spending/Extenders Bill So what does this have to do with taxes? Remember the [stimulus/spending/extenders bill](https://www.taxgirl.com/2020/12/27/president-trump-signs-stimulus-package-spending-bill-into-law/)? That bill passed the House and Senate and landed on the President’s desk, where he signed it – but only after pausing a few days to insist on some changes, including higher stimulus checks ($2,000 per person) and elimination of what he deemed wasteful spending. When the President signed the bill into law, he said he was doing so with the understanding that the Senate would consider three things: > The Senate will start the process for a vote that increases checks to $2,000, repeals Section 230, and starts an investigation into voter fraud. > > President Trump statement, December 27, 2020 He specifically signaled for the repeal of Section 230 after signing the bill into law – even though there’s no mention of Section 230 in the stimulus/spending/extenders bill. ## What About The NDAA And That Veto? That statement was the second time in a month’s span that the President called for the repeal of Section 230. Earlier, he raised it in relation to his veto of the most recent version of the National Defense Authorization Act (NDAA). The NDAA typically has strong support in Congress because it is tied to pay raises for military families and veterans benefits. The first version of the NDAA was signed into law in 1961, and it has typically been renewed each year without fail. This year, the NDAA passed the House and Senate, but the President vetoed it. When explaining his veto, he specifically called out Section 230, saying, “Your failure to terminate the very dangerous national security risk of Section 230 will make our intelligence virtually impossible to conduct without everyone knowing what we are doing at every step.” When the bill went back to Congress, Senate Majority Leader Mitch McConnell (R-KY) urged his colleagues to overturn the veto, saying, “For the brave men and women of the United States armed forces, failure is not an option. So when it is our turn in Congress to have their backs, failure is not an option here either. I urge my colleagues to support this legislation one more time.” The House quickly overrode the veto, 322-87, and the Senate, 81-13, on January 1, 2021. ## McConnell Ties Checks To Section 230 However, a few days before the veto-override vote, on December 29, 2020, Sen. McConnell acted on Section 230. He introduced a bill that would have done what the President asked: tie the increase in stimulus checks to $2,000 to repealing Section 230. It was a combined bill, not a stand-alone one. McConnell’s bill would have also required a bipartisan commission to study the “integrity and administration” of the 2020 election. You can read the text [here](https://www.congress.gov/bill/116th-congress/senate-bill/5085/text?format=txt). It was not seriously considered. ## We Have A New Congress So what comes next? The new Congress – the 117th – has already been sworn in. Under the Constitution: > The Congress shall assemble at least once in every year, and such meeting shall begin at noon on the 3d day of January, unless they shall by law appoint a different day. > > [20th Amendment, section 2](https://www.law.cornell.edu/constitution/amendmentxx) That happened on schedule this year. Any changes to existing laws, including repealing Section 230 or increasing stimulus checks, must be taken up by the new Congress. Stay tuned. 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual, Politics, Technology **Tags:** Communications Decency Act, National Defense Authorization Act, NDAA, section 230, stimulus check, stimulus money --- ### [Look Out for Most Tax Forms, Including Your W-2, by February 1](https://www.taxgirl.com/2021/01/04/look-out-for-most-tax-forms-including-your-w-2-by-february-1/) **Published:** January 4, 2021 **Author:** Kelly Phillips Erb **Excerpt:** Most Forms W-2 and other tax forms are due to taxpayers by February 1, 2021. Here’s what to do if your tax forms are late, missing, or incorrect. **Content:** Looking for your tax forms? Keep checking the mail: Employers must provide employees with Forms W-2 and other wage statements by **February 1, 2021**. The [Protecting Americans from Tax Hikes Act of 2015 (PATH Act)](https://www.govinfo.gov/content/pkg/PLAW-114publ113/html/PLAW-114publ113.htm), enacted on December 18, 2015, made several changes to how we file taxes. Now, employers file copies of Form W-2, *Wage and Tax Statements*, and Form W-3, *Transmittal of Wage and Tax Statements*, with the Social Security Administration by January 31. That is also the date that Forms W-2 are due to employees. However, this year (2021), January 31 falls on a Sunday. By law, that means Forms W-2 are due the next business day, **Monday, February 1.** In addition, some Forms 1099-MISC, *Miscellaneous Income*, and the newly re-introduced Form 1099-NEC, *Nonemployee Compensation* ([more on that here](https://www.taxgirl.com/2019/11/29/irs-introduces-newish-form-to-replace-parts-of-form-1099-misc/)), are also normally due to taxpayers on January 31, but in 2021, they will be due on the next business day, February 1, 2021. Here’s a look at some other form due dates: ![List of due dates for tax forms](https://www.taxgirl.com/wp-content/uploads/2021/01/Forms-2021-rev-927x1200.jpg) These are accurate as of today, as far as I know. If you’re not sure about a due date, check the form instructions. ## The IRS Hasn’t Announced The Start Of Tax Season I know you’re anxious to get started on your returns, but just because you may have your tax form in hand doesn’t mean that you can file. The IRS has not yet announced when tax season will open, meaning when it will be accepting paper and electronic tax returns. Last year, the IRS announced on January 6, 2020, that tax season would open on January 27, 2020. I expect a similar announcement any day now. ## What Happens If You Don’t Receive Your Form On Time? - *Some forms might have been issued earlier, so go back through your records if you’re missing a 1099 or a 1098-C.* For example, if you redeemed savings bonds, you may have received Form 1099-INT at the time of redemption. Similarly, if you donated a car to charity, Form 1098-C would have been acknowledged within 30 days of the sale or 30 days of the contribution. - *It’s popular to make some forms available online or via email.* However, you can’t generate tax forms electronically without your consent unless you also receive a paper copy. However, in this day of e-statements and online transfers, it’s possible you checked a box to receive your information electronically. Check your inbox and your spam filter. - *You may also want to hold off filing if you’re a beneficiary of a trust or estate, or a shareholder, partner, or member of a pass-through company.* Even though those entities now file a little earlier with the IRS than they used to, they rarely report early. Pass-through entities must prepare their tax returns before they can furnish Schedules K-1. Those Schedules K-1 might take until March or April to arrive. In some cases, it could take longer. If you haven’t received a tax form by the due date, here’s what to do: - **Look around.** Your form could be stuck in a magazine or lost in that pile of mail on the counter that you’ve been swearing to sort through for weeks. Your form could be at work. Before you assume that it wasn’t delivered, double-check. - **If you’re sure that you didn’t receive your forms, contact the issuer.** It might be easy to fix. You may not have received the form because the address was incomplete or incorrect. Or your form may have gotten lost in the mail. If that’s the case, the issuer can furnish another form: problem solved. - **If your employer is no longer in business or has moved, try to make contact.** It’s the fastest, easiest solution. If you don’t receive your forms and you don’t know where your employer has moved, send a note to the last known address; there may be a forwarding order at the post office. Or try Google. I know that it’s not your job to find your employer, but if you have time to click through Schitt’s Creek memes, you can search online for a change of address (and if you are clicking through Schitt’s Creek memes, feel free to pass those along to me!). - **If you still don’t have your forms, or if your forms aren’t correct, contact the IRS.** The IRS doesn’t want to hear from you about missing forms until the end of February. When you call, have your address, phone number, Social Security Number, and dates of employment ready. It’s also helpful to have an estimate of your earnings and withholding; you can find most of this information on your last pay stub. You’ll also need your employer’s name, address, and phone number. Make your life easier by being prepared before you pick up the phone. - **Be patient.** After your call, the IRS will contact your employer. The IRS will also send you a Form 4852, *Substitute for Form W-2, Wage and Tax Statement, or Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.*, along with instructions. If you don’t receive your missing forms from your employer by Tax Day, April 15, file Form 4852. But be smart: don’t file to get your tax return in early or to teach an employer a lesson. If you file the wrong form, you could face substantial penalties. - **You may need to amend**. If you receive your tax form *after* you file your return using Form 4852 and the information differs from what you reported, you must amend your return using Form 1040X, Amended U.S. Individual Income Tax Return. - **If you need to replace a form SSA-1099 or SSA-1042, you can request a new one on or after February 1, 2020.** The easiest way is to go online and request an instant, printable replacement form at [www.socialsecurity.gov/myaccount](http://www.socialsecurity.gov/myaccount/?utm_source=social-security-matters&utm_campaign=oea-taxprep-17&utm_medium=blog). If that’s not an option, contact SSA directly, not the IRS. To contact SSA, you can call 1.800.772.1213 (TTY 1.800.325.0778) or visit your local Social Security Office (find yours [here](https://secure.ssa.gov/ICON/main.jsp)). One final piece of advice: **do not file your tax returns until you’ve received your tax forms**. I know it’s tempting. I know you think you know what’s on those forms, but what if you’re wrong? Not only are you making it hard for your preparer to figure it out, but you’re also asking them to break the rules: the IRS bars tax preparers from e-filing tax returns with pay stubs (without receiving Forms W-2, W-2G, and 1099-R). Social media is full of threads about tax pros who feel victimized by taxpayers insisting they file early: don’t be that guy (or girl). Filing before you have your forms in hand also sets you up for a potential audit. For starters, the IRS matches Forms W-2 and Forms 1099 to the information on your tax return. If the data doesn’t match, the IRS will flag your return. My mom – [who is right almost all of the time about everything](https://www.taxgirl.com/2015/05/10/11-things-ive-learned-about-tax-from-my-mom/) – used to tell me that it was okay to be different. That might be true in junior high, but it’s not true at the IRS. Trust me. You want your tax return to look like everybody else’s tax return. Don’t give the IRS a reason to give yours a second look. 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Tax Forms **Tags:** 1099-NEC, Form 1099-NEC, form due dates, form W-2, missing tax forms, tax form due dates, tax forms, w-2 --- ### [IRS Announces 2021 Tax Filing Season Open Date](https://www.taxgirl.com/2021/01/15/irs-announces-february-12-as-tax-filing-season-open-date/) **Published:** January 15, 2021 **Author:** Kelly Phillips Erb **Content:** The IRS has announced that tax season will open on Friday, February 12, 2021. Yes, on a Friday. The IRS will begin accepting paper and electronic tax returns that day. This is about two weeks later than had been expected. The delay allows the IRS time to do additional programming and testing of IRS systems following the December 27 tax law changes – especially those involving a second round of stimulus checks (Economic Impact Payments, or EIPs). Ways and Means Committee Chairman Richard E. Neal (D-MA) said, about the date, “While I am disappointed that this year’s filing season will begin later than usual, I recognize that the IRS has faced extraordinary challenges throughout the COVID crisis. It’s a relief to know that despite contending with the distribution of two rounds of economic impact payments, facility closures, and other disruptions, the agency will be able to begin accepting returns within the next month. It is also encouraging that the IRS expects taxpayers who file electronically at the beginning of the season and claim refundable tax credits to receive their refunds by the first week of March. I urge taxpayers to complete their returns and file electronically as early as possible.” The IRS also had a comment. “Planning for the nation’s filing season process is a massive undertaking, and IRS teams have been working non-stop to prepare for this as well as delivering Economic Impact Payments in record time,” said IRS Commissioner Chuck Rettig. “Given the pandemic, this is one of the nation’s most important filing seasons ever. This start date will ensure that people get their needed tax refunds quickly while also making sure they receive any remaining stimulus payments they are eligible for as quickly as possible.” Every year, taxpayers have questions about early filing. Many software companies and tax professionals will accept tax returns before opening day. *That doesn’t mean that your tax return will be filed early.* Those software companies and tax professionals will submit returns when IRS systems open. The IRS strongly encourages people to file their tax returns electronically for faster refunds. Last year’s average tax refund was more than $2,500. More than 150 million tax returns are expected to be filed this year, with the vast majority before the Thursday, April 15 deadline. While tax professionals have discussed an extension, it’s still just talk. According to the IRS, the tax return deadline remains April 15, 2021. The delayed start date may ease the waiting game for some taxpayers. Remember, as reported [in prior years](https://www.taxgirl.com/millions-of-taxpayers-will-have-a-longer-wait-for-tax-refunds-next-year/), the law now requires the IRS to hold refunds tied to the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) until February 15 – that’s just a few days after the season opens. Plan accordingly. Remember that the rule that bars the IRS from issuing refunds for taxpayers claiming the Earned Income Tax Credit or the Additional Child Tax Credit before mid-February [applies to the *entire* refund](https://www.taxgirl.com/10-quick-facts-about-the-upcoming-tax-season-that-you-need-to-know/) – even the portion not associated with the EITC and ACTC. The IRS still expects to issue more than nine out of 10 refunds in less than 21 days. Taxpayers can check out *Where’s My Refund?* on IRS.gov or the IRS2Go phone app for projected deposit dates. 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** IRS News **Tags:** IRS, tax filing season, tax season, when does tax season open --- ### [Justice and the Tax Trial of Martin Luther King, Jr.](https://www.taxgirl.com/2021/01/18/justice-matters-the-tax-trial-of-martin-luther-king-jr/) **Published:** January 18, 2021 **Author:** Kelly Phillips Erb **Excerpt:** Martin Luther King Jr. faced tax evasion charges in Alabama in 1960. His acquittal—and the lawyers who defended him—offer a powerful lesson about justice. **Content:** ![Martin luther king Jr](https://www.taxgirl.com/wp-content/uploads/2021/01/Screen-Shot-2021-01-18-at-10.39.53-AM-995x1200.png) Library of Congress, Public domain, via Wikimedia Commons I am the only lawyer in my family. That’s important to my story because – as you’ll read in a minute – my thinking about the legal system, especially the criminal justice system, was largely shaped by popular culture. I grew up believing that as long as you did the right thing, you’d never be in trouble. I thought that folks who ended up in jail clearly did something wrong. I thought that justice was blind to race, gender, and economics. I now know that’s not the case. More than 50 years ago, Dr. Martin Luther King, Jr., a leader in the civil rights movement, faced repeated harassment from tax authorities. Inquiries into Dr. King’s finances were not new: He was investigated in two separate states (Georgia and Alabama) on numerous occasions and, along with his legal team and members of the Southern Christian Leadership Council (SCLC), repeatedly investigated by the IRS. It was clear to many of his supporters that Dr. King was targeted because of the color of his skin and the words that he dared to speak about inequality. In 1960, he made news as the first person ever criminally charged in Alabama with tax fraud. After his indictment, a reporter asked Dr. King, “Have your income tax returns been investigated before?” He replied, “Oh yes, they have been investigated two or three times before. This is nothing new.” The case would eventually go to trial. On Martin Luther King Jr. Day today, as I always do, I am re-posting an article, without edits, that I wrote years ago about that trial and the legal profession. You might have seen it before: it remains one of my favorite posts to this day. It reminds me of how important it is to continually seek out justice. I hope you enjoy it. — I’ll be frank. I don’t always love being a lawyer. When I was a little girl, I used to watch *Perry Mason* with my grandfather on TBS. That constituted my entire legal experience before entering law school. And it was flawed. You see, on TV, none of the lawyers lied to Perry Mason over the phone about being amenable to a continuance and then told the Clerk of Court differently. Nobody faxed Perry Mason a witness list the day before a hearing along with evidence that they “forgot” to send prior. A lawyer didn’t claim proper service on Perry Mason and then fail to deliver the notices to his law offices. You never saw a lawyer represent clients who had sent Perry Mason death threats via email in an attempt to assert that Mr. Mason was the one being unreasonable. You didn’t see cases drag on for years and years (yes, plural) because counsel just couldn’t get it together enough to resolve the matter. On TV, no matter how dire, how dramatic, there was ultimately justice. The law is supposed to be about justice, about finding the truth. And increasingly it feels like it’s not. It’s more about touting your wares, putting yourself on commercials during daytime television standing in front of legal books shouting about maximizing money, about doing anything to get paid. And that is sad. A few months ago, I attended a hearing that made me question my role in the law. You’re probably assuming that the hearing somehow didn’t go well. That isn’t true. It went remarkably well. Our client was an excellent witness. The judge was fair and very accommodating. We walked out of the hearing knowing that we had done a good job. The thing was, I felt relieved that it was over. I was happy for my clients. But I wasn’t happy for me. Truth be told, I hated every minute of preparing for the case. Well, not every minute. The theory, the strategy? That I didn’t mind. Our strategy was simply to tell our story. And we somehow felt that should be enough. In the end, I think it was. But the getting there? The games? The complete lack of professionalism exhibited by opposing counsel? Lying about continuances? Surprise witnesses? Last-minute evidence? Maybe that seems exciting on TV, but in real life, it’s not exciting. It’s sickening. It’s stressful. It’s not fair to good lawyers who spend their time crafting a case. It’s not fair to clients who don’t know what to expect in the courtroom. And yet somehow, month after month, this behavior doesn’t seem so unusual. And as opposing counsel sat in her chair in her too-tight blouse with the clickety-click of her little heels on the floor, the same counsel who called my clients’ claims frivolous, the same counsel whose supervising partner at Big Law Firm once commented to me that she didn’t understand why a small firm like mine would go up against a big firm like hers, I thought about why we were all at that place, how it all happened that we were in the same room believing two different versions of the truth. I couldn’t explain it. Later that same day, while reaching for my Moscow Mule (yes, my favorite cocktail du jour, even before Rachael Ray put it in her magazine last month – grr) at the Union League, I understood why the partner at my former firm kept a bottle of wine in his desk: the pressure of being a lawyer, the pressure of having to win, it’s a lot to take in. And while other professions can often look to each other for reassurance, we don’t really have that in the legal profession with few exceptions. It is, by its very nature, adversarial. It is competitive. It is cutthroat. And me? I am not. Of course, I like to win. I like to think that I am good at it. And then maybe I think that’s not something to be particularly proud of. So, over the past few weeks, which have been professionally difficult, I have tried to remember why it is exactly that I became a lawyer – and what about it I used to love. And I was reminded of my favorite scene in the movie *Philadelphia*. The one where Andrew Beckett sums up what’s actually good about the law: > **Joe Miller:** What do you love about the law, Andrew? > **Andrew Beckett:** I… many things… uh… uh… What I love the most about the law? > **Joe Miller:** Yeah. > **Andrew Beckett:** It’s that every now and again – not often, but occasionally – you get to be a part of justice being done. That really is quite a thrill when that happens. And so I tried to think of when that happened last – when justice was actually done. Not when I won a case or when I got a client out of trouble – that happens often enough. But remember, winning and justice aren’t the same thing. I had to think for a while. Later, I was preparing to write a post about Martin Luther King, Jr. Day. I figured I’d just put up a copy of his famous “I Have A Dream” speech and call it a day. But as I researched, I found part of his autobiography which, I will confess, I had never read in full. And I saw something interesting: I knew that Dr. King had been arrested several times for various accusations, but I didn’t realize that he had been on trial for tax evasion. Yep. On February 17, 1960, a warrant was issued for the arrest of civil rights leader Dr. Martin Luther King Jr. on charges of tax evasion. He was accused of allegedly falsifying his Alabama income tax returns for the years 1956 and 1958; he was the only person ever prosecuted under the state’s income tax perjury statute. It seemed like an inevitable victory for the government. In his autobiography, Dr. King described the trial like this: > This case was tried before an all-white Southern jury. All of the State’s witnesses were white. The judge and the prosecutor were white. The courtroom was segregated. Passions were inflamed. Feelings ran high. The press and other communications media were hostile. Defeat seemed certain, and we in the freedom struggle braced ourselves for the inevitable. There were two men among us who persevered with the conviction that it was possible, in this context, to marshal facts and law and thus win vindication. These men were our lawyers-Negro lawyers from the North: William Ming of Chicago and Hubert Delaney from New York. And something quite remarkable happened. On May 28, 1960, only after a few hours, Dr. King was [acquitted](http://okra.stanford.edu/transcription/document_images/Vol05Scans/28May1960_StatementonPerjuryAcquittal.pdf) by an all-white jury in Montgomery, Alabama (statement downloads as a PDF). Dr. King said about his trial: > I am frank to confess that on this occasion I learned that truth and conviction in the hands of a skillful advocate could make what started out as a bigoted, prejudiced jury, choose the path of justice. I cannot help but wish in my heart that the same kind of skill and devotion which Bill Ming and Hubert Delaney accorded to me could be available to thousands of civil rights workers, to thousands of ordinary Negroes, who are every day facing prejudiced courtrooms. And it dawned on me: no matter how many slick-haired, silver-tongued attorneys do their best to make a quick buck at the expense of the reputation of the profession, you can’t dispute that justice is attainable. And justice is good. And justice is important. And even if it is infrequent, it’s worth it when it happens. 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** History, Tax Professionals **Tags:** being a lawyer, justice, law, lawyer, Martin Luther King Day, Martin Luther King Jr., Martin Luther King Jr. Tax Trial, tax --- ### [Free Tax Help Will Be Available in 2021](https://www.taxgirl.com/2021/01/20/free-tax-help-will-be-available-in-2021/) **Published:** January 20, 2021 **Author:** Kelly Phillips Erb **Excerpt:** Free tax preparation help is still available in 2021. Here’s how taxpayers can get assistance through VITA, TCE, AARP Tax-Aide, and IRS Free File. **Content:** Traditionally, taxpayers who need assistance during the tax season can find programs that fit their needs. Unfortunately, COVID has already made 2021 challenging. But don’t lose hope, since help is still available. ## VITA and TCE The IRS isn’t ruling out opening Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) sites, but not all are open yet. The IRS [says](https://www.irs.gov/individuals/free-tax-return-preparation-for-qualifying-taxpayers) that, “Due to COVID-19, a number of VITA sites and all TCE sites are closed for an undetermined period of time.” For 2021, VITA offers free tax help to taxpayers who generally make $57,000 or less, people with disabilities, and limited English-speaking taxpayers who need help preparing their own tax returns. In addition to VITA, the TCE program offers free tax help for those 60 and older, specializing in questions about pensions and retirement-related issues unique to seniors. Some VITA sites are planning to open. To locate an open VITA site near you, use the [VITA Locator Tool](https://freetaxassistance.for.irs.gov/s/sitelocator). ## AARP Foundation Tax-Aide Other services, like the AARP Foundation Tax-Aide, provide in-person and remote tax assistance free of charge. AARP focuses on taxpayers who are 50 or older or have low to moderate income. Tax-Aide volunteers are located nationwide and are trained and IRS-certified each year to ensure they understand the latest changes and additions to the tax code. Tax help is provided in safe environments using a variety of methods based on several factors, including where you are located, COVID spread, and volunteer availability. The Tax-Aide web page will be updated in early February with new features to make it easier for taxpayers to request tax help. Meanwhile, you can find answers to some of your questions on the AARP Tax Aide [Frequently Asked Questions page](https://taxaideqa.aarp.org/hc/en-us) on the AARP website. [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Free%20Tax%20Help%20Will%20Be%20Available%20in%202021&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2021%2F01%2Fpexels-startup-stock-photos-7374.jpg&p%5Btitle%5D=Free%20Tax%20Help%20Will%20Be%20Available%20in%202021 "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Free%20Tax%20Help%20Will%20Be%20Available%20in%202021 "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Free%20Tax%20Help%20Will%20Be%20Available%20in%202021&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual, IRS News, Tax Forms **Tags:** free tax help, IRS VITA, Tax Counseling for the Elderly, TCE, VITA, volunteer income tax assistance --- ### [Working From Home Tax Issues: How COVID Complicates Tax Filing](https://www.taxgirl.com/2021/02/02/working-from-home-tax-issues-coronavirus-complicates-tax-filing/) **Published:** February 2, 2021 **Author:** John Luckenbaugh **Content:** The COVID pandemic has impacted everyone in different ways. While the last year has been difficult, filing your taxes could be yet another hurdle. If you’ve been telecommuting, you may face working-from-home tax complications. ## Potential working from home tax problems On this episode of the Taxgirl podcast, Kelly is joined by Timothy Speiss, the co-leader of EisnerAmper’s personal wealth advisors group. Kelly and Timothy break down some of the biggest potential problems people will face when filing their taxes this year. Whether you hunkered down out of state or simply live in a different state than where you work, working from home could further complicate things like your tax withholding amounts and which state you file with. ### Listen to Kelly and Timothy talk about working from home taxes: - What tax concerns should employees and employers think about? - Tax apportionment factors - How changing where you live during the year impacts state taxes - What qualifies as residency for taxes? - Should you notify your employer when you change where you live? - What you should do if your employer didn’t change your residence - Working from home tax preparation advice - Check your pay stub for the correct withholding amounts - Correcting your employer not filing in the right state with tax credits - What can states use to prove your residency? ### More about Kelly: Kelly Phillips Erb created and hosts the Taxgirl podcast, your home for tax news, tax info, and tax policy. In each episode, she shares conversations about taxes, money, and the choices we make. Kelly is a tax attorney who works with taxpayers and tax practitioners like you every day. She helps folks out of tax jams, and hopefully, keeps others from getting into them. You can find out more about Kelly [here](https://www.taxgirl.com/about-taxgirl/), and you can follow her on [Twitter](https://x.com/taxgirl), [Facebook](https://www.facebook.com/taxgirl), [Instagram](https://www.instagram.com/therealtaxgirl), and [LinkedIn](https://www.linkedin.com/in/taxgirl/). Kelly Phillips Erb created and hosts the Taxgirl podcast, your home for tax news, tax info, and tax policy. In each episode, she shares conversations about taxes, money, and the choices we make. Kelly is a tax attorney who works with taxpayers and tax practitioners like you every day. She helps folks out of tax jams, and hopefully, keeps others from getting into them. You can find out more about Kelly [here](https://www.taxgirl.com/about-taxgirl/) and you can follow her on [Twitter](https://x.com/taxgirl), [Facebook](https://www.facebook.com/taxgirl), [Instagram](https://www.instagram.com/therealtaxgirl), and [Linkedin](https://www.linkedin.com/in/taxgirl/). ****To subscribe to the podcast (it’s free!) using Apple, Spotify, or your favorite listening app,** [**click here**](https://www.taxgirl.com/taxgirl-podcast/podcast-subscription/)**.**** ### Links mentioned: Kelly’s Website: [Taxgirl](https://www.taxgirl.com/) [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Working%20From%20Home%20Tax%20Issues%3A%20How%20COVID%20Complicates%20Tax%20Filing&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2021%2F02%2Fhome-office-4980353_1920.jpg&p%5Btitle%5D=Working%20From%20Home%20Tax%20Issues%3A%20How%20COVID%20Complicates%20Tax%20Filing "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Working%20From%20Home%20Tax%20Issues%3A%20How%20COVID%20Complicates%20Tax%20Filing "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Working%20From%20Home%20Tax%20Issues%3A%20How%20COVID%20Complicates%20Tax%20Filing&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual, Podcast, Small Business **Tags:** coronavirus, coronavirus tax, COVID-19, kelly erb, kellyphillipserb, pandemic tax, residency, residency audits, tax information, taxes, taxgirl, Taxgirl podcast, Timothy Speiss, working from home, working from home tax, working remotely --- ### [Cannabis Taxes: How the IRS is Handling the Cannabis Industry](https://www.taxgirl.com/2021/02/09/cannabis-taxes-how-irs-handling-cannabis-industry/) **Published:** February 9, 2021 **Author:** John Luckenbaugh **Content:** The cannabis industry has been growing rapidly over the last few years as more states begin to make it either medically or recreationally legal. However, with its legal status changes and subsequent boom, cannabis taxes are the next major impact point for the cannabis industry. With stricter guidelines and Tax Code section 280E, marijuana taxes are far from simple, and they present potential pitfalls to professionals both owning and working with cannabis businesses. ## How legalization has impacted cannabis taxes Katye Maxson-Landis joins Kelly on this episode of the Taxgirl podcast to discuss marijuana taxes and how they affect both companies and preparers. Katye owns Moxy Accounting and focuses on advancing accounting best practices in the cannabis industry. She shares her insights as a CPA and her cannabis industry experience with Kelly to help businesses and tax preparers stay compliant. ## Listen to Kelly and Katye talk about cannabis taxes: - The biggest myth of the marijuana industry - What is Tax Code section 280E? - What cannabis tax deductions businesses can have - Why cannabis companies are conservative in their taxes - Investment in the cannabis industry - Risk assessment in filing cannabis taxes - How accountants are dealing with the previously illegal cannabis companies - What professionals should know about taking on cannabis businesses as clients - The pitfalls of working with the cannabis industry - Why professionals shouldn’t work with cannabis businesses out of state - The banking challenges in the cannabis industry and other professionals working with them - How is the IRS handling cannabis taxes as it becomes legal? - Will marijuana become federally legal? ### More about Kelly: Kelly Phillips Erb created and hosts the Taxgirl podcast, your home for tax news, tax info, and tax policy. In each episode, she shares conversations about taxes, money, and the choices we make. Kelly is a tax attorney who works with taxpayers and tax practitioners like you every day. She helps folks out of tax jams, and hopefully, keeps others from getting into them. You can find out more about Kelly [here](https://www.taxgirl.com/about-taxgirl/), and you can follow her on [Twitter](https://x.com/taxgirl), [Facebook](https://www.facebook.com/taxgirl), [Instagram](https://www.instagram.com/therealtaxgirl), and [LinkedIn](https://www.linkedin.com/in/taxgirl/). Kelly Phillips Erb created and hosts the Taxgirl podcast, your home for tax news, tax info, and tax policy. In each episode, she shares conversations about taxes, money, and the choices we make. Kelly is a tax attorney who works with taxpayers and tax practitioners like you every day. She helps folks out of tax jams, and hopefully, keeps others from getting into them. You can find out more about Kelly [here](https://www.taxgirl.com/about-taxgirl/) and you can follow her on [Twitter](https://x.com/taxgirl), [Facebook](https://www.facebook.com/taxgirl), [Instagram](https://www.instagram.com/therealtaxgirl), and [Linkedin](https://www.linkedin.com/in/taxgirl/). ****To subscribe to the podcast (it’s free!) using Apple, Spotify, or your favorite listening app,** [**click here**](https://www.taxgirl.com/taxgirl-podcast/podcast-subscription/)**.**** ### Links mentioned: Kelly’s Website: [Taxgirl](https://www.taxgirl.com/) Moxy Accounting: [Twitter](https://twitter.com/PDXcannabisCPA) [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Cannabis%20Taxes%3A%20How%20the%20IRS%20is%20Handling%20the%20Cannabis%20Industry&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2021%2F02%2Fpexels-aphiwat-chuangchoem-2178565-scaled-e1612834587369.jpg&p%5Btitle%5D=Cannabis%20Taxes%3A%20How%20the%20IRS%20is%20Handling%20the%20Cannabis%20Industry "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Cannabis%20Taxes%3A%20How%20the%20IRS%20is%20Handling%20the%20Cannabis%20Industry "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Cannabis%20Taxes%3A%20How%20the%20IRS%20is%20Handling%20the%20Cannabis%20Industry&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Podcast **Tags:** cannabis, cannabis tax, IRS, Katye Maxson-Landis, kelly erb, marijuana, marijuana business webpage, marijuana tax, podcast --- ### [How to Save (and Spend) Money, Including Your Stimulus Check](https://www.taxgirl.com/2021/03/02/how-to-save-spend-lump-sum-money-2021-stimulus-check-tax-refund/) **Published:** March 2, 2021 **Author:** John Luckenbaugh **Content:** Chances are, you’re about to come into some money soon, whether it’s your tax refund or the 2021 stimulus check. But what do you do with it now that you have it? For many people, a lump sum is new, and they don’t want to blow the opportunity. That’s where this sound advice comes in handy. ## How to use and save your stimulus check effectively On this episode of the Taxgirl podcast, Kelly is joined by Tania Brown, a certified financial planner, author at Saver Life, and the founder of Financially Thriving Mom, to talk about how to save and spend your stimulus check or tax refund. Whether you have outstanding bills to take care of or you just want to save the money, Tania and Kelly share important tips to help you stay financially sound. ## Listen to Kelly and Tania talk about using your 2021 stimulus checks: - How can people prioritize saving their stimulus checks? - How the 2021 stimulus check can help people - Which bills should be prioritized? - Hardship programs - How to start saving - Prioritizing yourself over family and friends who need help - Creating boundaries for friends and family - Where to find good financial guidance locally - Treating yourself as a part of savings ### More about Kelly Phillips Erb: Kelly Phillips Erb created and hosts the Taxgirl podcast, your home for tax news, tax info, and tax policy. In each episode, she shares conversations about taxes, money, and the choices we make. Kelly is a tax attorney who works with taxpayers and tax practitioners like you every day. She helps folks out of tax jams, and hopefully, keeps others from getting into them. You can find out more about Kelly [here](https://www.taxgirl.com/about-taxgirl/), and you can follow her on [Twitter](https://x.com/taxgirl), [Facebook](https://www.facebook.com/taxgirl), [Instagram](https://www.instagram.com/therealtaxgirl), and [LinkedIn](https://www.linkedin.com/in/taxgirl/). Kelly Phillips Erb created and hosts the Taxgirl podcast, your home for tax news, tax info, and tax policy. In each episode, she shares conversations about taxes, money, and the choices we make. Kelly is a tax attorney who works with taxpayers and tax practitioners like you every day. She helps folks out of tax jams, and hopefully, keeps others from getting into them. You can find out more about Kelly [here](https://www.taxgirl.com/about-taxgirl/) and you can follow her on [Twitter](https://x.com/taxgirl), [Facebook](https://www.facebook.com/taxgirl), [Instagram](https://www.instagram.com/therealtaxgirl), and [Linkedin](https://www.linkedin.com/in/taxgirl/). ****To subscribe to the podcast (it’s free!) using Apple, Spotify, or your favorite listening app,** [**click here**](https://www.taxgirl.com/taxgirl-podcast/podcast-subscription/)**.**** ### Links mentioned: Kelly’s Website: [Taxgirl](https://www.taxgirl.com/) [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=How%20to%20Save%20%28and%20Spend%29%20Money%2C%20Including%20Your%20Stimulus%20Check&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2021%2F03%2Fpacks-163497_1280.jpg&p%5Btitle%5D=How%20to%20Save%20%28and%20Spend%29%20Money%2C%20Including%20Your%20Stimulus%20Check "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=How%20to%20Save%20%28and%20Spend%29%20Money%2C%20Including%20Your%20Stimulus%20Check "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=How%20to%20Save%20%28and%20Spend%29%20Money%2C%20Including%20Your%20Stimulus%20Check&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Investing, Podcast, Refund **Tags:** 2021 stimulus check, Economic Impact Payment, financial guidance, hardship programs, kelly erb, kelly phillips erb, podcast, saving money, stimulus check, Tania Brown, tax refund, taxgirl, Taxgirl podcast --- ### [Combatting Economic Inequality](https://www.taxgirl.com/2021/03/16/combatting-economic-inequality/) **Published:** March 16, 2021 **Author:** John Luckenbaugh **Content:** During COVID, those at the top kept making money while those at the bottom struggled. That’s especially true among minority households, with the average white family having as much as eight times the wealth of people of color. That economic inequality hasn’t gone unnoticed, however, with many Americans agreeing it’s gone too far. But with legislation pending, help could be on the way. ## COVID is growing economic inequality Rebecca Thompson of Prosperity Now joins Kelly on this episode of the Taxgirl podcast to discuss how to shrink that disparity. From tax credits to encouraging minority business and homeownership, Rebecca outlines what can make an impact right now and how pending legislation could go even further. ## Listen to Kelly and Rebecca talk about economic inequality: - What economic inequality means - How economic inequality is split down racial lines - What led to that inequality? - How tax credits can boost homeownership - What the American Opportunity Accounts Act would do - The Child Tax Credit - Getting advances on the Child Tax Credit - Earned Income Tax Credit - The VITA program - How the stimulus bill could improve economic inequality ### More about Kelly: Kelly Phillips Erb created and hosts the Taxgirl podcast, your home for tax news, tax info, and tax policy. In each episode, she shares conversations about taxes, money, and the choices we make. Kelly is a tax attorney who works with taxpayers and tax practitioners like you every day. She helps folks out of tax jams, and hopefully, keeps others from getting into them. You can find out more about Kelly [here](https://www.taxgirl.com/about-taxgirl/), and you can follow her on [Twitter](https://x.com/taxgirl), [Facebook](https://www.facebook.com/taxgirl), [Instagram](https://www.instagram.com/therealtaxgirl), and [LinkedIn](https://www.linkedin.com/in/taxgirl/). Kelly Phillips Erb created and hosts the Taxgirl podcast, your home for tax news, tax info, and tax policy. In each episode, she shares conversations about taxes, money, and the choices we make. Kelly is a tax attorney who works with taxpayers and tax practitioners like you every day. She helps folks out of tax jams, and hopefully, keeps others from getting into them. You can find out more about Kelly [here](https://www.taxgirl.com/about-taxgirl/) and you can follow her on [Twitter](https://x.com/taxgirl), [Facebook](https://www.facebook.com/taxgirl), [Instagram](https://www.instagram.com/therealtaxgirl), and [Linkedin](https://www.linkedin.com/in/taxgirl/). ****To subscribe to the podcast (it’s free!) using Apple, Spotify, or your favorite listening app,** [**click here**](https://www.taxgirl.com/taxgirl-podcast/podcast-subscription/)**.**** ### Links mentioned: Kelly’s Website: [Taxgirl](https://www.taxgirl.com/) Prosperity Now: [Website](https://prosperitynow.org/) [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Combatting%20Economic%20Inequality&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2021%2F03%2Fpexels-gabby-k-5849556-scaled-e1615745922376.jpg&p%5Btitle%5D=Combatting%20Economic%20Inequality "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Combatting%20Economic%20Inequality "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Combatting%20Economic%20Inequality&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Podcast **Tags:** American Opportunity Accounts Act, child tax credit, earned income tax credit, Economic inequality, Income inequality, kelly erb, kelly phillips erb, podcast, poverty, racial inequity, stimulus bill, tax credits, taxes, taxgirl, Taxgirl podcast, VITA program --- ### [The Increasing Importance of Data Security](https://www.taxgirl.com/2021/05/11/the-increasing-importance-of-data-security/) **Published:** May 11, 2021 **Author:** John Luckenbaugh **Content:** As society does more online, data security matters more than ever. That includes your taxes and the IRS, too. In its annual report, the IRS identified $2.3 billion in tax fraud schemes in 2020. With the 2021 tax season underway, businesses and individuals need to pay attention. ## Are you protected from data security issues? On this episode of the Taxgirl podcast, Kelly is joined by Robert Capps, the vice president of emerging technologies for NuData Security, a Mastercard company. Kelly and Robert discuss the increasing importance of data security, as well as what both businesses and consumers need to know to protect themselves and others. From data breaches and the dark web to how people can best monitor the internet for their stolen data, this is a must-listen episode. ## Listen to Kelly and Robert talk about data security: - How legitimate businesses can add to fraud - Data breaches - How businesses can find out their state’s rules on data privacy and security - How consumers can find out when their data is online - The dark web - Data disclosure notifications - How people can protect their data - Two-Factor Authentication - IRS scam calls ### More about Kelly: Kelly Phillips Erb created and hosts the Taxgirl podcast, your home for tax news, tax info, and tax policy. In each episode, she shares conversations about taxes, money, and the choices we make. Kelly is a tax attorney who works with taxpayers and tax practitioners like you every day. She helps folks out of tax jams, and hopefully, keeps others from getting into them. You can find out more about Kelly [here](https://www.taxgirl.com/about-taxgirl/), and you can follow her on [Twitter](https://x.com/taxgirl), [Facebook](https://www.facebook.com/taxgirl), [Instagram](https://www.instagram.com/therealtaxgirl), and [LinkedIn](https://www.linkedin.com/in/taxgirl/). Kelly Phillips Erb created and hosts the Taxgirl podcast, your home for tax news, tax info, and tax policy. In each episode, she shares conversations about taxes, money, and the choices we make. Kelly is a tax attorney who works with taxpayers and tax practitioners like you every day. She helps folks out of tax jams, and hopefully, keeps others from getting into them. You can find out more about Kelly [here](https://www.taxgirl.com/about-taxgirl/) and you can follow her on [Twitter](https://x.com/taxgirl), [Facebook](https://www.facebook.com/taxgirl), [Instagram](https://www.instagram.com/therealtaxgirl), and [Linkedin](https://www.linkedin.com/in/taxgirl/). ****To subscribe to the podcast (it’s free!) using Apple, Spotify, or your favorite listening app,** [**click here**](https://www.taxgirl.com/taxgirl-podcast/podcast-subscription/)**.**** ### Links mentioned: Kelly’s Website: [Taxgirl](https://www.taxgirl.com/) Robert Capps: [Twitter](https://twitter.com/rwcapps) [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=The%20Increasing%20Importance%20of%20Data%20Security&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2021%2F05%2Fmarkus-spiske-70Rir5vB96U-unsplash-scaled.jpg&p%5Btitle%5D=The%20Increasing%20Importance%20of%20Data%20Security "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=The%20Increasing%20Importance%20of%20Data%20Security "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=The%20Increasing%20Importance%20of%20Data%20Security&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** ID Theft and Scams, Podcast **Tags:** data privacy, data protection, data security, ID theft, IRS scams, NuData, podcast, privacy, Robert Capps, scams, two-factor authentication --- ### [Keeping up with New Tax Technology Amid the Changing Tax Code](https://www.taxgirl.com/2021/09/07/keeping-up-with-new-tax-technology-amid-the-changing-tax-code/) **Published:** September 7, 2021 **Author:** John Luckenbaugh **Content:** While partnerships have given Kelly many headaches, many tax professionals are drawn to them because of their notorious detail and nuance. It may not be surprising that new tax technology innovations often enter the world of partnerships before other areas of tax practice. As business and partnership complexity grows, so does the challenge of tax compliance. For this reason, tax professionals are excited about the boom of technology and data tools in the field. ## Tax professionals are staying ahead of the ever-changing tax code by embracing innovative tax technology, from artificial intelligence to new, more streamlined iterations of Excel. On today’s episode of the Taxgirl podcast, Kelly is joined by Jerry Musi to chat about how tax technology can help with the ever-growing puzzle of tax compliance. Jerry is a Tax Partner at RSM US LLP specializing in asset management funds. He is also the RSM US LLP national tax financial services industry leader. He’s been in practice for over 25 years and is heavily involved in promoting the firm’s partnership tax technology program. ### Listen to Kelly and Jerry talk about tax technology and how it factors into partnership tax conversations: - The combo of tax and technology can feel overwhelming since both fields can be so complex. How did Jerry get into both fields, and how did he learn to combine them harmoniously? - What does a modern private equity fund look like today, and how have they changed over time? Jerry shares, in plain English, what these funds are and how technology is playing a part in their management. - LLCs and LPs often go hand in hand, so how do they intertwine in the tax compliance world? Jerry helps parse the details, from investments and real estate to Schedules K-1, data, and technology. - For such complex concepts, what technological tools are available to practitioners? While Excel has always been a staple in every tax professional’s toolkit, Jerry shares how advances in artificial intelligence and new software programs are changing the game. - How do clients respond to changing tax technology, and how are other partners at the firm reacting? Jerry says the response has been overwhelmingly positive. - The tax world is always changing, so how do professionals like Jerry navigate the changing industry climate while staying focused on technology and innovation? - When it comes to partnership tax, what pieces are notably more streamlined since implementing technology? Jerry says allocations often give practitioners the most headaches, but with AI and state-of-the-art tax software, the process is significantly less hairy and more efficient. - Tax technology aside, does Jerry feel the tax profession is more exciting or more frustrating as the tax code has grown more complex over the years? In Jerry’s view, he finds it exciting. For instance, he reminds listeners that each state has its own laws and nuances when it comes to taxes, and those laws change just as frequently as federal tax laws. - While being “faster” is definitely a perk technology can offer tax professionals, Kelly and Jerry also talk about how smart use of technology can help professionals spend more time with clients and less time worrying about data entry. ### More about Kelly: Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney and works with taxpayers like you every day. You can find out more about Kelly [here](https://www.taxgirl.com/about-taxgirl/), and you can follow her on [Twitter](https://x.com/taxgirl), [Facebook](https://www.facebook.com/taxgirl), [Instagram](https://www.instagram.com/therealtaxgirl), and [LinkedIn](https://www.linkedin.com/in/taxgirl/). ****To subscribe to the podcast (it’s free!) using Apple, Spotify, or your favorite listening app,** [**click here**](https://www.taxgirl.com/taxgirl-podcast/podcast-subscription/)**.**** ### Links: Kelly’s Website: [Taxgirl](https://www.taxgirl.com/)Jerry’s Bloomberg Tax Article: [Tax Technology for Investment Partnerships](https://news.bloombergtax.com/daily-tax-report/tax-technology-for-investment-partnerships-keeping-pace-in-an-increasingly-complex-industry)Jerry’s LinkedIn: [Jerry Musi](https://www.linkedin.com/in/jerrymusi-rsm-financialservices-privateequity)Email Jerry: jerry.musi@rsmus.com [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Keeping%20up%20with%20New%20Tax%20Technology%20Amid%20the%20Changing%20Tax%20Code&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2021%2F09%2Ftaxgirl-61-image.jpeg&p%5Btitle%5D=Keeping%20up%20with%20New%20Tax%20Technology%20Amid%20the%20Changing%20Tax%20Code "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Keeping%20up%20with%20New%20Tax%20Technology%20Amid%20the%20Changing%20Tax%20Code "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Keeping%20up%20with%20New%20Tax%20Technology%20Amid%20the%20Changing%20Tax%20Code&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Podcast, Technology **Tags:** Bloomberg Tax, changing tax code, how to use tax software, jerry musi, kelly erb, kelly phillips erb, new tax code, new tax software, partnership tax, podcast, RMS US LLP, rsm us llp, tax software for professionals, tax technology, taxes, taxgirl, Taxgirl podcast --- ### [How to Beat Burnout and Prioritize Employees’ Health and Well-being](https://www.taxgirl.com/2021/11/16/how-to-beat-burnout-prioritize-employees-health-and-wellbeing/) **Published:** November 16, 2021 **Author:** John Luckenbaugh **Content:** The past year has taken a huge toll on both tax professionals and taxpayers. According to a 2021 Robert Half survey, more than 44% of employees say they are more burned out on their jobs today than a year ago. Employers and employees are seeking all kinds of solutions to burnout and the labor shortage. ## “People want to work in peace, not in pieces.” In today’s age of workplace burnout, retaining happy and healthy employees is more important than ever. On today’s episode of the Taxgirl podcast, Kelly is joined by Iralma Pozo to discuss how tax professionals can prioritize their well-being to beat burnout. Iralma is an independent consultant with more than 15 years of financial expertise, and an adjunct lecturer in Accounting at John Jay College in New York. She is an active member of the New York State Society of CPAs, and most of her experience is in the not-for-profit sector, where she has held financial leadership and public accounting-related roles. She has also worked for the IRS and has experience working with entrepreneurs, small businesses, and the real estate and insurance sectors. ### Listen to Kelly and Iralma talk about burnout and workplace wellbeing: - What does Iralma think the tax code and related provisions can offer taxpayers, and how can tax professionals remain fulfilled and excited about their careers? - Working from home (and spending more leisure time at home) means we are sitting more often than we used to. Iralma and Kelly discuss how standing desks, the benefits of carpet, and going for walks can all affect a person’s mental well-being and productivity. - How much of an employee’s well-being falls on the employer? What items, practices, or trainings are truly “essential” to efficient and healthy remote work? - What tax credits and/or benefits are available to help businesses make employees as comfortable and prepared as possible in such trying times? So many businesses say they’ve already accommodated everything they thought could be useful, so what else is there to help put their employees at ease? - What can employers do to turn things around for their employees? Iralma references Section 139 to start. Kelly says, happy employees are productive employees. - Where does mental health and mental illness factor into employee wellbeing? Iralma talks about the remaining stigma with mental health, and what employers can do to bridge that gap. - Iralma says, “Employers should be looking at supporting the whole person.” What does that mean for all aspects of an employee’s work? Does it mean cutting down on meetings, covering therapy costs, offering more flexible hours? How can companies account for “modern-day living,” as Iralma calls it, and what can they do to ease pressure on employees? - Some companies, like Bloomberg, have started offering anonymous tiered benefits (such as therapy) with levels available to employees at no out-of-pocket cost. How are these services impacting the employee’s well-being, for better or worse? How are these services being communicated? - How can employers simplify accommodations and benefits for employees? So many employees say they weren’t aware of certain benefits or didn’t know they could submit a certain expense. Whether it’s regular emails or an annual follow-up, HR departments can remind their employees of the benefits available to them. - “Employers need to start incentivizing people by the results and the value, not just the utilization rates and the facetime,” Iralma says. People have new priorities these days, and when employers don’t respect those, it contributes to stress and burnout. - How can employers reshape the notion of “fun” or “perks” into self-care, while maintaining the same level of priority and respect for employees that desire those aspects? - Ultimately, employers are dealing with real people. Different people have independent priorities and expectations of their employers. Iralma says there will be a lot of residual stress in the coming years, but we also have tools to help ease it. - For small and medium-sized businesses, what does Iralma recommend for getting started when creating tools and options for employees’ well-being? Agency and education go a long way; Iralma says it’s key to give their employees a voice. Bring in a consultant to get started. - Financial stress is the enemy of health and wellbeing. An employer has a responsibility to be mindful of their staff’s health, and to appreciate the perspective they have on their employees’ lives. ### More about Kelly: Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams and, hopefully, keep others from getting into them. You can find out more about Kelly [here](https://www.taxgirl.com/about-taxgirl/), and you can follow her on [Twitter](https://x.com/taxgirl), [Facebook](https://www.facebook.com/taxgirl), [Instagram](https://www.instagram.com/therealtaxgirl), and [LinkedIn](https://www.linkedin.com/in/taxgirl/). **To subscribe to the podcast (it’s free!) using Apple, Spotify, or your favorite listening app,**[ **click here**](https://www.taxgirl.com/taxgirl-podcast/podcast-subscription/)**.** ### Links: Kelly’s Website: [Taxgirl](https://www.taxgirl.com/) Iralma’s LinkedIn: [Iralma Pozo](https://www.linkedin.com/in/iralmapozocpa)[](https://www.linkedin.com/in/iralmapozocpa)Iralma’s Instagram: [@theduchessofaccounting](https://www.instagram.com/theduchessofaccounting/) YouTube: [Profe Pozo CPA](https://www.youtube.com/channel/UCpNcWY5nQ7twRMltmsvMbLA) *Selected articles: <https://www.accountingtoday.com/author/iralma-pozo>* [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=How%20to%20Beat%20Burnout%20and%20Prioritize%20Employees%E2%80%99%20Health%20and%20Well-being&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2021%2F11%2Fstress-burnout-scaled.jpeg&p%5Btitle%5D=How%20to%20Beat%20Burnout%20and%20Prioritize%20Employees%E2%80%99%20Health%20and%20Well-being "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=How%20to%20Beat%20Burnout%20and%20Prioritize%20Employees%E2%80%99%20Health%20and%20Well-being "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=How%20to%20Beat%20Burnout%20and%20Prioritize%20Employees%E2%80%99%20Health%20and%20Well-being&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Interviews and People, Podcast **Tags:** beat burnout, cure burnout, employee wellbeing, employees health, employer wellbeing benefits, health and wellbeing benefits, improve employee morale, iralma pozo, kelly erb, kelly phillips erb, podcast, staff wellbeing, stress and burnout, taxgirl, Taxgirl podcast, wellbeing benefits, workplace burnout, workplace stress --- ### [What You Need to Know About Setting up Your Business](https://www.taxgirl.com/2022/02/03/what-you-need-to-know-about-setting-up-your-business/) **Published:** February 3, 2022 **Author:** Kelly Phillips Erb **Content:** Small businesses remain the backbone of our country. According to the latest information from the Small Business Administration, the U.S. has 31.7 million small businesses—independent businesses with fewer than 500 employees. Those small businesses have made a big impact. Since 2000, they’ve created 65.1% of new jobs. From 2000 to 2019, small businesses generated 10.5 million net new jobs. During that same period, large businesses created just over half as many jobs, according to the Small Business Administration. But even as small businesses have grown their footprint in the U.S. economy, their tax picture has become increasingly complicated. Some of that complexity comes from changes in tax laws or enforcement, like sales tax collections after *Wayfair*. But some of the confusion could have been avoided with a more thoughtful entity choice. For more, check out [Minding Your Business: What You Need to Know About Entity Choice](https://news.bloombergtax.com/tax-insights-and-commentary/minding-your-business-what-you-need-to-know-about-entity-choice) [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=What%20You%20Need%20to%20Know%20About%20Setting%20up%20Your%20Business&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2022%2F03%2Fpexels-kaique-rocha-331990-scaled.jpg&p%5Btitle%5D=What%20You%20Need%20to%20Know%20About%20Setting%20up%20Your%20Business "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=What%20You%20Need%20to%20Know%20About%20Setting%20up%20Your%20Business "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=What%20You%20Need%20to%20Know%20About%20Setting%20up%20Your%20Business&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Small Business **Tags:** business, entity choice, kinds of entities --- ### [What You Need to Know About Setting up Your Business](https://www.taxgirl.com/2022/02/03/what-you-need-to-know-about-setting-up-your-business/) **Published:** February 3, 2022 **Author:** Kelly Phillips Erb **Content:** Small businesses remain the backbone of our country. According to the latest information from the Small Business Administration, the U.S. has 31.7 million small businesses—independent businesses with fewer than 500 employees. Those small businesses have made a big impact. Since 2000, they’ve created 65.1% of new jobs. From 2000 to 2019, small businesses generated 10.5 million net new jobs. During that same period, large businesses created just over half as many jobs, according to the Small Business Administration. But even as small businesses have grown their footprint in the U.S. economy, their tax picture has become increasingly complicated. Some of that complexity comes from changes in tax laws or enforcement, like sales tax collections after *Wayfair*. But some of the confusion could have been avoided with a more thoughtful entity choice. For more, check out [Minding Your Business: What You Need to Know About Entity Choice](https://news.bloombergtax.com/tax-insights-and-commentary/minding-your-business-what-you-need-to-know-about-entity-choice) [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=What%20You%20Need%20to%20Know%20About%20Setting%20up%20Your%20Business&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2022%2F03%2Fpexels-kaique-rocha-331990-scaled.jpg&p%5Btitle%5D=What%20You%20Need%20to%20Know%20About%20Setting%20up%20Your%20Business "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=What%20You%20Need%20to%20Know%20About%20Setting%20up%20Your%20Business "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=What%20You%20Need%20to%20Know%20About%20Setting%20up%20Your%20Business&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Small Business **Tags:** business, entity choice, kinds of entities --- ### [Education and Student Loan Survival](https://www.taxgirl.com/2022/02/22/education-and-student-loan-survival/) **Published:** February 22, 2022 **Author:** John Luckenbaugh **Content:** Education has become less affordable in recent years, leading many to take out student loans. Unfortunately, new borrowers often struggle to navigate the complex processes around student loans and payments. **What information do borrowers need to make wise student loan decisions?** On today’s episode of the Taxgirl podcast, Kelly is joined by Bobby Matson to talk about student loan debt. Bobby is the CEO of Payitoff, which provides technology solutions that help student loan borrowers achieve positive financial outcomes. It was founded with the goals of streamlining the complicated student loan system and saving borrowers money. ### **Listen to Kelly and Bobby discuss student loans:** - How can technology solutions like apps and platforms help borrowers with the student loan borrowing and payment processes? - Kelly shares her own student loan debt experiences, and the confusion borrowers face with complex processes like repayment rules, loan levels, and payment options. - How can the topic of student loans be broken down in a way that is understandable to the people who have to pay them? - Kelly and Bobby discuss the interest deductions borrowers can claim on their taxes for having student loans and the qualifications involved. - Why is it important, and why can it be helpful to have conversations and educate students about student loan options? - Few options provide simple assistance with loan repayment because the system is complex. Bobby explains how his company’s software can connect people with better repayment options. - Many people must choose which debts to repay before others. How does the emotional component of debt impact people’s repayment decisions? How does the stigma around borrowing affect how people discuss and treat their debt? - Kelly and Bobby discuss student loan forgiveness and the Department of Education’s targeted relief programs for loan borrowers. - How could access to information about loans and payment programs help people make better economic decisions? ### More about Kelly: Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams and, hopefully, keep others from getting into them. You can learn more about Kelly [here](https://www.taxgirl.com/about-taxgirl/), and you can follow her on [Twitter](https://x.com/taxgirl), [Facebook](https://www.facebook.com/taxgirl), [Instagram](https://www.instagram.com/therealtaxgirl), and [LinkedIn](https://www.linkedin.com/in/taxgirl/). To subscribe to the podcast (it’s free!) on Apple, Spotify, or your favorite listening app, [click here](https://www.taxgirl.com/taxgirl-podcast/podcast-subscription/). ### Links mentioned: Kelly’s Website –[ Taxgirl](https://www.taxgirl.com/) Bobby’s Twitter – [@bomatson](https://twitter.com/bomatson) [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Education%20and%20Student%20Loan%20Survival&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2022%2F02%2Fpexels-tirachard-kumtanom-733856-scaled.jpg&p%5Btitle%5D=Education%20and%20Student%20Loan%20Survival "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Education%20and%20Student%20Loan%20Survival "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Education%20and%20Student%20Loan%20Survival&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Education, Podcast **Tags:** bobby matson, borrowers, debt repayment, Department of Education, IRS, pay it off, payitoff, student loan debt, student loan debt software, student loan forgiveness, student loan interest, student loans, tax, taxgirl --- ### [Education and Student Loan Survival](https://www.taxgirl.com/2022/02/22/education-and-student-loan-survival/) **Published:** February 22, 2022 **Author:** John Luckenbaugh **Content:** Education has become less affordable in recent years, leading many to take out student loans. Unfortunately, new borrowers often struggle to navigate the complex processes around student loans and payments. **What information do borrowers need to make wise student loan decisions?** On today’s episode of the Taxgirl podcast, Kelly is joined by Bobby Matson to talk about student loan debt. Bobby is the CEO of Payitoff, which provides technology solutions that help student loan borrowers achieve positive financial outcomes. It was founded with the goals of streamlining the complicated student loan system and saving borrowers money. ### **Listen to Kelly and Bobby discuss student loans:** - How can technology solutions like apps and platforms help borrowers with the student loan borrowing and payment processes? - Kelly shares her own student loan debt experiences, and the confusion borrowers face with complex processes like repayment rules, loan levels, and payment options. - How can the topic of student loans be broken down in a way that is understandable to the people who have to pay them? - Kelly and Bobby discuss the interest deductions borrowers can claim on their taxes for having student loans and the qualifications involved. - Why is it important, and why can it be helpful to have conversations and educate students about student loan options? - Few options provide simple assistance with loan repayment because the system is complex. Bobby explains how his company’s software can connect people with better repayment options. - Many people must choose which debts to repay before others. How does the emotional component of debt impact people’s repayment decisions? How does the stigma around borrowing affect how people discuss and treat their debt? - Kelly and Bobby discuss student loan forgiveness and the Department of Education’s targeted relief programs for loan borrowers. - How could access to information about loans and payment programs help people make better economic decisions? ### More about Kelly: Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams and, hopefully, keep others from getting into them. You can learn more about Kelly [here](https://www.taxgirl.com/about-taxgirl/), and you can follow her on [Twitter](https://x.com/taxgirl), [Facebook](https://www.facebook.com/taxgirl), [Instagram](https://www.instagram.com/therealtaxgirl), and [LinkedIn](https://www.linkedin.com/in/taxgirl/). To subscribe to the podcast (it’s free!) on Apple, Spotify, or your favorite listening app, [click here](https://www.taxgirl.com/taxgirl-podcast/podcast-subscription/). ### Links mentioned: Kelly’s Website –[ Taxgirl](https://www.taxgirl.com/) Bobby’s Twitter – [@bomatson](https://twitter.com/bomatson) [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Education%20and%20Student%20Loan%20Survival&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2022%2F02%2Fpexels-tirachard-kumtanom-733856-scaled.jpg&p%5Btitle%5D=Education%20and%20Student%20Loan%20Survival "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Education%20and%20Student%20Loan%20Survival "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Education%20and%20Student%20Loan%20Survival&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Education, Podcast **Tags:** bobby matson, borrowers, debt repayment, Department of Education, IRS, pay it off, payitoff, student loan debt, student loan debt software, student loan forgiveness, student loan interest, student loans, tax, taxgirl --- ### [Making Sense of Tax Season in 2022](https://www.taxgirl.com/2022/02/15/tax-season-and-the-pandemics-challenges/) **Published:** February 15, 2022 **Author:** John Luckenbaugh **Content:** The pandemic has brought many changes in the last few years, and these changes have affected the 2022 tax season. ## **What challenges and updates should people know about this tax season?** On today’s episode of the Taxgirl podcast, Kelly is joined by Amber Gray-Fenner to discuss challenges affecting taxpayers and tax professionals this filing season. Amber is an Enrolled Agent and owner of Tax Therapy, LLC, in Albuquerque, New Mexico. Amber considers herself a tax “general practitioner” who prepares returns for individuals and (really) small businesses and represents individuals before the IRS and, occasionally, the U.S. Tax Court (as a non-attorney practitioner admitted to the Tax Court bar). Amber is also a tax writer whose passion is translating “taxspeak” into English for taxpayers and tax practitioners. She writes to dispel myths with facts and to explain “the fine print” behind seemingly simple tax concepts. Amber is a contributing writer at Forbes.com covering individual tax issues and IRS developments, a contributing writer for [ThinkOutsidetheTaxBox.com](https://thinkoutsidethetaxbox.com/), and a co-author of The Most Common Tax Mistakes Made by Small Businesses (Lily Tran, author/editor). ### **Listen to Kelly and Amber discuss this tax season’s challenges:** - What challenges do people face this year with tax issues or filing difficulties? - Kelly and Amber discuss how the IRS’s slow and often inefficient processes may create challenges for taxpayers and professionals this tax season. - How do refund check delays affect people who rely on tax refunds? Would the IRS be to blame for these impacts? - Does filing timing affect how soon taxpayers receive their refunds? How can taxpayers balance filing early to avoid risks like ID theft with waiting patiently to file a correct return? - In what ways are taxpayers at risk of being taken advantage of? - Amber and Kelly discuss how the IRS is under-resourced and how this could have long-term consequences for the tax process and the taxpayer’s trust in the system. - What can taxpayers and tax professionals do this season to make their lives easier? Amber discusses options available to taxpayers to make the filing process easier this season. - How can taxpayers best prepare and organize their information when filing with a tax professional? - How can tax professionals better determine whether a relationship with a potential client is a good fit? How should the price that tax professionals charge factor into this practice? ### More about Kelly: Kelly Phillips Erb created and hosts the Taxgirl podcast, your home for tax news, tax info, and tax policy. In each episode, she shares conversations about taxes, money, and the choices we make. Kelly is a tax attorney who works with taxpayers and tax practitioners like you every day. She helps folks out of tax jams, and hopefully, keeps others from getting into them. You can find out more about Kelly [here](https://www.taxgirl.com/about-taxgirl/), and you can follow her on [Twitter](https://x.com/taxgirl), [Facebook](https://www.facebook.com/taxgirl), [Instagram](https://www.instagram.com/therealtaxgirl), and [LinkedIn](https://www.linkedin.com/in/taxgirl/). Kelly Phillips Erb created and hosts the Taxgirl podcast, your home for tax news, tax info, and tax policy. In each episode, she shares conversations about taxes, money, and the choices we make. Kelly is a tax attorney who works with taxpayers and tax practitioners like you every day. She helps folks out of tax jams, and hopefully, keeps others from getting into them. You can find out more about Kelly [here](https://www.taxgirl.com/about-taxgirl/) and you can follow her on [Twitter](https://x.com/taxgirl), [Facebook](https://www.facebook.com/taxgirl), [Instagram](https://www.instagram.com/therealtaxgirl), and [Linkedin](https://www.linkedin.com/in/taxgirl/). ****To subscribe to the podcast (it’s free!) using Apple, Spotify, or your favorite listening app,** [**click here**](https://www.taxgirl.com/taxgirl-podcast/podcast-subscription/)**.**** ### Links: Kelly’s Website –[ Taxgirl](https://www.taxgirl.com/) Amber’s book – [The Most Common Tax Mistakes Made by Small Businesses](https://www.amazon.com/dp/B09RTMQSP3/ref=cm_sw_r_cp_api_glt_2GAB5XE9HS6PJQVMHP1J) [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Making%20Sense%20of%20Tax%20Season%20in%202022&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2022%2F02%2Fmarkus-winkler-Ber3q-zEhd4-unsplash-scaled.jpg&p%5Btitle%5D=Making%20Sense%20of%20Tax%20Season%20in%202022 "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Making%20Sense%20of%20Tax%20Season%20in%202022 "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Making%20Sense%20of%20Tax%20Season%20in%202022&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual, Podcast, Refund **Tags:** Amber Gray-Fenner, ask the taxgirl, EA, Internal Revenue Service, IRS, podcast, tax, tax challenges, tax practitioner, tax season, tax season 2022, taxes from a to z, taxgirl, taxpayer --- ### [Making Sense of Tax Season in 2022](https://www.taxgirl.com/2022/02/15/tax-season-and-the-pandemics-challenges/) **Published:** February 15, 2022 **Author:** John Luckenbaugh **Content:** The pandemic has brought many changes in the last few years, and these changes have affected the 2022 tax season. ## **What challenges and updates should people know about this tax season?** On today’s episode of the Taxgirl podcast, Kelly is joined by Amber Gray-Fenner to discuss challenges affecting taxpayers and tax professionals this filing season. Amber is an Enrolled Agent and owner of Tax Therapy, LLC, in Albuquerque, New Mexico. Amber considers herself a tax “general practitioner” who prepares returns for individuals and (really) small businesses and represents individuals before the IRS and, occasionally, the U.S. Tax Court (as a non-attorney practitioner admitted to the Tax Court bar). Amber is also a tax writer whose passion is translating “taxspeak” into English for taxpayers and tax practitioners. She writes to dispel myths with facts and to explain “the fine print” behind seemingly simple tax concepts. Amber is a contributing writer at Forbes.com covering individual tax issues and IRS developments, a contributing writer for [ThinkOutsidetheTaxBox.com](https://thinkoutsidethetaxbox.com/), and a co-author of The Most Common Tax Mistakes Made by Small Businesses (Lily Tran, author/editor). ### **Listen to Kelly and Amber discuss this tax season’s challenges:** - What challenges do people face this year with tax issues or filing difficulties? - Kelly and Amber discuss how the IRS’s slow and often inefficient processes may create challenges for taxpayers and professionals this tax season. - How do refund check delays affect people who rely on tax refunds? Would the IRS be to blame for these impacts? - Does filing timing affect how soon taxpayers receive their refunds? How can taxpayers balance filing early to avoid risks like ID theft with waiting patiently to file a correct return? - In what ways are taxpayers at risk of being taken advantage of? - Amber and Kelly discuss how the IRS is under-resourced and how this could have long-term consequences for the tax process and the taxpayer’s trust in the system. - What can taxpayers and tax professionals do this season to make their lives easier? Amber discusses options available to taxpayers to make the filing process easier this season. - How can taxpayers best prepare and organize their information when filing with a tax professional? - How can tax professionals better determine whether a relationship with a potential client is a good fit? How should the price that tax professionals charge factor into this practice? ### More about Kelly: Kelly Phillips Erb created and hosts the Taxgirl podcast, your home for tax news, tax info, and tax policy. In each episode, she shares conversations about taxes, money, and the choices we make. Kelly is a tax attorney who works with taxpayers and tax practitioners like you every day. She helps folks out of tax jams, and hopefully, keeps others from getting into them. You can find out more about Kelly [here](https://www.taxgirl.com/about-taxgirl/), and you can follow her on [Twitter](https://x.com/taxgirl), [Facebook](https://www.facebook.com/taxgirl), [Instagram](https://www.instagram.com/therealtaxgirl), and [LinkedIn](https://www.linkedin.com/in/taxgirl/). Kelly Phillips Erb created and hosts the Taxgirl podcast, your home for tax news, tax info, and tax policy. In each episode, she shares conversations about taxes, money, and the choices we make. Kelly is a tax attorney who works with taxpayers and tax practitioners like you every day. She helps folks out of tax jams, and hopefully, keeps others from getting into them. You can find out more about Kelly [here](https://www.taxgirl.com/about-taxgirl/) and you can follow her on [Twitter](https://x.com/taxgirl), [Facebook](https://www.facebook.com/taxgirl), [Instagram](https://www.instagram.com/therealtaxgirl), and [Linkedin](https://www.linkedin.com/in/taxgirl/). ****To subscribe to the podcast (it’s free!) using Apple, Spotify, or your favorite listening app,** [**click here**](https://www.taxgirl.com/taxgirl-podcast/podcast-subscription/)**.**** ### Links: Kelly’s Website –[ Taxgirl](https://www.taxgirl.com/) Amber’s book – [The Most Common Tax Mistakes Made by Small Businesses](https://www.amazon.com/dp/B09RTMQSP3/ref=cm_sw_r_cp_api_glt_2GAB5XE9HS6PJQVMHP1J) [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Making%20Sense%20of%20Tax%20Season%20in%202022&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2022%2F02%2Fmarkus-winkler-Ber3q-zEhd4-unsplash-scaled.jpg&p%5Btitle%5D=Making%20Sense%20of%20Tax%20Season%20in%202022 "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Making%20Sense%20of%20Tax%20Season%20in%202022 "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Making%20Sense%20of%20Tax%20Season%20in%202022&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual, Podcast, Refund **Tags:** Amber Gray-Fenner, ask the taxgirl, EA, Internal Revenue Service, IRS, podcast, tax, tax challenges, tax practitioner, tax season, tax season 2022, taxes from a to z, taxgirl, taxpayer --- ### [Shedding Light on the New Requirements for Information Reporting](https://www.taxgirl.com/2022/03/15/shedding-light-on-the-new-requirements-for-information-reporting/) **Published:** March 15, 2022 **Author:** John Luckenbaugh **Content:** Over the past few years, the IRS has increased its compliance and enforcement efforts focused on payment transactions between US and foreign persons. However, these new information-reporting requirements can confuse and intimidate taxpayers. **What changes has the IRS made to tax information reporting requirements?** On today’s episode of the Taxgirl podcast, Kelly is joined by Tara Ferris to talk about the new requirements for tax compliance. Tara is a Principal in the Financial Services Office of Ernst & Young LLP. In this role, Tara advises multinational financial institutions and asset managers on customer tax reporting and withholding. She also focuses on process and control improvements to create efficiencies and reduce risk. Before joining Ernst & Young LLP, Tara served as Senior Counsel and worked on matters relating to FATCA, non-resident alien withholding and reporting, and international aspects of domestic information reporting. ### **Listen to Kelly and Tara discuss tax reporting requirements:** - There’s more emphasis now on reporting requirements, either for US payments to foreign persons or foreign income received by US persons. How has the expansion of information reporting impacted the professional tax practice? - How should tax professionals communicate to clients and financial institutions which forms matter and when to issue them? - When working with financial institutions and clients who don’t want to be reported, how should tax professionals convince them they need to provide the data, especially in countries where they may have built their entire system around the idea that it’s secret? - What should a taxpayer do if they think they’re supposed to get a form and didn’t, or that form doesn’t come through? Is that something a taxpayer should discuss with their financial institution or tax professional? - Many clients struggle with the idea that they could have a reporting requirement they aren’t aware of, or that they have reporting requirements they didn’t even know existed. As a tax professional, how should one advise clients to figure out what those are? - Kelly and Tara discuss reporting and the taxpayer’s burden to ensure the information is correct, keep records, and balance how they use their tax data. - With the recent changes in tax reporting requirements, will taxpayers need to be reeducated on what is taxable and what is not? Are we overrelying on tax forms to navigate this new territory? - Now that more mainstream financial institutions adopt crypto in various forms, could this make it easier or harder for the IRS to enforce crypto reporting? Tara and Kelly share their views on the long road ahead for crypto reporting and tax preparation. - Tara shares her predictions for the tax reporting space in the coming years. ### More about Kelly: Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things she does is help folks out of tax jams and, hopefully, keep others from getting into them. You can find out more about Kelly[ here](https://www.taxgirl.com/about-taxgirl/), and you can follow her on [Twitter](https://x.com/taxgirl),[ Facebook](https://www.facebook.com/taxgirl),[ Instagram](https://www.instagram.com/therealtaxgirl), and[ LinkedIn](https://www.linkedin.com/in/taxgirl/). To subscribe to the podcast (it’s free!) using Apple, Spotify, or your favorite listening app,[ click here](https://www.taxgirl.com/taxgirl-podcast/podcast-subscription/). ### Links mentioned: Kelly’s Website: [Taxgirl](https://www.taxgirl.com/) Tara’s LinkedIn: [Tara Ferris](https://www.linkedin.com/in/tara-ferris-238670b) [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Shedding%20Light%20on%20the%20New%20Requirements%20for%20Information%20Reporting&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2022%2F03%2Fkelly-sikkema-wgcUx0kR1ps-unsplash-scaled.jpg&p%5Btitle%5D=Shedding%20Light%20on%20the%20New%20Requirements%20for%20Information%20Reporting "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Shedding%20Light%20on%20the%20New%20Requirements%20for%20Information%20Reporting "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Shedding%20Light%20on%20the%20New%20Requirements%20for%20Information%20Reporting&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** International, Podcast **Tags:** Congress, crypto, financial institutions, income, information, Internal Revenue Service, IRS, reporting, tax, tax evasion, taxgirl, taxpayers, withholding --- ### [Shedding Light on the New Requirements for Information Reporting](https://www.taxgirl.com/2022/03/15/shedding-light-on-the-new-requirements-for-information-reporting/) **Published:** March 15, 2022 **Author:** John Luckenbaugh **Content:** Over the past few years, the IRS has increased its compliance and enforcement efforts focused on payment transactions between US and foreign persons. However, these new information-reporting requirements can confuse and intimidate taxpayers. **What changes has the IRS made to tax information reporting requirements?** On today’s episode of the Taxgirl podcast, Kelly is joined by Tara Ferris to talk about the new requirements for tax compliance. Tara is a Principal in the Financial Services Office of Ernst & Young LLP. In this role, Tara advises multinational financial institutions and asset managers on customer tax reporting and withholding. She also focuses on process and control improvements to create efficiencies and reduce risk. Before joining Ernst & Young LLP, Tara served as Senior Counsel and worked on matters relating to FATCA, non-resident alien withholding and reporting, and international aspects of domestic information reporting. ### **Listen to Kelly and Tara discuss tax reporting requirements:** - There’s more emphasis now on reporting requirements, either for US payments to foreign persons or foreign income received by US persons. How has the expansion of information reporting impacted the professional tax practice? - How should tax professionals communicate to clients and financial institutions which forms matter and when to issue them? - When working with financial institutions and clients who don’t want to be reported, how should tax professionals convince them they need to provide the data, especially in countries where they may have built their entire system around the idea that it’s secret? - What should a taxpayer do if they think they’re supposed to get a form and didn’t, or that form doesn’t come through? Is that something a taxpayer should discuss with their financial institution or tax professional? - Many clients struggle with the idea that they could have a reporting requirement they aren’t aware of, or that they have reporting requirements they didn’t even know existed. As a tax professional, how should one advise clients to figure out what those are? - Kelly and Tara discuss reporting and the taxpayer’s burden to ensure the information is correct, keep records, and balance how they use their tax data. - With the recent changes in tax reporting requirements, will taxpayers need to be reeducated on what is taxable and what is not? Are we overrelying on tax forms to navigate this new territory? - Now that more mainstream financial institutions adopt crypto in various forms, could this make it easier or harder for the IRS to enforce crypto reporting? Tara and Kelly share their views on the long road ahead for crypto reporting and tax preparation. - Tara shares her predictions for the tax reporting space in the coming years. ### More about Kelly: Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things she does is help folks out of tax jams and, hopefully, keep others from getting into them. You can find out more about Kelly[ here](https://www.taxgirl.com/about-taxgirl/), and you can follow her on [Twitter](https://x.com/taxgirl),[ Facebook](https://www.facebook.com/taxgirl),[ Instagram](https://www.instagram.com/therealtaxgirl), and[ LinkedIn](https://www.linkedin.com/in/taxgirl/). To subscribe to the podcast (it’s free!) using Apple, Spotify, or your favorite listening app,[ click here](https://www.taxgirl.com/taxgirl-podcast/podcast-subscription/). ### Links mentioned: Kelly’s Website: [Taxgirl](https://www.taxgirl.com/) Tara’s LinkedIn: [Tara Ferris](https://www.linkedin.com/in/tara-ferris-238670b) [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Shedding%20Light%20on%20the%20New%20Requirements%20for%20Information%20Reporting&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2022%2F03%2Fkelly-sikkema-wgcUx0kR1ps-unsplash-scaled.jpg&p%5Btitle%5D=Shedding%20Light%20on%20the%20New%20Requirements%20for%20Information%20Reporting "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Shedding%20Light%20on%20the%20New%20Requirements%20for%20Information%20Reporting "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Shedding%20Light%20on%20the%20New%20Requirements%20for%20Information%20Reporting&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** International, Podcast **Tags:** Congress, crypto, financial institutions, income, information, Internal Revenue Service, IRS, reporting, tax, tax evasion, taxgirl, taxpayers, withholding --- ### [How To Create and Use an IRS Online Account](https://www.taxgirl.com/2026/07/25/how-to-create-and-use-an-irs-online-account/) **Published:** July 25, 2026 **Author:** Kelly Phillips Erb **Content:** Dealing with the IRS is rarely anyone’s idea of a good time, but having an IRS Online Account can make at least some of it easier. You can use your account to check payment activity, view tax records, download transcripts, review certain notices, see balances, and access other information without calling the IRS and waiting on hold. The setup process can feel clunky, especially if you haven’t created an account before or have questions about identity verification. So I put together a step-by-step guide to walk you through creating an IRS Online Account, verifying your identity, and finding the information you’ll most likely need once you are logged in. You can [download the guide](https://www.taxgirl.com/?p=58311) and keep it handy for the next time you need to check a payment, pull a transcript, or review your tax account. One important reminder: because tax-related scams are so common, it is always a good idea to go directly to IRS.gov rather than clicking on a link in an unexpected email, text message, or social media post. If you have questions about your account, identity verification, or whether a communication is legitimate, start with the official IRS website. Let’s be careful out there! [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=How%20To%20Create%20and%20Use%20an%20IRS%20Online%20Account&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2026%2F07%2Fpexels-han-798356342-19935029-scaled.jpg&p%5Btitle%5D=How%20To%20Create%20and%20Use%20an%20IRS%20Online%20Account "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=How%20To%20Create%20and%20Use%20an%20IRS%20Online%20Account "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=How%20To%20Create%20and%20Use%20an%20IRS%20Online%20Account&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual **Tags:** how do I see my IRS transcript, how do I see my tax transcript, how to create an IRS account, IRS, IRS account, IRS online account --- ### [Looking for a Job? Watch Out for Scammers](https://www.taxgirl.com/2026/08/28/looking-for-a-job-watch-out-for-scammers/) **Published:** August 28, 2026 **Author:** Kelly Phillips Erb **Content:** September is one of the busiest months for job hunting—it’s also a peak season for recruitment scams, according to cybersecurity experts at NordVPN. As workers who quit their jobs over the summer reenter the job market and students search for work as the new academic year begins, scammers have a larger pool of potential victims. Looking for a job already requires sharing a surprising amount of personal information like your name, address and phone number. Eventually, a legitimate employer may need your Social Security number, banking information, and other sensitive data. Scammers know that, too. That’s part of what makes job scams particularly effective. A request for personal information that would immediately raise a red flag in almost any other context can seem perfectly normal when it appears to come from someone offering you a job. “Job seekers are in a vulnerable position by default. They expect to share personal information with strangers, respond quickly, and follow instructions,” says Adrianus Warmenhoven, cybersecurity advisor at NordVPN. And business is booming. [According to the Federal Trade Commission](https://www.ftc.gov/news-events/news/press-releases/2025/03/new-ftc-data-show-big-jump-reported-losses-fraud-125-billion-2024), reports of job and employment agency scams nearly tripled between 2020 and 2024. The money lost grew even faster: consumers reported losing $501 million to those scams in 2024, up from $90 million in 2020. ## How Job Scams Work Some job scams start with an unsolicited email, text, or message from a supposed recruiter. Others appear as job listings on legitimate employment websites or social media platforms. Scammers may impersonate real companies—and sometimes real people who work for those companies—to make an offer seem legitimate. Earlier this year, NordVPN’s Threat Intelligence team identified a phishing campaign that impersonated companies including Meta, Disney, Coca-Cola, and Spotify. The scheme used fake job-listing portals that mimicked the companies they impersonated, ultimately directing victims to a page designed to steal their information. Other scams, such as so-called “task scams,” typically begin with an unexpected text message offering unusually high pay for simple online tasks, such as liking videos, rating businesses, or “boosting” products. These schemes have exploded in popularity. The FTC estimated that reports of task scams jumped from about 5,000 in all of 2023 to about 20,000 in the first half of 2024 alone. By then, task scams accounted for nearly 40% of reported job scams. Victims may watch supposed earnings accumulate on a website or app, only to be told they must send money—often via cryptocurrency—to unlock their earnings or advance to the next level. Reported cryptocurrency losses connected to job scams reached about $41 million in the first half of 2024 alone, nearly double the amount reported for all of 2023. In fake-check scams, a supposed employer may hire you for a remote position and send you a check to buy a computer or other home-office equipment. You deposit the check and follow the employer’s instructions to buy equipment or send money elsewhere. Later, the check turns out to be fake. When the fraud is discovered, the bank can reverse the deposit, leaving you responsible for the money you spent or transferred. Work-from-home schemes can also include reshipping merchandise, virtual assistant jobs, or purported business opportunities. The details vary, but the warning signs are similar and involve unusually high pay for little work or experience, demands for upfront payments, and requests to move money on behalf of the supposed employer. ## Money May Not Be The Most Valuable Thing Thieves Steal Losing money to a job scam can be devastating. But money isn’t the only thing scammers are after—your identity may be even more valuable. Think about the information that typically changes hands when you get a real job. An employer needs enough information to establish your identity, report your wages, withhold taxes, and pay you. That can include your legal name, address, date of birth, Social Security number, bank account information, and identity documents. For an identity thief, it’s a remarkably useful collection of data. Even information that doesn’t seem particularly sensitive can be valuable. LinkedIn accounts, for example, can contain phone numbers, personal and work email addresses, employment histories, professional connections, and messages. [NordVPN reports](https://nordvpn.com/research-lab/dark-web-market/) that stolen LinkedIn accounts command relatively high prices on dark web marketplaces. A compromised professional account can also help a scammer impersonate you and target your colleagues, clients, and other contacts. ## When Identity Theft Becomes A Tax Problem Identity theft doesn’t always end with a compromised account or a bounced check—it can lead to a tax problem. Tax-related identity theft occurs when someone uses your stolen personal information, including your Social Security number, to file a fraudulent tax return—often to claim a refund before you file your own return. You may not discover the theft until you try to file electronically, and the IRS rejects your return. In other cases, the first clue may be an unexpected IRS notice or other correspondence about a return you didn’t file. An identity thief can also use someone else’s Social Security number to get a job. The IRS calls this employment-related identity theft. You might discover the problem when you receive a Form W-2 or Form 1099 from an employer you don’t recognize, or when wages or Social Security earnings that don’t belong to you appear. In some cases, the IRS might contact you because information reported under your Social Security number doesn’t match what’s reported on your tax return. If you receive a Form W-2 from an unknown employer, don’t report those wages on your tax return—or amend a return you’ve already filed to add them—simply because the form was issued in your name. Contact the Social Security Administration to correct wages improperly reported under your Social Security number. An unexpected Form 1099 can also be a sign that someone has used your identity, but the fix is different. Don’t report the income on your tax return, but to avoid a mismatch, contact the business or payer that issued the form and ask them to correct the records. If you receive a letter, notice, or fax from the IRS related to suspected identity theft, follow the instructions in that correspondence immediately. Depending on the circumstances, you may also need to file Form 14039, Identity Theft Affidavit. ## How To Spot A Job Scam A scam can look surprisingly professional. However, there are some warning signs: - Be suspicious of jobs that offer very high pay for very little work or experience. - Watch for recruiters who pressure you to make immediate decisions, conduct the entire hiring process via text or chat, or contact you from an email address that doesn’t match the company’s official domain. - Be wary of any job that requires you to pay money. Legitimate employers generally don’t charge applicants an application fee, demand payment for mandatory training, or ask them to send cryptocurrency or gift cards. - A legitimate employer should not send you a check and instruct you to deposit it and return some of the money, transfer money to someone else, or buy gift cards. ## Protect Yourself During A Job Search You don’t have to refuse to provide personal information to every prospective employer. Employers need information about applicants, and once you’re hired, they’ll need even more. The key is to be strategic. Before handing over sensitive information, verify that the company exists, the position is real, and the person contacting you actually works there. Don’t rely solely on links or phone numbers provided by the recruiter—find the company’s official website and check its careers page. Be especially cautious about providing your personal information or copies of other identity documents early in the hiring process. A recruiter who claims to need your Social Security number before you’ve even interviewed should raise a red flag. So should an employer who seems much more interested in getting your financial information than in determining whether you can actually do the job. ## What If You’ve Already Been Scammed? Act quickly. If you sent money to a scammer, contact the bank, credit card company, payment app, wire-transfer service, gift-card issuer, or cryptocurrency platform you used. Report the fraud and ask whether the transaction can be stopped or reversed. Job scams can also be reported to the FTC at [ReportFraud.ftc.gov](https://reportfraud.ftc.gov/). If you believe your tax information has been stolen or used in a tax scam, the IRS provides a [reporting page](https://www.irs.gov/help/report-fraud) for tax fraud, scams, illegal activity, and stolen tax information. ## A Final Note Job seekers are expected to put their best foot forward. Scammers do the same. They can build convincing websites, copy corporate branding, impersonate real recruiters, conduct fake interviews, and send official-looking employment documents. Because legitimate hiring requires sharing personal information, a scammer doesn’t necessarily have to make an unusual request. That’s what makes these schemes so dangerous. So when you’re looking for a job, pay attention not just to where your money is going, but also to where your information is going. 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Careers, ID Theft and Scams, Individual **Tags:** career scams, identity theft, job scams, scams --- ### [Getting To Know You Tuesday: Lily Tran](https://www.taxgirl.com/2026/09/22/getting-to-know-you-tuesday-lily-tran/) **Published:** September 22, 2026 **Author:** Kelly Phillips Erb **Excerpt:** Meet Lily Tran, founder of TaxUSign and Taxpayer CARE Center, and learn how the Enrolled Agent, tax educator, and mom approaches taxes, business, and life. **Content:** Lily Tran has spent more than 15 years helping taxpayers, entrepreneurs, and small business owners make sense of taxes—and figure out what to do when things don’t go quite as planned. She’s the founder and CEO of TaxUSign®, a hybrid tax firm, and the Taxpayer CARE Center, a brick-and-mortar practice in downtown Kent, Washington. That means clients can work with Lily and her team in person or virtually, whether they need help planning ahead, staying compliant, or solving a tax problem that’s already landed on their doorstep. Lily is an Enrolled Agent, Certified Tax Coach, Certified Tax Planner, and NTPI Fellow, with experience representing taxpayers before the IRS in audits, collections, and appeals. She’s also a big believer in tax education—especially busting some of the tax myths that refuse to go away—and helping people feel a little more confident about their finances. Over the years, Lily has taken on leadership roles with professional tax organizations, spoken to groups around the country, and been featured in *Bloomberg Tax & Accounting* and *SUCCESS Magazine*. She’s also an editor, writer, and tax course creator. When she’s not talking taxes, Lily is a devoted mom and caregiver, balancing family life with running her practice. And when she gets a little time in the kitchen, she’s always up for trying a new recipe. So, let’s get to know Lily. ## In Her Own Words **1. Where are you right now?** Kent, Washington (the place I grew up). **2. What’s your official title, and what do you actually do?** CEO. I make taxes the least of people’s worries and set them up for success so they have more time for the things they care about, wherever they are in life. That’s my firm’s mission and vision. **3. Where did you go to school, and what did you study?** I graduated from the University of Washington with a Bachelor’s degree in Social Work and Administration and Policy Practice. I also earned a Certificate in Accounting and an Associate of Arts from Highline College. I started my Master’s degree at UW twice but decided to keep working at a CPA office instead. I later became an Enrolled Agent, Certified Tax Coach, and Certified Tax Planner. **4. How did you end up in tax?** During the stock market crash, I landed a job at a CPA firm, where my boss at the time encouraged me to pursue my license and become an Enrolled Agent. **5. What was your first real job?** I typically don’t answer this one, since it doubles as a security question. But my first job was as a cashier, and I absolutely loved it. **6. What’s one thing people might be surprised to learn about you?** I’ve been waking up between 5:00–6:30 a.m. to take care of my mom as her caregiver, managing her medication, making sure she’s fed, and spending the day with her, then working in between her schedule plus evenings, nights, and weekends around my kids’ schedule. **7. If you weren’t working in tax, what would you be doing?** The answer changes as I get older. Right now, I think I’d enjoy being a stay-at-home mom and finding new recipes to cook. **8. What’s the best piece of tax, money, or career advice you’ve ever received?** Make sure you’re climbing on the right mountain because you don’t want to climb to the top to realize you’ve climbed the wrong one. (Something like that). **9. What tax issue do you think is getting too much attention right now?** Trump Accounts. **10. What tax issue isn’t getting enough attention?** Inherited IRA 10-year rule **11. What’s the biggest tax myth you’d like to bust?** That you can deduct all vehicle-related expenses paid from a business card when the vehicle is in your personal name. **12. What’s a tax question you wish people would ask you more often?** The tax implications of retirement accounts. **13. What’s one tax rule you would change if you could?** Bring back Form 2106 for unreimbursed employee expenses. I’ve been digging into accountable plans for an upcoming presentation and came across *Simpson v. Commissioner;* in that case, the taxpayer was at least still able to use the 2% miscellaneous itemized deduction and didn’t lose out on all employee deductions. **14. What’s one non-tech thing in your office that you couldn’t do without?** My devotional book. **15. Which tech tool, platform, or software do you rely on most in your practice?** Claude and Google Workspace. **16. What’s the best use of AI in tax or tax practice?** So far, Claude. I like being able to use prompts to help me understand the tax laws better **17. What are you watching right now (streaming or otherwise)?** *Reacher – Season 4*. New episodes are released every Wednesday on Prime Video. **18. Coffee or tea?** If I could drink coffee, it’d be a caramel macchiato, but otherwise, unsweetened green tea. **19. Pancakes or waffles?** Waffles, all the way. How about a croffle? **20. If you received an unexpected tax refund tomorrow, what would you do with it?** In my last interview, I said I’d invest in real estate. But today, I’d rather take my kids out for the day and enjoy some fun activities together. You can find out more about Lily on the [firm’s website](https://www.taxusign.com/) and [on LinkedIn](https://www.linkedin.com/in/lilytrantax/). She’s also active on social media: - Instagram: [@taxusign](https://www.instagram.com/taxusign) - Threads: [@taxusign](https://www.threads.com/taxusign) - Facebook: [facebook.com/taxusign](https://www.facebook.com/taxusign) ## About Getting to Know You If you’d like to recommend a tax pro to be featured, send your suggestions to [gtky (at) taxgirl (dot) com](mailto:gtky@taxgirl.com) with the subject: Getting to Know You Tuesday. Self-nominations are totally okay, and encouraged! If you’ve submitted a nomination before, feel free to send it again. I’ll consider all submissions, even those that were selected, so long as they were more than three years ago.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Getting%20To%20Know%20You%20Tuesday%3A%20Lily%20Tran&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2026%2F09%2Flily_tran_taxusignedit.jpg&p%5Btitle%5D=Getting%20To%20Know%20You%20Tuesday%3A%20Lily%20Tran "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Getting%20To%20Know%20You%20Tuesday%3A%20Lily%20Tran "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Getting%20To%20Know%20You%20Tuesday%3A%20Lily%20Tran&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Getting to Know You Tuesday, Tax Professionals **Tags:** getting to know you tuesday, Lily Tran --- ### [Can Someone Steal Your House? What You Should Know About Deed Fraud](https://www.taxgirl.com/2026/10/15/deed-fraud-home-title-theft/) **Published:** October 15, 2026 **Author:** Kelly Phillips Erb **Excerpt:** Can someone steal your house? Learn how deed fraud works, who's at risk, and how to protect your home from scammers and fraudulent property transfers. **Content:** Your home may be your biggest financial asset. But what if someone tried to sell it without your knowledge? Believe it or not, it’s a real scam. Criminals use forged documents, stolen identities, and fake offers of financial assistance to take control of properties that aren’t theirs. This practice is commonly called deed fraud or home title theft, and it can lead to major expenses and even bigger headaches. In February 2026, Pennsylvania Attorney General Dave Sunday warned homeowners about fraudulent property transfers. But the problem isn’t limited to Pennsylvania. The FBI has [issued warnings](https://www.ic3.gov/PSA/2026/PSA260616) about similar schemes all over the country. Here’s what homeowners should know. ## What Is Deed Fraud? Deed fraud occurs when someone attempts to transfer ownership of real property without the owner’s valid authorization. Often, a scammer obtains information about a property and its owner from public records or other sources. The scammer may then forge the owner’s signature, create fraudulent identification, or submit false documents purporting to transfer ownership. Because local government offices generally maintain deeds and other property records, scammers may record fraudulent documents before the legitimate owner realizes anything is wrong. Recording a fraudulent deed doesn’t necessarily mean the criminal legally owns the property. A forged deed generally cannot transfer valid ownership, but it can create serious legal problems for the rightful owner. Undoing the fraud can be challenging and expensive. ## How Do These Scams Work? There isn’t just one type of deed fraud. Here are a few ways it can happen: - **Forged deeds and stolen identities.** A criminal impersonates a property owner and uses forged or fraudulent documents to attempt to transfer the property. The legitimate owner may not learn of a transaction until they receive an unexpected notice or discover a change in public records. - **Mortgage and foreclosure rescue scams.** A homeowner struggling with mortgage payments may be approached by someone promising to prevent foreclosure or arrange refinancing. Buried in the paperwork may be a deed transferring ownership to the scammer or an associated company. - **Property tax scams.** Criminals may identify homeowners with overdue property taxes and offer to help resolve the delinquency. The alleged assistance may involve persuading the homeowner to sign documents transferring ownership of the property. I’ve seen how convincing these schemes can be. In one case my firm helped resolve, thieves added their names to several mailing lists to make it look like they lived at a property. They then used that mail as evidence of residency to transfer the utilities into their names. By the time the real owners realized what was happening, the thieves were already in the process of flipping the home. ## Who Is Most At Risk? Any property owner can potentially be targeted, but certain properties may be especially attractive to scammers. In its warnings, the FBI has identified owners of vacant land as a potential target. Vacant land may be easier to market fraudulently because there’s no one living on the property to notice suspicious activity. Owners of vacation homes, investment properties, and inherited real estate should watch for unexpected changes in property records. Publicly available death and probate records may also give scammers information about properties that are vacant or changing hands. Older homeowners may be especially vulnerable to deed fraud, especially when scammers exploit financial pressure or a close relationship. This kind of fraud can be especially difficult to detect when a family member, caregiver, or other trusted individual is involved. And homeowners facing foreclosure, delinquent property taxes, or other financial difficulties may be targeted with promises of assistance, including cash advances or fraudulent reverse mortgage offers that are too good to be true. ## So How Can You Protect Yourself? You don’t have to spend a lot of time or money to fight back. Here are some free and easy ways to protect yourself: - **Check your property records.** Find your local county recorder, register of deeds, or equivalent land records office and confirm that the ownership information is correct. - **Sign up for property alerts.** Some cities and counties offer free services that notify owners when a deed or other document is recorded against their property or under their name. - **Be cautious about unsolicited offers.** Don’t sign deeds, powers of attorney, or other legal documents you don’t understand, especially when someone promises to resolve a mortgage or property tax problem. - **Contact lenders and tax offices directly.** If you’re behind on payments, contact your mortgage servicer or local taxing authority by calling them directly or going to the official website. - **Monitor your credit.** If you see unfamiliar activity in your bank or financial accounts, ask questions. You can also keep an eye out on your information with free credit reports from AnnualCreditReport.com. - **Watch for unexpected mail or missing bills.** Pay attention to missing mortgage, tax, or utility bills (which scammers may try to redirect) or unexpected loan inquiries on your credit report. If you’re unsure about a potential financial or property transaction, consider speaking with an attorney before signing anything. ## Do You Need Home Title Lock Insurance? You’ve likely seen ads suggesting that a paid title-lock service can prevent deed fraud. Here’s the catch: Home title lock isn’t actually a lock. The Federal Trade Commission [has warned](https://consumer.ftc.gov/consumer-alerts/2024/08/home-title-lock-insurance-not-lock-all) that products marketed as home title lock insurance generally aren’t insurance. They’re monitoring services that alert homeowners when changes appear in property records. Those alerts may help homeowners spot suspicious activity, but they don’t prevent someone from filing a fraudulent deed. Depending on where you live, your county may already offer similar notifications for free. Before paying for another service, check what protections are already available. ## What If You Discover a Fraudulent Deed? If you believe someone has recorded a fraudulent deed or attempted to sell your property without your permission, act quickly. Contact the office that maintains property records (typically called something like the Register or Recorder of Deeds, depending on the county) and request copies. Report suspected fraud to local law enforcement and your state attorney general’s consumer protection office. You can also report property impersonation scams to the FBI’s Internet Crime Complaint Center at [IC3.gov](https://ic3.gov). If your personal information has been compromised, IdentityTheft.gov provides resources for reporting identity theft and developing a recovery plan. To prevent further damage, contact your mortgage lender and, if applicable, your title insurance company. You should also consider consulting an attorney. Depending on the circumstances and state law, correcting property records or proving legal ownership may require going to court. ## Who Else Can Help Prevent Fraud? Attorneys, tax and financial advisors, and other professionals may be in a position to recognize suspicious transactions before they cause harm. In some counties, such as Brown County, Wisconsin, notaries can enroll in a [free online subscription service](https://www.notaryfraudalert.com/FraudAlert/NFASignUp.WebSite/WIbrown) that lets them monitor their name in the county’s official land records to detect potentially fraudulent recordings. While services like Notary Fraud Alert do not prevent fraud, they provide an early warning system so notaries can act if they detect suspicious activity. Banks, mortgage lenders, real estate agents, and title companies can help identify suspicious transactions. Unusual ownership changes, inconsistent identification, requests to rush a sale, and payments to unrelated third parties are red flags. And financial institutions subject to federal anti-money-laundering requirements may be required to identify and report certain suspicious transactions. Family members and caregivers can also help protect vulnerable homeowners, especially seniors. Watch for signs of possible financial scams, such as unusual transactions, unexpected changes to property documents, or new folks exerting influence over financial decisions. With the homeowner’s permission, consider helping them sign up for property alerts and reviewing important financial records. ## The Bottom Line The good news is that you can take practical and proactive steps to combat deed fraud without jumping through hoops or spending a fortune. And don’t be scared to speak up—if you’re behind on property taxes or mortgage payments, remember that legitimate assistance may be available. You shouldn’t have to sign away ownership of your home just to get help.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Can%20Someone%20Steal%20Your%20House%3F%20What%20You%20Should%20Know%20About%20Deed%20Fraud&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2026%2F10%2Fas_photography-house-1407562_1280.jpg&p%5Btitle%5D=Can%20Someone%20Steal%20Your%20House%3F%20What%20You%20Should%20Know%20About%20Deed%20Fraud "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Can%20Someone%20Steal%20Your%20House%3F%20What%20You%20Should%20Know%20About%20Deed%20Fraud "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Can%20Someone%20Steal%20Your%20House%3F%20What%20You%20Should%20Know%20About%20Deed%20Fraud&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** ID Theft and Scams, Individual **Tags:** deed fraud, forged deed, fraudulent deed, home title theft, property tax scams, stolen identity, title lock insurance --- ### [IRS Announces New Interest Rates For November: What They Mean For Loans And Estate Planning](https://www.taxgirl.com/2026/10/16/irs-interest-rates-november-2026/) **Published:** October 16, 2026 **Author:** Kelly Phillips Erb **Excerpt:** The IRS has announced November 2026 interest rates. See how new AFRs affect family loans, installment sales, and estate planning strategies. **Content:** Thinking about lending money to your kids? Selling property with the buyer paying over time? Making a year-end gift through a trust? The IRS has released its applicable federal rates (AFRs) for November 2026. These rates don’t set your bank’s mortgage rates or the interest you’ll earn on a savings account. Instead, they serve as benchmarks for certain transactions that can have federal tax consequences. Here’s what’s changing—and why it matters. ## November’s New Rates The IRS publishes AFRs monthly, based on yields on outstanding U.S. government obligations. The rates vary depending on the term of the loan or other obligation. For November 2026, the annual rates are: | Loan term | November 2026 AFR | |---|---| | Short-term (3 years or less) | 4.67% | | Mid-term (more than 3 years, up to 9 years) | 5.08% | | Long-term (more than 9 years) | 5.52% | The IRS also publishes rates for semiannual, quarterly, and monthly compounding, so the applicable rate may vary depending on how you structure a transaction. ## Lending Money To Family? Pay Attention One of the most common uses of AFRs is a family loan. Let’s suppose your son needs $50,000 to help buy his first home. And let’s say you have the cash available and would rather lend it to him than have him borrow from a bank (especially at today’s interest rates). You might even be tempted to skip the interest altogether to help him out. That’s generous, but it could create tax complications. Under section 7872 of the tax code, certain [below-market loans](https://www.taxgirl.com/2026/08/31/new-irs-rates-are-out-why-afrs-matter/) can result in what’s called imputed interest. Essentially, the IRS treats the lender (in our example, that’s you) as having received interest even when you didn’t actually collect it. Depending on the circumstances, the transaction can also result in a deemed gift. That’s where AFRs come in. For loans subject to the below-market loan rules, charging at least the applicable rate generally helps avoid the imputation of interest for federal tax purposes. It doesn’t mean every family loan must carry that rate. Exceptions and special rules apply, including for certain smaller loans. But if you’re planning to lend a significant amount of money to a family member, you’ll want to pay attention. And remember: Putting the word loan on a check doesn’t automatically make the transaction a bona fide loan for tax purposes. Documentation, repayment expectations, and how the parties actually behave matter, too. ## Selling Property? The Interest Rate Matters There, Too AFRs can also affect transactions where a seller allows a buyer to pay over time, often called an installment sale. Let’s say you’re selling a piece of property and agree to receive payments over several years. You likely care more about getting the full purchase price than collecting interest, especially if the buyer is a friend or family member. But federal tax law generally doesn’t allow you to avoid recognizing interest income simply by treating every payment as part of the purchase price. Depending on the transaction, sections 483 and 1274 may require that part of the payments be treated as interest or [original issue discount (OID)](https://www.taxgirl.com/2015/03/27/taxes-from-a-to-z-2015-o-is-for-oid/). That matters to the seller because interest income is generally taxed as ordinary income, while gains from selling property may receive different tax treatment (often more favorable). Before agreeing to seller financing, make sure the payment terms account for the applicable tax rules. ## Estate Planning: A Different Rate Worth Watching The IRS also publishes the section 7520 rate, which is used to value certain annuities, life estates, terms of years, remainder interests, and reversionary interests. For November 2026, the section 7520 rate is 6.2%, up from 5.6% in October. That change can matter for taxpayers considering certain wealth-transfer strategies, including charitable trusts and grantor-retained annuity trusts (GRATs). For example, a GRAT generally allows someone to transfer assets into a trust while retaining the right to receive annuity payments for a specified period. Depending on how the trust is structured, investment returns above the assumed rate may allow assets to pass to beneficiaries with little or no additional gift tax. A higher section 7520 rate generally makes it harder for a GRAT’s investments to outperform that benchmark. Other planning techniques like charitable remainder annuity trusts (CRATs) and qualified personal residence trusts (QPRTs) may benefit from higher rates. Higher isn’t necessarily better or worse across the board. It depends on what you’re trying to accomplish. ## Don’t Confuse These Rates With Interest On Unpaid Taxes One more thing. The AFRs announced each month are not the same as the [interest rates](https://www.taxgirl.com/2026/08/25/irs-keeps-interest-rates-unchanged-for-the-rest-of-2026/) the IRS charges taxpayers who owe money—or the rates it pays taxpayers who are owed refunds. Those rates are determined under section 6621 and generally change quarterly. ## More Information For most taxpayers, these rates won’t change anything. But if you’re considering a family loan, an installment sale, or certain estate planning strategies before year-end, they’re worth checking before you finalize the transaction. You can find more details in [Revenue Ruling 2026-21](https://www.irs.gov/pub/irs-drop/rr-26-21.pdf) (it will also appear in the Internal Revenue Bulletin 2026-47, dated November 16, 2026).[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=IRS%20Announces%20New%20Interest%20Rates%20For%20November%3A%20What%20They%20Mean%20For%20Loans%20And%20Estate%20Planning&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2026%2F10%2Fpexels-kindelmedia-7579192.jpg&p%5Btitle%5D=IRS%20Announces%20New%20Interest%20Rates%20For%20November%3A%20What%20They%20Mean%20For%20Loans%20And%20Estate%20Planning "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=IRS%20Announces%20New%20Interest%20Rates%20For%20November%3A%20What%20They%20Mean%20For%20Loans%20And%20Estate%20Planning "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=IRS%20Announces%20New%20Interest%20Rates%20For%20November%3A%20What%20They%20Mean%20For%20Loans%20And%20Estate%20Planning&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Families and Tax, IRS News **Tags:** AFR, Applicable Federal Rates, below-market loan, family loan, section 7520 rates --- ### [Social Security Benefits Will Rise 3.6% In 2027. Here's What That Means For You](https://www.taxgirl.com/2026/10/14/social-security-cola-2027-benefits-taxes/) **Published:** October 14, 2026 **Author:** Kelly Phillips Erb **Content:** Millions of Americans will see bigger Social Security checks in 2027. The Social Security Administration (SSA) announced a 3.6% cost-of-living adjustment (COLA) for next year, which could mean an extra $75 a month for the average retired worker. But the [annual announcement](https://www.ssa.gov/news/en/cola/) isn’t just about retirement benefits. The adjustment also affects disability and survivor benefits, Supplemental Security Income (SSI), and several other Social Security thresholds. For people who are still working, another number to watch is the maximum amount of earnings subject to Social Security tax, which is also increasing. Here’s what you need to know. ## How Much Will My Social Security Benefits Increase In 2027? The 3.6% COLA will take effect for Social Security benefits payable in January 2027. Nearly 72 million Social Security beneficiaries will receive the increase. Monthly benefits are expected to rise for the average retired worker from $2,095 to $2,170, an increase of about $75 per month, or $900 over the course of the year. For an older couple who are both receiving benefits, the estimated combined monthly payment will increase from $3,238 to $3,355, or an additional $117 per month. If you receive Social Security Disability Insurance (SSDI) or survivor benefits, you’ll also see an increase. The amount will vary because the COLA applies to each person’s benefit. Someone receiving a larger monthly benefit will generally see a larger dollar increase than someone receiving a smaller payment. ![Ssa projected increases](https://www.taxgirl.com/wp-content/uploads/2026/10/a_clean_infographic_style_table_on_a_white_backgr-1200x759.png) ## Why Do Social Security Benefits Increase? Social Security’s annual COLA is intended to help benefits keep pace with inflation. Without periodic adjustments, the purchasing power of a fixed monthly benefit would decline as the cost of everyday goods and services rises. Federal law ties the COLA to changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), as calculated by the Bureau of Labor Statistics. SSA compares the average CPI-W for July, August, and September with the average for the same period in the last year a COLA became effective. For 2027, that means comparing the third quarter of 2026 with the third quarter of 2025, producing a 3.6% increase. ## Will I Actually See The Full Increase? You won’t necessarily pocket the entire increase. For beneficiaries who are enrolled in Medicare, Part B premiums are typically deducted directly from Social Security payments. If premiums go up in 2027, that increase could offset part of the COLA. And premiums are expected to go up. According to the 2026 Medicare Trustees Report, the standard monthly Part B premium is projected to increase from $202.90 in 2026 to $209.50 in 2027, an increase of $6.60 per month. The 2027 figure is a projection, not a final premium amount. The official 2027 premiums will be announced separately. ## What About Federal Income Taxes? Depending on your other income and filing status, up to 85% of your Social Security benefits may be included in federal taxable income. Importantly, the federal income thresholds that determine whether Social Security benefits are taxable are not automatically adjusted for inflation. That means that as benefits go up, you may find that a larger share of your Social Security income becomes taxable, even if your other income hasn’t changed significantly. That doesn’t necessarily mean you’ll owe more in federal income taxes. Eligible taxpayers age 65 and older may also qualify for an enhanced senior deduction of up to $6,000 per person, subject to income limitations. The temporary deduction, available for tax years 2025 through 2028, is sometimes called “no tax on Social Security,” but it doesn’t change how Social Security benefits are taxed. It may, however, reduce your overall tax bill. ## The Social Security Wage Base Is Increasing, Too For workers and employers, one of the most significant changes in 2027 is the increase in the Social Security taxable wage base. In 2026, Social Security taxes apply to the first $184,500 of covered earnings. In 2027, that amount will rise to $192,300, a $7,800 increase in earnings that may be subject to Social Security tax. Unlike the COLA, which is based on changes in consumer prices, the Social Security taxable wage base is adjusted based on changes in national average wages. How much do you pay in tax? Employees pay 6.2% in Social Security tax, and employers pay a matching 6.2%. Self-employed individuals generally pay both portions, for a combined Social Security tax rate of 12.4%, subject to applicable adjustments and deductions. For an employee earning at least the new wage base in both years, the increase could mean as much as $483.60 in additional employee Social Security tax in 2027 compared with 2026. Self-employed taxpayers with sufficient could see an increase of up to $967.20 in the Social Security portion of their self-employment tax. (For more on how Social Security works, [check out this previous article](https://www.taxgirl.com/2026/08/31/social-security-and-taxes-what-you-pay-and-what-you-get).) Medicare taxes work differently. There is no wage cap on the 1.45% employee Medicare tax, and the additional 0.9% Medicare tax continues to apply to wages and self-employment income above specified thresholds. ## What If I’m Collecting Social Security And Still Working? You can work while receiving Social Security retirement benefits, but if you haven’t reached full retirement age, earning too much can temporarily reduce your payments. In 2027, the annual earnings limit for beneficiaries under full retirement age will increase to $25,560 for the entire year, up from $24,480 in 2026. If you exceed that limit, SSA generally withholds $1 in benefits for every $2 earned above the threshold. A higher limit applies in the year you reach full retirement age. For 2027, that limit is $67,920, up from $65,160 in 2026. SSA generally withholds $1 for every $3 earned above that threshold, but only counts earnings before the month you reach full retirement age. What counts when figuring the amount? The earnings test generally applies to wages and net earnings from self-employment, not pensions or investment income. Fortunately, once you reach full retirement age, the earnings limit disappears. And benefits withheld under the earnings test aren’t necessarily lost forever, since SSA recalculates your monthly benefit at full retirement age to credit months in which benefits were withheld. ## What About Disability Benefits And SSI? The COLA also affects people receiving disability benefits and SSI, even though the programs have different eligibility requirements and rules. For example, unlike Social Security retirement and disability benefits, SSI benefits aren’t subject to federal income tax. For Social Security disability, the substantial gainful activity (SGA) threshold will rise to $1,770 per month for non-blind individuals in 2027, up from $1,690 in 2026. The threshold for blind individuals will increase to $2,950 per month. The trial work period earnings threshold will also rise, from $1,210 to $1,270 per month. For SSI recipients, the maximum federal monthly payment will increase to $1,029 for an eligible individual and $1,544 for an eligible couple. Actual payments can vary based on income, living arrangements, and state supplements. While the Social Security retirement and disability benefit increases will appear in payments beginning in January 2027, the higher SSI payments will begin on December 31, 2026. ## When Will I Find Out My New Benefit Amount? SSA will begin making personalized COLA notices available through the online my Social Security accounts in late November. If you want to receive your notices electronically, you must have an account and enroll in paperless notices by November 18. If you haven’t enrolled in paperless notices, you will receive your notice by mail in December. The notice will show your updated benefit amount, payment information, and applicable deductions. Medicare premium information for 2027 will also become available as those amounts are finalized. Looking for more info? You can create or access your account at [ssa.gov/myaccount](https://ssa.gov/myaccount).[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Social%20Security%20Benefits%20Will%20Rise%203.6%25%20In%202027.%20Here%E2%80%99s%20What%20That%20Means%20For%20You&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2026%2F10%2Fpexels-shvets-production-7545359.jpg&p%5Btitle%5D=Social%20Security%20Benefits%20Will%20Rise%203.6%25%20In%202027.%20Here%E2%80%99s%20What%20That%20Means%20For%20You "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Social%20Security%20Benefits%20Will%20Rise%203.6%25%20In%202027.%20Here%E2%80%99s%20What%20That%20Means%20For%20You "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Social%20Security%20Benefits%20Will%20Rise%203.6%25%20In%202027.%20Here%E2%80%99s%20What%20That%20Means%20For%20You&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual, Retirement and Pension **Tags:** COLA increase, cost of living adjustment, retirement benefits, Social Security, Social Security benefits, Social Security benefits increase, Social Security check, Social Security tax, SSA benefits --- ### [What Is A Grantor Trust? Taxes From A to Z®](https://www.taxgirl.com/2026/10/10/what-is-a-grantor-trust-taxes-from-a-to-z/) **Published:** October 10, 2026 **Author:** Kelly Phillips Erb **Excerpt:** Learn what a grantor trust is, how it's taxed, and why revocable and irrevocable trusts can offer different income and estate tax benefits. **Content:** A grantor trust is a trust in which, for federal income tax purposes, the person who created or funded it—called the grantor—is treated as owning some or all of the trust’s assets. As a result, the trust’s income, deductions, and credits are generally reported on the grantor’s individual income tax return rather than taxed separately to the trust. ## Revocable Trusts Many revocable living trusts are grantor trusts because the creator retains significant control over the assets, including the ability to revoke the trust. But a trust doesn’t have to be revocable to be treated as a grantor trust. Under the grantor trust rules in sections 671 through 679 of the tax code, certain powers or interests retained by the grantor can cause some or all of the trust to be treated as owned by the grantor for income tax purposes. Sometimes that’s exactly the result the grantor wants. Trusts reach the highest federal income tax rate at much lower levels of income than individuals, so having income taxed to the grantor can produce a better income tax result. Grantor trust status doesn’t necessarily last forever. A revocable grantor trust will typically stop being a grantor trust when the grantor dies. At that point, the trust may become a separate taxpayer and need its own taxpayer identification number and income tax return. ## Irrevocable Trusts In estate planning, an irrevocable trust may also be deliberately structured as a grantor trust. The assets can be outside the grantor’s taxable estate for federal estate tax purposes, while the grantor continues to pay the income tax. Because those taxes are paid with assets outside the trust, the trust assets can continue to grow while the grantor’s taxable estate is reduced. --- **Taxes come with their own language. Taxes From A to Z® is here to help translate. Find more tax terms and explainers in the [full A to Z collection](https://www.taxgirl.com/tax-glossary/).** [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=What%20Is%20A%20Grantor%20Trust%3F%20Taxes%20From%20A%20to%20Z%C2%AE&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2026%2F10%2Fpexels-kampus-8441792.jpg&p%5Btitle%5D=What%20Is%20A%20Grantor%20Trust%3F%20Taxes%20From%20A%20to%20Z%C2%AE "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=What%20Is%20A%20Grantor%20Trust%3F%20Taxes%20From%20A%20to%20Z%C2%AE "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=What%20Is%20A%20Grantor%20Trust%3F%20Taxes%20From%20A%20to%20Z%C2%AE&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Estate and Gift Tax, Taxes From A to Z® **Tags:** grantor trust, irrevocable trust, revocable trust, taxes from a to z --- ### [What's That Presidential Election Campaign Fund Checkbox On Your Tax Return?](https://www.taxgirl.com/2026/10/13/whats-that-presidential-election-campaign-fund-checkbox-on-your-tax-return/) **Published:** October 13, 2026 **Author:** Kelly Phillips Erb **Excerpt:** Checking the Presidential Election Campaign Fund box won't increase your taxes or reduce your refund. Here's what it does and where the money goes. **Content:** If you’re one of the millions of taxpayers facing the October 15 deadline to file your 2025 federal income tax return with an extension (like me), you may have noticed a small box on Form 1040 asking whether you’d like to contribute to the Presidential Election Campaign Fund. You might have checked it. You might have skipped it. Or you might not have noticed it at all (it’s pretty small). ![Top of the draft 1040 for 2026](https://www.taxgirl.com/wp-content/uploads/2026/10/2026-10-13-at-43608-pm-1200x553.png) The checkbox has been part of the federal income tax filing process for more than 50 years, allowing taxpayers to direct a small portion of their federal tax dollars toward financing presidential elections. It sounds simple enough, but the history of the Presidential Election Campaign Fund—and what happens to that money—is more complicated. Despite dramatic changes in how presidential candidates raise and spend money, the checkbox isn’t going anywhere just yet. It appears on the [draft Form 1040 for 2026](https://www.taxgirl.com/2026/09/22/draft-2026-form-1040-adds-new-citizenship-and-work-authorization-question/), with no proposed changes (it’s even in the same spot). So why does the federal government still ask taxpayers whether they want to help finance presidential campaigns? And does anyone actually use the money? ## What Happens When You Check The Box? First, the good news: Checking the box won’t cost you anything extra. If you check the box marked “You” on Form 1040, $3 of your federal income tax goes to the Presidential Election Campaign Fund. If you’re married and filing jointly, your spouse can make the same election, bringing the total to $6. The money doesn’t come out of your refund, and it doesn’t increase your tax liability. Instead, the federal government directs that portion of tax revenue to the fund. It’s also not a charitable contribution (so you can’t deduct it) or an additional tax. It’s simply an opportunity to designate how a portion of your tax dollars will be used—something you don’t often have the luxury of doing at the federal level. You also don’t get to choose which candidate receives the money. The fund is administered under federal campaign finance rules, not according to your political preferences (but keep reading). ## How Did The Presidential Election Campaign Fund Get Started? The idea dates back to 1966, when Congress first authorized a presidential campaign financing mechanism through the federal income tax system. Congress suspended that initial effort the following year, but revived it in 1971. Beginning with 1972 tax returns, taxpayers could designate $1 of their federal income taxes to the Presidential Election Campaign Fund. Initially, taxpayers had to file a separate form—Form 4875—to make the election, and they could even choose whether their money went to a particular political party or a general campaign fund. ![Form 4875 from 1972](https://www.taxgirl.com/wp-content/uploads/2026/10/2026-10-13-at-50643-pm-1200x929.png) That option disappeared when Congress changed the rules, and the familiar checkbox appeared directly on Form 1040 beginning with 1973 tax returns. The change made a difference. According to the IRS, only 3.1% of returns processed in the first year included a designation. After the election moved directly onto Form 1040, that figure jumped to 13.6% of returns processed during the first half of 1974. The timing was significant. Congress was already concerned about wealthy donors’ influence on presidential elections, and the Watergate scandal would soon add momentum for campaign finance reform. Public financing offered a possible solution. Instead of relying entirely on private donors, qualifying candidates could receive federal funds to help pay for their campaigns. In exchange, they would agree to restrictions on fundraising and spending. Beginning with the 1993 tax returns, the amount increased to $3. It’s never been indexed for inflation. If the original $1 had been adjusted for inflation, it would be about $8.15 (according to calculations from the Bureau of Labor Statistics). ## Where Did The Money Go? Historically, the Fund supported three parts of the presidential election process. During the primaries, qualifying candidates could receive federal matching funds based on eligible contributions from individual donors. For the general election, eligible nominees could receive a larger public grant to finance their campaigns. For years, the fund also helped pay for national conventions, where political parties formally nominated their presidential candidates. That changed in 2014, thanks to an unusual bipartisan effort—and the advocacy of a 10-year-old girl. Gabriella “Gabby” Miller of Virginia became an outspoken advocate for childhood cancer research after being diagnosed with an inoperable brain tumor. She died in October 2013, but her efforts helped inspire legislation that would end public financing for presidential nominating conventions and authorize funding for pediatric medical research. The Gabriella Miller Kids First Research Act passed the House 295–103 and cleared the Senate by unanimous consent. President Barack Obama signed it into law on April 3, 2014. The legislation eliminated public financing for presidential nominating conventions and established a fund to support a pediatric research initiative at the National Institutes of Health (NIH). Not everyone supported the approach. Some Democrats argued that the relatively modest funding increase distracted from much larger NIH budget cuts. Although the law authorized the funding, Congress still had to appropriate the money (the first appropriation followed in fiscal year 2015). Beginning with the 2016 presidential election, the major political parties no longer received public money from the Fund to finance their nominating conventions. ## Where Does The Money Go Now? More recently, Congress has redirected hundreds of millions of dollars from the Presidential Election Campaign Fund to other federal programs. In 2024, Congress authorized a $400 million transfer from the fund through two appropriations laws. Under Public Law 118-42, $25 million went to the Department of Justice, and $55 million went to the U.S. Election Assistance Commission. Under Public Law 118-47, another $320 million went to the U.S. Secret Service to support its protective operations. The transfers are documented in the Federal Election Commission’s (FEC) monthly reports and underscore how much the program has changed since its creation. What began as a way for taxpayers to help finance presidential campaigns has also become a funding source for other congressionally authorized purposes. That doesn’t mean taxpayers who check the box are choosing to fund those agencies directly. But it does mean that money accumulated in the Fund hasn’t necessarily been spent on presidential candidates. ## Who Qualifies For Public Campaign Money? Thinking of throwing your hat into the ring in exchange for election funding? Not every presidential candidate can simply request a check from the federal government. To qualify for primary matching funds, candidates must show broad public support by raising more than $5,000 in at least 20 states. Only the first $250 from each individual contributor counts toward that threshold. These requirements date to the 1974 campaign finance reforms and have remained essentially unchanged for more than 50 years, despite inflation and the enormous rise in the cost of presidential campaigns. Candidates must also agree to campaign spending limits, restrictions on using public funds, and financial reporting and audit requirements (which might explain why they largely turn down the money). ## Do Presidential Candidates Still Use Public Money? Not many. In fact, only two candidates qualified for presidential primary matching funds in 2024: former Vice President Mike Pence, who sought the Republican nomination, and Green Party candidate Jill Stein. The FEC certified approximately $1.56 million in matching funds for Pence and nearly $380,000 for Stein. Interestingly, Pence suspended his campaign in October 2023, months before the FEC declared him eligible for public financing. But under federal election rules, qualifying candidates can keep receiving matching funds to satisfy outstanding campaign obligations even after they stop actively campaigning. Neither Donald Trump nor Kamala Harris accepted public financing for the 2024 general election. For context, the FEC reports that presidential candidates spent $1.8 billion during the 2023–2024 election cycle, covering January 1, 2023, through December 31, 2024. That figure includes only presidential candidate committees. It excludes spending by super PACs, political parties, and other outside groups that support or oppose presidential candidates. Congress created public financing to reduce presidential candidates’ dependence on private fundraising. But clearly, today, candidates competing for the White House generally raise their money elsewhere. ## Are Taxpayers Still Checking The Box? Some taxpayers still check the box, but participation has fallen since the program’s early years. According to historical IRS data, participation peaked in 1980, when 28.7% of returns reflected the election. By the early 2010s, it had fallen to about 6%. In 2024, it was 3.14% (yikes). Still, the money hasn’t stopped coming in. According to the Federal Election Commission, taxpayers designated about $21.2 million to the fund in calendar year 2024 and $19.7 million in 2025. And today, the checkbox remains on Form 1040, and qualifying presidential candidates can still receive public funding. But the system looks very different from the one Congress envisioned more than half a century ago. So tell me: Are you still checking the box? **Do you check the Presidential Election Campaign Fund box on your tax return?** - Yes, every year. - Sometimes. - No, I leave it blank. - I didn’t know what it was for. - I’m not sure—my tax preparer handles my return. 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** History, Politics, Tax Forms **Tags:** campaign checkbox on tax return, form 1040, Presidential Election Campaign Fund, presidential election fund checkbox --- ### [You Be The Tax Judge: Can You Write Off a Home Office Makeover?](https://www.taxgirl.com/2026/10/13/you-be-the-tax-judge-can-you-write-off-a-home-office-makeover/) **Published:** October 13, 2026 **Author:** Kelly Phillips Erb **Excerpt:** Can you deduct the cost of renovating your home office? A California couple claimed nearly $25,000 in deductions. You be the tax judge. **Content:** Working from home has its perks. No commute, easy access to the coffee pot, and the freedom to make your workspace your own. But what happens when making that workspace your own involves a little home renovation? Can you deduct the cost? That’s the question at the heart of a dispute involving a California couple who made several improvements to their home office. In 2008, Jean Marie and Yves Raymond Fontayne both worked for Vitesse Semiconductor Sales Corp. Yves was a full-time employee throughout the year, while Jean Marie initially worked part-time as an independent contractor, performing financial audits for the company. The couple had a three-year-old child, and working from home allowed Jean Marie to balance her professional responsibilities with caring for their child. Her employment circumstances changed in July 2008. After her supervisor retired, Jean Marie was told she would need to become a full-time employee or lose her contract. She made the switch that month. Her employer provided office space and required her to work on-site at least two days per week. At her request, she was allowed to work from home up to three days per week. Later that year, the couple undertook a series of renovations. They moved a wall about 14 inches into their living room to expand the home office, replaced the carpet, installed a safe in a closet, and added underfloor heating and a programmable thermostat. Other projects included installing a central vacuum system and retiling a bathroom. Some of the work fixed damage done along the way. For example, Yves damaged a wall while removing bookcases, and the wall was later replaced. Other changes were intended to make the space more comfortable and functional. The couple paid a contractor $10,500 in December 2008 for renovation work, and the receipts were dated November and December—after Jean Marie had become a full-time employee. On their federal income tax return, the Fontaynes reported $16,501 in direct repairs and maintenance expenses and an additional $6,654 in indirect repairs and maintenance expenses as part of their home-office calculation. In total, they claimed a home-office deduction of $24,728. The couple also claimed that 554 square feet of their approximately 3,100-square-foot home was used for business, or nearly 18%. The IRS challenged both the expenses and the amount of space claimed for business use. The agency questioned whether the renovations qualified as deductible business expenses or were instead capital improvements to the home. It also disputed the size of the home office, with an examiner estimating the space at just 99 square feet—considerably less than the 554 square feet the couple claimed. The dispute eventually landed in Tax Court. **You be the tax judge: Could the Fontaynes deduct the home office renovation expenses?** - Yes. The renovations were business-related and therefore deductible in the year they were paid. - No. The taxpayers weren’t entitled to deduct the renovation costs as claimed because the expenditures were capital improvements or otherwise failed to meet the applicable deduction requirements. - Partially. The court allowed some of the claimed renovation expenses as current deductions but disallowed others. 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Freelancers and Creators, Individual, You Be the Tax Judge **Tags:** deductions for home office, Fontayne v. Commissioner, home office, home office renovations, Jean Marie Fontayne and Yves Raymond Fontayne v. Commissioner of Internal Revenue, You Be The Tax Judge --- ### [Getting To Know You Tuesday: Robert K. Morrow](https://www.taxgirl.com/2026/10/13/getting-to-know-you-tuesday-robert-k-morrow/) **Published:** October 13, 2026 **Author:** Kelly Phillips Erb **Excerpt:** Meet Robert K. Morrow, a California tax attorney, former law professor, and science fiction enthusiast, in this week's Getting To Know You Tuesday. **Content:** Robert K. Morrow grew up in a middle-class family in Orange County, California, where he was the third of four children—and, somewhat unexpectedly, the one everyone assumed would go to college. He did, eventually earning two associate’s degrees, a bachelor’s degree, a law degree, and an LL.M. in taxation. For years, he was the only college graduate in his extended family. Today, Robert is a Certified Specialist in Taxation Law with more than 30 years of legal practice under his belt—and no plans to stop anytime soon. (*Note from Kelly*: Lawyers generally cannot advertise themselves as specialists unless they meet applicable state bar rules. California offers a formal certification program for legal specialties, including taxation law.) He still lives in Orange County, just a few miles from his childhood home, with his wife, whom he’s known since junior high school. So, let’s get to know Robert. ## In His Own Words **1. Where are you right now?** Sitting at an L-shaped desk in my den. I have no formal office, so this is where I practice law. To my right is a custom-built bookshelf (complete with a rolling ladder) that holds a collection of several hundred books, mostly science fiction (including an anthology in which one of my own stories appears), but there’s also a small section for my law library, too. To my left are more bookshelves holding mostly Lego models I’ve collected over the years, a hobby of mine for as long as I can remember. From where I sit, I can see the winding staircase my wife will come down when she finally emerges in the afternoon from her office upstairs. That’s my cue to run to the bar and open the wine. **2. What’s your official title, and what do you actually do?** Official title? Well, I call my law practice “Robert K. Morrow, J.D., LL.M.” and I call myself a tax lawyer. I’m a sole proprietor, so apart from that, there is no “official” title. I represent taxpayers of all shapes and sizes in matters of federal and California taxation, including tax controversies; I advise on the formation, operation, merger and division, and dissolution of business organizations; and I occasionally serve as an expert witness in court or in arbitration on questions involving partnerships and LLCs and other federal or California tax & corporate matters. While it’s been some years now since I stood in a classroom, I was also a part-time (sometimes full-time) law professor for about half of my career. **3. Where did you go to school, and what did you study?** I completed my undergraduate studies at the University of California, Irvine, where I received degrees in political science, Russian civilization, and something called “Global Peace and Conflict Studies.” My plan at the time was to go into international arms control as a Russian-speaking lawyer (and I did serve as a translator in the USSR for a couple of weeks in the ‘80s). I went to law school at The American University, Washington College of Law, in Washington, D.C., enrolling in the university’s joint degree program in law and foreign service. During my 2L summer, I landed a clerking position at an international administrative court…and I hated it. The senior people there looked disheveled and miserable, and I couldn’t imagine spending my career becoming one of them. I dropped out of the master’s in foreign service program and just completed the law degree instead (in 1993). **4. How did you end up in tax?** In my second and third years of law school, I took a couple of tax classes. I was, let’s say, an average student during law school, but I excelled in tax. There was just something easy about it for me. Intuitive. I had never imagined a career in tax law until I abandoned the foreign service angle. After that, it seemed the obvious route to go. **5. What was your first real job?** In college, I worked for a small CPA firm, mostly because I liked the accountant who owned it (and I was dating his daughter). I had no real intention at the time of getting into tax or accounting. After law school (having since abandoned foreign service), I moved back to Southern California and got a job at another CPA firm. The owner of this firm was (is…I still know him) a JD/CPA who wanted to grow the legal side of his business. I was the first lawyer he hired. I think today he has twenty. **6. What’s one thing people might be surprised to learn about you?** I’m an unapologetic, lifelong geek. As I mentioned, I have a library of several hundred science fiction books and have even sold two of my own stories. That qualified me as a “professional member” of San Diego Comic-Con, which I attended every summer for about a decade. (It eventually became too crowded and I stopped going.) I know every episode of Star Trek (in all its iterations) and all of The Twilight Zone, too; I have seen every Star Wars and Lord of the Rings movie more than once; and I could probably recite, from beginning to end, every Monty Python movie (and a good number of the episodes of its television series, too). **7. If you weren’t working in tax, what would you be doing?** If my fiction writing sold better, I’d probably be doing that. I just haven’t worked too hard at it in some time. That said, I recently revisited a 170,000-word novel I wrote set in the Dungeons & Dragons universe. (I mentioned I was a geek, didn’t I?) If I could sell that book, I could see myself retiring from law and immediately starting the sequel. **8. What’s the best piece of tax, money, or career advice you’ve ever received?** When I got that first job out of law school (with the JD/CPA), my boss told me, on day one, to go get an LL.M. in tax. He even offered to pay for it. That changed everything. I graduated at the top of my class, and when the next semester started, I was an instructor in the same program (and eventually its dean). That led to fifteen years of teaching tax law, including one year as an associate dean and two more as a full-time visiting professor. The degree also satisfied one of the criteria (besides experience and an examination) to become a State Bar Certified Specialist in Taxation Law, an achievement I’ve always been proud of. **9. What tax issue do you think is getting too much attention right now?** Oh gosh, don’t get me started. Short-term rentals and the Augusta Rule, bonus depreciation and cost segregation studies, 1031s and DSTs… LinkedIn (and, as I understand it, Instagram and YouTube) is just lousy with “tax influencers” pushing these plans. There are sound principles behind all of them, but the constant stream of “You need a Wyoming LLC to buy your next truck!” just drives me crazy. **10. What tax issue isn’t getting enough attention?** The burgeoning Circuit split on the Section 1402(a)(13) question of when limited partners may exclude their distributive shares from being included in their earnings from self-employment for purposes of the SE tax. I was surprised by the Fifth Circuit’s initial conclusion (in the Sirius Solutions case) that any member of a limited partnership who had limited liability under state law was automatically excluded from the SE tax, though the court recently walked that back. For my part, the decades-long rule of the limited partner’s level of participation determining the 1402 question was good enough, not to mention sensible. I could not and cannot understand how it could be any other way. **11. What’s the biggest tax myth you’d like to bust?** Most people (including many practitioners) believe that a tax return cannot be audited three years after it was filed (or six for large underpayments, and no limit for fraud). That’s not technically correct. The three-year statute applies to the assessment of an underpayment, which is to say that if the IRS were to audit a four-year-old tax return and found an underpayment, they’d be barred from making an assessment. That doesn’t mean that they can’t examine that return, though. They can. I once was involved in a matter where the IRS went back almost thirty years checking the depreciation deductions on a commercial property. They found the deductions had been calculated incorrectly and therefore recomputed the adjusted basis of the property, increasing its gain on the sale in the year under examination. That gain had been recognized in a non-time-barred year, so the assessment of additional tax was perfectly lawful. **12. What’s a tax question you wish people would ask you more often?** “Should I be an LLC or an S corporation? Or do I need either one?” Most of the time, when a new client comes to me for entity formation, they’ve already made up their mind about what they want. Every single time I have to get into what their business is, how much money they make (or expect to make), if they have (or anticipate) employees or partners, and so on. I wish the question they’d come to me with was, “Here’s what I do (or intend to do). What kind of entity, if any, would you recommend?” **13. What’s one tax rule you would change if you could?** A few years ago, the IRS made a change that requires K-1s (on partnership 1065s) to report something called “tax capital” instead of the traditional book capital. I get it: reporting tax capital, when combined with the partner’s share of liabilities, allows the IRS to compute (or at least approximate) the partner’s adjusted basis in their partnership interest (their “outside basis”). But now book capital—which is critical, in my view, to maintaining a good set of books for any partnership—is left by the wayside. What I’d rather see is that we go back to reporting book capital on K-1s but add a requirement that the partner’s outside basis also be computed and reported (either by the partnership or by the partners themselves). I think that would be the far better approach. (Oh, and Section 199A. I really hate Section 199A.) **14. What’s one non-tech thing in your office that you couldn’t do without?** My eyeglasses. I’m kidding (though it’s true). I suppose that’d be sticky notes. Whenever my phone rings, I have the large-sized yellow notes ready to go for quick note-taking. Eventually those notes will often get re-typed into a document or what-have-you, but I think it’s a bit rude to type the whole time during a phone call. One big, beautiful sticky note is my solution. **15. Which tech tool, platform, or software do you rely on most in your practice?** Microsoft Excel. Far and away, Excel. A day doesn’t go by when there aren’t two or three worksheets open on my laptop. I’ve gotten pretty good with it, too. (After thirty years of using it, that’s no surprise, I suppose.) One time I got a call from a law school dean saying that my students had loudly sung my praises for the worksheets that I had shared with the class during the semester. She asked if I’d be willing to teach a course on Excel someday. I thought that was a strange course to offer at a law school, but I said I would, sure. (Nothing ever came of it.) **16. What’s the best use of AI in tax or tax practice?** Proofreading and Shepardizing. I work alone (mostly) and have no assistants. I’ll have AI proofread a contract or memo for me just to catch errors, whether grammatical or otherwise. I’ll usually also ask it to Shepardize (i.e., confirm the accuracy of) all the legal authorities I cite. I’ve tried it on some complicated Excel worksheets, too, but it hasn’t been all that insightful on those, at least not yet. **17. What are you watching right now (streaming or otherwise)?** *Furiosa* on Hulu. And *Archer*. I think my wife and I are on our third run-through of Archer. For the last couple of weeks, though, we’ve abandoned TV for the most part in favor of a book series someone turned us on to: Dungeon Crawler Carl. It’s a hilarious (and sometimes dark) interpretation of every fantasy role-playing computer game ever made. We love it. (That’s the geek thing again, of course.) **18. Coffee or tea?** Coffee. I like tea, though. I’ll sometimes melt ginger into it to fight indigestion. **19. Pancakes or waffles?** Either one, but probably 51% waffles. My wife and I sometimes host what we call “Brunch Club,” where we have friends and family over and set out everything they’ll need to make their own brunch items. Often someone will come with their own homemade batter or syrup. Never hosted one yet that wasn’t the best of times. (Come to think of it, it’s been a while since we’ve done that. I’ll have to mention that to her this evening.) **20. If you received an unexpected tax refund tomorrow, what would you do with it?** If I could confirm it was erroneous, I’d shred the check. I’ve seen too many clients excitedly deposit an erroneous refund only to be charged exorbitant interest once the IRS figured it out. If, on the other hand, it was correct due to some error on my part (perish the thought!) I’d find something (or some things) on this little list I keep of gifts I want to buy my wife and, well, I’d buy it (or them). She wants a set of copper pots & pans, for example. Have you ever priced those? It’s outrageous what they want for a nice, full set. Cheaper to get the downstairs floors re-tiled (which is also on the list). You can find out more about Robert on [LinkedIn](https://www.linkedin.com/in/robtmorrow/). ## About Getting to Know You If you’d like to recommend a tax pro to be featured, send your suggestions to [gtky (at) taxgirl (dot) com](mailto:gtky@taxgirl.com) with the subject: Getting to Know You Tuesday. Self-nominations are totally okay and encouraged! If you’ve submitted a nomination before, feel free to send it again. I’ll consider all submissions, even those that were selected, so long as they were more than three years ago.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Getting%20To%20Know%20You%20Tuesday%3A%20Robert%20K.%20Morrow&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2026%2F10%2Fprofessional-gray-bearded-man-cutout.png&p%5Btitle%5D=Getting%20To%20Know%20You%20Tuesday%3A%20Robert%20K.%20Morrow "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Getting%20To%20Know%20You%20Tuesday%3A%20Robert%20K.%20Morrow "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Getting%20To%20Know%20You%20Tuesday%3A%20Robert%20K.%20Morrow&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Getting to Know You Tuesday, Interviews and People, Tax Professionals **Tags:** getting to know you tuesday, Robert K. Morrow, tax attorney --- ### [Taxes Are on the Ballot in 2026. Here's What Voters Need to Know.](https://www.taxgirl.com/2026/10/13/taxes-are-on-the-ballot-in-2026-heres-what-voters-need-to-know/) **Published:** October 13, 2026 **Author:** Kelly Phillips Erb **Excerpt:** From billionaire wealth taxes to property tax relief, voters in 17 states face tax-related ballot measures in November 2026. Here's what you need to know. **Content:** I’ll be traveling this year on Election Day, so I requested my mail-in ballot in advance. Filling out my ballot was quick because Pennsylvania voters won’t face any statewide tax-related ballot questions this November, but that’s not true elsewhere. Voters in at least 17 states will weigh in on tax policy this November. The [National Conference of State Legislatures (NCSL)](https://www.ncsl.org/news/details/the-tax-measures-voters-will-see-on-their-november-ballots) counts 30 tax-related ballot measures, while the [Tax Foundation](https://taxfoundation.org/research/state-tax/2026-state-tax-ballot-measures/) tracks 33, including proposals ranging from billionaire wealth taxes and property tax relief to constitutional restrictions on future tax increases. Here’s a look at what’s on the ballot this November. ## Wealth and Income Taxes ### California **Proposition 40: Billionaire Wealth Tax.** California voters will consider a one-time tax of up to 5% on the net worth of residents with wealth exceeding $1 billion. Proposition 40 would determine residency as of January 1, 2026, but calculate taxable wealth based on asset values as of December 31, 2026. Real estate, pensions, and certain retirement accounts would generally be excluded. Two competing measures, Propositions 41 and 42, could prevent the wealth tax from taking effect even if voters approve it, depending on their outcomes. **Proposition 3: Making Higher Income Tax Rates Permanent.** California voters will decide whether to make permanent three higher individual income tax rates that are set to expire. Proposition 3 would preserve the state’s top marginal individual income tax rate of 13.3%, which includes an existing 1% tax dedicated to mental health services. The measure would primarily affect higher-income taxpayers and determine whether tax increases originally enacted as temporary measures become permanent features of California’s tax code. ### Colorado **Amendment 87 and Proposition 136: Competing Income Tax Proposals.** Colorado voters face two proposals that would steer the state’s income tax system in different directions. Amendment 87 would replace Colorado’s constitutionally required flat income tax with graduated individual and corporate income tax rates ranging from 3.7% to 8.4%. Proposition 136, by contrast, would cap individual and corporate income tax rates at 4.4%, the current flat rate. The competing measures raise questions about how Colorado would reconcile them if both pass, particularly because Amendment 87 is a constitutional amendment and Proposition 136 is a statute. ### Massachusetts **Question 5: Limiting Millionaires’ Surtax Revenue.** Massachusetts voters will consider changes to the state’s revenue limitation system that would bring proceeds from its 4% millionaire’s surtax within the existing tax revenue cap. Question 5 would also change how the revenue cap is calculated, using actual prior-year collections rather than the existing allowable-collections formula. Beginning in fiscal year 2028, these changes could trigger more frequent taxpayer refunds when state revenues exceed the permitted limit. ### North Carolina **Income Tax Rate Cap Amendment.** North Carolina voters will decide whether to reduce the maximum allowable state income tax rate from 7% to 3.5% through a constitutional amendment. The state’s individual income tax rate is already scheduled to fall to 3.49% in 2027 if revenue targets are met, so the amendment would primarily limit lawmakers’ ability to raise rates in the future rather than immediately lower taxes. If approved, any subsequent increase above the constitutional ceiling would require another constitutional amendment. ### Washington **Initiative 645: Repealing the Millionaire’s Tax.** Washington voters will decide whether to repeal a newly enacted 9.9% tax on individual income above $1 million, set to take effect in 2028. Initiative 645 would also prohibit future state and local income taxes by statute. Washington has historically relied on sales, business, and other taxes rather than a broad-based individual income tax. --- ## Property Taxes ### California **Proposition 42: Restrictions on Personal Property and Retroactive Taxes.** California’s Proposition 42 would prohibit new state taxes on the ownership or control of personal property, including retirement accounts, securities, business interests, and intellectual property. It would also bar retroactive taxation based on conduct, activities, or taxpayer status occurring before a tax’s effective date, with some limited exceptions. Like Proposition 41, it directly conflicts with the proposed billionaire wealth tax and could invalidate Proposition 40 if both pass and Proposition 42 receives more votes. ### Florida **Amendment 3: Expanding the Homestead Exemption.** Florida voters will consider a constitutional amendment that would significantly expand the homestead exemption for property taxes other than school district taxes. Amendment 3 would increase the exemption to $150,000 in 2027 and $250,000 in 2028, with inflation adjustments starting in 2029. Those who become Florida residents after 2026 would generally have to wait until their fifth year of eligibility to receive the expanded benefit. The measure would also allow additional local exemptions, reduce the annual assessment growth cap for non-homestead properties from 10% to 5%, and restrict how local governments spend property tax revenue. **Amendment 2: Property Tax Exemptions for Agriculture and Agritourism.** Florida voters will also consider a constitutional amendment that would exempt certain tangible personal property used in agricultural production and agritourism from local property taxes. The exemption would apply to qualifying equipment, tools, and other personal property typically located on agricultural land, provided the property is owned by the landowner or leaseholder and meets the measure’s use requirements. ### Georgia **Amendment 1: Expanding Conservation-Use Property Tax Treatment.** Georgia voters will consider expanding the amount of land eligible for preferential property tax treatment under the state’s Conservation Use Valuation Assessment program. Amendment 1 would increase the maximum qualifying acreage from 2,000 to 4,000 acres per landowner for property used for farming, timber production, or conservation. Qualifying property is assessed based on its current use rather than its potential market value for development, which can substantially reduce property taxes. ### Louisiana **Constitutional Amendment 1: Transferring Disabled Veterans’ Homestead Exemptions.** A Louisiana proposal would allow surviving spouses of qualifying disabled veterans to transfer an existing homestead property tax exemption to a new residence. The amendment would permit a single transfer, with the transferred exemption limited to its prior value. **Constitutional Amendment 2: Changing Local Property Tax Rate Limits.** Louisiana voters will also consider revising how local governments calculate the maximum allowable property tax rates. Under current rules, a locality’s maximum rate for the following year is generally based on the rate actually imposed the previous year, even if that rate is below the authorized maximum. The amendment would base the calculation on the previous year’s maximum permitted rate. That change would allow local governments to temporarily levy lower rates without necessarily reducing their authority to collect more revenue in later years. **Constitutional Amendment 6: Additional Property Tax Exemptions for Seniors.** A separate Louisiana amendment would create an additional property tax exemption for older homeowners who already qualify for the state’s income-based assessment freeze. The proposal would exempt up to $30,000 of assessed property value, with the exemption amount varying by the homeowner’s age (the maximum exemption would kick in at age 81 or older). Unlike an assessment freeze, which limits changes in taxable value over time, an exemption directly removes a portion of assessed value from taxation. The exemption would require local approval rather than being automatically available statewide. **Constitutional Amendment 9: Expanding Eligibility for Senior Assessment Freezes.** Louisiana voters will consider raising the income threshold for homeowners eligible for the state’s special property tax assessment freeze from $100,000 to $150,000. The program allows qualifying homeowners to keep a fixed assessed value on their homestead, protecting them from certain property tax increases. **Constitutional Amendment 10: Tax Incentives for Rehabilitating Blighted Property.** Louisiana voters will consider a constitutional amendment that directs the legislature to establish an optional property tax exemption for rehabilitated blighted or derelict property. Lawmakers would set the exemption’s terms, including eligibility and implementation requirements. ### Oklahoma **State Question 847: Property Tax Assessment Limits.** Oklahoma voters will consider tightening constitutional limits on annual increases in property values used to calculate property taxes. The measure would lower the assessment growth limit for most locally assessed real property from 5% to 4% and reduce the limit for qualifying homesteads and agricultural property from 3% to 1.75%. The proposal would also revise property tax protections for homeowners age 65 and older. ### Tennessee **Amendment 2: Prohibiting State Property Taxes.** Tennessee voters will decide whether to amend the state constitution to prohibit the legislature from imposing a statewide property tax. Tennessee does not currently levy a state property tax, and local governments administer property taxes. Amendment 2 would constitutionally restrict the state’s ability to adopt such a tax in the future, while leaving local property taxation in place. ### Wyoming **Initiative 1: Property Tax Relief for Homeowners.** Wyoming voters will decide whether to exempt 50% of the value of a qualifying primary residence, excluding the underlying land, from property taxes. Unlike some existing property tax relief programs, Initiative 1 would not impose a dollar cap on the home’s value, but homeowners would need to meet a six-month occupancy requirement. The proposed exemption would be in addition to the state’s existing 25% exemption and would have separate eligibility requirements. Homeowners could potentially claim both benefits. --- ## Sales Taxes and Other Revenue Proposals ### Arizona **Proposition 316: Local Grocery Taxes.** Arizona voters will consider a measure that limits local taxes on groceries. Proposition 316 would require voter approval before local governments could adopt or increase taxes on food and nonalcoholic beverages for home consumption, and would cap those local tax rates at 2%. Existing grocery taxes of 2% or higher would be grandfathered. ### Colorado **Proposition 137: Sporting Goods Sales Taxes and Conservation Funding.** Colorado’s Proposition 137 would allow the state to retain certain sales tax revenues from sporting goods and equipment, directing those funds to a new fund for wildfire prevention, forest restoration, and water conservation. The revenue would be excluded from Taxpayer’s Bill of Rights (TABOR) refund requirements, allowing the state to retain and spend funds that might otherwise go to taxpayer refunds. ### Massachusetts **Question 6: Dedicating Sales Tax Revenue to Conservation.** Massachusetts voters will consider directing existing sales tax revenue from sporting goods, recreational vehicles, and golf courses to a new Nature for All Fund that supports conservation programs. **Question 8: Repealing Recreational Marijuana Sales and Related Taxes.** Massachusetts voters will consider a proposal to repeal the state’s legal framework for recreational marijuana sales, including the taxes on those sales. The measure would eliminate the regulated recreational market while preserving limited personal possession and the medical marijuana program. ### Missouri **Amendment 7: The Show-Me Prosperity Investment Fund.** Missouri voters will consider a proposal to eventually replace state tax revenue with investment earnings. Amendment 7 would establish the Show-Me Prosperity Investment Fund, a public endowment financed by legislative appropriations and donations. The fund’s principal would be invested over decades, with the goal of generating enough investment income to support state operations without relying on existing state taxes, including income, sales, and corporate taxes. The proposal would not immediately eliminate those taxes, and its long-term success would depend on funding decisions, investment returns, and future government spending needs. ### **Nebraska** **Initiative 440: Authorizing Online Sports Wagering.** Nebraska voters will decide whether to amend the state constitution to permit lawmakers to authorize and regulate online sports wagering. Nebraska currently allows sports betting only in person at authorized horse racetracks, and the amendment would create a path to expand that market to online platforms. A companion measure, Initiative 441, would establish the regulatory framework. --- ## Taxpayer Protections and Constitutional Limits ### Arizona **Proposition 141: Prohibiting Taxes Based on Vehicle Miles Traveled.** Arizona voters will decide whether to prohibit state and local governments from imposing taxes or fees based on the number of miles a vehicle travels. Proposition 141 would also restrict government programs that monitor or limit vehicle mileage without consent, except for interstate commercial vehicles and government-owned vehicles. If approved, Arizona would become the first state to constitutionally prohibit a vehicle-miles-traveled tax. ### California **Proposition 41: Tax Audits and State Spending Limits.** California voters will consider a constitutional amendment requiring additional oversight of programs funded by new state special taxes. Proposition 41 would require pre-election audits of programs funded by special taxes proposed through voter initiatives, as well as recurring audits of programs financed by special taxes enacted after January 1, 2026. It would also prohibit new state taxes that exclude their revenues from California’s constitutional spending limit, commonly known as the Gann Limit. The proposal competes with Proposition 40, the proposed billionaire wealth tax. If both measures pass and Proposition 41 receives more votes, it would invalidate the wealth tax. **Proposition 43: Supermajority Requirements for Local Taxes.** Proposition 43 would change the rules for approving certain local tax increases in California, requiring a two-thirds vote for local citizen-initiated special taxes that currently pass by a simple majority. The proposal would also restrict local governments and ballot initiatives from imposing certain assessed-value property taxes, subject to constitutional exceptions. If approved, it could make it more difficult for cities, counties, and special districts to obtain voter authorization for certain revenue measures. ### Colorado **Proposition NN: Raising the TABOR Revenue Limit.** Colorado voters will consider Proposition NN, which would increase the amount of revenue the state may retain under TABOR. Colorado’s constitution generally requires the state to refund revenues collected above a specified limit, but Proposition NN would raise that limit. Although the measure would not directly increase individual tax rates, it would reduce the amount of revenue returned to taxpayers through TABOR refunds. ### Iowa **Amendment 1: Two-Thirds Vote for Income Tax Increases.** Iowa voters will consider a constitutional amendment that would require a two-thirds vote in both chambers of the state legislature to raise individual or corporate income tax rates or to create certain new income taxes. Currently, such legislation generally requires a simple legislative majority. Amendment 1 would make future income tax increases more difficult to enact without directly changing existing rates. The proposal also sets a one-year deadline for legal challenges to legislation subject to the new voting requirement. ### North Carolina **Constitutional Amendment: Limiting Local Property Tax Levies.** North Carolina voters will consider a constitutional amendment requiring the General Assembly to set limits on the amount of property taxes local governments may levy. The requirement would generally apply to counties, municipalities, special districts, and other local taxing authorities. Unlike limits on property assessments, which restrict increases in taxable property values, a levy limit directly restricts the amount of property tax revenue a government can collect. The proposal would not set a specific cap and would require legislators to write the rules through future legislation. ### Utah **Amendment B: Supermajority Requirement for Tax Initiatives.** Utah voters will decide whether statewide voter-initiated ballot measures that create or increase taxes should require approval from at least 60% of voters, rather than a simple majority. The amendment would not impose the same supermajority requirement on tax increases enacted directly by lawmakers. ### Wisconsin **Question 1: Restricting the Governor’s Partial Veto.** Wisconsin voters will decide whether to prohibit the governor from using a partial veto to create or increase taxes or fees, or authorize their creation or increase. Wisconsin governors have historically exercised unusually broad partial veto powers, making the proposal significant beyond its immediate tax implications. If approved, the amendment would explicitly restrict the executive branch’s ability to alter tax and fee provisions during the budget process. --- ## What won’t you see? Some measures have been struck down, removed, or already decided. Here’s a look: **Oklahoma SQ 843:** This measure would have ended homestead property taxes. The state Supreme Court blocked the proposal in a 5–4 ruling this month. **Massachusetts income tax cut (5% to 4%):** The state’s highest court removed it on June 18 because the attorney general’s summary misstated its effect on capital gains. **Missouri Amendment 5:** Voters overwhelmingly rejected the income tax phase-out on August 4. Property tax abolition drives in Ohio and Michigan, Michigan’s millionaire surtax, and New Hampshire’s income tax ban amendment also didn’t make the ballot this November.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Taxes%20Are%20on%20the%20Ballot%20in%202026.%20Here%E2%80%99s%20What%20Voters%20Need%20to%20Know.&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2026%2F10%2Fpexels-sora-shimazaki-59264171.jpg&p%5Btitle%5D=Taxes%20Are%20on%20the%20Ballot%20in%202026.%20Here%E2%80%99s%20What%20Voters%20Need%20to%20Know. 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"Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Taxes%20Are%20on%20the%20Ballot%20in%202026.%20Here%E2%80%99s%20What%20Voters%20Need%20to%20Know.&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Politics, State and Local Tax (SALT) **Tags:** 2026 elections, state tax initiatives, state tax votes, state taxes, state taxes on the ballot --- ### [Tax-Free Fuel At The Pump? Not Exactly. Here's What You Need To Know](https://www.taxgirl.com/2026/10/10/tax-free-fuel-at-the-pump-not-exactly-heres-what-you-need-to-know/) **Published:** October 10, 2026 **Author:** Kelly Phillips Erb **Excerpt:** Trump's executive order doesn't eliminate federal fuel taxes. Here's what the temporary diesel relief actually does, who benefits, and what taxpayers should know. **Content:** You may have seen headlines claiming that President Trump signed a historic executive order making fuel “tax-free” for all Americans, potentially saving drivers more than $100 each time they fill up. Sounds great, right? Before you head to the gas station, here’s what you need to know. ## The order focuses on diesel, not gasoline. First, a quick primer. Diesel and gasoline are both refined from crude oil, but they’re not interchangeable. Diesel is used in vehicles with diesel engines, like many commercial trucks and buses. Gasoline is more commonly used in passenger cars and SUVs. Diesel engines work differently from gasoline engines, and using the wrong fuel in either can cause serious damage. (Just ask the teams on Season 3 of *The Amazing Race* who accidentally filled their diesel vehicles with gasoline and ended up stranded.) On October 5, President Trump signed an executive order addressing red-dyed diesel fuel, typically used for off-road purposes such as farming and construction. Red-dyed diesel is generally the same fuel used in diesel-powered vehicles on public roads. The difference is the dye, which identifies fuel intended for tax-exempt uses, such as farming and construction. However, when that fuel is used in vehicles on public highways, federal fuel taxes and penalties can apply. Trump’s executive order seeks to temporarily relax those rules. The executive order directs the IRS to provide temporary federal penalty relief for the highway use of dyed diesel through December 31, 2026. It does not eliminate the federal gasoline tax or provide a new tax break for everyone filling up at the pump. ## The tax hasn’t been eliminated. Diesel prices have climbed above $6 per gallon nationwide, making fuel costs a significant concern for truckers, farmers, and businesses. According to AAA, the national average price for diesel is $6.28 per gallon as of October 10, 2026. The federal diesel excise tax is 24.4 cents per gallon, which works out to about 3.9% of the total price. On a 250-gallon fill-up, the suspension would save $61 in federal tax. There’s another catch: The executive order doesn’t eliminate that tax. Instead, it directs Treasury to determine whether it has authority under Section 7508A of the tax code to postpone certain diesel excise tax payments. That provision is generally associated with disaster-related tax relief. The order gives Treasury five days—until October 10—to make that determination. It also directs Treasury to have the IRS announce specified penalty relief for highway use of dyed diesel. As of this writing, I haven’t found published Treasury or IRS guidance implementing those provisions. Even if Treasury authorizes the deferral, postponing a tax payment isn’t the same as eliminating the tax. The obligation may still come due later. In fact, the executive order separately directs Treasury to explore ways to forgive the deferred taxes, including through legislation. A promise of potential tax relief isn’t the same as an enacted tax cut. ## **A quick history of the federal gas tax** The federal gasoline tax dates back to 1932, when Congress imposed a one-cent-per-gallon tax under the Revenue Act of 1932. Initially intended to be temporary—and help address federal budget shortfalls during the Great Depression—the tax eventually became an important source of funding for the nation’s highways. In 1956, Congress established the Highway Trust Fund to help finance construction of the Interstate Highway System, dedicating federal fuel tax revenues to transportation infrastructure. Today, the federal gasoline tax is 18.4 cents per gallon, while the federal diesel tax is 24.4 cents per gallon. Both have remained at those rates since 1993. Despite periodic proposals to suspend the tax when fuel prices rise, Congress has never enacted a federal gas tax holiday. All 50 states impose their own gasoline taxes, separate from federal taxes, although rates vary. Unlike the federal government, states have periodically suspended those taxes. In 2026 alone, at least four states (Georgia, Indiana, Ohio, and North Carolina) have temporarily suspended fuel taxes outright, while others have cut rates or frozen scheduled increases. ## An executive order isn’t a new tax law. Presidents can issue executive orders directing federal agencies to take certain actions, set priorities, or exercise authority they already have under existing law. But an executive order doesn’t give the president power to rewrite the tax code. Congress writes federal tax laws, and the president generally cannot unilaterally repeal them. That’s why the order’s language matters. Rather than simply declaring the diesel tax eliminated, it directs Treasury to evaluate whether relief is available under existing statutory authority. ## What you need to know. Some diesel users, particularly farmers and truckers, may get meaningful, temporary relief. However, the federal fuel tax hasn’t been eliminated, the relief doesn’t apply to gasoline, and an executive order isn’t a substitute for legislation. 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Politics, Tax Policy **Tags:** Fuel tax, fuel tax holiday, gas tax holiday, tax on gas --- ### [You Be the Tax Judge: The Verdict on a Money-Losing Horse Business](https://www.taxgirl.com/2026/10/08/you-be-the-tax-judge-the-verdict-on-a-money-losing-horse-business/) **Published:** October 8, 2026 **Author:** Kelly Phillips Erb **Excerpt:** The Tax Court weighs in on a money-losing horse-breeding business—and explains why years of losses don't necessarily make it a hobby. **Content:** If you sided with Frank Chapin and Sydney Gutierrez-Chapin, congratulations! You agreed with the Tax Court. (This was close, with 59% of you favoring the IRS [in the poll](https://www.taxgirl.com/2026/10/06/you-be-the-tax-judge-they-loved-horses-they-lost-money-was-it-still-a-business/).) In *Chapin v. Commissioner*, Judge Juan F. Vasquez ruled that the Chapins’ horse-breeding activity was a business, not a hobby, under Section 183. That might seem surprising. After all, the couple reported losses for six consecutive years, filed for bankruptcy, and acknowledged that horse breeding was central to their lives. But the Tax Court wasn’t persuaded that those facts meant the Chapins lacked a genuine profit motive. Here’s why. ## What The Tax Court Considered Under Section 183, the question isn’t simply whether an activity makes money. It’s whether the taxpayer engages in the activity with the required objective of making a profit. In this case, because an appeal would go to the Ninth Circuit, the taxpayers had to establish that profit was their predominant, primary, or principal objective. Courts consider nine factors under Treasury Regulation Section 1.183-2: 1. **Manner of operation.** Did the taxpayers conduct the activity in a businesslike manner, including maintaining records? 2. **Expertise.** Did they have the knowledge and experience necessary to operate the activity profitably? 3. **Time and effort.** How much work did they devote to the activity? 4. **Asset appreciation.** Did they expect the assets used in the activity to appreciate in value? 5. **Past success.** Had they succeeded in similar or other business activities? 6. **History of losses.** Was the activity consistently losing money? 7. **Occasional profits.** Had the activity ever generated profits, and how substantial were they? 8. **Financial status.** Did they have other income that could support the losses? 9. **Personal pleasure.** Did they enjoy the activity for recreation? No single factor controls, and the court doesn’t simply count how many favor the taxpayer or the IRS. Instead, the court considers the entire picture. ## Why The Chapins Won The Tax Court focused heavily on the Chapins’ experience, the time and effort they devoted to horse breeding, and the nature of the work. Both had grown up around livestock and spent decades working with cattle and horses. Sydney had taken veterinary medicine courses and applied that knowledge to caring for their animals. They also belonged to established breed organizations that required them to register their foals and submit annual breeding reports. And then there was the work. The Chapins fed and trained horses, maintained the property, provided routine veterinary care, and monitored mares during foaling season. Both had sustained injuries while working with horses. The court also considered Frank’s accounting practice, which provided a steady source of income. That might seem like a point in the IRS’s favor. After all, taxpayers sometimes use losses from activities they enjoy to offset income from more profitable businesses. But the court wasn’t convinced that was happening here. The Chapins’ reported annual horse-breeding losses ranged from roughly $10,000 to $23,000. The resulting tax savings were modest, and the accounting practice didn’t generate income at a level that persuaded the court the couple was using horse breeding as a tax shelter. ## What About The Records? Frank was an accountant and tax return preparer, yet the Chapins’ recordkeeping wasn’t perfect. The Tax Court acknowledged this. But imperfect records didn’t necessarily mean the couple lacked a profit motive. The court found that, despite their informal approach, the Chapins conducted their horse-breeding activity in a sufficiently businesslike manner. Judge Vasquez wrote, “Section 183 does not require that taxpayers operate their ventures with perfect business acumen.” A taxpayer can make mistakes—or simply be unsuccessful—and still have a genuine profit motive. ## And What About Their Love Of Horses? Perhaps the most compelling fact for the IRS was that the Chapins never seriously considered giving up ranching. Even after bankruptcy cost them most of their land, cattle, and equipment, they continued breeding horses. They loved what they did. But enjoying an activity doesn’t automatically make it a hobby. (I can relate.) The court acknowledged that the Chapins’ persistence might reflect “unusual business judgment.” Still, their determination to continue despite financial and physical hardship didn’t establish a lack of an honest profit motive. Ultimately, the court found that their primary objective was profit. ## But The Chapins Didn’t Win Everything There’s an important distinction between establishing that an activity is operated for profit and proving that every expense claimed on a tax return is deductible. The Chapins cleared the first hurdle, but they still had to substantiate their deductions. The IRS had agreed to allow certain Schedule F deductions if the court determined that the horse-breeding activity was engaged in for profit. But the Chapins couldn’t substantiate deductions beyond what the IRS conceded (another reminder of the importance of keeping great records). As a result, the court allowed the conceded deductions but disallowed the additional Schedule F deductions they claimed. The broader case also involved disputes over unreported income, other business deductions, net operating losses, and penalties. They won only on whether their horse-breeding activity was engaged in for profit. ## What Does This Mean For Taxpayers Today? The Chapins’ case covered tax years 2009 through 2014, before the Tax Cuts and Jobs Act (TCJA) changed how hobby expenses are treated. Under the rules applicable to those years, taxpayers with activities not engaged in for profit could generally deduct certain hobby-related expenses up to the amount of income generated by the activity, subject to applicable limitations. Those expenses were generally miscellaneous itemized deductions subject to the 2% adjusted gross income floor. The TCJA changed that beginning in 2018 by suspending miscellaneous itemized deductions, including the ordinary expenses associated with hobbies. The 2025 tax law, the One Big Beautiful Bill Act (OBBBA), made that disallowance permanent. That means that under current law, hobby income remains taxable, but taxpayers generally cannot deduct ordinary hobby expenses against that income. Certain deductions that are independently allowable under other provisions of the Tax Code remain subject to their own rules. The distinction between a business and a hobby therefore still matters—a great deal. ## The Takeaway The Chapins’ case reminds us that losing money doesn’t automatically mean an activity isn’t a business. Neither does enjoying the work. The Tax Court looked beyond the losses and the couple’s attachment to their horses. It considered their experience, the work they performed, their business practices, and their financial circumstances. The result wasn’t a finding that the Chapins had operated a particularly successful business. It found that they operated a business with a genuine profit motive. For purposes of Section 183, that distinction made all the difference. ## Final Note Frank Chapin died at age 84, before the Tax Court issued its decision. [According to his obituary](https://bonnercountydailybee.com/news/2026/may/30/frank-chapin-84/), Frank worked in his accounting practice for 66 years, right up until his final days. The case proceeded in the names of Frank L. Chapin, Deceased, and Sydney L. Gutierrez-Chapin. The case is *Chapin v. Commissioner*, T.C. Memo. 2026-76 (Aug. 27, 2026).[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=You%20Be%20the%20Tax%20Judge%3A%20The%20Verdict%20on%20a%20Money-Losing%20Horse%20Business&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2026%2F10%2Fpexels-jaclou-dl-16990315.jpg&p%5Btitle%5D=You%20Be%20the%20Tax%20Judge%3A%20The%20Verdict%20on%20a%20Money-Losing%20Horse%20Business "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=You%20Be%20the%20Tax%20Judge%3A%20The%20Verdict%20on%20a%20Money-Losing%20Horse%20Business "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=You%20Be%20the%20Tax%20Judge%3A%20The%20Verdict%20on%20a%20Money-Losing%20Horse%20Business&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Small Business, You Be the Tax Judge **Tags:** Chapin v. Commissioner, hobby loss, hobby loss rules, hobby or business, section 183 --- ### [You Be The Tax Judge: They Loved Horses. They Lost Money. Was It Still A Business?](https://www.taxgirl.com/2026/10/06/you-be-the-tax-judge-they-loved-horses-they-lost-money-was-it-still-a-business/) **Published:** October 6, 2026 **Author:** Kelly Phillips Erb **Excerpt:** An Idaho couple kept raising horses despite years of losses. The IRS called their ranch a hobby. They called it a business. You be the Tax Judge. **Content:** There’s an old joke in the horse world: How do you make a small fortune with horses? Start with a large one. Frank Chapin and Sydney Gutierrez-Chapin might appreciate the joke. The Idaho couple spent decades raising cattle and breeding horses. At the peak of their operation, they managed more than 300 acres, 160 cattle, and 43 horses, including Quarter Horses and Appaloosas. They also lost money. Eventually, the IRS reviewed their returns and asked a question that comes up surprisingly often in tax law: Were the Chapins really running a business, or were they pursuing an expensive hobby? ## From Ranching To Bankruptcy According to the facts of the case, Frank grew up on an 80-acre ranch near Sandpoint, Idaho, where he worked with livestock as a child and later on neighboring ranches. He eventually earned a two-year accounting degree and opened his own accounting practice. Sydney also grew up on a corn and soybean farm in Illinois with cattle, sheep, pigs, and chickens. She later bought a 120-acre ranch in Idaho and took veterinary medicine courses through the University of Idaho Extension Service. The couple began breeding cattle and horses together in 1986. Over time, their operation grew. By 1995, they had assembled more than 300 acres. At their peak, they had about 160 cattle, producing roughly 60 calves each year, along with 43 horses. The Chapins bred Quarter Horses and Appaloosas for activities including team roping, barrel racing, team penning, and cutting. They belonged to national breed organizations and registered their foals. They worked the farm. Sydney fed livestock before going to work at the accounting office. The couple made hay, repaired fences and buildings, inoculated and tagged calves, trained horses, and provided routine veterinary care. During foaling season, they monitored pregnant mares around the clock, sometimes checking them four or five times at night. Over the years, they oversaw the births of more than 100 foals. They also tried to make the cattle operation more profitable. Sydney researched ways to increase calf weight, adjusted calving timing to better serve markets in California and Oregon, and adopted preconditioning practices to command better prices. The Chapins eventually ran into serious financial trouble. In 2002, they filed for Chapter 11 bankruptcy protection, typically used when a financially troubled business or individual hopes to reorganize debts rather than simply liquidate. But in 2003, in response to a motion by creditors, the bankruptcy court converted the case to Chapter 7, which generally involves liquidation. In 2004, the bankruptcy trustee liquidated most of the real estate used for ranching. Around the same time, the 200-acre ranch was sold in foreclosure outside of bankruptcy. The Chapins sold all of their cattle and farm equipment, though they managed to repurchase 30 acres from the bankruptcy estate with a private loan. In other words, this wasn’t simply a ranch that had a few bad years. ## They Kept The Horses After the bankruptcy, the Chapins continued breeding horses. During the tax years that ultimately led them to Tax Court, they kept between nine and 16 horses. They remained members of the American Quarter Horse Association and the Appaloosa Horse Club, continued registering foals, and offered one of their stallions for stud. They also continued to do much of the work themselves—and they lost money. For six consecutive years, from 2009 through 2014, the Chapins reported losses from the activity on Schedule F. Those losses mattered for tax purposes because the rules differ when an activity isn’t engaged in for profit. ## When Is A Business Not A Business? Section 183 of the Tax Code limits deductions for activities not engaged in for profit. It’s often called the “hobby loss” rule. The rule doesn’t require a business to turn a profit every year. Many legitimate businesses incur losses. Instead, the question is whether the taxpayer genuinely engaged in the activity with the objective of making a profit. To determine that, courts don’t simply take a taxpayer’s word for it. They look at the facts and circumstances, including how the activity was conducted, the taxpayer’s expertise, the time and effort devoted to it, the history of income and losses, the taxpayer’s financial circumstances, and whether the activity involved elements of personal pleasure or recreation. ## The IRS Says It’s A Hobby The Chapins had income from other sources. Frank ran an accounting and tax preparation practice, preparing at least 200 tax returns a year and providing bookkeeping and payroll services. Despite Frank’s accounting background, the ranch’s recordkeeping wasn’t perfect. Perhaps the most difficult fact for the Chapins was also the most human: They loved ranching. Horse breeding had become central to their lives. Even after the bankruptcy, the loss of most of their land, the sale of their cattle and equipment, and years of financial losses, they never seriously considered giving it up. From the IRS’s perspective, those facts told a story. The Chapins may have worked hard. They may have known horses. But continuing an activity you love despite years of losses doesn’t necessarily make it a business. ## The Chapins Say It’s A Business The Chapins saw those facts very differently. They hadn’t bought a couple of horses as a weekend diversion. They had decades of experience raising livestock. They belonged to breed organizations, registered their horses, offered a stallion for stud, and did physically demanding work themselves. Both had even been injured while working with the horses. They argued their history also showed they approached ranching as a business, including making changes to the cattle operation to improve profitability. The losses were real. But in their view, losing money doesn’t necessarily turn a business into a hobby. That left the Tax Court with a deceptively simple question: Did the Chapins genuinely intend to make money from breeding horses—even though they hadn’t? ## You Be The Tax Judge The IRS says the Chapins’ horse-breeding activity wasn’t engaged in for profit. The Chapins say they were running a business. So, who’s right? **The IRS says the Chapins’ horse-breeding activity wasn’t engaged in for profit. The Chapins say they were running a business. So, who’s right?** - The Chapins. Their experience, work, and manner of operating show that they genuinely intended to make a profit despite years of losses. - The IRS. At some point, continuing an activity you love despite persistent losses stops looking like a business and starts looking like a hobby. 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Small Business, You Be the Tax Judge **Tags:** hobby, hobby loss, hobby loss rules, hobby v business, U.S. Tax Court --- ### [What Is An FBAR? Taxes From A to Z®](https://www.taxgirl.com/2026/10/03/what-is-an-fbar-taxes-from-a-to-z/) **Published:** October 3, 2026 **Author:** Kelly Phillips Erb **Excerpt:** Learn what an FBAR is, who must file one, what the threshold is, and which foreign assets count. **Content:** FBAR stands for Report of Foreign Bank and Financial Accounts. Despite the name, it’s not limited to bank accounts. A U.S. person generally must file an FBAR if they have a financial interest in or signature or other authority over foreign financial accounts and the aggregate value of those accounts exceeds $10,000 at any time during the calendar year. ## Who Is A U.S. Person? For FBAR purposes, a U.S. person includes a U.S. citizen or resident, as well as certain entities created, organized, or formed under U.S. law, such as corporations, partnerships, limited liability companies, trusts, and estates. Importantly, U.S. citizens may have an FBAR filing obligation even if they live outside the United States. ## What Is The FBAR Threshold? That $10,000 threshold is aggregate, not per account. So, for example, having $6,000 in one foreign account and $5,000 in another at the same time can trigger the filing requirement even though neither account individually tops $10,000. And yes, it’s legal to have foreign accounts. And yes, there are plenty of legitimate reasons (just ask my daughter). But filing requirements still apply. ## Where Do You File Your FBAR? You don’t file your FBAR with your federal income tax return. You file it electronically with the Financial Crimes Enforcement Network (FinCEN), a division of the Treasury. FBARs are generally due April 15, with an automatic extension to October 15—you don’t need to request it. --- **Taxes come with their own language. Taxes From A to Z® is here to help translate. Find more tax terms and explainers in the [full A to Z collection](https://www.taxgirl.com/tax-glossary/).** [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=What%20Is%20An%20FBAR%3F%20Taxes%20From%20A%20to%20Z%C2%AE&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2026%2F10%2Fpexels-erickgonzalez718-385989521.jpg&p%5Btitle%5D=What%20Is%20An%20FBAR%3F%20Taxes%20From%20A%20to%20Z%C2%AE "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=What%20Is%20An%20FBAR%3F%20Taxes%20From%20A%20to%20Z%C2%AE "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=What%20Is%20An%20FBAR%3F%20Taxes%20From%20A%20to%20Z%C2%AE&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** International, Taxes From A to Z® **Tags:** FBAR, FinCEN, Report of Foreign Bank and Financial Accounts, What is the FBAR --- ### [What Is Estimated Tax? Taxes From A to Z®](https://www.taxgirl.com/2026/09/26/what-is-estimated-tax-taxes-from-a-to-z/) **Published:** September 26, 2026 **Author:** Kelly Phillips Erb **Excerpt:** Learn how estimated tax payments work, who needs to make them, when payments are due, and how safe harbor rules can help you avoid penalties. **Content:** Estimated tax is how you pay income and certain other taxes during the year when enough tax isn’t being withheld from your income. That often includes people who are self-employed, freelancers, business owners, or investors, but it can also include employees whose withholding simply doesn’t cover their tax bill. ## Form 1040-ES The federal income tax system is pay-as-you-go, which means you generally can’t wait until you file your return to pay everything you owe with one big check. Instead, you generally make estimated tax payments using Form 1040-ES. How much you need to pay depends on your expected income, deductions, credits, and withholding for the year. If your income is relatively steady throughout the year, that typically means four equal payments, due April 15, June 15, September 15, and January 15. ## Estimated Tax Penalty If you pay too little during the year, you may owe an underpayment penalty even if you pay your entire tax bill by the April filing deadline. Safe harbor rules can help you avoid that penalty. Generally, you need to have paid at least 90% of the tax due for the current year or 100% of the tax shown on the prior-year return, whichever is smaller. (For certain higher-income taxpayers, that prior-year threshold increases to 110%.) --- **Taxes come with their own language. Taxes From A to Z® is here to help translate. 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Small Business, Taxes From A to Z® **Tags:** estimated payments, estimated tax, taxes from a to z --- ### [Getting To Know You Tuesday: Julie Susskind](https://www.taxgirl.com/2026/10/06/getting-to-know-you-tuesday-julie-susskind/) **Published:** October 6, 2026 **Author:** Kelly Phillips Erb **Excerpt:** Meet Julie Susskind, CPA and Senior Tax Manager at Gelt, as she talks tax strategy, career advice, AI, Broadway dreams, and really good pancakes. **Content:** Julie Susskind is a CPA and Senior Tax Manager at Gelt, an AI-native tax firm that combines a proprietary technology platform with the expertise of certified public accountants (CPAs) to provide year-round proactive tax strategy and compliance. Julie has worked in public accounting for over a decade, serving a wide range of clients, from high-net-worth individuals with closely held companies to multinational entities. She is passionate about finding her clients the optimal tax strategies for their circumstances and takes pride in watching them succeed. So, let’s get to know Julie. ## In Her Own Words **1. Where are you right now?** In Far Rockaway, NY. **2. What’s your official title, and what do you actually do?** My official title is Senior Tax Manager at Gelt and Tax Team Leader. Day-to-day, I lead a team that works directly with clients to figure out the smartest approach to their taxes. At Gelt, we’re really focused on strategy, so a big part of my job is getting to the core of a client’s situation, whether that’s planning for the future or making the most of a real estate investment, and finding the opportunities that ultimately save them money. **3. Where did you go to school, and what did you study?** I’m originally from Canada, and I went to the Schulich School of Business to study, well, business! I specialized in accounting in my third year, but only started practicing U.S. taxes several years later. **4. How did you end up in tax?** Honestly, I kind of fell into it. My father is an accountant, so growing up I definitely did not want to become one! But in college I took some tax courses and found that I really enjoyed them. After college, I was living abroad, and there was a real market for tax accountants there, so that’s where it all started. **5. What was your first real job?** In life, I was a swim instructor in high school and did that for many years. As an accountant, I was living in Israel and begged my first employer to hire me since I literally knew NOTHING about taxes at the time. I’m so grateful that he took a chance on me! **6. What’s one thing people might be surprised to learn about you?** I secretly (not so secretly) wish I could be on Broadway. In my spare time, I’m part of a women’s acting group that puts on extremely professional Broadway-like shows. I love to sing, act, and dance, and it’s an incredible outlet for me. **7. If you weren’t working in tax, what would you be doing?** Broadway – as if I were good enough! I would probably also work with women who struggle with perinatal and pregnancy-related struggles, as that’s something I’m incredibly vocal and passionate about. **8. What’s the best piece of tax, money, or career advice you’ve ever received?** You are 100% responsible for 50% of the problem. We’re so quick to point blame at others when something goes wrong. An unhappy client, an engagement that fell through, an internal employee conflict. Whatever the issue may be, there is always something that we can personally learn, and it’s important to recognize that we are completely responsible for our “50%” of the problem, however small or large that “50%” may be. **9. What tax issue do you think is getting too much attention right now?** I can’t think of anything right now. **10. What tax issue isn’t getting enough attention?** Retirement planning. There are incredible ways to plan for retirement while simultaneously benefiting from real-time deductions that can save you lots of money now and in the future. **11. What’s the biggest tax myth you’d like to bust?** There is NO free lunch. The IRS doesn’t give away anything for free, and there is certainly no “magic wand” that any accountant can wave to save you money. If you find a CPA that is making such promises, my best advice would be to run! **12. What’s a tax question you wish people would ask you more often?** I think just approaching taxes with an open mind is so refreshing and a new concept for many clients. Many taxpayers are not super well-versed in the intricacies of tax law, so just having the humility to say “I don’t know, what should I do?” is so important. **13. What’s one tax rule you would change if you could?** Previously, it would have been to increase the SALT cap for itemized taxpayers, but with the recent changes that already happened! That was a massive loss for so many taxpayers. **14. What’s one non-tech thing in your office that you couldn’t do without?** Honestly, nothing! We are fully remote (so my office is right at home) and my desk is perfectly clean – not a single paper! I sometimes forget how to even hold a pencil (just kidding…sort of). **15. Which tech tool, platform, or software do you rely on most in your practice?** Probably our projection software. Often we are running various “what if” scenarios for our clients, mapping out the course of a tax strategy over several years, or helping clients make an initial decision about whether to implement a specific strategy at all. **16. What’s the best use of AI in tax or tax practice?** I always have Claude open next to me. I use it as my first stab at research just to get an initial read on a topic that I may not be as familiar with. Claude then provides the sources where it got its information from, and I’ll always reference the original tax law or publication to verify its accuracy. **17. What are you watching right now (streaming or otherwise)?** I don’t watch television…or movies. I’m also not on any form of social media (aside from LinkedIn – does that even count?). I’m pretty old-fashioned that way! **18. Coffee or tea?** Coffee, but not for the reason people expect! I’m actually not a regular coffee drinker; I just love a specific type of coffee that my husband buys (Don Francesco) and the way he prepares it. Some milk, Starbucks creamer, whipped cream on top, and some cinnamon, and it is DELICIOUS! But if I go a day without it, I’ll totally survive. **19. Pancakes or waffles?** Pancakes – 100%. My daughter would agree with me – I make a mean pancake. **20. If you received an unexpected tax refund tomorrow, what would you do with it?** How much are we talking? $1k? Would likely put it into an IRA or 529 account. $10k? Probably some would be used to pay off our mortgage, some of it would be invested, and the last bit would be used to treat myself to a glorious massage :). You can find out more about Julie on [the company’s website](https://www.joingelt.com/about) and on [LinkedIn](http://linkedin.com/in/julie-susskind-cpa-923b52109/). ## About Getting to Know You If you’d like to recommend a tax pro to be featured, send your suggestions to [gtky (at) taxgirl (dot) com](mailto:gtky@taxgirl.com) with the subject: Getting to Know You Tuesday. Self-nominations are totally okay and encouraged! If you’ve submitted a nomination before, feel free to send it again. I’ll consider all submissions, even those that were selected, so long as they were more than three years ago.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Getting%20To%20Know%20You%20Tuesday%3A%20Julie%20Susskind&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2026%2F10%2Fjulie-susskind-gelt-headshot.jpeg&p%5Btitle%5D=Getting%20To%20Know%20You%20Tuesday%3A%20Julie%20Susskind "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Getting%20To%20Know%20You%20Tuesday%3A%20Julie%20Susskind "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Getting%20To%20Know%20You%20Tuesday%3A%20Julie%20Susskind&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Getting to Know You Tuesday, Tax Professionals --- ### [Who’s Getting The $90 Medicare Payment?](https://www.taxgirl.com/2026/10/05/whos-getting-the-90-medicare-payment/) **Published:** October 5, 2026 **Author:** Kelly Phillips Erb **Excerpt:** More than 20 million Medicare beneficiaries will receive a one-time $90 payment in October. Here’s who qualifies, where it comes from, and whether it’s taxable. **Content:** More than 20 million Medicare beneficiaries are about to receive an unexpected $90 from the federal government. The Trump administration calls it a Medicare Part B “premium rebate.” But unlike a traditional refund, the payment isn’t correcting an overcharge, and it won’t change what beneficiaries owe for Medicare coverage. Instead, the administration is drawing on a little-known Medicare fund that Congress created nearly two decades ago—and has since repeatedly filled, emptied, and refilled—to send beneficiaries a one-time payment. Eligible recipients should receive $90 in October. Here’s who qualifies, where the money is coming from, and what the payment does—and doesn’t—mean for Medicare premiums. ## What’s Happening? On October 2, President Donald Trump announced that the federal government would make one-time $90 payments to more than 20 million Medicare beneficiaries. The administration says most eligible beneficiaries will receive the payments by direct deposit in October. Those without direct deposit information on file will receive a paper check from the U.S. Treasury at the mailing address registered with Medicare. No application is required. Eligible beneficiaries receive payments automatically. The White House has characterized the payment as a way to help beneficiaries pay their Medicare Part B premiums. But despite the name “premium rebate,” Medicare isn’t refunding an improperly collected premium or reducing future premiums. The standard Medicare Part B premium for 2026 remains $202.90 per month. That’s $2,434.80 over the year for someone who pays the standard premium all 12 months. So, the $90 payment amounts to a little less than half of one month’s standard Part B premium—or about 3.7% of a full year’s premiums. ## What Is Medicare Part B? Medicare is the federal health insurance program primarily associated with people age 65 and older, though some younger people also qualify because of a disability, end-stage renal disease, or ALS. Original Medicare has two primary parts. Part A is hospital insurance and generally covers inpatient hospital care, skilled nursing facility care, hospice, and some home health care. Most beneficiaries don’t pay a monthly Part A premium because they or their spouses paid Medicare taxes while working. Part B is different. Medicare Part B is medical insurance. It generally covers services from doctors and other health care providers, outpatient care, durable medical equipment, preventive services, and certain other medically necessary services. (This [older post](https://www.taxgirl.com/2014/03/24/taxes-from-a-to-z-2014-m-is-for-medicare-payments/) explains the various Medicare parts.) Unlike premium-free Part A, most people enrolled in Part B pay a monthly premium. For 2026, the standard Part B premium is $202.90 per month, up from $185 in 2025. Higher-income beneficiaries pay more through the Income-Related Monthly Adjustment Amount, or IRMAA. In 2026, those higher premiums generally apply when 2024 modified adjusted gross income exceeds $109,000 for an individual or $218,000 for a married couple filing jointly. Most beneficiaries don’t actually sit down and write Medicare a check every month. If you receive Social Security benefits, Medicare generally deducts your Part B premium from your monthly benefit. Other beneficiaries may be billed directly. For some lower-income beneficiaries who also qualify for Medicaid, the state pays the Medicare premium. ## Who Gets the $90? According to the Centers for Medicare & Medicaid Services (CMS), [more than 70 million people](https://data.cms.gov/summary-statistics-on-beneficiary-enrollment/medicare-and-medicaid-reports/medicare-monthly-enrollment) receive Medicare. Not all of them are eligible for a check. CMS says about [20.8 million Medicare beneficiaries](https://www.cms.gov/newsroom/fact-sheets/medicare-improvement-fund-premium-rebate-frequently-asked-questions) will receive a payment. To qualify, you must be enrolled in Original Medicare Part B, live in the U.S., not receive premium assistance from Medicaid, and not pay an income-related monthly adjustment amount, or IRMAA. Medicare Advantage beneficiaries are not eligible. The check is per person, so a married couple could receive $180 if both are eligible. And because this is a one-time payment rather than a change to Medicare’s premium structure, beneficiaries shouldn’t expect their regular Part B premium to change as a result. ## Where’s My Check? Most eligible beneficiaries should receive a $90 direct deposit on or around October 8. Some beneficiaries will receive a paper check from the Treasury Department later in October. If your payment doesn’t show up, you can check on its status by calling the Social Security Administration at 1-800-772-1213 beginning October 15. If you are eligible, you don’t need to apply or do anything else. Be wary of anyone who calls, texts, or emails to ask for information or offer to help you with your payment. ## Where Is The Money Coming From? The money comes from the Medicare Improvement Fund, or MIF, a little-known fund Congress created in 2008. Under federal law, the MIF provides funds to the Secretary of Health and Human Services to improve Original Medicare, including adjustments to payments for items and services furnished by health care providers and suppliers. The fund currently has just over $2 billion. But despite suggestions to the contrary, that doesn’t mean Congress put $2 billion into an account in 2008, and it’s been sitting untouched ever since. Far from it. Over the years, Congress has repeatedly changed the amount available in the fund—sometimes dramatically. A 2023 Congressional Budget Office review found that lawmakers changed funding for the MIF 28 times since its creation: 11 times increasing it and 17 times decreasing it. At different points, the amount available has ranged from zero to more than $20 billion. Why so much movement? It’s a chess game. If Congress reduces the money scheduled to be available through the fund in future years, that reduction can generate budgetary savings that help offset spending elsewhere in legislation. Congress can also add money to the fund in the future. In other words, despite its name, the MIF has historically functioned less like a checking account for Medicare improvements and more like a place where Congress shifts Medicare spending authority. ## What About Obamacare? The White House says previous Congresses used the fund in ways that increased health care costs and specifically claims that Democrats “raided $20.7 billion from the fund” to help pay for the Affordable Care Act (ACA). Before the ACA became law, $20.7 billion was scheduled to be available through the fund for services furnished during fiscal year 2014, with additional funding available for fiscal year 2015. The ACA eliminated that $20.7 billion in future funding. But Congress didn’t simply withdraw $20.7 billion in cash from an existing account. It changed the amount of future mandatory spending authority available to the fund—something Congress has done repeatedly since the fund was created. ## So What’s Different This Time? For all of the congressional tinkering with the MIF, one thing apparently hadn’t happened before: the money hadn’t actually been spent. In its 2023 review, CBO reported that the Centers for Medicare & Medicaid Services had never made an outlay from the MIF. In other words, Congress has repeatedly changed how much money was available to the fund, but this is the first time the government is actually spending money from it. ## Is This the Same as an ACA Insurance Rebate? No. Don’t confuse this payment with the existing ACA rebate. Under the law’s medical loss ratio rules, health insurers generally must spend at least 80% (85% for large-group plans) of premium dollars on medical care and quality improvement. If they don’t meet the applicable threshold, they may have to rebate money to policyholders. Those rebates come from insurers. The payment is also separate from the premium tax credit. Receiving a check doesn’t restore or replace enhanced premium assistance that ended after 2025. Importantly, it is not the same as the $500 checks the administration began sending last week as a [“refund” of Marketplace user fees](https://www.taxgirl.com/2026/10/02/500-obamacare-refund-checks-are-going-out-heres-what-you-need-to-know/). Those checks are targeted to eligible consumers in 30 states that use HealthCare.gov without premium assistance (meaning premium tax credits). ## Is the Payment Taxable? The administration has described the payments as “rebates,” but that label doesn’t determine their federal income tax treatment. So far, the IRS and Treasury have not issued guidance on whether recipients should include the $90 payments in income, whether the payments fall within an exclusion from income, or whether recipients will receive an information return reporting the payment. There are several possibilities. Medicare premiums can qualify as medical expenses for taxpayers who itemize, subject to the applicable medical expense floor. However, that alone doesn’t mean the $90 payment is taxable. The tax treatment of a reimbursement can depend on whether the taxpayer claimed a deduction for the underlying expense and received a tax benefit. For now, the answer is simply: we don’t know. Taxpayers who receive a payment should keep any accompanying documentation. With payments beginning in October, the IRS or Treasury still has time to issue guidance before taxpayers begin filing their 2026 returns. ## Should Medicare Beneficiaries Expect Another Check? No. Not only is this a first, but nothing indicates that Medicare beneficiaries should expect a second check. The administration has expressly described the payment as a one-time payment. At 20.8 million eligible beneficiaries, this round of payments costs about $1.9 billion—nearly all of the roughly $2 billion currently available to the fund. Congress could, of course, change the amount available again. As its history makes clear, it has done that plenty of times before.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Who%E2%80%99s%20Getting%20The%20%2490%20Medicare%20Payment%3F&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2026%2F10%2Fpexels-kampus-8441778.jpg&p%5Btitle%5D=Who%E2%80%99s%20Getting%20The%20%2490%20Medicare%20Payment%3F "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Who%E2%80%99s%20Getting%20The%20%2490%20Medicare%20Payment%3F "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Who%E2%80%99s%20Getting%20The%20%2490%20Medicare%20Payment%3F&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Healthcare, Individual, Retirement and Pension **Tags:** Medicare, Medicare Improvement Fund, Medicare Part B rebate --- ### [Trump Accounts Are Now Automatic, But the $1,000 Isn’t](https://www.taxgirl.com/2026/10/04/trump-accounts-are-now-automatic-but-the-1000-isnt/) **Published:** October 4, 2026 **Author:** Kelly Phillips Erb **Excerpt:** Trump Accounts are rolling out for eligible children, but the $1,000 isn’t automatic. Here’s who qualifies, how contributions work, and what parents need to know. **Content:** Trump Accounts are officially rolling out, and with new rules taking effect this fall, plenty of confusion exists about who qualifies for an account, who receives money, and what parents need to do. One of the biggest changes? Beginning on or about October 1, 2026, Treasury will automatically open Trump Accounts for eligible children who don’t already have one. But “automatic” doesn’t mean quite what some social media posts suggest. Not every child gets $1,000. And an automatically created account doesn’t necessarily come with money. Here’s what you need to know. ## What is a Trump Account? A Trump Account is a new type of individual retirement account (IRA) for children. It is sometimes called a 530A account because it was created under section 530A of the tax code. Congress created it as part of the One Big Beautiful Bill Act (OBBBA), which was signed into law in July 2025. However, Trump Accounts could not be opened until 2026—and they couldn’t be funded until July 4, 2026. Generally, a Trump Account can be established for a child with a valid Social Security number who has not turned 18 by the end of the calendar year in which the account is established. Special rules apply during the “growth period,” the time when the child is young. That period ends on December 31 of the calendar year in which the child turns 17. After that, most of the special Trump Account rules fall away, and traditional IRA rules generally apply. ## Does every child automatically get a Trump Account? Not exactly—but the rules [recently changed](https://www.taxgirl.com/2026/09/30/trump-accounts-are-going-automatic-heres-what-families-need-to-know/). Originally, a parent, guardian, or other authorized individual had to elect to open an account for a child. Now, under temporary regulations issued by Treasury and the IRS, Treasury will begin automatically opening accounts on or about October 1, 2026, for eligible children who don’t already have one. Treasury will periodically open additional accounts as other children become eligible. These are called “auto accounts.” So a parent no longer necessarily has to take action for an eligible child to have a Trump Account. But that does not mean everything else happens automatically. ## Does every child get $1,000 from the federal government? No. The $1,000 is part of a separate federal pilot program. To qualify, a child must: - be born in 2025, 2026, 2027, or 2028; - be a U.S. citizen; - have a Social Security number; and - meet the other pilot-program requirements. There’s another important requirement: someone eligible to make the pilot-program election must actually elect to receive the $1,000. Treasury can automatically establish a Trump Account. Treasury cannot automatically make the pilot-program election for the child. That means an automatic account does not equal automatic $1,000. ## So an auto account could have a $0 balance? Yes. Think of the account and the money as two separate things. Treasury can create an auto account for an eligible child. But unless that child is eligible for—and someone elects—the $1,000 pilot contribution, or the account receives another qualifying contribution, the account may be empty. The new regulations specifically contemplate unfunded auto accounts. ## How do I request the $1,000? The pilot contribution requires a separate election. Parents and other eligible individuals can use Form 4547, Trump Account Election(s), to make the election. The IRS also allows taxpayers to submit Trump Account elections via an [IRS Individual Online Account](https://www.taxgirl.com/2026/07/25/how-to-create-and-use-an-irs-online-account/). If you’re eligible to make the pilot-program election, you must affirmatively elect the $1,000 contribution. Simply having a Trump Account—even one automatically established by Treasury—isn’t sufficient. ## What if my child was born before 2025? Your child may still have a Trump Account. The 2025-through-2028 birth-year requirement applies to the $1,000 federal pilot contribution, not eligibility for the account itself. Other contributions may also be available. For example, Michael and Susan Dell previously pledged $6.25 billion to provide $250 contributions for certain children who weren’t eligible for the federal $1,000. Governments and qualifying nonprofits can also fund groups of children through what the law calls “qualified general contributions.” Again, it’s important to distinguish between eligibility for an account and eligibility for a particular contribution to that account. ## As a parent, can I fund an auto account? No. During the growth period, an unclaimed auto account can receive qualified general contributions from eligible governments or nonprofits, as well as the $1,000 federal pilot contribution, if the required pilot election has been made. But Mom, Dad, Grandma, Grandpa, and other individuals can’t simply deposit money into an unclaimed auto account. An authorized person must first claim the account and complete the steps to establish the receiving Trump Account before making ordinary contributions. ## How do I take control of my child’s auto account? A guardian or legal custodian with authority over the child’s property or financial affairs—or the beneficiary, if legally able—can claim an auto account. The process requires identity verification and proof that the person is legally entitled to receive the child’s protected tax information. Importantly, simply filing a claim isn’t enough. The receiving Trump Account must also be activated according to the trustee’s instructions. Once that happens, you can transfer the balance in the auto account to the receiving Trump Account. ## What happens if I don’t claim my child’s account? The account doesn’t disappear. It remains your child’s account and is administered through Treasury’s automatic-account system. You can’t make ordinary contributions to an unclaimed auto account. However, the account may still receive certain broad-based contributions from governments or qualifying nonprofits. If someone has separately elected the $1,000 federal pilot contribution for an eligible child, that money can also go into the auto account. If none of those contributions apply, your child will have a Trump Account with nothing in it. Later, an eligible guardian or legal custodian—or the child when legally able—can claim the account by completing the required verification process. ## Can I opt my child out of a Trump Account? Not really—at least not from the automatic account-opening process. Under current Treasury regulations, the government will automatically establish Trump Accounts for eligible children who don’t already have one. The regulations don’t give parents an option to prevent Treasury from creating that auto account. But parents aren’t required to claim or actively manage the account. If you do nothing, the account can simply remain an unclaimed auto account. Treasury has asked for comments on a “disclaimer” for the account. As proposed, the disclaimer would offer a window to disclaim an account once the child turns 18 if the account had never been claimed and had not received the $1,000 federal pilot contribution. The beneficiary or, potentially, someone authorized under applicable local law to act on the beneficiary’s behalf could make the disclaimer. ## Can my employer contribute to my child’s account? Yes. An employer can establish a Trump Account contribution program and contribute to an employee’s account or a dependent’s account. The contribution counts toward the $5,000 annual cap (not extra on top). Qualifying employer contributions aren’t taxable—up to $2,500 per year can be excluded from the employee’s taxable income, adjusted for inflation after 2027. That limit is per employee, not per child. An employee with several dependents may be able to allocate the contribution among their Trump Accounts, but the total tax-free employer contribution is capped at $2,500. An employer may not contribute to an unclaimed auto account. ## How much can families contribute to my child’s account? Families can only fund claimed accounts. During the growth period, ordinary contributions are limited to $5,000 per year per child, with inflation adjustments beginning after 2027. That’s a $5,000 limit for the account—not $5,000 per contributor. So if parents contribute $3,000 and grandparents contribute $2,000, they’ve used up the annual limit. Certain contributions don’t count against that limit, including the $1,000 federal pilot contribution, qualified general contributions, and qualified rollover contributions. ## Are family contributions to my child’s account tax-deductible? No. Contributions from parents, grandparents, and other individuals are made with after-tax dollars. You don’t get a federal income tax deduction for putting that money into a Trump Account. Those after-tax contributions do create a basis in the account, which becomes important when you eventually withdraw money. ## Does the money grow tax-free? No. It grows tax-deferred (like many traditional retirement accounts). You generally don’t pay taxes each year as investments inside the account appreciate. But these aren’t Roth IRAs, and withdrawals aren’t automatically tax-free. After the growth period, traditional IRA rules apply. A withdrawal may include both tax-free recovery of basis and taxable amounts. That’s one reason recordkeeping matters, especially for accounts with different contribution types over many years. ## Can I take money out of my child’s account for college? Not while the child is in the growth period. Trump Accounts are unusually restrictive before age 18. Ordinary distributions aren’t permitted during the growth period—even for education or financial hardship. Limited exceptions include certain rollovers, corrections of excess contributions, distributions after the beneficiary’s death, and certain transfers to ABLE accounts. Once the growth period ends, traditional IRA rules generally apply. At that point, you can withdraw funds, but taxable distributions before age 59½ may also be subject to the 10% additional tax unless an exception applies. Traditional IRA exceptions include certain higher-education expenses and limited first-home purchases. ## Can I choose individual stocks for the account? Generally, no. During the growth period, Trump Accounts follow narrow investment rules. Eligible investments must generally be mutual funds or exchange-traded funds that track qualifying broad U.S. equity indexes, don’t use leverage, and charge no more than 0.1% in annual fees and expenses. As a result, parents don’t pick individual stocks, cryptocurrency, bonds, or sector-specific funds. The new temporary regulations allow certain governments and nonprofits to make qualified general contributions using qualifying publicly traded stock. That’s a special rule for those broad-based contributions—it doesn’t mean Grandma can transfer a few shares of Apple into a child’s Trump Account. ## Who controls the money in my child’s account after age 18? The child. This is one of the most important planning considerations for parents and grandparents. Trump Accounts belong to the beneficiary. Once the growth period ends, most special restrictions disappear, and traditional IRA rules take over. That means a Trump Account isn’t the same as an account where a parent can retain control indefinitely or decide later how the money will be used. ## So, are Trump Accounts basically 529 plans? No. They can both be used to save for children, but they’re very different accounts. A 529 plan is primarily an education savings vehicle, and qualified withdrawals—including investment earnings—can generally be tax-free. By contrast, a Trump Account is structured as a traditional IRA. For a family specifically saving for education, a 529 may still offer significant advantages. A Trump Account may make more sense as another piece of a family’s savings strategy—particularly when free money from the federal government, an employer, or another qualifying contributor is available. ## What about those viral social media posts about automatic free money? Some of them are simply wrong. The government is not opening an investment account and putting $1,000 into it for every American child. That’s not how the rules work. An eligible child can have an automatically established Trump Account with no $1,000 contribution. A child born before 2025 can have a Trump Account but not qualify for the federal pilot money. An auto account may remain unfunded unless it receives an eligible government or nonprofit contribution or a separately elected federal pilot contribution. In other words: an automatic account doesn’t mean automatic money. ## What should I do now? First, don’t assume that Treasury’s automatic-enrollment process means there’s nothing left for you to do. If your child may qualify for the $1,000 pilot contribution, pay close attention to that election. Treasury cannot make it for you. If you want to contribute your own money—or have grandparents or others contribute—you’ll need to claim and activate an auto account rather than leaving it under Treasury’s automatic-account structure. Finally, consider how a Trump Account fits alongside the savings tools you may already have. Trump Accounts offer very early tax-deferred investing and the possibility of free contributions, but they also come with significant restrictions. For many families, they may work best alongside, and not instead of, other savings opportunities like 529 plans.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Trump%20Accounts%20Are%20Now%20Automatic%2C%20But%20the%20%241%2C000%20Isn%E2%80%99t&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2026%2F10%2Fpexels-pixabay-128867.jpg&p%5Btitle%5D=Trump%20Accounts%20Are%20Now%20Automatic%2C%20But%20the%20%241%2C000%20Isn%E2%80%99t "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Trump%20Accounts%20Are%20Now%20Automatic%2C%20But%20the%20%241%2C000%20Isn%E2%80%99t "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Trump%20Accounts%20Are%20Now%20Automatic%2C%20But%20the%20%241%2C000%20Isn%E2%80%99t&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Families and Tax, Investing **Tags:** free money for children, section 530A accounts, Trump account rules, Trump accounts, Trump auto accounts --- ### [$500 Obamacare "Refund" Checks Are Going Out. Here’s What You Need To Know](https://www.taxgirl.com/2026/10/02/500-obamacare-refund-checks-are-going-out-heres-what-you-need-to-know/) **Published:** October 2, 2026 **Author:** Kelly Phillips Erb **Excerpt:** Nearly one million Americans are getting $500 Obamacare refund checks. Here’s who gets one, where the money comes from, and what taxpayers should know. **Content:** “Am I entitled to a refund?” I’m already getting this question following the news that the federal government has begun sending $500 checks to nearly one million Americans who bought health insurance through the Affordable Care Act (ACA) Marketplace. And no, this refund is not tied to your tax bill. Here’s what you need to know. ## What are the $500 Refunds? The White House is calling the $500 checks “Working Families Obamacare Refunds,” claiming consumers were overcharged to fund HealthCare.gov during the Biden administration. The Treasury Department began sending payments on September 30, each accompanied by a letter from President Donald Trump. “For years, the Biden Administration overcharged you to fund the operation of HealthCare.gov,” Trump says in the letter. “That money belongs to hard-working Americans, not the Government, and now I’m returning it to you!” But the $500 payments aren’t exactly a typical refund. You didn’t pay a $500 fee to HealthCare.gov that Treasury is now sending back. And there’s no indication that the government calculated that each recipient personally overpaid by $500. Instead, the money comes from Marketplace user fees, and understanding those fees helps explain why the checks are going out and why you shouldn’t count on getting another one next year. ## What Are Marketplace User Fees? HealthCare.gov isn’t free to operate. Running the federal insurance Marketplace costs money, including the call centers, consumer assistance, and other administrative functions. Under the Affordable Care Act, the federal government may charge insurance companies that sell plans on the federal Marketplace a user fee to help pay those costs. For 2026, that fee is 2.5% of monthly premiums for insurers offering qualified health plans through the federally facilitated Marketplace. State-based Marketplaces that use the federal platform have a separate, lower rate (2.0% for 2026). The insurance companies pay the fee to the federal government. But, like other costs of doing business, user fees can be reflected in the premiums insurers charge their customers. That’s the basis for the administration’s argument that consumers ultimately paid the fees. Notably, HealthCare.gov does not separately charge consumers a user fee. For example, if your health insurance premium was $1,000 per month, you didn’t pay a $25 HealthCare.gov fee on top of it. The insurer paid the federal user fee based on premiums *it* collected. ## The Fees Aren’t New The White House has characterized the payments as refunds of “Biden overcharges,” but Marketplace user fees predate the Biden administration. They’ve existed under Democratic and Republican administrations, including during Trump’s first term. From 2014 to 2019, the federal Marketplace user fee was 3.5% of premiums. It then fell gradually, bottoming out at 1.5% for the 2025 benefit year. The Biden administration raised the rate to 2.5% for 2026, partly because CMS anticipated lower enrollment if the enhanced premium tax credits expired. The Trump administration has since lowered it to 1.9% for 2027. In January 2021, KFF, the independent nonprofit health-policy research organization formerly known as the Kaiser Family Foundation, [examined federal budget documents](https://www.kff.org/affordable-care-act/opportunities-and-resources-to-expand-enrollment-during-the-pandemic-and-beyond/) and found that more than $1.2 billion in unused Marketplace user-fee revenue had accumulated during the final three years of Trump’s first administration. By KFF’s calculation, roughly $400 million in available user-fee revenue went unspent each year during that three-year period. The cumulative carryover reached about $1.27 billion by the end of fiscal year 2020. That doesn’t tell us when every dollar being distributed in 2026 was collected—the user-fee account continued to receive and spend money in later years. But it does show that a substantial surplus already existed before Biden took office. So while some of the current pot may have built up later, at least some of it dates to Trump’s first term. Calling it all money the Biden administration “overcharged” consumers is an oversimplification. ## So Why Are The Checks $500? Four days after the refund program was announced, a [September 14 OMB apportionment](https://openomb.org/file/11556274) reduced the amount of accumulated Marketplace user fees set aside for fiscal year 2027 and future years by exactly $500 million—from about $1.72 billion to $1.22 billion. The administration hasn’t said that’s how it arrived at the $500 figure, but the math, well, maths. A $500 million pool divided among roughly one million enrollees works out to about $500 apiece. (Payments are per enrollee, so a household with more than one person enrolled could get more than one check.) That makes these payments look less like conventional refunds calculated from individual overpayments and more like a distribution of a pool of accumulated user-fee money. ## Who Gets A Check? The checks are going to eligible consumers in 30 states that use HealthCare.gov: Alabama, Alaska, Arizona, Arkansas, Delaware, Florida, Hawaii, Indiana, Iowa, Kansas, Louisiana, Michigan, Mississippi, Missouri, Montana, Nebraska, New Hampshire, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, South Carolina, South Dakota, Tennessee, Texas, Utah, West Virginia, Wisconsin and Wyoming. The administration says the refunds will go to people who bought Marketplace coverage without premium assistance. That matters because of how the premium tax credit (PTC) works. Eligible taxpayers who buy insurance through the Marketplace may qualify for a refundable premium tax credit to help pay for coverage. Most people who claim the credit don’t wait until they file their tax returns to receive it. Instead, they have some or all of the estimated credit paid directly to their insurance company during the year, reducing the monthly premium they have to pay out of pocket. The taxpayer later reconciles the amount on their federal income tax return. For several years, those credits were temporarily more generous. The American Rescue Plan expanded the PTC beginning in 2021, and the Inflation Reduction Act extended those enhancements through 2025. Among other things, the enhanced rules eliminated the old cutoff that generally prevented taxpayers with household income above 400% of the federal poverty level from qualifying for the credit. For 2026 Marketplace coverage, 400% of the federal poverty level (based on the [2025 poverty guidelines](https://aspe.hhs.gov/topics/poverty-economic-mobility/poverty-guidelines/prior-hhs-poverty-guidelines-federal-register-references/2025-poverty-guidelines-computations)) is $62,600 for a single person, $84,600 for a family of two, $106,600 for a family of three, and $128,600 for a family of four in the 48 contiguous states and D.C. Alaska and Hawaii have higher thresholds. For 2026, the 400%-of-poverty ceiling is back. That means taxpayers above the limit generally aren’t eligible for a premium tax credit, while eligible taxpayers below the limit may receive smaller credits than they did under the temporary enhanced rules. And it’s a real cliff, not a gradual phaseout—once household income exceeds 400% of the federal poverty level, PTC eligibility generally disappears. The White House says it targeted people without premium assistance for the $500 payments because those consumers paid the full premium themselves and therefore bore the full cost of any Marketplace user fee passed through by insurers. ## This Is Not The Same As An ACA Insurance Rebate Don’t confuse this refund with the already-existing ACA rebate. Under the law’s medical loss ratio rules, health insurers generally must spend at least 80% (85% for large-group plans) of premium dollars on medical care and quality improvement. If they don’t meet the applicable threshold, they may have to rebate money to policyholders. Those rebates come from insurance companies. The $500 payment is also separate from the premium tax credit. Receiving a check doesn’t restore or replace enhanced premium assistance that ended after 2025. ## There’s Still A Legal Question There’s also an issue that has received considerably less attention: What exactly is the government’s legal authority to distribute these funds directly to individuals? The ACA expressly authorizes Marketplace user fees to fund exchange operations. Congress has also provided that those collections be credited to CMS’s Program Management account and remain available until expended. OMB’s September budget documents show $500 million removed from the Marketplace user-fee amount set aside for fiscal year 2027 and future years and added to the amount available in 2026. What’s less clear from the publicly available materials is the statutory authority that allows money collected to support Marketplace operations to be converted into flat $500 payments to individual enrollees. The White House fact sheet announcing the program does not identify that authority. That doesn’t necessarily mean the authority doesn’t exist. Agencies may be relying on legal analysis that isn’t included in a public-facing announcement. But it’s a notable unanswered question about a program that will distribute roughly half a billion dollars. ## There’s Also a Tax Question Is the $500 taxable? That’s another question without a clear answer—at least for now. The administration has described the payments as “refunds,” but that label doesn’t determine their federal income tax treatment. Because these aren’t ordinary tax refunds or individualized repayments of amounts recipients paid directly to the federal government, their treatment isn’t necessarily obvious. So far, the IRS and Treasury have not issued guidance explaining whether recipients should include the $500 payments in income, whether the payments fall within an exclusion from income, or whether recipients will receive an information return reporting the payment. For now, the answer is simply: we don’t know. Taxpayers who receive a check should keep the accompanying letter and any other documentation that arrives with it (similar to what I advised taxpayers for those stimulus payments). With payments beginning now, the IRS or Treasury still has time to issue guidance before taxpayers begin filing their 2026 returns. ## Should You Expect Another Check Next Year? I wouldn’t count on it. Nothing in the ACA creates an annual $500 Marketplace refund, and the administration hasn’t announced these payments as a recurring benefit. In fact, the letter accompanying the checks expressly calls the $500 payment a “one-time” refund. And CMS has already reduced the federal Marketplace user fee for 2027 from 2.5% to 1.9%. That means that instead of continuing to collect fees at the current rate and potentially accumulating another large surplus, the government is lowering the amount it will collect from insurers going forward. But for now, if you’re eligible, a $500 Treasury check may be headed your way. You don’t need to apply (or do anything else) because the administration says it has already identified eligible enrollees. Be wary of anyone who calls, texts, or emails to ask for information or offer to help you with your refund.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=%24500%20Obamacare%20%E2%80%9CRefund%E2%80%9D%20Checks%20Are%20Going%20Out.%20Here%E2%80%99s%20What%20You%20Need%20To%20Know&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2026%2F10%2Fpexels-wolfgang-vrede-9996223-33839270.jpg&p%5Btitle%5D=%24500%20Obamacare%20%E2%80%9CRefund%E2%80%9D%20Checks%20Are%20Going%20Out.%20Here%E2%80%99s%20What%20You%20Need%20To%20Know "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=%24500%20Obamacare%20%E2%80%9CRefund%E2%80%9D%20Checks%20Are%20Going%20Out.%20Here%E2%80%99s%20What%20You%20Need%20To%20Know "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=%24500%20Obamacare%20%E2%80%9CRefund%E2%80%9D%20Checks%20Are%20Going%20Out.%20Here%E2%80%99s%20What%20You%20Need%20To%20Know&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Healthcare, Individual, Politics **Tags:** health care premium tax credit, healthcare gov, Obamacare, refund, Trump refund, Working Families Obamacare Refunds --- ### [IRS Reform Bill Clears Senate Without Objection, Waits For House](https://www.taxgirl.com/2026/10/02/irs-reform-bill-clears-senate-without-objection-waits-for-house/) **Published:** October 2, 2026 **Author:** Kelly Phillips Erb **Excerpt:** The Senate unanimously approved a major package of IRS reforms, but the House has yet to act. Here’s what’s in the bill—and what happens next. **Content:** On September 30, the Senate approved the Taxpayer Assistance and Service (TAS) Act, a package of 65 tax administration reforms designed to improve IRS service, strengthen taxpayer rights, modernize the agency, and change how taxpayers resolve disputes with the IRS. The legislation has broad bipartisan support. There’s just one problem: The House has already left Washington until after the election. ## What The Senate Passed I took a [deep dive into the TAS Act](https://www.taxgirl.com/2026/09/19/a-bipartisan-bill-would-expand-taxpayer-rights-and-change-how-the-irs-works/) last month. But if you go looking for the legislation, you may notice something confusing. The TAS Act was originally introduced in the Senate as S. 5441. However, the bill that ultimately carried the TAS Act through the Senate on September 30 was H.R. 5349. That’s not a typo. H.R. 5349, the Tax Court Improvement Act, is a much narrower tax-administration bill that had already passed the House. When the Senate took up H.R. 5349, it replaced the text after the enacting clause with the much broader TAS Act, gave it a new title, and passed it. In other words, the Senate used an existing House-passed bill as the legislative vehicle for the TAS Act. That means the legislation does not have to start from scratch in the House. But because the Senate substantially changed the bill, both chambers still have to agree to the same text before it can go to the President. The problem? The House has not done that. ## The Senate Vote Wasn’t Close Finance Committee Chairman Mike Crapo, a Republican from Idaho, and Ranking Member Ron Wyden, a Democrat from Oregon, developed the package together. Senators on both sides of the aisle contributed provisions, and the legislation has the support of National Taxpayer Advocate Erin Collins and several tax professional organizations. The Finance Committee approved the legislation 26-1. The full Senate then approved it by unanimous consent. But by then, the House was gone. House members cast their last votes on September 16. The Finance Committee formally reported S. 5441 the following day, and the Senate ultimately approved the TAS Act on September 30. The House isn’t scheduled to return for regular voting until November 9. So despite overwhelming bipartisan support in committee and approval without objection in the Senate, the legislation now has to sit until House members return to Washington. ## Is The House Really In Recess? Technically, the House is still holding sessions, but don’t expect much legislating. On October 1, for example, the House convened at 11:30 a.m. and adjourned at 11:33:10 a.m., just three minutes and 10 seconds later. There were no votes. The House Clerk, however, counts the day as a “Day in Session.” These brief meetings are known as pro forma sessions. They allow the House to formally convene without members returning to Washington for regular legislative business. That means the House can be technically “in session” even though most of its members are elsewhere. At the end of August, the Congressional Record showed the House had passed 380 measures this year. By comparison, it had passed 345 through July 2025 and 400 through September 2025. In other words, this isn’t a question of whether the House has been passing legislation. It has. The issue for the TAS Act is timing. ## Why The Timing Matters When I wrote about the TAS Act on September 19, the Finance Committee had approved it, and the legislation had been placed on the Senate calendar. But because the House had already finished its September voting schedule, the full House had no scheduled opportunity to act once the Senate approved its amendment on September 30. When lawmakers return after the November 3 midterm elections, the House could agree to the Senate amendment to H.R. 5349. If the House approves the Senate’s text without further changes, the legislation could then go to the President. If the House changes it, the chambers would have to resolve those differences. And if Congress doesn’t finish the job before the 119th Congress ends, the legislation dies. The process would have to begin again in the next Congress. The situation is particularly curious because the two chambers don’t appear to disagree about many of the underlying policies. On September 15, the House passed several taxpayer-rights bills, including bills addressing issues that also appear in the broader TAS package. Three passed by voice vote, while a fourth passed 408-17. In other words, by the time lawmakers left Washington, the House and Senate tax-writing committees had spent months advancing overlapping taxpayer-rights legislation with overwhelming bipartisan support. What Congress had not done was consolidate that agreement into legislation both chambers could approve before the House left town. ## Why The TAS Act Matters The legislation would improve IRS online accounts and callback technology, expand electronic processing, and give taxpayers more information about delayed refunds and IRS backlogs. It would also provide additional protections for taxpayers victimized by fraudulent return preparers and impose standards on certain paid preparers, expand access to IRS Appeals, and strengthen the Taxpayer Advocate Service. Overall, it would address some decidedly unglamorous but important problems that taxpayers and tax professionals run into when dealing with the IRS. That’s probably one reason the legislation has attracted such broad support. Republicans and Democrats may disagree—sometimes dramatically—about what the tax law should say. There appears to be considerably more agreement that taxpayers should be able to reach the IRS, know what’s happening with their refunds, challenge government decisions, and have their rights protected when something goes wrong. The Senate agreed on that without a single objection. Now the legislation waits for the House. Members are scheduled to return November 9, leaving a relatively short post-election window to act before the current Congress ends. Whether House leaders will make the TAS Act a priority during that window remains to be seen. 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Politics **Tags:** IRS reform bill, TAS Act, tax reform bill, Taxpayer Assistance and Service (TAS) Act --- ### [IRS Is Looking For Tax Volunteers. Here’s Why I Flew 4,300 Miles To Be One.](https://www.taxgirl.com/2026/10/01/irs-is-looking-for-tax-volunteers-heres-why-i-flew-4300-miles-to-be-one/) **Published:** October 1, 2026 **Author:** Kelly Phillips Erb **Excerpt:** The IRS is seeking VITA volunteers for the upcoming filing season. Here’s what I learned while preparing tax returns for free in rural Alaska. **Content:** *Greetings from balmy Anchorage, Alaska!* That’s how I started writing about my trip to Alaska last year. And yes, “balmy” was doing a lot of work in that sentence. ![Screenshot showing weather is 25 degrees](https://www.taxgirl.com/wp-content/uploads/2026/10/_20250227_091355_chrome-297x300.jpg) Anchorage was in the middle of an unusually warm spell—warm enough that the start of the Iditarod had been moved north to Fairbanks. But I wasn’t staying in Anchorage for long. I was headed to rural Alaska, where the “real feel” at our first village stop was forecast to be -1 degree Fahrenheit (spoiler: it got much colder as the week progressed). So what was a Philadelphia-area tax lawyer doing hauling snow pants, tax forms, and computer equipment across Alaska in February? Preparing tax returns. For free. I was part of a team of tax attorneys participating in a volunteer tax preparation program organized by the Alaska Business Development Center (ABDC) and conducted in partnership with the American Bar Association Section of Taxation and the IRS’s Volunteer Income Tax Assistance (VITA) program. ![Three tax attorneys in alaska](https://www.taxgirl.com/wp-content/uploads/2026/10/_20250301_202524-e1790885490462-1072x1200.jpeg)Tax attorneys and volunteers Karen Lapekas, Mandi Matlock and Kelly Phillips Erb. It turned out to be one of the most memorable experiences I’ve had as a tax professional. Now, as the IRS [issues its annual call](https://www.irs.gov/newsroom/the-irs-seeks-community-partners-and-volunteers-to-support-free-tax-services) for VITA and Tax Counseling for the Elderly (TCE) volunteers and community partners, I’ve been thinking about that trip again. In 2026, more than 84,500 VITA and TCE volunteers helped taxpayers file nearly 2.9 million tax returns at no cost, according to the IRS. The programs serve taxpayers across the country, including lower-income taxpayers, seniors, people with disabilities, taxpayers with limited English proficiency, and residents of rural communities like those in Alaska. While my VITA experience involved single-engine airplanes, snowmobiles, and some truly impressive winter gear, yours almost certainly won’t. ## What VITA Looks Like VITA has provided free tax preparation services for more than 50 years. TCE offers similar assistance, with a particular focus on taxpayers age 60 and older and on questions involving pensions and retirement. The programs largely rely on partnerships with local organizations. Last filing season, schools, nonprofits, financial institutions, faith-based groups, and other community organizations hosted approximately 9,000 VITA and TCE sites. In Alaska, ABDC was that community partner. Our team of three tax attorneys trained for weeks before flying to Anchorage, where we met our team leader and completed additional training. Then we headed out to the villages. We carried laptops, peripherals, intake forms, tax forms, and other supplies in a large tote that weighed about 50 pounds. Because taxpayer information is private, we couldn’t simply toss misprinted or unwanted documents along the way—we carried them with us until we could properly shred them. And since many of the communities weren’t connected by roads, we traveled between them by single-engine plane, pickup truck, and, occasionally, snowmobile. ![My commute home from the office in alaska](https://www.taxgirl.com/wp-content/uploads/2026/10/_20250302_110557-1200x900.jpeg)My commute home from the office in Alaska. We worked long days, typically 10 to 12 hours, though we stayed as long as taxpayers were waiting. One night, that meant working until nearly 1 a.m. The returns were interesting, too. We prepared returns for commercial fishermen, helped a whaleboat captain with her recordkeeping, and reported Alaska Permanent Fund dividends and other distributions. Since children can receive dividends, they can also have federal tax filing obligations. That meant that more than once, what initially looked like one taxpayer coming through the door turned into several returns for the same family. I clearly remember one taxpayer with a very simple return. She lived in Kotzebue, a community of about 3,000 people. The year before we arrived, she had spent nearly $2,000 to have her Form 1040 prepared. The commercial tax preparer charged about $500, but that wasn’t the expensive part: she had to fly 547 miles to Anchorage and stay in a hotel for a couple of nights while she waited to see whether the preparer had questions. There were no tax professionals in her village. That year, she’d heard on the local radio station that volunteers from the Lower 48 were coming to town to prepare tax returns for free. She was delighted. That experience changed how I think about access to tax preparation. It’s easy to assume that a taxpayer who needs help can simply hire someone, use tax software, or hop online to find an answer. But those options don’t work equally well for everyone. In another village, mail service had become unreliable after one postmaster died and the replacement quit. Without reliable mail—and with spotty internet access—getting tax documents could be difficult. ![Some areas of alaska were incredibly remote](https://www.taxgirl.com/wp-content/uploads/2026/10/20250302_125200-1200x900.jpg)Some areas of Alaska were incredibly remote. And sometimes technology isn’t the answer. In one case, we helped one taxpayer figure out how to obtain a paper Form W-2 directly from his employer. Another time, we used a courier to deliver a paper return (that could not be e-filed) to a village with a functioning post office so we could file it on time. We also saw the kinds of problems that show up everywhere, not just in Alaska: questions about the Earned Income Tax Credit and Child Tax Credit, name mismatches, injured spouse claims, and errors on prior-year returns. One taxpayer had used DIY software and incorrectly reported rental income. Her husband, who had recently died, had always handled those matters for her. We couldn’t fix everything on the spot, but we could identify the problem and direct her to a clinic that could help. She was so grateful that she cried. That’s the part of VITA that doesn’t show up in the statistics. Tax preparation involves numbers and forms, of course, but it also involves listening. People tell you about jobs, marriages, divorces, children, and deaths. Sometimes they need help with a tax form. Sometimes they need someone to tell them what to do next. You can learn a lot about a person from a tax return. ## You Don’t Have To Be A Tax Pro Here’s the good news if that sounds interesting but you don’t have an LL.M. in Taxation: You don’t need one. In fact, you don’t need any prior tax experience to volunteer. The IRS provides free training for a variety of VITA and TCE roles based on volunteers’ skills, interests, and availability. Some volunteers prepare returns, while others serve as greeters, interpreters, quality reviewers, or in other support roles. Depending on the site, flexible hours and virtual opportunities may also be available. For those who want to prepare returns, training and certification are part of the process. That’s an important distinction: VITA doesn’t simply hand someone a stack of Forms 1040 and wish them luck. Experienced tax professionals are welcome, too. I found the experience enormously valuable even after years of practicing and writing about tax law. The tax issues were interesting, but what stayed with me was seeing how the tax system works—or sometimes doesn’t—for people whose circumstances were very different from those of many of my clients back home. You also don’t have to fly 4,300 miles to participate. VITA and TCE sites operate in community centers, libraries, schools, and other locations nationwide. Organizations can get involved, too. The IRS is looking for schools, nonprofits, financial institutions, faith-based groups, and other organizations willing to host or sponsor VITA and TCE sites. These partnerships help bring free tax preparation services to communities where they’re most needed. ## How To Get Involved The IRS encourages people interested in volunteering for the upcoming filing season to sign up between October and January. After submitting the [VITA/TCE volunteer and partner sign-up form](https://freetaxassistance.for.irs.gov/s/sign-up-form), prospective volunteers should receive information about local sites and an invitation to a virtual orientation, typically within two weeks. Organizations interested in becoming partners can use the same sign-up process. An IRS relationship manager will follow up to discuss next steps. And if you’re wondering whether people really will show up for free tax preparation, I can answer that. Near the end of our Alaska trip, a blizzard hit Point Lay. The weather was bad enough that school was closed, and our plane was temporarily grounded. The forecast warned of dangerously cold wind chills, and the official measurement eventually hit -62 degrees Fahrenheit. Taxpayers still came to the community center. ![The view during the blizzard](https://www.taxgirl.com/wp-content/uploads/2026/10/20250228_094351-1200x900.jpg)The view during the blizzard. I asked one couple why they would venture out in that weather just to file their taxes. They looked surprised by the question. “My taxes are my civic duty,” one of them told me. “I’ve done them for 30 years, why stop now?” I’ve written about taxes for a long time, and I still think about that answer. If you’d like to help someone fulfill that civic duty this filing season, the IRS is looking for volunteers. 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"Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=IRS%20Is%20Looking%20For%20Tax%20Volunteers.%20Here%E2%80%99s%20Why%20I%20Flew%204%2C300%20Miles%20To%20Be%20One.&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual, Interviews and People, IRS News, Tax Professionals **Tags:** Alaska Business Development Center (ABDC), Tax Counseling for the Elderly, TCE, VITA, Volunteer Income Tax Assistance (VITA) program --- ### [I Timed 188 Calls to the IRS. Here's Where the Time Actually Went.](https://www.taxgirl.com/2026/10/02/i-timed-188-calls-to-the-irs-heres-where-the-time-actually-went/) **Published:** October 2, 2026 **Author:** Angeline Balsitis **Excerpt:** An enrolled agent tracked 188 calls to the IRS. See how much time she spent waiting, where the delays happened, and what taxpayers should know before calling. **Content:** Everyone who has called the IRS has a story about being on hold. I wanted an actual figure instead of a story. So from June 9 to September 25, 2026, I recorded every working call I placed to the IRS and timed it. There were 188 of them. These were ordinary calls, the kind I make every week as an enrolled agent, a tax professional licensed by the IRS to represent taxpayers. Most went to the Practitioner Priority Service line, the phone line for tax pros calling about clients who have signed a Form 2848 (Power of Attorney). Think of it as a permission slip that lets me talk to the IRS about someone else’s account. On the calls, I was pulling transcripts (the IRS record of an account), checking balances, or setting up payment plans. Real work, for real people. Each of my call recordings is transcribed with timestamps. Any silence of 30 seconds or longer counted as waiting. Short silences did not count, so every waiting figure here is a little smaller than the truth. ## **Where 92 Hours Went** Add up all 188 calls, and I spent 92 hours on the line with the IRS this summer. That is more than two full work weeks. About 74 of those hours were waiting. For every minute I actually spoke with someone, I waited four. What surprised me was where the waiting happened. I expected the front door to be the problem, the long stretch of music before anyone answers. It wasn’t. The bigger wait came after someone picked up. Picture a deli counter. You take a number and wait your turn. That’s the queue. Then you reach the counter, place your order, and the person behind it walks into the back to find what you asked for. You stand there. On my calls, that second wait took nearly twice as long as the first. Getting through was usually quick. Half my answered calls reached a person in under two minutes. But one in ten sat in the queue for more than half an hour, and the worst took an hour and 45 minutes, on September 11. Another one in five never connected at all. Once someone did pick up, the average call ran 36 minutes. About seven minutes of that was conversation. ![Irs call time breakdown where 92 hours on the phone went 188 calls june to september 2026](https://www.taxgirl.com/wp-content/uploads/2026/10/2026-10-01-at-44626-pm-1200x371.png)Graph courtesy of Clarity Tax Relief. ## **What the Hold is For** I want to be fair to the IRS employees on the other end. In my transcripts, the hold after pickup is almost always the employee going to look something up: pulling an account transcript, finding a payment, or confirming a figure before saying it out loud. It is like a librarian who walks into the stacks to get the book you asked for instead of guessing at what is in it. Slow, but I would rather have it done right. But the wait is still time taken away from actual tax work, and it fell heaviest at the end of summer. I broke the answered calls down by month. In June, the average queue wait was 14 minutes, and the average hold during the call was 17. July was the easy month: three minutes in the queue, 10 on hold. August crept back up, with seven minutes in the queue and 19 on hold. September was 28 minutes in the queue and 40 minutes on hold. ![Irs hold times by month per answered call 2026](https://www.taxgirl.com/wp-content/uploads/2026/10/2026-10-01-at-44218-pm-1200x447.png)Graph courtesy of Clarity Tax Relief. On September’s averages, a single answered call ran about 77 minutes: 28 minutes waiting for a person, 40 minutes on hold once I had one, and nine minutes of talking. Four of my six longest queue waits landed in September. In July, no single week of mine topped two hours of queue time. From late August through the middle of September, most weeks ran three to five hours. I can guess at why. The federal fiscal year ends September 30, and extended partnership and S corporation returns are due in September. My data cannot prove either of those is the cause. It can only show the wait got longer, and it did. A few honest limits: These are one practitioner’s calls, not a random sample. I did not time the public lines that individual taxpayers call. And almost all of my calls were placed in the same morning window, so I cannot tell you the best time of day to dial. I wish I could. ## **What To Do Before You Dial** If you are a taxpayer and not a tax pro, some of this still helps, especially with the October 15 extension deadline coming up and the phones likely to stay busy. Check your IRS Online Account first. Your balance, your payment history, and your transcripts are all there, and a lot of the questions people call about can be answered on that screen with no hold music at all. Many people who qualify can [set up a payment plan online](https://claritytaxrelief.com/blog/how-set-up-irs-payment-plan-online/) too. If you do have to call, have three things ready: the notice you received, your most recent tax return, and your list of questions. The IRS verifies who you are before it will discuss anything, and every detail you have to go find while the employee waits turns into another hold. [When the system offers a callback](https://claritytaxrelief.com/blog/irs-callback-service-how-it-works/), take it. Block an hour, not ten minutes. Plan on two attempts, because one call in five never connected for me. And keep in mind that penalties and interest do not pause while you wait. Every day the problem sits, it gets slightly bigger. If you would rather not spend the hour yourself, an authorized representative can call for you. Form 2848 lets a tax pro speak and act on your behalf. Form 8821 grants access to your tax information, but does not authorize the person to represent you before the IRS. Either way, the person making the call should have the same three items in hand. At my firm, we time all our calls. If you want the full method and the tables, they are at <https://claritytaxrelief.com/blog/irs-hold-times-study-188-calls/> and are free to use or check. For now, this is what I know for sure: in 188 calls, four minutes of every five were spent waiting. Bring a book. *Angeline Balsitis is an enrolled agent at Clarity Tax Relief, where she handles IRS collection matters. She has also written on IRS collection trends for Tax Notes’ Procedurally Taxing (“More Liens and Levies, Fewer Seizures: Three Years of Collection Data”).* [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=I%20Timed%20188%20Calls%20to%20the%20IRS.%20Here%E2%80%99s%20Where%20the%20Time%20Actually%20Went.&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2026%2F10%2Fpexels-tu-nguyen-477344610-19504831.jpg&p%5Btitle%5D=I%20Timed%20188%20Calls%20to%20the%20IRS.%20Here%E2%80%99s%20Where%20the%20Time%20Actually%20Went. 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"Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=I%20Timed%20188%20Calls%20to%20the%20IRS.%20Here%E2%80%99s%20Where%20the%20Time%20Actually%20Went.&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Guest Posts, Tax Professionals **Tags:** Angeline Balsitis, IRS hold times, IRS holds, IRS phone calls, IRS wait times --- ### [Trump Accounts Are Going Automatic. Here's What Families Need To Know.](https://www.taxgirl.com/2026/09/30/trump-accounts-are-going-automatic-heres-what-families-need-to-know/) **Published:** September 30, 2026 **Author:** Kelly Phillips Erb **Excerpt:** New Treasury rules will automatically establish Trump Accounts for millions of children. Here’s what parents need to know about contributions, investments, and the $1,000 pilot. **Content:** Millions of children will soon receive Trump Accounts—even if their parents never signed them up. Under [temporary regulations](https://www.federalregister.gov/documents/2026/09/30/2026-20026/trump-accounts) issued by the Treasury Department and the IRS, Treasury will begin automatically establishing Trump Accounts on or about October 1, 2026, for children it determines are eligible and for whom an account has not already been established. That’s a change from the rules proposed earlier this year. In March, Treasury and the IRS declined to automatically open accounts, in part because of concerns about disclosing taxpayer information protected by federal law. Now, Treasury says it has found a way to do so. Automatic accounts aren’t the only change. New rules also allow certain governmental entities and tax-exempt organizations to fund entire groups of children, including, in some cases, with publicly traded stock. Here’s what families need to know. ## First, What Is A Trump Account? Trump Accounts were created by the One Big Beautiful Bill Act (OBBBA), signed into law in July 2025. They are sometimes called 530A accounts because they were created under section 530A of the tax code (following section 529, which established 529 plans for education). Trump Accounts are tax-advantaged savings accounts for children. Generally, an account can be established for a child who has not turned 18 before the end of the calendar year in which the election is made and who has a valid Social Security number. A parent, guardian, or other authorized individual can make the election. During the account’s “growth period”—essentially through December 31 of the year the child turns 17—special rules apply. Among other things, limits apply to contributions, investment options, and when funds can be withdrawn. Beginning in the calendar year the child turns 18, most of those special rules fall away, and traditional IRA rules generally apply. That means that distributions may be taxable, and the 10% additional tax on early IRA distributions can apply unless an exception (such as one for certain higher-education expenses or a first-home purchase) is available. ## Does Every Child Get $1,000? Not every child will receive the $1,000 seed money. The one-time federal contribution will be paid to children who: - are born in 2025, 2026, 2027, or 2028; - are U.S. citizens; - have a Social Security number; and - otherwise satisfy the pilot program’s requirements. Most importantly, someone must elect for the child to receive the $1,000. That means Treasury’s automatic creation of an account does not, by itself, mean the $1,000 will land in the account. Think of these as two separate steps: Treasury can automatically create the account, but the $1,000 pilot contribution still requires an election, which you can make on Form 4547, including electronically through an [IRS Individual Online Account](https://www.taxgirl.com/2026/07/25/how-to-create-and-use-an-irs-online-account/). ## So What’s Changing October 1? Originally, Treasury expected parents and other authorized individuals to take the lead in opening Trump Accounts. But section 6103 of the tax code, which protects tax return information from disclosure, appeared problematic. In fact, in its March proposed regulations, Treasury said those privacy restrictions posed legal and administrative challenges to opening accounts automatically. Treasury has now changed course. Under the temporary regulations, Treasury will make elections automatically for qualifying children for whom no prior election has been made. Treasury will then make additional elections periodically for children who become eligible later. ## How Can Treasury Open An IRA Without A Parent? An automatically established Trump Account remains a separate individual account belonging to the child, with separate account-level records. However, the assets attributable to auto accounts are invested collectively through a master group trust. Each auto account holds an undivided, proportionate beneficial interest in the trust investments attributable to that account. Treasury says this structure addresses the section 6103 problem because the trustee can transact at the master-trust level without receiving account-identifying return information for each beneficiary for each transaction. In other words, the individual accounts remain separate for recordkeeping and ownership purposes, but the assets are pooled for investment and administration. ## What Can Go Into An Automatic Account? During the growth period, an auto account can generally receive two types of funds: - Qualified general contributions. These are broad-based contributions from eligible governmental entities or qualifying tax-exempt organizations. The donor funds Treasury, which then makes equal contributions to the Trump Accounts of beneficiaries in the applicable class. - The $1,000 pilot contribution. This is the federal contribution available for qualifying children born from 2025 through 2028—but only if the required election has been made. Parents, grandparents, and other individuals can’t simply contribute to an unclaimed auto account—someone authorized to act for the child must claim it. ## How Does a Responsible Party Take Control? A guardian or legal custodian (or the beneficiary, if legally able) can claim an auto account. The process requires identity verification and proof of legal authority to receive the child’s protected tax information under section 6103. Once the process is complete and a receiving account is established, you can transfer the entire auto account balance to a qualifying Trump Account. ## How Much Can Families Contribute? During the growth period, ordinary contributions are generally capped at $5,000 per year, with inflation adjustments beginning after 2027. That $5,000 limit applies to all ordinary contributions, not to each person who contributes. So Mom, Dad, Grandma, Grandpa, and anyone else don’t each get their own $5,000 limit. Certain contributions don’t count toward the cap. These include the $1,000 federal pilot contribution, qualified general contributions, and qualified rollover contributions. Employers may also contribute. Under a separate provision of the law, qualifying employer contributions can be excluded from an employee’s income, up to $2,500 annually, although they generally count toward the $5,000 annual contribution limit. ## How Is The Money Invested? During the growth period, Trump Accounts have narrow investment rules. Cash must generally be invested in mutual funds or exchange-traded funds that track qualifying broad U.S. equity indexes. The fund can’t use leverage, and annual fees and expenses generally can’t exceed 0.1%. So this isn’t an account where a parent can ordinarily pick individual stocks, cryptocurrency, bonds, or a favorite actively managed mutual fund. The new regulations create an exception to the general cash-contribution rule for qualified general contributions, allowing certain contributions to be made with “qualified stock.” Generally, qualified stock is stock issued by a domestic corporation, listed on a registered national securities exchange, and not subject to a pre-existing transfer restriction. This doesn’t mean Grandma can transfer a few shares of Apple directly into Junior’s account. The rule only applies to qualified general contributions. And the stock comes with strings attached. Generally, contributed stock cannot be sold until the earlier of five years after the contribution or the end of the child’s growth period. Exceptions include certain rollovers, tender offers, and corporate acquisitions. ## Who Can Get Additional Contributions? Under the statute, a qualified class may consist of all beneficiaries still in the growth period, all such beneficiaries in one or more specified states or qualified geographic areas, or all such beneficiaries born in one or more specified calendar years. The temporary regulations go further by creating an “approved class” that combines the geographic and birth-year criteria. For purposes of the qualified-general-contribution rules, Treasury will treat that approved class as a qualified class. An approved class must include at least 5,000 beneficiaries and must include all account beneficiaries who satisfy the specified criteria. For example, an approved class could include children born in specified years who live in a particular state or other qualifying geographic area. These additional contributions don’t count against the child’s ordinary $5,000 annual contribution limit. ## Why Did Treasury Issue Temporary Regulations? Normally, federal regulations go through a notice-and-comment process before taking effect. Instead, Treasury issued temporary regulations that take effect immediately and simultaneously issued substantially identical proposed regulations for public comment. The agency invoked the “good cause” exception under the Administrative Procedure Act. It reasoned that delaying the rules would delay automatic enrollment, account administration, contributions, and transfers. That would then reduce the time children’s money has to grow. The temporary regulations apply to taxable years beginning on or after January 1, 2026. Treasury also withdrew the Trump Account regulations it proposed in March. ## What’s Still To Come? These regulations primarily address the establishment and administration of accounts, automatic enrollment, and qualified general contributions. Other aspects of the new accounts remain the subject of separate guidance and proposed regulations, including employer contributions and additional rules governing investments, distributions, reporting, and coordination with other tax provisions.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Trump%20Accounts%20Are%20Going%20Automatic.%20Here%E2%80%99s%20What%20Families%20Need%20To%20Know.&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2026%2F09%2Fpefertig-piggy-bank-621068_1280.jpg&p%5Btitle%5D=Trump%20Accounts%20Are%20Going%20Automatic.%20Here%E2%80%99s%20What%20Families%20Need%20To%20Know. 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"Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Trump%20Accounts%20Are%20Going%20Automatic.%20Here%E2%80%99s%20What%20Families%20Need%20To%20Know.&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual, Investing **Tags:** 530A accounts, how to open a Trump account, Trump accounts --- ### [Getting To Know You Tuesday: Tom Bazley](https://www.taxgirl.com/2026/09/29/getting-to-know-you-tuesday-tom-bazley/) **Published:** September 29, 2026 **Author:** Kelly Phillips Erb **Content:** Thomas E. Bazley, CPA, is a tax professional with more than 25 years of experience. Tom serves in the National Tax Office at Weaver, where he works on complex federal tax matters involving closely held businesses, retirement benefits, and individual and fiduciary tax planning. His work often puts him at the intersection of income and transfer taxes—particularly when the law is unsettled, and there isn’t an obvious answer. Before joining Weaver, Tom was BDO’s Estate, Gift and Trust Practice Leader for its Florida offices. He’s also a frequent speaker and CPE instructor and has written for *The Tax Adviser*. But tax professionals are more than tax. So, let’s get to know Tom. ## In His Own Words **1. Where are you right now?** Sitting in my home office in Lakeland, Florida. **2. What’s your official title, and what do you actually do?** I am the Private Client Services Technical Practice Leader. I serve as an internal technical resource on income and transfer tax matters related to high-net-worth and high-earning families. **3. Where did you go to school, and what did you study?**  University of North Florida in Jacksonville, and I majored in accounting. **4. How did you end up in tax?** While I was attending college, I worked for a small, local firm. I worked on a lot of audits. Audit work bored me. At the same time, I found my tax classes fascinating. **5. What was your first real job?** Ever? At 16, I was a stock boy at Pic N’ Save making $3.35/hr. My first job in this profession was the aforementioned staff accountant, doing audit and write-up work for a local practitioner. **6. What’s one thing people might be surprised to learn about you?** My Apple Music playlist runs the gamut, from Samuel Barber’s “Adagio for Strings” to AC/DC’s “Shook Me All Night Long” to MC Hammer’s “U Can’t Touch This.” **7. If you weren’t working in tax, what would you be doing?** If I knew at age 23 what I know now, I’d have gone to law school. I think litigating complex tax matters would be exciting. **8. What’s the best piece of tax, money, or career advice you’ve ever received?** Focus on mastering one or two areas and being THE go-to person in those spaces. Don’t be a jack of all trades, master of none. **9. What tax issue do you think is getting too much attention right now?** Trump Accounts. **10. What tax issue isn’t getting enough attention?** Footnote 102 from the Joint Committee on Taxation’s Blue Book and the impact of the repeal of § 68(e). (*Note from Kelly*: More or less, Footnote 102 says that, because Congress removed a special exception for trusts and estates, the new limit on certain deductions now applies to them, too.) **11. What’s the biggest tax myth you’d like to bust?** “I didn’t think I’d owe tax when I inherited money from my parents.” You don’t owe tax on what you inherited. You owe tax on the income generated by what you inherited. (*Note from Kelly:* In addition to the distinction between income and inheritance tax that Tom makes, it’s worth noting that in 2026, only five states—Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania—have an inheritance tax. Iowa repealed its inheritance tax for deaths occurring on or after January 1, 2025.) **12. What’s a tax question you wish people would ask you more often?** To be honest, what I wish people would ask is anything that follows, “Before I do this…” **13. What’s one tax rule you would change if you could?** Carried interests would be taxed at ordinary income rates. (*Note from Kelly:* Currently, carried interest generally allows investment fund managers to pay lower long-term capital gains tax rates on qualifying profits.) **14. What’s one non-tech thing in your office that you couldn’t do without?** For Father’s Day, my wife gave me a huge collage of photos of our daughters taken while they were attending the University of Florida. Various things like them at games, their dorm rooms, events, etc. It hangs on my wall to my right. It combines three of my favorite things in life… the Florida Gators and my two daughters. **15. Which tech tool, platform, or software do you rely on most in your practice?** Checkpoint and BNA Tax Research are open all day, every day. **16. What’s the best use of AI in tax or tax practice?** I can get a simple question from a colleague, feed it to an AI tool, get the answer, and have the tool draft the response. What used to take 15-20 minutes now takes 3-5. I get to focus on more complex issues that warrant more of my attention. **17. What are you watching right now (streaming or otherwise)?** It’s college football season. There’s your answer. Outside of that, Reacher. **18. Coffee or tea?** Iced tea. **19. Pancakes or waffles?** Waffles. **20. If you received an unexpected tax refund tomorrow, what would you do with it?** My youngest is still in grad school. Any unexpected money is spoken for by that current life fact. You can find out more about Tom on [Weaver’s website](https://weaver.com/about/people/thomas-e-bazley/) and [on LinkedIn](http://www.linkedin.com/in/tombazleycpa). ## About Getting to Know You If you’d like to recommend a tax pro to be featured, send your suggestions to [gtky (at) taxgirl (dot) com](mailto:gtky@taxgirl.com) with the subject: Getting to Know You Tuesday. Self-nominations are totally okay and encouraged! If you’ve submitted a nomination before, feel free to send it again. I’ll consider all submissions, even those that were selected, so long as they were more than three years ago.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Getting%20To%20Know%20You%20Tuesday%3A%20Tom%20Bazley&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2026%2F09%2F_1033.jpeg&p%5Btitle%5D=Getting%20To%20Know%20You%20Tuesday%3A%20Tom%20Bazley "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Getting%20To%20Know%20You%20Tuesday%3A%20Tom%20Bazley "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Getting%20To%20Know%20You%20Tuesday%3A%20Tom%20Bazley&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Getting to Know You Tuesday, Tax Professionals **Tags:** getting to know you tuesday, Tom Bazley --- ### [You Be the Tax Judge: The Verdict on Influencer Celebrity Expenses](https://www.taxgirl.com/2026/09/29/you-be-the-tax-judge-the-verdict-on-influencer-celebrity-expenses/) **Published:** September 29, 2026 **Author:** Kelly Phillips Erb **Excerpt:** The Tax Court weighs in on whether an influencer can deduct celebrity meet-and-greets, event tickets, and other experiences as business expenses. **Content:** The votes are in. You [overwhelmingly](https://www.taxgirl.com/2026/09/25/you-be-the-tax-judge-can-an-influencer-deduct-celebrity-experiences/)—74%—chose: > (C): Some of them could be. Whether an expense is deductible should depend on the particular experience and its connection to the influencer business. Now, what did the Tax Court say? In [Sami v. Commissioner](https://dawson.ustaxcourt.gov/case-detail/16512-23), T.C. Memo. 2026-69, Judge Elizabeth Copeland agreed with you (mostly) and ruled that Suleiman Sami could not deduct the costs of attending the Grammys and Emmys, meeting celebrities, and participating in other exclusive experiences as ordinary and necessary business expenses. But the court didn’t hold that influencers can never deduct expensive—or even fun—experiences as business expenses. Instead, the decision came down largely to something much more familiar in tax law: Why did the taxpayer really spend the money? ## Business Or Pleasure? Section 162 generally allows taxpayers to deduct ordinary and necessary expenses paid or incurred in carrying on a trade or business. However, an expense that provides some benefit to a business isn’t automatically deductible. This is especially important when an expense has both personal and business elements (which, let’s face it, is often the case when you are self-employed). Sami argued that the celebrity experiences were marketing expenses. He testified that he attended events and met celebrities to create content, attract followers, and increase engagement on his social media accounts. There was evidence that the strategy worked—at least in terms of attention. For example, after Sami posted a photo with actor Tom Holland, he saw increased engagement and inquiries from people wanting to know how to meet Holland or Zendaya. The court also acknowledged that Sami posted photos and videos from his celebrity encounters, and that those posts may have increased his followers and views. But that wasn’t enough. The question wasn’t simply whether Sami’s experiences produced content or benefited his social media presence. The court looked at his primary motivation for incurring the expenses. In this case, Judge Copeland concluded that Sami’s reasons were primarily personal rather than business-related. ## Posting About It Doesn’t Make It A Business Expense That’s an important distinction for influencers and, increasingly, for anyone who creates content as part of a business. The court offered a useful hypothetical. Imagine a comedian who takes a European vacation and returns with terrific material for her act. The fact that the trip ultimately yields useful material doesn’t make the vacation a deductible business expense. The same principle applies here. Sami pointed out that he even posted about the experiences that didn’t make him look particularly impressive. For example, he shared a video of himself dropping a pass from Tom Brady and another video of his unsuccessful attempt to return a John McEnroe serve. He argued that his willingness to post embarrassing moments supported his claim that he was creating content rather than simply pursuing personal experiences. The court wasn’t convinced. Those experiences could still provide Sami with personal enjoyment, stories to tell, and the prestige of meeting famous people, even if the resulting content also attracted viewers. ## And Then There Were The Facts You Didn’t Know When I asked you to be the Tax Judge, I deliberately omitted a few facts. Here’s a big one: Sami originally claimed many of these expenses as charitable contributions. Some celebrity experiences were offered through charities. Sami initially treated payments for those experiences as charitable contributions on Schedule A. By the time the case reached the Tax Court, however, he had abandoned that argument and was claiming them as Schedule C marketing expenses. That change didn’t help his case. Another significant fact: although Sami described social media influencing as one component of his business, he earned no gross receipts from it in 2019, 2020, or 2021, the tax years before the court. Most, if not all, of his LLC’s revenue during those years came from providing transportation services, with possibly a small amount from selling event tickets. (Many of you pegged this issue as a key question in your social media responses.) By October 2025, Sami had amassed approximately 520,000 TikTok followers and 140,000 Instagram followers, and he was earning social-media revenue. But the court had to decide the tax treatment of expenses incurred years earlier. ## Could They Have Been Startup Costs? The court didn’t simply say, “No influencer income, no deduction.” Judge Copeland considered another possibility. If Sami incurred the expenses while trying to establish a social-media business that had not yet begun operating, the court suggested that they were more likely startup expenditures that would have to be capitalized under section 195, rather than currently deductible business expenses under section 162. Section 162 applies to expenses incurred in carrying on an existing trade or business. Expenses incurred before the business actually begins may fall under the startup-cost rules instead. But that argument required considerably more legal analysis than Sami presented, and the court declined to do it for him. ## Receipts Matter, Too There was one more problem: substantiation. If you’re a regular reader, you’re not surprised. I regularly stress keeping excellent records. That didn’t happen here. For many of the claimed expenses, Sami produced credit card or bank statements rather than receipts that clearly showed what he purchased and how it related to his business. One example was a $1,661.57 Ticketmaster charge that Sami identified as a marketing expense. There was no receipt identifying the event, no other evidence explaining what the charge covered, and no evidence of a social media post associated with it. Other records contained little more than PayPal usernames and transaction numbers. That wasn’t enough to substantiate the deductions. To be clear, you don’t necessarily need an original receipt to substantiate every business expense. A credit card or bank statement can help establish that you spent the money, but that may not be enough by itself. Your records also need to establish what you purchased and its connection to your business—I recommend annotating it contemporaneously where possible. In this case, the recordkeeping issue was especially notable because Sami holds both bachelor’s and master’s degrees in accounting and previously worked in risk assurance at PwC. The court later cited his accounting background when rejecting his reasonable-cause defense to the accuracy-related penalties. ## Counsel Weighs In Frank Agostino of Kostelanetz LLP, who represented Sami, agrees that “the Tax Code demands contemporaneous documentation of business purpose, business strategy, and the connection between expenses and revenue.” Agostino disagreed with the court’s finding that Sami’s enjoyment of the experiences was a primary motivation. “So what?” Agostino counters. “The Tax Code doesn’t require that a business activity be unpleasant to be deductible. A trial lawyer enjoys staying at nice hotels during depositions; a consultant enjoys first-class flights.” Agostino argues that the relevant standard is whether there’s a genuine expectation of profit and, importantly, the realistic potential to generate it. “In creator economy businesses,” he explains, “there is no separation between building audience and producing revenue. Content creation is the product. Sami didn’t buy experiences to enjoy them personally, then later monetize; he bought them to create content that monetized. Every story, every post, every experience documented contributed to audience growth.” The engagement itself was the currency. Agostino adds, “The next creator who maintains proper records, who documents business strategy, who ties expenses to business goals in real time, will win.” ## What The Case Does—and Doesn’t—Say The case does not stand for the proposition that influencers can’t deduct unusual experiences, event tickets, or other costs associated with creating content. Nor did the Tax Court create a special set of deduction rules for influencers. To the contrary, the court noted that this was its first opportunity to apply these general principles to social-media-influencer expenses. The same tax rules that apply to other businesses apply to creators, too. An influencer doesn’t lose a deduction merely because an expense looks like fun. But posting about something doesn’t magically transform a personal expense into a business expense. The taxpayer still has to establish the connection between the expense and an existing trade or business, show that the expenditure was primarily business-motivated when personal considerations are involved, and keep records sufficient to substantiate the deduction. The ruling: Sami lost on the celebrity-experience deductions. But the decision leaves room for something considerably more interesting than a simple yes-or-no: under the right facts, a creator could have a legitimate business deduction for an experience that looks an awful lot like fun.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=You%20Be%20the%20Tax%20Judge%3A%20The%20Verdict%20on%20Influencer%20Celebrity%20Expenses&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2026%2F09%2Fpexels-karola-g-6333681-scaled.jpg&p%5Btitle%5D=You%20Be%20the%20Tax%20Judge%3A%20The%20Verdict%20on%20Influencer%20Celebrity%20Expenses "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=You%20Be%20the%20Tax%20Judge%3A%20The%20Verdict%20on%20Influencer%20Celebrity%20Expenses "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=You%20Be%20the%20Tax%20Judge%3A%20The%20Verdict%20on%20Influencer%20Celebrity%20Expenses&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Freelancers and Creators, Law and the Courts, Pop culture, You Be the Tax Judge **Tags:** business expenses, deductible expenses, Frank Agostino, social media, social media influence expenses --- ### [You Be the Tax Judge: Can An Influencer Deduct Celebrity Experiences?](https://www.taxgirl.com/2026/09/25/you-be-the-tax-judge-can-an-influencer-deduct-celebrity-experiences/) **Published:** September 25, 2026 **Author:** Kelly Phillips Erb **Excerpt:** Can a social media influencer deduct Grammy tickets, celebrity meet-and-greets, and other experiences as business expenses? You be the Tax Judge. **Content:** These days, being a social media influencer can be big business. And like other business owners, influencers may be able to deduct ordinary and necessary business expenses. But what happens when the business expense is also something most people would consider fun? Suleiman Sami operated several businesses, including a social media influencer business. Over several years, he built substantial followings on platforms including TikTok and Instagram. As part of his efforts to create content and attract attention online, Sami spent money attending high-profile events and meeting celebrities. Among his purchases were: - $10,000 for two Grammy tickets - $2,700 for two Emmy tickets - $8,912 for an experience with Benedict Cumberbatch - $4,151 for an experience with Matt Damon - $2,600 for an experience with Mark Ruffalo - $2,025 for a personalized video from Chris Evans - $6,500 for Tiger Woods’ Tiger Jam - $831 for the chance to catch a pass from Drew Brees - $779 for the chance to return a serve from John McEnroe - $425 to train and have lunch with Chuck Liddell There were other celebrity experiences, too, including opportunities involving Tom Brady and Tom Holland. Sami didn’t simply attend the events and go home. He took photos and videos and posted content from his experiences on social media. He argued that celebrity-related content attracted attention to his accounts, increased his visibility, and helped build his following. And there’s no question that social media can be a business. Influencers make money precisely because people watch, follow, and engage with their content. Creating content that attracts an audience can therefore have real commercial value. But the tax law doesn’t automatically turn an expenditure into a business deduction simply because someone posts about it online. Section 162 of the Tax Code generally allows taxpayers to deduct ordinary and necessary expenses paid or incurred in carrying on a trade or business. No matter the industry, the IRS uses that standard. Here’s what it means: - An **ordinary expense** is one that is common and accepted in your industry. It’s the one time that you care about what your competitors are doing. No matter what your mother says, it does matter whether everyone else is doing it, too. - A **necessary expense** is one that is helpful and appropriate for your trade or business. You don’t have to prove that you couldn’t be in business without the expense—more or less, it needs to make good business sense. For an expense to be deductible, it needs to be both. It complicates matters when an expense has both business and personal elements. Importantly, simply getting some business benefit from an expense doesn’t automatically make the entire cost deductible. Conversely, a legitimate business expense that also provides some personal enjoyment or benefit doesn’t necessarily disqualify the deduction. So here’s your case. Sami says these celebrity experiences helped him create the kind of content that attracts followers and builds an influencer business. The IRS says the costs aren’t deductible business expenses. **You be the Tax Judge.** Make your ruling before you read what the Tax Court decided. **Are Sami’s expenses for the Grammys, Emmys, celebrity meet-and-greets, and similar experiences deductible business expenses?** - A. Yes. Creating attention-getting content is part of an influencer’s business, and these expenses helped him do exactly that. - B. No. These are fundamentally personal or entertainment expenses, even if Sami later turned the experiences into social media content. - C. Some of them could be. Whether an expense is deductible should depend on the particular experience and its connection to the influencer business. [View Results](#ViewPollResults "View Results Of This Poll") Loading … [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=You%20Be%20the%20Tax%20Judge%3A%20Can%20An%20Influencer%20Deduct%20Celebrity%20Experiences%3F&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2026%2F09%2Fpexels-ivan-s-8117815-scaled.jpg&p%5Btitle%5D=You%20Be%20the%20Tax%20Judge%3A%20Can%20An%20Influencer%20Deduct%20Celebrity%20Experiences%3F "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=You%20Be%20the%20Tax%20Judge%3A%20Can%20An%20Influencer%20Deduct%20Celebrity%20Experiences%3F "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=You%20Be%20the%20Tax%20Judge%3A%20Can%20An%20Influencer%20Deduct%20Celebrity%20Experiences%3F&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual, Law and the Courts, You Be the Tax Judge **Tags:** business expenses, influencer, ordinary and necessary, social media, Suleiman Sami --- ### [Getting to Know You Tuesday: Bruce Purcell](https://www.taxgirl.com/2026/09/01/getting-to-know-you-tuesday-bruce-purcell/) **Published:** September 1, 2026 **Author:** Kelly Phillips Erb **Excerpt:** Meet Bruce Purcell, a former Marine and retired IT engineer who has been preparing tax returns for more than 50 years, from the U.S. to overseas. **Content:** It’s Getting To Know You Tuesday! ## About Bruce Purcell Bruce Purcell may have spent his career in IT, but taxes have been a constant for more than 50 years. He started preparing tax returns in the 1970s while serving in the Marines, helping fellow Marines—many of them young and filing for the first time—with their returns. Tax prep remained a side gig even as Bruce built a career as a systems and network engineer, working in education, government, health care, and freelance roles. His career also took him overseas to Switzerland and the United Arab Emirates, where he prepared returns for fellow expats. After retiring from IT in 2017 and settling in Idaho, Bruce turned his attention more to taxes, eventually preparing as many as 750 returns a year for a large tax preparation company. He now focuses on providing a lower-cost option for families and younger taxpayers who want professional help without a hefty price tag. So, let’s get to know Bruce. ## In His Own Words 1. **Where are you right now?** Right now I am sitting at my office desk. I’ve been working on tax returns for clients that had submitted extensions and are now ready to file. 2. **What’s your official title, and what do you actually do?** My most official title is Tax Preparer, as that is my largest business. However, I’m also an IT Professional, an event worker, a trivia and music bingo host and a wedding officiant. As I’m currently working seven different jobs, I’ve given myself the title of gig-olo. 3. **Where did you go to school, and what did you study?** I went to high school in Sacramento, California. Rather than go to college, I joined the Marine Corps and went to work in the family business while serving in Marine Corps Reserve. I finally decided to finish my college degree in Information Systems Management at the age of 52. 4. **How did you end up in tax?** I started with my own return when I was 14. My father hired me in the family business to earn money for a school trip to Europe. When I noticed that he had withheld money for taxes, I protested. He responded, “Figure it out,” and handed me the 1040 pamphlets. Once my friends got jobs, I did returns for them as well. When I joined the Marine Corps (at the age of 17), I prepared returns for young Marines like me – they had never filed before. After that, it was natural to just stay with it, and I did returns for friends/families/neighbors as a side job – about 50 returns per year. Once I retired, I wanted to see if I really knew anything about taxes as I’d never had any formal education in it, so I took a course from H&R Block. This led to a job offer, so I worked for them for four seasons. I left HRB to start my own little business, which I’ve been doing for four seasons now. 5. **What was your first real job?** My first real job (can’t count the family business – that was more of an excuse to pay me than it was a real job) was at a company called Flasher SCA (yes, real name – I thought it was funny then as well). I had enrolled in typing and shorthand in high school. My teacher’s husband ran Flasher SCA. They wanted a guy that could type – they wanted to be able to swear and tell dirty jokes and didn’t feel comfortable doing this around a young woman. Remember – it was the 70s. I ended up in their warehouse as well, repairing road construction signs and equipment and delivering to sites. 6. **What’s one thing people might be surprised to learn about you?** That I worked as a college professor, an executive administrator at a major university and as an IT engineer installing international networks and systems – all without a college degree. 7. **If you weren’t working in tax, what would you be doing?** All of my other gigs I suppose and perhaps others. Even at 68, I don’t like sitting still long. As it is, I love all of my gigs and especially the tax business. 8. **What’s the best piece of tax, money, or career advice you’ve ever received?** Research the tax law and don’t be afraid to stand up for what’s right. By the same token, don’t be afraid to admit when you’re wrong. 9. **What tax issue do you think is getting too much attention right now?** Trump accounts. Holy cow, the number of people that hate these accounts just because of the name on them is astounding. Really, the evaluation needs to be done based on what they are and how they can serve you. I generally compare them to 529 options for clients. 10. **What tax issue isn’t getting enough attention?** Social Security. I support the idea of not taxing it and most states don’t tax it at the state level. I believe it was the right idea to try and eliminate it at the federal level as well. 11. **What’s the biggest tax myth you’d like to bust?** That once you hit a certain age you don’t have to pay taxes anymore. I get that question multiple times per year. 12. **What’s a tax question you wish people would ask you more often?** How can I best save for retirement? I would love to hear more interest in 401k, 401 Roth, IRA, Roth IRA and the additional options for the self-employed. Too many people think they can’t afford it and decide to start “later,” and “later” is often much later than it should be. 13. **What’s one tax rule you would change if you could?** I would eliminate taxes on Social Security. I know – it wasn’t truly taxed the first time. But it feels like it is and it’s known as a tax. Anyway, I support giving seniors that break. 14. **What’s one non-tech thing in your office that you couldn’t do without?** Tough choice. First is my jar of peanuts – I have to have my protein while working. 😊 Second would be my pens. I hand them out at events I host and in my office as advertising. 15. **Which tech tool, platform, or software do you rely on most in your practice?** That would be my tax software – OLTPro. 16. **What’s the best use of AI in tax or tax practice?** First-line data entry. Perhaps intake, but I really don’t like removing the personal touch there. I don’t think any return should go out unless it’s been reviewed by a person. 17. **What are you watching right now (streaming or otherwise)?** Star Trek (TOS) and Elsbeth 18. **Coffee or tea?** Coffee – espresso in particular. 19. **Pancakes or waffles?** Pancakes. I’ve just never been a fan of waffles. 20. **If you received an unexpected tax refund tomorrow, what would you do with it?** Figure out where it came from! If I didn’t think I was going to have to return it, then it’s time for a cruise! You can find out more about Bruce on [his website](https://www.purcell.us) and on [Facebook](https://www.facebook.com/PurcellTaxServices). ## About Getting To Know You If you’d like to recommend a tax pro to be featured, send your suggestions to [gtky (at) taxgirl (dot) com](mailto:gtky@taxgirl.com) with the subject: Getting To Know You Tuesday. Self-nominations are totally okay, and encouraged! If you’ve previously submitted a nomination, please feel free to send it again. I’ll consider all submissions, even those that were selected, so long as they were more than three years ago.  [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Getting%20to%20Know%20You%20Tuesday%3A%20Bruce%20Purcell&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2026%2F09%2Fbruce-purcell.png&p%5Btitle%5D=Getting%20to%20Know%20You%20Tuesday%3A%20Bruce%20Purcell "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Getting%20to%20Know%20You%20Tuesday%3A%20Bruce%20Purcell "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Getting%20to%20Know%20You%20Tuesday%3A%20Bruce%20Purcell&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Getting to Know You Tuesday, Tax Professionals **Tags:** Bruce Purcell, getting to know you tuesday --- ### [Getting to Know You Tuesday: Samantha M. Besnoff](https://www.taxgirl.com/2026/09/08/getting-to-know-you-tuesday-samantha-m-besnoff/) **Published:** September 8, 2026 **Author:** Kelly Phillips Erb **Excerpt:** Getting To Know You Tuesday: Meet Samantha M. Besnoff, CPA, owner of Your Financial Maven®, and learn about her career in accounting and financial education. **Content:** It’s Getting to Know You Tuesday! ## About Samantha M. Besnoff Samantha M. Besnoff, CPA, is the owner of Your Financial Maven® LLC, a client advisory accounting and tax practice based in Lititz, Pennsylvania. Samantha has spent more than 30 years in accounting, with experience spanning the public, private, corporate, nonprofit, and government sectors. She started her career as an auditor with the Pennsylvania Department of Revenue before eventually striking out on her own, where she now focuses primarily on helping entrepreneurs and small business owners with tax and accounting matters. Samantha has also expanded her work beyond traditional accounting into financial education. She’s an independent life insurance agent and the host and producer of the Your Financial Maven® podcast, which earned a w3 Gold Podcasting Award in 2025. She was also named one of the PICPA’s (Pennsylvania Institute of Certified Public Accountants) Women to Watch in 2023. When she’s not talking taxes, accounting, or financial empowerment, Samantha enjoys spending time with her husband and sons, playing with the family’s fur baby, and—as a Pennsylvania resident with her priorities properly in order—going down the shore. So, let’s get to know Samantha. ## In Her Own Words 1. **Where are you right now?** I live in Lititz, PA, and have for the last 31 years. Grew up in the suburbs of Philly, though. 2. **What’s your official title, and what do you actually do?** CPA/Owner, Independent Life Insurance Agent, and Podcast Host/Producer. I do client advisory services for small businesses, especially women in business, in accounting and tax. 3. **Where did you go to school, and what did you study?** University of Pittsburgh, winter class of ’94. BS in Business Accounting. I have also obtained several Master Certificates over the years in various business-based courses. 4. **How did you end up in tax?** I actually fell in love—yes, fell in love—with tax when I joined a local accounting firm, Simon Lever CPAs, in Lancaster, in the early 2000s, in their tax department. The managers and partners I worked with were amazing and taught me so much. And since most things were still done by hand or with limited computer work, I learned a lot. I ended up there for only one tax season because I started my family, but a year after having my son, I became a tax preparer for another local accounting firm, working only during tax season. I did that for another four years before moving on to become an Executive Director for a local nonprofit. Towards the end of my time as an Executive Director, I realized that I wanted to get back into tax work and started a side business doing individual tax work. 13 years ago, I took the leap and went out on my own. 5. **What was your first real job?** My first real job was at a local accounting firm, Alpern Rosenthal CPAs, in Pittsburgh, where I worked as a proofreader, reviewing and editing financial statements and tax returns. 6. **What’s one thing people might be surprised to learn about you?** I learned how to crochet to try and follow in my late grandmother’s footsteps. I am not great at it, but I can do that and knit too. 7. **If you weren’t working in tax, what would you be doing?** I think I would go back to being involved in the nonprofit world as a professional, especially in the Jewish space. 8. **What’s the best piece of tax, money, or career advice you’ve ever received?** The best piece of advice I think I have ever received was to not make myself small and to be proud of my accomplishments in my career. That took a long time to figure out. 9. **What tax issue do you think is getting too much attention right now?** Probably the new tax law changes, especially in Overtime and Tips. 10. **What tax issue isn’t getting enough attention?** I think, for small businesses, it’s how your business structure affects your taxes. I have seen so many business owners come to me, and they are not necessarily following the tax regulations and laws around their business structure. Especially for S Corporations and payroll for the shareholder who is also an employee. 11. **What’s the biggest tax myth you’d like to bust?** Oh, that’s a good one. Honestly, I am not sure of a particular one, but where social media comes into play and all these influencers that don’t really know what they are talking about but make things sound true when it comes to maybe tax deductions or how to structure your small business. 12. **What’s a tax question you wish people would ask you more often?** I wish my individual tax clients would ask throughout the year if they need to make a tax estimate and what their taxes would look like at year-end. Not waiting until I am preparing the returns. 13. **What’s one tax rule you would change if you could?** I know this is not really a rule, but I wish the federal government would make estimated quarterly taxes actually by quarters/three months, and not how they are currently doing it. Especially since 2nd quarter always messes up my small business clients. 14. **What’s one non-tech thing in your office that you couldn’t do without?** One non-tech thing I cannot do without is pen and paper. Weird, I know, but I still like to have pen and paper to work things out sometimes as it relates to tax or accounting. Especially when still doing T-accounts. 15. **Which tech tool, platform, or software do you rely on most in your practice?** The platform I rely most on now is Claude AI to help me with general overall things as it relates to my business and podcast. 16. **What’s the best use of AI in tax or tax practice?** As mentioned, I use it to help me with my posts for social media, newsletters, and blogs. Plus summarizing my podcast information. For my business, I will ask general tax and accounting questions, not client specifics, but then compare that information with my tax research TaxBook before I do anything with that information. I use AI as support, not my end-all for answers. 17. **What are you watching right now (streaming or otherwise)?** Phillies, and will begin to watch the Eagles and Pitt Football. (Taxgirl’s note: I feel your pain.) 18. **Coffee or tea?** Mushroom Coffee 19. **Pancakes or waffles?** Pancakes 20. **If you received an unexpected tax refund tomorrow, what would you do with it?** I would put some away for savings and use the rest to treat myself and my husband to a mini vacation down the shore. You can find out more about Samantha on [her website](https://www.yfmcpa.com/yfm-links) and her social media: - [Facebook](https://www.facebook.com/yfmcpa) - [LinkedIn](https://www.linkedin.com/in/yourfinancialmaven/) - [Threads](https://www.threads.com/@yourfinancialmaven) - [Instagram](https://www.instagram.com/yourfinancialmaven/) - [YouTube](https://www.youtube.com/@yourfinmavenpodcast) ## About Getting to Know You If you’d like to recommend a tax pro to be featured, send your suggestions to [gtky (at) taxgirl (dot) com](mailto:gtky@taxgirl.com) with the subject: Getting to Know You Tuesday. Self-nominations are totally okay, and encouraged! If you’ve previously submitted a nomination, please feel free to send it again. I’ll consider all submissions, even those that were selected, so long as they were more than three years ago.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Getting%20to%20Know%20You%20Tuesday%3A%20Samantha%20M.%20Besnoff&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2026%2F09%2Fwrapped-up-podcast-color-scaled.jpg&p%5Btitle%5D=Getting%20to%20Know%20You%20Tuesday%3A%20Samantha%20M.%20Besnoff "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Getting%20to%20Know%20You%20Tuesday%3A%20Samantha%20M.%20Besnoff "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Getting%20to%20Know%20You%20Tuesday%3A%20Samantha%20M.%20Besnoff&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Getting to Know You Tuesday, Tax Professionals **Tags:** getting to know you tuesday, Samantha Besnoff, Samantha M. Besnoff --- ### [Getting to Know You Tuesday: Bijal Chikani](https://www.taxgirl.com/2026/09/15/getting-to-know-you-tuesday-bijal-chikani/) **Published:** September 15, 2026 **Author:** Kelly Phillips Erb **Content:** It’s Getting to Know You Tuesday! Bijal Chikani, CPA, has spent more than 20 years helping ultra-high-net-worth families make sense of the ever-changing—and rarely simple—world of taxes. As Co-Director of National Tax Practice and Strategy at Crescent Grove Advisors, he enjoys tackling complex tax challenges, finding practical solutions, and, most importantly, building lasting relationships with clients and colleagues. Originally from India and now based in Lake Forest, Illinois, Bijal firmly believes great work starts with great people. He enjoys mentoring the next generation of tax professionals, sharing what he’s learned along the way, and bringing positive energy and a collaborative spirit to the team. When he’s not thinking about taxes (yes, it does happen!), Bijal loves sports, traveling, discovering new cuisines, spending time outdoors, and making memories with his family. Whether it’s solving a complicated tax question or planning the next adventure, he’s always up for a new challenge So, let’s get to know Bijal. ## In His Own Words **1. Where are you right now?** At my office in Lake Forest, Illinois – probably not too far from a tax return or a tax question! **2. What’s your official title, and what do you actually do?** I’m Co-Director of National Tax Practice and Strategy at Crescent Grove Advisors – definitely a lot of words! In simple terms, I help oversee the firm’s tax practice, make sure our clients stay tax-compliant, and help them plan ahead rather than just look backward. I also spend a lot of time working through complex tax issues for ultra-high-net-worth families and supporting our tax team. **3. Where did you go to school, and what did you study?** I earned my undergraduate degree from Gujarat University in Ahmedabad, India, where I studied accounting and management. I later earned a master’s degree in taxation, completed the Intermediate level of the Chartered Accountancy program through the Institute of Chartered Accountants of India, and became a licensed CPA. **4. How did you end up in tax?** I’ve always been drawn to the ever-changing world of taxes. It combines numbers, research, problem-solving, and strategy – and there is always something new to learn. More than 20 years later, that constant change is still what keeps it interesting. **5. What was your first real job?** At a small local CPA firm while I was studying for the CPA exam. It gave me hands-on experience early and a strong foundation in both the technical side of tax and client service. **6. What’s one thing people might be surprised to learn about you?** I can whistle to tunes pretty well! It’s one of those small things that tends to surprise people – and I’m usually happy to prove it when challenged. **7. If you weren’t working in tax, what would you be doing?** Probably something involving yoga and travel. I learned yoga when I was young, and I’m trying to make it a more consistent part of my routine again, so I could definitely see myself teaching it. And since I love traveling and experiencing new places and cultures, doing something that combined both would be pretty ideal. **8. What’s the best piece of tax, money, or career advice you’ve ever received?** Start investing early, invest often, and stay consistent. Compounding can make an incredible difference over time. Time and consistency can be just as powerful as the amount you invest. **9. What tax issue do you think is getting too much attention right now?** The latest ‘hot’ tax strategy. There’s always a new idea getting attention, but not every strategy is right for every family. I’d rather focus on what actually fits the client’s goals and circumstances. **10. What tax issue isn’t getting enough attention?** Tax planning around major life events. A business sale, retirement, inheritance, relocation, or large charitable gift can have significant tax consequences that are much easier to manage when you plan ahead. **11. What’s the biggest tax myth you’d like to bust?** That every tax deduction is automatically a good financial decision. ‘It’s tax deductible’ doesn’t mean it’s free. The tax benefit should be part of the decision, not the reason for the decision. **12. What’s a tax question you wish people would ask you more often?** I’d like people to ask, “How does this decision affect my family’s overall financial plan?” I like that question because it moves the conversation beyond just taxes and gets us thinking about the bigger picture. The best tax strategy should complement your broader financial goals, not be viewed in isolation. **13. What’s one tax rule you would change if you could?** I’d simplify the rules around retirement accounts. Between contribution limits, required distributions, Roth rules, rollovers, and income thresholds, something that should encourage long-term saving can become unnecessarily complicated. **14. What’s one non-tech thing in your office that you couldn’t do without?** My QuickFinder. Even with all the technology and research tools available today, I still reach for it regularly. Sometimes it’s simply faster to grab the book – and after using it for so many years, I know exactly where to look. **15. Which tech tool, platform, or software do you rely on most in your practice?** Tax research platforms. Tax laws are constantly changing, so having reliable research tools at your fingertips is essential. They help me get to the underlying authority quickly, but knowing how to interpret and apply it to a client’s situation is still the most important part. **16. What’s the best use of AI in tax or tax practice?** Making good tax professionals better and more efficient. AI can help organize information, accelerate research, analyze data, and reduce repetitive work. But based on my personal experience, AI is still learning and adapting, so its output needs to be reviewed and validated. If it gives us more time for strategy, judgment, and clients, that’s where I see the real value. **17. What are you watching right now (streaming or otherwise)?** I’m a Chicago Bears fan, so I’m gearing up for NFL season! I also just started watching Severance. **18. Coffee or tea?** Is Masala chai an option? If so, Masala chai – no question. **19. Pancakes or waffles?** Waffles for me – but my kids tell me I make really good pancakes, so apparently I’m on Team Pancake when I’m the one cooking! **20. If you received an unexpected tax refund tomorrow, what would you do with it?** First, I’d want to know why! A large unexpected refund probably means we could have planned better during the year – I’d rather have that money working for me than waiting to get it back. If it’s a small refund, I’d put some toward the future and use the rest for a fun experience with my family, probably involving travel. You can find out more about Bijal on the [firm’s website](https://crescentgroveadvisors.com/team) and [on LinkedIn](https://www.linkedin.com/in/bijal-chikani-115aa626/). ## About Getting to Know You If you’d like to recommend a tax pro to be featured, send your suggestions to [gtky (at) taxgirl (dot) com](mailto:gtky@taxgirl.com) with the subject: Getting to Know You Tuesday. Self-nominations are totally okay, and encouraged! If you’ve previously submitted a nomination, please feel free to send it again. 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Getting to Know You Tuesday, Tax Professionals **Tags:** Bijal Chikani, getting to know you tuesday --- ### [You Be The Tax Judge: Ream v. Treasury](https://www.taxgirl.com/2026/09/14/you-be-the-tax-judge-ream-v-u-s-department-of-the-treasury/) **Published:** September 14, 2026 **Author:** Kelly Phillips Erb **Excerpt:** Can Congress ban home distilling to protect federal tax revenue? You be the Tax Judge in Ream v. Treasury, a real case involving whiskey, taxes, and constitutional power. **Content:** John Ream grew up in Ohio and worked as an aerospace engineer at Boeing in Seattle before starting to brew at home. What began with a homebrewing kit from his wife eventually became a business. Ream and his wife returned to Ohio and opened Trek Brewing Company, a brewery and taproom in Newark (the brewery [closed its doors](https://www.newarkadvocate.com/story/news/local/2026/06/30/newark-brewpub-trek-brewing-company-to-close-permanently-on-july-12/90755954007/) this summer). But beer wasn’t Ream’s only interest. An engineer by training and a fan of rye and bourbon, he became interested in the science and craft of distilling. He researched the process and wanted to experiment with flavors and techniques by making small batches of whiskey at home for his own consumption—not for sale. There was a problem: While federal law allows individuals to make beer and wine at home, it [prohibits](https://www.ttb.gov/regulated-commodities/beverage-alcohol/distilled-spirits/penalties-for-illegal-distilling) them from distilling spirits there. And if you’re wondering where you’d find the federal rules that make home distilling illegal? Here’s a clue: They’re in Title 26, better known to you and me as the Tax Code. ## Federal Excise Tax The federal government imposes an excise tax on distilled spirits. As written in the Tax Code, the terms “distilled spirits”, “alcoholic spirits”, and “spirits” mean the substance known as ethyl alcohol, ethanol, or spirits of wine in any form. Common examples include whiskey, vodka, rum, tequila, gin, brandy, and high-alcohol wines, which are generally those above 24% alcohol (if wine stays under 24%, it is taxed under wine regulations; if it exceeds 24%, it loses its classification as a wine). The tax is calculated based on proof gallons (the adjusted volume of pure alcohol content scaled to a 100-proof, or 50% ABV, baseline). Not only do distilled spirits usually have a higher alcohol content than wine and beer, but they are also taxed at a higher rate per alcohol content than other alcohol types—that means that cocktails and similar drinks are a real money-maker for the U.S. government. The government maintains a complex regulatory system to ensure compliance with those rules. Among other things, distilled spirits must typically be produced on the bonded (basically, insured) premises of a registered distilled spirits plant. That means that you can’t just start making whiskey anywhere—you have to register with the federal government and comply with sometimes complicated rules involving operations, records, and, yes, tax payments. To make sure that distillers follow the rules, revenue officers have broad authority to inspect the premises where distilled spirits are produced. But there’s one place where you generally cannot register a distilled spirits plant: your home. Federal law also provides that a distilled spirits plant cannot be located in a dwelling house or in a shed, yard, or enclosure connected with a dwelling house. It is also a crime to possess or use a still at home to produce distilled spirits (yes, that’s true even though you can buy kits online). The consequences can be significant: Violations can result in fines of up to $10,000, up to five years in prison, or both. ## Background These restrictions on distilled spirits aren’t new. They’re not even tied to Prohibition. They go much further back than that. The first federal internal tax on domestically distilled spirits dates back to March 3, 1791. The so-called whiskey tax was not exactly popular. Opposition eventually erupted into the Whiskey Rebellion (clearly, we Americans love our whiskey). The tax was repealed under President Thomas Jefferson in 1802, brought back to help finance the War of 1812, repealed again, and eventually reinstated during the Civil War. In 1867, after more than a month of testimony, a congressional committee reported that some of the most significant frauds against the federal government involved the manufacture and sale of spirits. So, on July 20, 1868, Congress passed legislation restricting the production of spirits at home. Just over 100 years later, President Jimmy Carter signed legislation creating federal exemptions for beer and wine produced at home for personal or family use. But Congress didn’t create a similar exemption for distilled spirits. The prohibition on home distilling remained. The law also included a tax component, and for good reason. Since Prohibition, distilled spirits have made up a significant portion of alcohol sales in the U.S. That’s still true today. According to the Distilled Spirits Council (yes, that’s really a thing), spirit sales have slightly [outpaced](https://distilledspirits.org/news/distilled-spirits-council-annual-economic-briefing-2025/) beer sales for four years running. While some newer products, like ready-to-drink cocktails, have helped (reported sales have increased by double digits), the old reliable—vodka—tops the list with more than $7 billion in revenue in 2025. But that production happens inside licensed stills and outside homes. According to the government, there is a practical reason: a commercial distillery operates on registered premises that federal revenue officers can inspect. A still operating inside someone’s home is considerably easier to hide—and a home is considerably harder for government agents to search. Beyond site visits, federal regulations require extensive reporting. Among other things, you have to document production activities, inventories, and taxes. And since alcohol is taxed by production volume, not sales, it’s super important to keep accurate records. That includes production and storage logs, which you must also make available for inspection. ## The Challenge for Ream But even if Ream could meet all of those production, recordkeeping, and tax requirements, there was still a problem: He couldn’t legally do it at home. And Ream wasn’t willing to break the law to make his point. So, on January 30, 2024, he sued the Treasury Department, the Alcohol and Tobacco Tax and Trade Bureau, and federal officials in the U.S. District Court for the Southern District of Ohio. He did so before he ever bought a still or produced a drop of whiskey. That last part mattered a great deal. Ream hadn’t started secretly making bourbon in his garage and gotten caught. In fact, he hadn’t made any whiskey at home at all. He went to court first, asking a federal judge to declare the prohibition unconstitutional and prevent the government from enforcing it against him. The government argued that Ream had a problem: He hadn’t bought the still. He hadn’t tried to register it. He hadn’t distilled any whiskey. And no federal official had specifically threatened to prosecute him. In March 2025, the district court agreed with the government and dismissed the case. The judge concluded that Ream hadn’t shown a sufficiently imminent threat of prosecution to give him standing to challenge the law. Standing is a legal term that basically means the right to bring a lawsuit. To prove standing, you typically have to show three things: 1. You suffered an actual, personal harm, not just a general complaint or hypothetical worry (often referred to as an injury); 2. The harm is related to the behavior or law (often called causation); and 3. The harm can be remedied in court (often called redressability). Here, the judge never answered Ream’s constitutional question. So Ream appealed to the Sixth Circuit. His position presented the appeals court with a bit of a Catch-22. Ream said he didn’t want to commit a federal felony simply to find out whether the law making his conduct a felony was constitutional. The government said he hadn’t gone far enough toward violating the law to show that he faced a real threat of prosecution. But Ream’s appeal wasn’t just about whether he could get through the courthouse door. He also wanted the court to decide whether Congress had the constitutional authority to enact the home-distilling ban at all. That’s where the tax argument comes in. ## The Tax Piece The government argued that the Constitution doesn’t merely give Congress the power to impose taxes. The Necessary and Proper Clause also permits Congress to enact laws necessary to carry out those powers. That means Congress may take reasonable steps to make sure it can collect the tax. According to the government, the home-distilling ban is part of a larger regulatory system. Stills hidden inside homes make production difficult to detect and the resulting taxes difficult to collect. Requiring distilling to occur on registered and inspectable premises makes tax evasion harder. Ream countered that accepting that argument would give Congress extraordinarily broad power. If Congress can prohibit home distilling because it makes the resulting tax more difficult to collect, he asked, what would stop Congress from imposing a tax on something else and then prohibiting people from doing it at home? Could it tax bread, for example, and then prohibit people from baking their own? The Constitution expressly gives Congress the power to impose and collect taxes and excises. But, as Ream pointed out in his lawsuit, the law doesn’t tax home distilling. It prohibits it. That’s an important distinction, Ream argued. If the law allowed him to make whiskey at home, he could simply pay the federal excise tax and get to it. By preventing him from producing the whiskey in the first place, the government prevents the taxable event from occurring and prevents itself from collecting the tax. ## You Be the Tax Judge The Constitution gives Congress the power to impose and collect excise taxes. It also gives Congress the power to make laws that are “necessary and proper” for carrying out that power. But does that authority allow Congress to prohibit home distilling to ensure that federal excise taxes on distilled spirits are collected? Or does the prohibition go too far because, rather than taxing home-distilled spirits, Congress has made producing them at home a crime? --- #### **It’s my new feature: You be the Tax Judge. This is a real case. How would you rule? Tell me what you think in the comments—and, more importantly, tell me why.** #### **I’ll be back with the answer—and what the court had to say—later.** [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=You%20Be%20The%20Tax%20Judge%3A%20Ream%20v.%20Treasury&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2026%2F09%2Fpexels-jonathanborba-28559493-scaled.jpg&p%5Btitle%5D=You%20Be%20The%20Tax%20Judge%3A%20Ream%20v.%20Treasury "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=You%20Be%20The%20Tax%20Judge%3A%20Ream%20v.%20Treasury "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=You%20Be%20The%20Tax%20Judge%3A%20Ream%20v.%20Treasury&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** History, Individual, Law and the Courts, You Be the Tax Judge **Tags:** federal excise tax, home distilling, Ream v. Treasury, whiskey --- ### [You Be The Tax Judge: Ream v. Treasury, Who Won?](https://www.taxgirl.com/2026/09/15/you-be-the-tax-judge-ream-v-treasury-who-won/) **Published:** September 15, 2026 **Author:** Kelly Phillips Erb **Excerpt:** John Ream challenged the federal ban on home distilling. So, who won? Two federal appeals courts considered the question—and reached different answers. **Content:** Earlier, I asked you to [consider the case](https://www.taxgirl.com/2026/09/14/you-be-the-tax-judge-ream-v-u-s-department-of-the-treasury/) of John Ream, who wanted to distill whiskey at home. While federal law allows individuals to make beer and wine at home, it prohibits them from distilling spirits. The reason? Taxes. The federal government argues that the ban helps Congress collect the excise tax on distilled spirits. So, Ream sued the federal government. ## Who Won? Ream did—and he didn’t. The Sixth Circuit first handed Ream a victory on a threshold question. The district court ruled that Ream couldn’t challenge the law because he didn’t have standing. He had neither purchased a still nor begun making whiskey. In other words, he hadn’t yet committed the act that could lead to prosecution. The appeals court disagreed. It found that Ream didn’t need to commit a felony before asking a court whether the law was constitutional. But on the question that matters for our purposes, Ream lost. The Sixth Circuit held that Congress could prohibit home distilling as a “necessary and proper” means of carrying out its constitutional power to collect the federal excise tax on distilled spirits. The court’s reasoning went back to the practical problem Congress was trying to solve: tax evasion. A legal distillery operates on registered premises. Federal revenue officers have significant authority to inspect those premises and the records kept there. A still tucked inside someone’s home is another matter. It’s easier to hide, and the government has much less freedom to enter and inspect a private home. The court concluded that the location restriction was “plainly adapted” to collecting the tax. What about Ream’s argument that he would happily pay the tax? That didn’t change the result. Congress wasn’t required to consider only whether Ream would pay. It could consider the broader problem of home distillers who might not. By requiring spirits to be produced on registered premises, Congress made it more difficult to manufacture untaxed whiskey. And, preventing Ream from making whiskey at home doesn’t necessarily mean the government loses the tax entirely. If he buys commercially produced whiskey instead, the government still collects an excise tax. The court reasoned that the prohibition therefore shifts consumption from home-distilled spirits that may escape taxation to commercially produced spirits that are easier to tax. The court also pointed to another practical problem. The current system doesn’t simply require distillers to pay the tax. It also includes requirements that give federal officials access to distilling premises and make those operations identifiable. Applying those rules to a private home, the court reasoned, isn’t as simple as Ream agreeing to write the government a check. For the Sixth Circuit, that was enough. The home-distilling prohibition was a permissible way to protect federal tax revenue. (The Sixth Circuit covers federal appeals from district courts in Kentucky, Michigan, Ohio, and Tennessee.) ## But if you ruled for Ream, don’t change your answer just yet. Just 11 days before the Sixth Circuit ruled against Ream, another federal appeals court considered the same federal home-distilling restrictions—and reached the opposite conclusion. In McNutt v. Department of Justice, the Fifth Circuit held that the home-distilling prohibition exceeded Congress’s constitutional powers. The court focused on what may be the oddest feature of the government’s tax argument: The law doesn’t help the government collect a tax on home-distilled whiskey. It prevents the whiskey—and therefore the tax—from existing in the first place. In the Fifth Circuit’s view, that’s not exercising the power to tax. It’s prohibiting conduct. And that matters because the federal government lacks a general police power. Congress has only the powers the Constitution grants it. The Fifth Circuit was also troubled by where the government’s argument might lead. If Congress can prohibit an activity simply because allowing people to do it at home might make tax evasion easier, the court asked, what’s the limiting principle? Could Congress prohibit other kinds of home-based economic activity on the theory that they’re more difficult to monitor and tax? (Ream made these exact same arguments.) For the Fifth Circuit, the connection between prohibiting home distilling and collecting an excise tax wasn’t enough. It believes the law went too far. (The Fifth Circuit covers federal appeals from district courts in Texas, Louisiana, and Mississippi.) So, if you sided with the government, congratulations: The Sixth Circuit agrees with you. If you sided with Ream, congratulations: The Fifth Circuit agrees with you. ## That’s where the Supreme Court comes in. Ream has [asked the justices](https://www.supremecourt.gov/search.aspx?filename=/docket/DocketFiles/html/Public/26-93.html) to review the Sixth Circuit’s ruling. Meanwhile, the federal government has separately asked the Court to review the Fifth Circuit’s ruling in McNutt. In other words, both sides of the circuit split are now asking the Supreme Court to step in. (For more about Circuit Courts and splits, [check out this explainer](https://www.taxgirl.com/2026/07/06/when-a-circuit-court-rules-who-has-to-follow-it/).) Ream’s case has also drawn considerable interest. According to The Buckeye Institute, which represents him, 61 organizations, public-interest law firms, states, and individuals have filed amicus briefs supporting his petition. More than federal taxing power is at stake. Throughout the litigation, the government has argued that the home-distilling prohibition can also be upheld under Congress’s power to regulate interstate commerce. Ream is asking the Supreme Court to consider that argument, too—and potentially to revisit Gonzales v. Raich, the 2005 decision that upheld federal regulation of marijuana grown at home for personal medical use under the Commerce Clause. The federal government agrees that the Supreme Court should review the home-distilling ban. But Ream argues that his case gives the justices a chance to address all the constitutional arguments the government has used to defend it. We may know more soon. Ream filed his reply brief on September 1, and the Supreme Court distributed his petition for its September 28 conference. The case was later rescheduled, so we’ll have to wait a bit longer to find out whether the justices grant certiorari (agree to hear the case). As for its companion case? McNutt is also pending before the Supreme Court, where the federal government is appealing its loss. A response to the government’s petition is due September 17. The timing may not be a coincidence. With two petitions asking the Court to resolve opposite sides of the same circuit split, the justices could ultimately consider them together. For now, though, we’ll have to wait and see.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=You%20Be%20The%20Tax%20Judge%3A%20Ream%20v.%20Treasury%2C%20Who%20Won%3F&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2026%2F09%2Fpexels-phung-touch-675001486-17843099-scaled.jpg&p%5Btitle%5D=You%20Be%20The%20Tax%20Judge%3A%20Ream%20v.%20Treasury%2C%20Who%20Won%3F "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=You%20Be%20The%20Tax%20Judge%3A%20Ream%20v.%20Treasury%2C%20Who%20Won%3F "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=You%20Be%20The%20Tax%20Judge%3A%20Ream%20v.%20Treasury%2C%20Who%20Won%3F&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual, Law and the Courts, Small Business, You Be the Tax Judge **Tags:** home distilling --- ### [IRS Mileage Rates Changed Midyear: What To Know Before Year-End](https://www.taxgirl.com/2026/09/25/irs-mileage-rates-changed-midyear-what-to-know-before-year-end/) **Published:** September 25, 2026 **Author:** Kelly Phillips Erb **Excerpt:** The IRS changed its standard mileage rates in July 2026. Here’s what to know about business, medical, charitable, and moving mileage before year-end. **Content:** If you use your car for business, medical care, charitable work, or a qualifying move, now is a good time to check your mileage records. That’s especially true this year. The IRS changed its standard mileage rates in the middle of 2026, which means taxpayers may need to use two different rates when calculating deductions or reimbursements for the year. Here are the rates you’ll need for 2026: ![Irs standard mileage rates for 2026](https://www.taxgirl.com/wp-content/uploads/2026/09/2026-09-25-at-22635-pm-1200x515.png) \* *The moving rate is available only for qualifying moves by eligible active-duty members of the Armed Forces and, beginning in 2026, certain members of the intelligence community.* The revised rates apply to eligible transportation expenses paid or incurred on or after July 1, 2026. The rates announced for 2026 continue to apply to expenses paid or incurred from January 1 through June 30. In other words, the date matters this year. If you’ve been tracking mileage without separating trips by date—or if you’ve fallen a little behind on your mileage log—now is a good time to get those records in order. ## Why Did The IRS Change The Rates Midyear? The IRS ordinarily sets the optional standard mileage rates before the beginning of the tax year. But this year, the agency made a rare midyear adjustment in response to increased fuel prices. According to AAA, the national average for a gallon of regular gasoline was $2.82 in early January 2026. [By late June](https://gasprices.aaa.com/national-gas-average-stays-below-4-for-second-week/), it had climbed to $3.92 per gallon. As of late September, the national average was about $4.49 per gallon. The IRS last made a midyear mileage-rate adjustment in 2022, after gasoline prices surged following Russia’s invasion of Ukraine. ## How Do The Standard Mileage Rates Work? Standard mileage rates offer taxpayers a simplified way to calculate certain deductible vehicle expenses. It’s typically straightforward math for taxpayers: you multiply the number of qualifying miles driven by the applicable rate. The IRS doesn’t calculate all rates the same way, which is why the medical and moving rates differ from the business rate. The business rate is based on an annual study of both fixed and variable costs of operating an automobile, including depreciation, insurance, repairs, tires, maintenance, gas, and oil. The medical and moving rates are based on variable operating costs. The charitable rate is different: it’s set by statute at 14 cents per mile and has not changed since 1998. If the rate had kept pace with inflation, it would be about 29 cents per mile. ## How Do You Use The Mileage Rates In 2026? For 2026, you’ll need to know not only how many qualifying miles you drove, but when you drove them: - Use the original rate for qualifying mileage from January 1 through June 30. - Use the revised rate for qualifying mileage from July 1 through December 31. For example, suppose you drive 10,000 qualifying business miles during 2026, with 5,000 from January through June and another 5,000 from July through December. The standard mileage amount would be: - 5,000 miles × 72.5 cents = $3,625 - 5,000 miles × 76 cents = $3,800 That’s a total of $7,425 before accounting for other deductible vehicle expenses, such as qualifying business parking fees and tolls. ## Do I Have to Use the Standard Mileage Rate? The standard mileage rate is optional. Taxpayers who qualify may instead calculate the actual costs of operating the vehicle, though that generally requires more detailed recordkeeping. If you own a vehicle and want to use the standard mileage rate for business purposes, you generally must choose that method in the first year the vehicle is available for business use. In later years, you can generally switch between the standard mileage rate and actual expenses. For a leased vehicle, if you choose the standard mileage rate, you generally must continue using it for the entire lease period, including renewals. ## Are All Miles Driven Deductible? Putting miles on your car doesn’t automatically make them deductible. Personal mileage generally isn’t deductible. Commuting—the cost of traveling between your home and your regular workplace—is generally considered personal, even if you’re doing work-related activities during the trip. Business mileage may be deductible for self-employed taxpayers and other qualifying taxpayers. Most employees, however, cannot deduct unreimbursed employee business mileage on their federal income tax returns. That’s because the Tax Cuts and Jobs Act (TCJA) temporarily suspended miscellaneous itemized deductions subject to the 2% adjusted gross income floor beginning in 2018. The One Big Beautiful Bill Act (OBBBA) made that disallowance permanent. There are exceptions. Members of a reserve component of the Armed Forces, qualified performing artists, and state or local government officials paid in whole or in part on a fee basis may still be able to deduct qualifying unreimbursed employee business expenses as an adjustment to income. ## What About Medical Mileage? Taxpayers who itemize deductions on Schedule A may include qualifying transportation costs as part of their deductible medical expenses. This can include mileage for trips primarily for and essential to medical care. For 2026, the rate is 20.5 cents per mile for qualifying miles driven through June 30 and 23.5 cents per mile beginning July 1. Keep in mind that medical expenses are deductible only to the extent that your total qualifying expenses exceed 7.5% of adjusted gross income (AGI). For example, if your AGI is $50,000, you can deduct only medical expenses that exceed the $3,750 floor ($50,000 x 7.5%). So if your medical expenses totaled just $3,500, you can’t deduct any of them. If they totaled $4,000, you can deduct $250 ($4,000 of expenses less the $3,750 floor). ## What About Charitable Mileage? If you use your vehicle while performing services for a qualified charitable organization, you may be able to deduct qualifying mileage at 14 cents per mile. For example, if you drove 1,000 miles for charitable service, you could claim a charitable deduction of $140 (1,000 x .14). As with medical mileage, you must itemize deductions on Schedule A to claim a charitable contribution deduction for mileage. The new deduction for non-itemizers beginning in 2026 applies only to qualifying cash contributions, not mileage. ## What About Employer Reimbursements? Employers can also use the mileage rates to reimburse employees for business use of their personal vehicles. The midyear change matters here, too. The revised rates apply when the mileage allowance is paid to the employee on or after July 1, 2026, and the related transportation expense is paid or incurred on or after July 1. For the revised rate to apply to an employer mileage allowance, both the allowance and the underlying transportation expense must fall on or after July 1. This makes employer reimbursement policies particularly important, since most employees can’t claim a federal deduction for unreimbursed business mileage. ## What Should I Do Now? Before year-end, check your mileage records. This is the part worth doing now rather than waiting until you’re preparing your tax return. You need adequate records to substantiate qualifying mileage. Those records should generally show: - The date of each trip. - The number of miles driven. - Your starting point and destination. - The business, medical, moving, or charitable purpose of the trip. If you use a personal vehicle for both business and personal purposes, you’ll also need to separate the two. A mileage-tracking app can make this easier, but it isn’t required. A contemporaneous mileage log, spreadsheet, or other reliable record can work, too. For 2026, there’s one additional detail you don’t want to overlook: ensure your records distinguish miles driven before July 1 from those driven on or after July 1. If you’ve fallen behind on your mileage log, now is a much better time to reconstruct those records than when you’re preparing your return next April. Remember that the standard mileage rate is a shortcut for calculating certain vehicle expenses, not a shortcut around the recordkeeping rules. As always, keep excellent records, including those showing when, where, how far, and why you drove. ## Where Can I Find More Information? The IRS originally announced the 2026 standard mileage rates in [Notice 2026-10](https://www.irs.gov/pub/irs-drop/n-26-10.pdf). It modified the business, medical, and moving rates in [Announcement 2026-11](https://www.irs.gov/pub/irs-irbs/irb26-29.pdf), effective July 1, 2026.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=IRS%20Mileage%20Rates%20Changed%20Midyear%3A%20What%20To%20Know%20Before%20Year-End&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2026%2F09%2Fpexels-enginakyurt-20500734-scaled.jpg&p%5Btitle%5D=IRS%20Mileage%20Rates%20Changed%20Midyear%3A%20What%20To%20Know%20Before%20Year-End "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=IRS%20Mileage%20Rates%20Changed%20Midyear%3A%20What%20To%20Know%20Before%20Year-End "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=IRS%20Mileage%20Rates%20Changed%20Midyear%3A%20What%20To%20Know%20Before%20Year-End&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual, IRS News, Small Business **Tags:** 2026 mileage rates, business mileage, business mileage rates, charitable mileage, charitable mileage rates, IRS mileage rates, mileage rates, moving mileage, moving mileage rates --- ### [IRS Announces New Per Diem Rates For Business Travel](https://www.taxgirl.com/2026/09/25/irs-announces-new-per-diem-rates-for-business-travel/) **Published:** September 25, 2026 **Author:** Kelly Phillips Erb **Excerpt:** The IRS has released new per diem rates for business travel, including updated high-low rates of $329 and $230, effective October 1, 2026. **Content:** The IRS has released its annual update to per diem rates for taxpayers to use to substantiate certain business expenses while traveling away from home. The new rates take effect October 1, 2026, and generally apply to per diem allowances paid for travel away from home on or after that date. The update includes special rates for the transportation industry, the rate for incidental expenses, and the rates and list of high-cost localities used for the high-low substantiation method. The IRS allows taxpayers to use per diem (that’s Latin for “for each day”—remember, lawyers *love* Latin) rates to simplify reimbursements. Under the rules, instead of requiring you to document every dollar spent on lodging, meals, and incidental expenses, employers can use prescribed daily amounts to reimburse you for certain business travel expenses. ## What Are Per Diem Rates? A per diem rate is a fixed daily amount used to substantiate certain expenses incurred while traveling away from home on business, including lodging, meals, and incidental expenses. Depending on the method used, your employer may reimburse you for lodging and meals and incidental expenses together, or for meals and incidental expenses alone. Under an accountable plan, properly substantiated reimbursements are generally not treated as wages. That doesn’t mean you can simply pocket a per diem payment without accounting for the trip—you still must substantiate the time, place, and business purpose of the travel. And if an allowance from your employer exceeds the permitted amount under federal rules, the excess generally must be treated as wages unless it is returned to your employer. The IRS doesn’t require you to use the per diem rates. Instead, you can substantiate actual allowable travel expenses with adequate records. That’s just more paperwork. ## Reimbursed & Unreimbursed Employee Expenses Here’s why that reimbursement piece matters. Most employees cannot deduct unreimbursed travel expenses on their federal income tax returns. The Tax Cuts and Jobs Act (TCJA) temporarily suspended miscellaneous itemized deductions subject to the 2% adjusted gross income floor beginning in 2018. That rule was scheduled to expire after 2025, but the One Big Beautiful Bill Act (OBBBA) made the disallowance permanent. The result? Most taxpayers are out of luck when it comes to deducting travel expenses. There are exceptions. Members of a reserve component of the Armed Forces, qualified performing artists, and state or local government officials paid in whole or in part on a fee basis may still be able to deduct qualifying unreimbursed employee business expenses as an adjustment to income. Employees with impairment-related work expenses may also qualify for a deduction under separate rules, as may eligible educators. For everyone else, employer reimbursement can make a significant difference in your bottom line. If your employer requires you to travel for work, it’s worth understanding the company’s reimbursement policy before you hit the road. And don’t forget about business mileage. The IRS separately sets a [standard mileage rate](https://www.taxgirl.com/2026/09/25/irs-mileage-rates-changed-midyear-what-to-know-before-year-end/) for qualifying business use of a vehicle, but most employees can’t use that rate to deduct unreimbursed work-related mileage. ## Self-Employed Taxpayers The rules are different for self-employed taxpayers. Self-employed taxpayers can generally deduct ordinary and necessary business travel expenses on Schedule C (or Schedule F for farmers). However, the per diem rules work a little differently: self-employed taxpayers generally cannot use a per diem amount to substantiate lodging expenses. Actual lodging expenses must be substantiated. For meals and incidental expenses, however, self-employed taxpayers can use the federal M&IE rate—the standard meal allowance—instead of substantiating the actual cost of each meal. You still need records showing the time, place, and business purpose of the travel. And be thoughtful, since the rules still matter. Using a per diem amount doesn’t necessarily mean you can deduct the full amount. Business meal expenses are generally subject to the 50% deduction limitation. ## The New Numbers Under the high-low substantiation method, the new per diem rates are $329 per day for travel to a high-cost locality, up from $319, and $230 per day for travel to any other locality within the continental United States, up from $225. Of those amounts, $86 of the high rate and $74 of the low rate are treated as paid for meals for purposes of the business-meal deduction rules. The M&IE-only substantiation rates are also $86 and $74, respectively. The special M&IE rates for taxpayers in the transportation industry are unchanged: $80 per day for travel within the continental United States (CONUS) and $86 per day for travel outside the continental United States (OCONUS). The rate for incidental expenses only remains $5 per day. ## What Is The High-Low Method? Travel costs obviously aren’t the same everywhere. A hotel room in Manhattan likely costs considerably more than one in a small town in the Midwest. Employers can use federal per diem rates that vary by locality, but the high-low method offers a simpler alternative. Instead of tracking a different rate for every destination, the method divides travel within CONUS into two categories: designated high-cost localities and everywhere else. For the new rate year, a locality is considered high-cost if it has a federal per diem rate of $280 or more, up from $272 last year. And because travel costs change, so does the list. ## Changes To High-Cost Localities For 2026–2027, the following localities have been added to the list of high-cost localities: - Tucson, Arizona - San Mateo/Foster City/Belmont, California - Albuquerque, New Mexico - Cody, Wyoming Panama City, Florida, has been removed from the list. A number of destinations remain on the list but have changed the portion of the year during which they’re treated as high-cost localities: - Napa, South Lake Tahoe, and Yosemite National Park, California - Aspen, Steamboat Springs, and Telluride, Colorado - Fort Myers, Florida - Falmouth, Massachusetts - Toms River, New Jersey - New York City, New York - Philadelphia, Pennsylvania - Hilton Head, South Carolina - Manchester and Montpelier, Vermont - Port Angeles/Port Townsend, Washington There’s also a correction to the applicable high-cost period for Sun Valley/Ketchum, Idaho. Philadelphia, for example, is considered a high-cost locality from October 1 through November 30 and from September 1 through September 30 under the new notice. That’s a good reminder that a locality doesn’t necessarily have high-cost status all year. ## Transportation Industry Special rules apply to transportation industry taxpayers. For 2026–2027, the special M&IE rates remain at $80 per day for travel within CONUS and $86 per day for travel outside CONUS. You’re generally considered to be in the transportation industry if your work directly involves moving people or goods by airplane, barge, bus, ship, train, or truck and regularly requires travel away from home to areas with different federal M&IE rates. ## Incidental Expenses The incidental expenses rate remains $5 per day. For per diem purposes, incidental expenses generally include fees and tips given to porters, baggage carriers, hotel staff, and similar workers. ## A Word About Recordkeeping Per diem simplifies recordkeeping, but it doesn’t eliminate it. Even when you use a federal per diem rate, my longstanding rules still apply: Keep excellent records. You still need to substantiate the time, place, and business purpose of the travel. What the per diem method can eliminate the need to substantiate the actual amount of certain expenses covered by the allowance. For employers, that distinction is important. *A payment doesn’t become tax-free simply because you call it a per diem*. ## Effective Date The new rates generally apply to per diem allowances for lodging, meals and incidental expenses, or M&IE only, paid to an employee on or after October 1, 2026, for travel away from home on or after that date. For taxpayers computing deductible travel expenses, the new rates apply to qualifying M&IE or incidental expenses paid or incurred on or after October 1, 2026. ## Official Guidance You can find the complete list of high-cost localities and the new per diem rates in [IRS Notice 2026-60](https://www.irs.gov/pub/irs-drop/n-26-60.pdf). For federal per diem rates by locality, including lodging and meals and incidental expenses rates, you can also search the [General Services Administration (GSA) per diem database](https://www.gsa.gov/travel/plan-book/per-diem-rates) by city, state, or ZIP code.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=IRS%20Announces%20New%20Per%20Diem%20Rates%20For%20Business%20Travel&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2026%2F09%2Fpexels-gratisography-4610-scaled.jpg&p%5Btitle%5D=IRS%20Announces%20New%20Per%20Diem%20Rates%20For%20Business%20Travel "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=IRS%20Announces%20New%20Per%20Diem%20Rates%20For%20Business%20Travel "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=IRS%20Announces%20New%20Per%20Diem%20Rates%20For%20Business%20Travel&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Corporate, Individual, IRS News, Small Business **Tags:** business travel, IRS per diem, per diem, per diem rates --- ### [A New Lead In The Tylenol Murders and The Tax Twist You Probably Forgot](https://www.taxgirl.com/2026/09/24/a-new-lead-in-the-tylenol-murders-and-the-tax-twist-you-probably-forgot/) **Published:** September 24, 2026 **Author:** Kelly Phillips Erb **Excerpt:** A possible new link has emerged in the 1982 Tylenol murders, reviving interest in the unsolved case—and James Lewis's surprising connection to taxes. **Content:** More than four decades after seven people died from cyanide-laced Tylenol capsules, investigators say they have uncovered a possible new link to one of the country’s most notorious unsolved crimes. The development puts a new name into the mix—and revives an old story with an unexpected tax twist. The Ada County Sheriff’s Office announced that investigators have identified the man who died by suicide inside a church in Boise, Idaho, in December 1982, as Dr. Mathew Betkouski. He was previously known only as the “Unknown Wanderer.” Betkouski was found inside Sacred Heart Catholic Church on December 4, 1982, with no identification. He had a large sum of cash and a typed note signed “Wm. L. Toomey.” The cause of death was cyanide poisoning. The case attracted national attention—including a 1990 segment on Unsolved Mysteries—but thousands of tips failed to identify him. In 2019, Ada County Sheriff’s Office Cold Case Detective Tim Cooper reopened the investigation. The break came from an engraved key found among the dead man’s belongings. Investigators traced the key to a residential street in Jacksonville, Florida, where they learned that a property owner had disappeared in 1982. Photo comparisons and familial DNA eventually gave the Unknown Wanderer a name: Mathew Betkouski. But identifying him created another mystery. ## A Possible Tylenol Connection As Cooper delved into Betkouski’s life, he uncovered details that seemed striking in light of a notorious crime committed just months before Betkouski’s death: the Tylenol cyanide murders. In September 1982, seven people in the Chicago area died after taking Extra-Strength Tylenol capsules laced with cyanide. The murders triggered nationwide panic, a massive recall, and sweeping changes in how over-the-counter medications are packaged and sold. According to the Ada County Sheriff’s Office, Betkouski had worked in two drugstores as an undergraduate, giving him familiarity with pharmacy operations. Investigators interviewed people who described him as volatile and fascinated by explosives. More significantly, former colleagues recalled Betkouski discussing the idea of committing a “perfect crime” and describing cyanide as a means to kill without detection. That doesn’t make Betkouski the Tylenol killer. [Ada County authorities](https://adacounty.id.gov/sheriff/acso/acso-solves-decades-old-unknown-wanderer-cold-case/) are calling what they’ve found a “possible connection,” and the Chicago Police Department’s investigation remains open. There are also important unanswered questions, including whether Betkouski was anywhere near Chicago when the poisonings occurred. Cooper says he is especially interested in learning more about Betkouski’s movements from October 15 to December 4, 1982. ## The Man Investigators Watched For Decades The development is especially notable because, for decades, another name dominated discussion of the Tylenol murders: James W. Lewis. Lewis was never charged with the killings and repeatedly denied responsibility. But just days after the seven deaths, he [sent a letter](https://law.justia.com/cases/federal/appellate-courts/F2/797/358/104805/) to Tylenol’s parent company, Johnson & Johnson, demanding that $1 million be deposited in an account at the Continental Illinois Bank and Trust Co., “if you want to stop the killing.” After a nationwide manhunt, FBI agents arrested him at the New York Public Library on December 13, 1982. Lewis was unarmed and immediately identified himself. He was charged and eventually convicted of attempted extortion, receiving a 10-year prison sentence. Lewis had not been in New York City long. Less than a year before the seven Tylenol murders, he and his wife, LeAnn, moved to Chicago. According to police, they arrived in a beat-up station wagon and began calling themselves Robert and Nancy Richardson. While in Chicago, Lewis worked at Chicago Tax Service preparing tax returns. It wasn’t his first stint in tax preparation. Before his arrest, Lewis ran a tax preparation business with his wife in Kansas City. The reason for the fake names? James Lewis was wanted on fraud charges. While in Kansas City, his tax clients fell victim to a fraud scheme. Lewis used client information to apply for credit cards, using fake addresses along rural routes and installing mailboxes to receive the cards. He was eventually convicted of six counts of mail fraud. It wasn’t the first time Lewis had been charged with a crime. In 1978, [he was charged](https://www.nytimes.com/2023/07/10/us/james-lewis-tylenol-poisonings-dead.html) with the murder of Raymond West, a 72-year-old man from Kansas City who had hired Lewis as an accountant. West disappeared in July 1978, and a $5,000 check believed to have been forged was written to Lewis that day. West’s dismembered body was discovered in the attic of his home several weeks later. The case was ultimately dismissed amid evidentiary and procedural problems, including a finding that police had failed to advise Lewis of his rights when he was arrested. ## Taxes, Reagan And Another Threat It also wasn’t the last time that Lewis was accused of wrongdoing. In October 1982, shortly after the Tylenol deaths, Lewis wrote a threatening letter to then-President Ronald Reagan. His complaint? Taxes. Prosecutors later disclosed details of the letter, including its tax demands and explicit threats. In the letter, Lewis complained about proposed changes to federal tax law that he believed would increase his income taxes. He also included an unusual tax-policy demand: he wanted “all past due payroll taxes for all employers” abated. Lewis threatened to use remote-controlled model airplanes to attack the White House if his tax demands weren’t met. The letter also warned of more cyanide killings, a nod to the Tylenol killings. The threat was serious enough that prosecutors later used the letter to keep Lewis in prison. After his release from prison in 1995, the Lewises moved to Cambridge, Massachusetts, where LeAnn operated—you guessed it—a small bookkeeping and tax business, where Lewis also worked. ## So, Who Dunnit? Law enforcement never stopped looking into Lewis. Investigators interviewed him dozens of times between 2007 and 2009, but he was never charged in the Tylenol murders. In 2010, he wrote a self-published novel titled “Poison!: The Doctor’s Dilemma,” which did little to quell speculation about his possible involvement. Lewis died in 2023 at age 76, still denying responsibility for the killings. The Tylenol murders remain officially unsolved. And Betkouski’s background doesn’t prove he was responsible for the killings. But after all this time, the case has taken another unexpected turn. And somehow, even this decades-old murder mystery has a tax connection.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=A%20New%20Lead%20In%20The%20Tylenol%20Murders%20and%20The%20Tax%20Twist%20You%20Probably%20Forgot&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2026%2F09%2F2026-09-24-at-71117-pm-e1790291535261.png&p%5Btitle%5D=A%20New%20Lead%20In%20The%20Tylenol%20Murders%20and%20The%20Tax%20Twist%20You%20Probably%20Forgot "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=A%20New%20Lead%20In%20The%20Tylenol%20Murders%20and%20The%20Tax%20Twist%20You%20Probably%20Forgot "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=A%20New%20Lead%20In%20The%20Tylenol%20Murders%20and%20The%20Tax%20Twist%20You%20Probably%20Forgot&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Pop culture, Prosecutions, Felonies and Misdemeanors **Tags:** James Lewis, Tylenol, Tylenol murders --- ### [Your First Look at 2027 Tax Brackets, Standard Deduction Amounts and More](https://www.taxgirl.com/2026/09/12/your-first-look-at-2027-tax-brackets-standard-deduction-amounts-and-more/) **Published:** September 12, 2026 **Author:** Kelly Phillips Erb **Excerpt:** See projected 2027 tax brackets, standard deduction amounts, capital gains thresholds, retirement limits, estate and gift tax amounts, and more. **Content:** The first projections for the 2027 federal income tax brackets and standard deduction amounts are out. Bloomberg Tax & Accounting projects a roughly 3.2% inflation adjustment over 2026 amounts, compared with 2.7% from 2025. The IRS has not yet announced the official 2027 amounts. The projected inflation adjustments would increase tax bracket thresholds, deduction limitations, and a number of other tax-related amounts. Here’s a look at what taxpayers could see in 2027, including changes to the standard deduction, capital gains thresholds, retirement limits, and estate and gift tax amounts. This year’s calculations include an unusual wrinkle. The inflation adjustment for 2027 is based on C-CPI-U data from September 2025 through August 2026. Because the Bureau of Labor Statistics (BLS) did not publish an October 2025 C-CPI-U value due to the lapse in federal appropriations, Bloomberg Tax calculated its adjustment using an 11-month average rather than the usual 12 months. The projections also reflect changes made under the One Big Beautiful Bill Act (OBBBA), including inflation adjustments to provisions affecting individuals, businesses, and pass-throughs. How does that translate to dollars? Here’s a look at the projected numbers for the 2027 tax year, beginning January 1, 2027. These are not the tax rates and other numbers for 2026. And remember: These are projections. *The IRS has not yet announced the official inflation-adjusted amounts for 2027.* ## Tax Brackets Here’s what the rates are expected to look like in 2027. (Remember: For filing purposes, your marital status is determined as of the last day of the tax year—December 31—under state law. If you’re married on that day, you’re married. It’s not more complicated than that.) ### Single Taxpayers ![2027 projected tax brackets for single taxpayers](https://www.taxgirl.com/wp-content/uploads/2026/09/2026-09-12-at-93649-am-1200x622.png) For single taxpayers, the 10% bracket is projected to apply to taxable income up to $12,800. The top 37% rate applies when taxable income exceeds $661,375. ### Married Taxpayers Filing Jointly ![2027 projected tax brackets for married taxpayers filing jointly](https://www.taxgirl.com/wp-content/uploads/2026/09/2026-09-12-at-93742-am-1200x641.png) For married taxpayers filing jointly and surviving spouses, the 10% bracket is projected to apply to taxable income up to $25,600, with the top 37% rate taking effect when taxable income exceeds $793,650. ### Married Taxpayers Filing Separately ![2027 projected tax brackets for married taxpayers filing separately](https://www.taxgirl.com/wp-content/uploads/2026/09/2026-09-12-at-93813-am-1200x647.png) For married taxpayers filing separately, the 10% bracket is projected to apply to taxable income up to $12,800, and the top 37% rate applies when taxable income exceeds $396,825. ### Heads Of Household ![2027 projected tax brackets for heads of household](https://www.taxgirl.com/wp-content/uploads/2026/09/2026-09-12-at-93848-am-1200x633.png) For heads of household, the 10% bracket is projected to apply to taxable income up to $18,250, and the top 37% rate applies when taxable income exceeds $661,350. ### Trusts and Estates ![2027 projected tax brackets for trusts and estates](https://www.taxgirl.com/wp-content/uploads/2026/09/2026-09-12-at-93917-am-1-1200x454.png) Trusts and estates have a much more compressed tax schedule. For 2027, the 37% rate is projected to apply to taxable income above $16,500. ## Top Marginal Tax Rates Your marginal tax rate determines what you pay on the next dollar of income—it’s the highest ordinary income tax rate that applies to a portion of your taxable income. For the 2027 tax year, the top federal income tax rate remains 37%. An additional net investment income tax (NIIT) of 3.8% may apply to certain investment income. Remember that being “in” a particular tax bracket doesn’t mean all of your income is taxed at that rate. Federal income tax rates are progressive, meaning different portions of taxable income are taxed at different rates. ## Capital Gains If you hold assets for one year or less, any capital gain on sale or disposal is short-term and generally taxed at your ordinary income tax rate. If you hold assets for more than one year before disposing of them, your capital gain is long-term and generally taxed at preferential rates of 0%, 15%, or 20%. Exceptions apply to certain assets, including art and collectibles, as well as certain section 1250 gain related to depreciation. The 0%, 15%, and 20% long-term capital gains rates will not change in 2027, but the income thresholds for those rates will. Bloomberg Tax anticipates that the upper income limits for the 0% and 15% rates will be as follows: ![2027 capital gains amounts](https://www.taxgirl.com/wp-content/uploads/2026/09/2026-09-12-at-93958-am-1200x443.png) For married taxpayers filing jointly and surviving spouses, the maximum zero-rate amount is projected at $102,100, and the maximum 15% rate amount is $633,600. For single taxpayers and other individuals, the corresponding amounts are $51,050 and $563,200, respectively. The 20% rate applies to adjusted net capital gain above the maximum 15% rate amount. ## Personal Exemption Amounts The Tax Cuts and Jobs Act (TCJA) eliminated personal exemptions through 2025, and OBBBA made that elimination permanent. As a result, the personal exemption amount remains $0 in 2027. ## Standard Deduction Amounts The TCJA nearly doubled the standard deduction, and OBBBA made the higher standard deduction permanent. Here’s what Bloomberg Tax projects for 2027: ![Table of 2027 standard deduction by filing status mfj 200 heads of household 925 all other taxpayers 600 Source bloomberg tax](https://www.taxgirl.com/wp-content/uploads/2026/09/2026-09-12-at-94715-am-1200x348.png) The standard deduction is projected to be $33,200 for married taxpayers filing jointly and surviving spouses and $16,600 for single taxpayers and married taxpayers filing separately. Note that for heads of household, Bloomberg’s literal calculation yields $24,925, but Bloomberg expects that the IRS may publish $24,950 due to rounding of the inflation-adjusted amount. Bloomberg predicts that the standard deduction for an individual who may be claimed as a dependent by another taxpayer in 2027 cannot exceed the greater of $1,400 or $500 plus the individual’s earned income. The additional standard deduction per person for the aged or the blind is projected to be $1,700. That amount increases to $2,100 if the individual is unmarried and not a surviving spouse. ## Additional Deduction For Seniors Under OBBBA, qualifying seniors may claim an additional $6,000 deduction. The temporary deduction is available to both itemizers and those who claim the standard deduction, and it is scheduled to expire after 2028. This provision is sometimes called “no tax on Social Security.” However, it does not exclude Social Security benefits from federal income tax—it’s just an additional deduction. The deduction begins to phase out once modified adjusted gross income exceeds $75,000 ($150,000 for joint filers). The deduction is reduced by 6% of the amount over those thresholds. ## Qualifying Relative The gross income limit for a qualifying relative is projected to be $5,450 in 2027. Bloomberg notes that the IRS may instead publish $5,400, depending on how it rounds the inflation adjustment. ## Kiddie Tax The kiddie tax can apply when a child has unearned income, such as interest, dividends, or capital gains. For 2027, the amount used to reduce net unearned income subject to the kiddie tax is projected to be $1,400. That same $1,400 amount is used for purposes of the election that allows some parents to report a child’s income on their own return. For 2027, one requirement for making that election is that the child’s gross income must be more than $1,400 but less than $14,000. ## Child Tax Credit In 2027, Bloomberg predicts the child tax credit will be $2,300. The amount used to determine the refundable portion of the child tax credit is projected to be $1,800. ## Student Loan Interest The maximum student loan interest deduction remains $2,500, but the income phaseout thresholds are projected to increase. For 2027, Bloomberg predicts the deduction will begin phasing out for taxpayers with modified adjusted gross income above $90,000 ($180,000 for joint returns) and will be fully phased out at $105,000 or more ($210,000 or more for joint returns). ## Alternative Minimum Tax (AMT) The AMT exemption is also subject to inflation adjustments. Bloomberg Tax anticipates the exemption amounts will be as follows in 2027: ![2027 projected amt exemption amounts](https://www.taxgirl.com/wp-content/uploads/2026/09/2026-09-12-at-94036-am-1200x346.png) The projected exemption amounts are $144,700 for married taxpayers filing jointly and surviving spouses, $93,000 for unmarried taxpayers, $72,350 for married taxpayers filing separately, and $32,500 for estates and trusts. The exemptions begin phasing out at higher income levels. For married taxpayers filing jointly and surviving spouses, the phaseout is projected to begin at $1,031,900 and end at $1,321,300. For unmarried individuals, the corresponding amounts are $515,950 and $701,950. ## Fringe Benefits—Transportation For 2027, the monthly limitation for the qualified transportation fringe benefit for transportation in a commuter highway vehicle and for any transit pass is projected to be $350. The monthly limitation for qualified parking is also projected to be $350. ## Education Expenses Of Elementary And Secondary School Teachers In 2027, Bloomberg predicts the maximum deduction for eligible educator expenses will remain $350. ## Health Savings Accounts (HSAs) The IRS has already officially published HSA amounts for 2027, so they aren’t merely Bloomberg projections. For 2027, the annual HSA contribution limits are $4,500 for self-only coverage and $9,000 for family coverage. For an HSA, a high-deductible health plan (HDHP) must have an annual deductible of at least $1,750 for self-only coverage or $3,500 for family coverage. Annual out-of-pocket expenses cannot exceed $8,700 for self-only coverage or $17,400 for family coverage. ## Medical Savings Accounts (MSAs) For 2027, an HDHP paired with a Medical Savings Account for self-only coverage is projected to have an annual deductible of at least $3,000 and no more than $4,550, with annual out-of-pocket expenses capped at $6,050. For family coverage, the annual deductible is projected to be at least $6,050 and no more than $9,050, with annual out-of-pocket expenses capped at $11,050. ## Foreign-Earned Income Exclusion For 2027, the foreign-earned income exclusion is projected to rise to $137,300. You can combine the exclusion with the foreign tax credit, but you cannot claim both for the same income—no double-dipping. ## Section 199A Deduction Sole proprietors and owners of pass-through businesses, including partnerships, S corporations, and many limited liability companies (LLCs), may be eligible for a deduction of up to 20% of qualified business income. The deduction, made permanent under OBBBA, remains subject to thresholds and phase-in amounts. For 2027, Bloomberg Tax projects those amounts as follows: ![2027 projected section 199a amounts](https://www.taxgirl.com/wp-content/uploads/2026/09/2026-09-12-at-94043-am-1200x372.png) For married taxpayers filing jointly, the threshold amount is projected to be $416,600, with a phased-in amount of $566,600. For all other taxpayers, except married taxpayers filing separately, the amounts are $208,300 and $283,300. Married taxpayers filing separately have projected amounts of $208,325 and $283,325. The minimum deduction under the new OBBBA provision is projected to be $415. To qualify as an applicable taxpayer for that minimum, aggregate qualified business income from active qualified trades or businesses must be at least $1,030. ## IRAs & Other Retirement Accounts For 2027, Bloomberg projects the maximum deductible amount for IRA contributions at $7,500 for individuals under age 50. For those age 50 or older, that amount increases by $1,100. For active participants in certain employer retirement plans, the applicable amount used to determine the IRA deduction phaseout is projected to be $83,000 for single and other eligible taxpayers and $133,000 for married taxpayers filing jointly. For spouses who are not active participants, the applicable amount is projected to be $250,000. ## Charitable Distributions A qualified charitable distribution (QCD) allows eligible taxpayers to transfer funds directly from an IRA to a qualified charity. These amounts can count toward required minimum distributions (RMDs), and the donated amount is generally excluded from taxable income. For 2027, the total amount of QCDs that may be excluded from gross income is projected to increase to $114,000. Taxpayers may also make a one-time election to make a QCD to certain split-interest entities. That amount is projected to increase to $57,000 in 2027. ## Roth IRAs Taxpayers who wish to contribute to a Roth IRA are subject to income phaseouts. In this context, phaseouts mean the eligible contribution amount decreases as income rises. Bloomberg predicts that phaseouts will look like this in 2027: ![2027 roth ira stats](https://www.taxgirl.com/wp-content/uploads/2026/09/2026-09-12-at-94045-am-1200x334.png) For married taxpayers filing jointly, the phaseout is projected to run from $250,000 to $260,000. For single and other taxpayers, other than married taxpayers filing separately, the phaseout is projected to run from $158,000 to $173,000. For married taxpayers filing separately, the range remains $0 to $10,000. However, a married individual filing separately who did not live with their spouse during the year may be eligible for the higher limits applicable to other taxpayers. ## Distribution From Retirement Plan In Case Of Domestic Abuse Tax law provides an exception to the additional tax on certain early retirement-plan distributions for victims of domestic abuse. For 2027, the amount that may be treated as an eligible distribution is projected to be limited to the lesser of $10,900 and 50% of the present value of the employee’s nonforfeitable accrued benefit under the plan. ## Federal Estate Tax Exclusion For estates of individuals who die in 2027, the federal estate tax basic exclusion amount is projected to increase to $15,480,000 per person. The generation-skipping transfer (GST) tax exemption is also projected to be $15,480,000. ## Gift Tax Exclusion The annual federal gift tax exclusion is projected to rise to $20,000 per recipient in 2027. This means you can generally give up to $20,000 to as many people as you want in 2027 without using any of your lifetime federal gift and estate tax exemption. If you and your spouse elect to split gifts, the amount effectively doubles to $40,000 per recipient. The limit for gifts to a non-U.S. citizen spouse is projected to increase to $201,000 in 2027. ## Information Reporting OBBBA also significantly changed information reporting requirements. For payments made after December 31, 2025, the law increased the reporting threshold under section 6041 from $600 to $2,000, with the $2,000 amount indexed for inflation beginning in 2027. For 2027, Bloomberg Tax projects that the threshold will increase to $2,100. Section 6041 generally requires businesses to report certain payments made in the course of a trade or business. OBBBA also made a corresponding change to section 6041A, which applies to reporting certain payments for services. The changes are significant because the $600 threshold under section 6041 had remained unchanged for decades. Businesses will still need to pay attention to the applicable reporting rules and exceptions, but fewer payments should trigger an information reporting requirement. ## More Information Remember that these are projections. The IRS will publish the official 2027 tax brackets and other inflation-adjusted numbers later this year (and I’ll definitely post those numbers). Because the BLS did not publish C-CPI-U data for October 2025, Bloomberg Tax calculated its projections using an 11-month average. Bloomberg also identifies several provisions for which the statutory rounding methodology yields one figure, but it believes the IRS may ultimately publish a different one. Still, the projected numbers can give you a head start on 2027 planning. The full Bloomberg Tax report is available [here](https://pro.bloombergtax.com/insights/federal-tax/2027-projected-tax-rates-special-report/?trackingcode-cta=BTXF26118082). 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Corporate, Freelancers and Creators, Individual --- ### [Draft 2026 Form 1040 Adds New Citizenship And Work Authorization Question](https://www.taxgirl.com/2026/09/22/draft-2026-form-1040-adds-new-citizenship-and-work-authorization-question/) **Published:** September 22, 2026 **Author:** Kelly Phillips Erb **Excerpt:** Draft Form 1040 for 2026 adds a new citizenship and work-authorization question, plus Schedule 3-A changes affecting certain refundable credits. **Content:** The 2026 Form 1040 looks a little different this year—at least an early version does. A draft Form 1040 released on September 17 adds a new immigration-related question asking taxpayers whether they are U.S. citizens, U.S. nationals, or otherwise lawfully authorized to work in the United States. The draft Form 1040 also relocates an existing line concerning a nonresident or dual-status spouse. The line previously appeared on the 2025 Form 1040 under Filing Status. ![Other information box from draft 1040 text is also in the post](https://www.taxgirl.com/wp-content/uploads/2026/09/2026-09-22-at-14404-pm-1200x138.png) The changes appear in a new “Other Information” section near the top of the return’s front page. That box was labeled “Digital Assets” on the 2025 form since it only displayed the digital assets question, which first moved onto the front page of Form 1040 for the 2020 tax year after initially appearing on Schedule 1 in 2019. The 2026 draft turns that prime location into a spot for more compliance-focused questions. ## A New Location For An Existing Tax Election The first line reads: > If treating a nonresident alien or dual-status alien spouse as a U.S. resident for the entire tax year, check the box and enter their name (attach statement if required). This isn’t a new concept. Under longstanding tax rules, a married couple may, in certain circumstances, elect to treat a nonresident alien spouse as a U.S. resident for federal income tax purposes. A similar election is available in some cases for a dual-status spouse. When the election applies, the spouses are generally treated as U.S. residents for income tax purposes for the relevant year, must report worldwide income, and, for the year of the election, generally file a joint return. That distinction is important because U.S. tax residency is not the same as citizenship or immigration status. A person may be a resident alien for federal income tax purposes if they satisfy the green card test or the substantial presence test, and a person may be a dual-status individual if their federal tax residency changes during the year. The IRS itself notes that tax residency can differ from residency under immigration law or a tax treaty. Checking the spouse box does not mean someone has become a U.S. citizen or obtained permission to work here. It concerns how that spouse is treated for federal income tax purposes. The 2025 Form 1040 included this election directly in the Filing Status section, where taxpayers could check a box, enter the spouse’s name, and, if required, attach a statement. Now, the line has been moved out of Filing Status and into the new “Other Information” section. ## The Citizenship Question Is Different The draft Form 1040 also asks: > At the time you file your return, are you, and your spouse if filing jointly, a U.S. citizen, U.S. national, or an alien lawfully authorized to work in the U.S.? The taxpayer and spouse each have separate “Yes” and “No” boxes. That question is more notable because it directly asks about citizenship or lawful work authorization, information that has not traditionally been included as a basic status question on Form 1040. The wording also makes clear that the IRS is not asking whether someone is a U.S. resident for tax purposes. It is asking whether the person falls into one of three categories: a U.S. citizen, a U.S. national, or an alien lawfully authorized to work in the United States. It’s a bit confusing from a tax perspective because those categories do not line up neatly with the rules governing who must file a federal income tax return. A nonresident alien, for example, may have a federal income tax filing obligation if they are engaged in a U.S. trade or business, have certain U.S.-source income on which tax was not fully satisfied through withholding, or need to file to claim a refund or tax benefit. Likewise, a person who is not eligible for a Social Security number may obtain an Individual Taxpayer Identification Number (ITIN) if they have a federal tax purpose for doing so. An ITIN is a tax-processing number. It does not confer immigration status and, by itself, does not authorize someone to work in the United States. Importantly, someone can have a legitimate federal tax filing obligation without being lawfully authorized to work in the United States. ## Timing Matters, Too The new question also asks about a taxpayer’s status “at the time you file your return.” That’s different from asking about status during the tax year. A taxpayer’s immigration or work-authorization status could change between December 31 and the filing date. For example, a taxpayer may have work authorization for part of the tax year but no longer have it by the time of filing, or may obtain authorization after the year ends but before filing. Until the IRS releases the 2026 instructions, it remains unclear how the agency intends for taxpayers and preparers to handle those situations. The lack of instructions also leaves practical questions open about what a preparer is expected to know or verify before answering the question, and what consequences, if any, follow from an incorrect response. ## Why Is The IRS Asking? The IRS has not explained why it seeks citizenship and work-authorization information or how it will use it. The timing is likely to attract attention because the IRS has spent much of the past two years at the center of disputes over using taxpayer information for immigration enforcement. Earlier this year, the IRS shared last-known address information with ICE under a data-sharing arrangement that relied on an exception to the general taxpayer-confidentiality rules in section 6103 of the tax code. The D.C. Circuit later [blocked the procedure](https://www.taxgirl.com/2026/09/15/court-blocks-irs-ice-data-sharing-procedure-over-taxpayer-privacy-rules/) the IRS had been using, finding that challengers were likely to succeed in showing that the procedure did not comply with the statutory requirements. That case did not hold that the IRS can never disclose information to ICE. Section 6103 permits disclosures in specified circumstances. But the litigation underscored that information taxpayers provide to the IRS is generally confidential and that the exceptions Congress created are limited. ## Schedule 3-A And Refundable Credits The 2026 draft also changes how it handles certain refundable credits. For 2025, the return simply added the earned income credit, additional child tax credit, refundable American Opportunity Credit, refundable adoption credit, and other refundable amounts on line 32. For 2026, the draft breaks that calculation into separate steps and adds a new Schedule 3-A, titled Federal Public Benefit. The schedule applies to the refunded portions of the earned income credit, additional child tax credit, refundable American Opportunity Credit, and refundable adoption credit. It asks whether you or your spouse is a U.S. citizen, U.S. national, or a “qualified alien.” If the answer is yes, Schedule 3-A directs the filer to enter zero on Form 1040, line 32b. If the answer is no, the amount determined on the schedule is carried to line 32b and reduces the refundable-credit total on line 32c. “Qualified alien” is a defined term under federal benefits law, not merely another way of saying someone is legally present or authorized to work in the United States. The category includes lawful permanent residents, refugees, asylees, certain parolees, and several other specifically defined groups. The schedule follows proposed Treasury regulations issued in August that would treat the refunded portions of those four credits as federal public benefits under the Personal Responsibility and Work Opportunity Reconciliation Act of 1996. Under the proposal, an alien generally would have to be a “qualified alien” on the date the return first claiming the credit is filed in order to receive that refunded portion. That matters because this language is not identical to the new question on page 1. Form 1040 asks whether the taxpayer or spouse is a citizen, a national, or an alien lawfully authorized to work in the United States. Schedule 3-A, by contrast, uses the term “qualified alien.” These are distinct legal concepts and should not be treated as interchangeable. The distinction is likely to create confusion if the draft language survives into the final forms, especially because both provisions ask about immigration-related status but use different legal standards. Until the IRS issues final instructions, taxpayers and preparers will need more guidance on how the provisions fit together. ## Is There Anything Else? The draft includes other changes. Line 12f is new. It reads: “Charitable contribution deduction for non-itemizers.” This reflects a new rule that, beginning in 2026, taxpayers who do not itemize their deductions can claim up to $1,000 in qualifying cash contributions, or $2,000 for joint filers, as a charitable deduction. Because this applies to taxpayers who do not file Schedule A, the deduction now has its own line on Form 1040. For organizational purposes, this means a reshuffle of lines on Form 1040. In 2025, line 13a was the qualified business income (QBI) deduction, and 13b was the Schedule 1-A deduction. In the 2026 draft, Schedule 1-A moves to line 13a, QBI moves to line 13b, and Schedule 1-A now feeds from line 44 rather than line 38. Line 24 has been expanded. The 2025 form had a single line 24 for total tax. The 2026 draft now has 24a for the ordinary total, 24b for an amount from Form 1062, and 24c for the combined amount. Form 1062 is new and implements the section 1062 election, which allows tax attributable to certain sales or exchanges of qualified farmland property to qualified farmers to be paid in four annual installments. Finally, there are the expected annual updates, including an increase in the standard deduction amounts from $15,750 for single taxpayers, $31,500 for married taxpayers filing jointly, and $23,625 for heads of households in 2025 to $16,100 for single taxpayers, $32,200 for married taxpayers filing jointly, and $24,150 for heads of households in 2026. The footer on Form 1040 now also includes a brief promo for Free File, the federal program that lets eligible taxpayers prepare and file their returns online for free. ## What Happens Next? As always, don’t hit print just yet. The IRS warns: > This is an early release draft of an IRS tax form, instructions, or publication, which the IRS is > providing for your information. **Do not file draft forms.** (emphasis added) The IRS goes on to say: > However, unexpected issues occasionally arise, or legislation is passed—in this case, we will post a > new draft of the form to alert users that changes were made to the previously posted draft. Thus, there > are never any changes to the last posted draft of the form and the final revision of the form. Forms and > instructions are subject to OMB approval before they can be officially released, so we post drafts of > them until they are approved. Drafts of instructions and publications usually have some additional > changes before their final release… (As most practitioners are aware, forms and instructions can and do change, even after publication. Last year, the IRS released a January 30, 2026, edition of the Form 1040 instructions. On February 25, 2026—about a month after the tax season began—the IRS updated the Form 1040 instructions to make clear that the tips deduction is further limited by subtracting all deductions allocable to the trade or business.) For now, you can submit comments to the IRS about this draft or others at [IRS.gov/FormsComments](https://www.irs.gov/forms-pubs/comment-on-tax-forms-and-publications). Include “NTF” followed by the form or publication number (here, “NTF1040”) in the body of the message. The IRS notes that it cannot respond to all comments due to the high volume it receives and “may not be able to consider many suggestions until the subsequent revision of the product,” but says it will review each “NTF” message.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Draft%202026%20Form%201040%20Adds%20New%20Citizenship%20And%20Work%20Authorization%20Question&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2026%2F09%2F20260922_152209.jpg&p%5Btitle%5D=Draft%202026%20Form%201040%20Adds%20New%20Citizenship%20And%20Work%20Authorization%20Question "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Draft%202026%20Form%201040%20Adds%20New%20Citizenship%20And%20Work%20Authorization%20Question "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Draft%202026%20Form%201040%20Adds%20New%20Citizenship%20And%20Work%20Authorization%20Question&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual, IRS News, Tax Forms --- ### [IRS Finalizes Rules For The New Car Loan Interest Deduction](https://www.taxgirl.com/2026/09/22/irs-finalizes-rules-for-the-new-car-loan-interest-deduction/) **Published:** September 22, 2026 **Author:** Kelly Phillips Erb **Content:** The IRS has finalized rules for a new deduction that lets some taxpayers write off interest they pay on new car loans. The deduction, created by the One Big Beautiful Bill Act (OBBBA), applies to qualified passenger vehicle loan interest for tax years 2025 through 2028. The maximum deduction is $10,000 per return (not per person), and the rules apply to loans taken out after December 31, 2024. ## Which Vehicles Qualify? The deduction applies to interest on a loan used to purchase an “applicable passenger vehicle” for personal use. This includes cars, minivans, vans, SUVs, pickup trucks, and motorcycles that meet the statutory requirements, including a gross vehicle weight rating of less than 14,000 pounds. The vehicle must be new to the taxpayer—used vehicles do not qualify. The vehicle must also meet a domestic-assembly requirement, meaning its final assembly must occur in the United States. Taxpayers can generally determine this from the vehicle identification number (VIN) and other manufacturer information (taxpayers claiming the deduction must provide the VIN for the qualifying vehicle on the return). ## What About The Loan? The loan must have been taken out after December 31, 2024, for the purchase of the qualifying vehicle and must be secured by a first lien on that vehicle. This means interest on older loans does not qualify, even if most of the interest is paid during the 2025 through 2028 deduction window. Treasury declined requests to extend the deduction to loans taken out before 2025, explaining that the statute limits the deduction to indebtedness incurred after December 31, 2024. Lease payments do not count as qualified passenger vehicle loan interest, and related-party financing is excluded. Refinancing can qualify, but only to the extent it refinances the outstanding balance of an otherwise qualifying loan. The refinanced debt must remain secured by a first lien on the same vehicle. But be careful: one common item that does not qualify is negative equity from a trade-in. If you owe more on your old vehicle than it is worth and that debt is rolled into the new loan, the portion attributable to the old loan is not treated as debt incurred to purchase the new qualifying vehicle. ## What Counts As Part Of The Purchase? The deduction is not necessarily limited to interest attributable to the base sticker price. The final rules allow certain amounts customarily financed as part of a vehicle purchase and directly related to that purchase to be included in the qualifying indebtedness. That can include items such as sales taxes and vehicle-related fees, extended warranties, service or repair plans, GAP coverage, and certain protection products or accessories purchased as part of the transaction. The rules do not, however, turn unrelated financed property into part of a qualifying vehicle loan. That distinction matters because dealerships frequently bundle add-ons into a single financing agreement. The final rules give taxpayers and lenders more guidance on how much of that debt can produce deductible interest. ## What About Personal Use? The law requires the vehicle to be purchased for personal use, but Treasury did not interpret that to require 100% personal use. Under the final regulations, the taxpayer must reasonably expect, at the time of purchase, that the vehicle will be used for personal purposes more than 50% of the time during the expected period of ownership. This makes mixed-use vehicles potentially eligible. A taxpayer who uses a vehicle for both work and personal purposes may still satisfy the personal-use requirement if expected personal use exceeds 50%. The regulations look to the taxpayer’s reasonable expectation at the time of purchase rather than imposing a fresh 50% test each year. ## Is There A Limit On The Deduction? The maximum interest deduction is $10,000 per return, not $10,000 per car or per taxpayer on a joint return. A married couple filing jointly has a single $10,000 deduction, even if both spouses have qualifying vehicle loans. The deduction is available whether or not the taxpayer itemizes. Congress amended the rules so that taxpayers taking the standard deduction can still claim qualified passenger vehicle loan interest. ## Is The Deduction Subject To Phaseouts? The deduction also phases out for higher-income taxpayers. A phaseout means the benefit decreases as income increases. Here, the phaseout begins when modified adjusted gross income (MAGI) exceeds $100,000 for most taxpayers or $200,000 for married couples filing jointly. The available deduction is reduced by $200 for every $1,000, or fraction of $1,000, by which income exceeds the applicable threshold. That means a taxpayer otherwise entitled to the full $10,000 deduction is fully phased out when MAGI reaches $150,000, or $250,000 for a married couple filing jointly. ## How Does This Get Reported? The law also created new reporting requirements for lenders and other interest recipients. Generally, a person engaged in a trade or business who receives $600 or more of interest during the year on a specified passenger vehicle loan must file an information return and furnish a statement to the borrower. The final regulations clarify that the $600 threshold is determined on a loan-by-loan basis. That reporting will appear on a new [Form 1098-VLI, Vehicle Loan Interest Statement](https://www.irs.gov/pub/irs-pdf/f1098vli.pdf). The form reports information including the amount of vehicle-loan interest and identifying information about the vehicle. However, that doesn’t mean the total amount on the form is deductible. In fact, the form includes a warning: > The amount shown may not be fully deductible by you. Limits based on the amount of interest paid, your income, and the passenger vehicle may apply. Generally, you may only deduct interest to the extent it was incurred by you, actually paid by you, and not reimbursed by another person. ## Should You Buy A New Car Now? If you were planning to buy and finance a new vehicle in 2025 or later, review the rules to see whether you might benefit. But be smart: buying a car solely for the deduction probably does not make financial sense. Only the interest is deductible—not the principal—and both income and dollar limits apply. Also worth noting? The deduction is temporary. Unless Congress changes the law again, qualified passenger vehicle loan interest is deductible only for tax years beginning after December 31, 2024, and before January 1, 2029. That means the interest on a six-year loan (the approximate average term of a new car loan) taken out in 2026 will be paid long after the deduction expires. ## Where Can I Find The Rules? Treasury and the IRS finalized the details in [T.D. 10054](https://public-inspection.federalregister.gov/2026-18219.pdf), which appears in the September 21 Internal Revenue Bulletin. The final regulations take effect on November 9, 2026, although the deduction applies to qualifying loans incurred after December 31, 2024.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=IRS%20Finalizes%20Rules%20For%20The%20New%20Car%20Loan%20Interest%20Deduction&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2026%2F09%2Fpexels-roman-chernov-812606789-381649441.jpg&p%5Btitle%5D=IRS%20Finalizes%20Rules%20For%20The%20New%20Car%20Loan%20Interest%20Deduction "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=IRS%20Finalizes%20Rules%20For%20The%20New%20Car%20Loan%20Interest%20Deduction "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=IRS%20Finalizes%20Rules%20For%20The%20New%20Car%20Loan%20Interest%20Deduction&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual, IRS News, Tax Forms **Tags:** car interest deduction, new deduction for car interest, OBBBA, One Big Beautiful Bill Act, qualifying vehicle --- ### [IRS Is Ending The Taxpayer Advocacy Panel. Here’s What We Know.](https://www.taxgirl.com/2026/09/20/irs-is-ending-the-taxpayer-advocacy-panel-a-longtime-voice-for-taxpayers/) **Published:** September 20, 2026 **Author:** Kelly Phillips Erb **Excerpt:** The IRS is ending the Taxpayer Advocacy Panel in its current form and replacing it with a new approach to gathering taxpayer feedback. **Content:** The IRS has decided to end the Taxpayer Advocacy Panel (TAP) as it currently exists and replace the volunteer advisory panel with what the agency describes as a broader, more technology-focused approach to gathering public feedback. What that might look like isn’t yet clear. ## Immediate Changes to TAP The change has not been widely publicized. The IRS website still lists TAP as an active federal advisory committee. And until very recently, TAP also maintained a separate public website, ImproveIRS.org, featuring its members, current projects, meeting information, reports, and a form for taxpayers to submit suggestions. That site was still publishing new TAP content on September 16. Now, however, the site’s main address redirects visitors to the IRS’s general Taxpayer Advocate page. That tracks with a September 17 letter to TAP National Chair Philip Hwang, in which Frank J. Bisignano (acting as the IRS’ “CEO,” a position created administratively by Treasury and not subject to Senate confirmation) wrote that the agency had “made the decision to conclude TAP’s work in its current form” as the IRS transforms into what he called a “digital-first agency.” The IRS says TAP will be replaced with “a new, broader forum for public engagement,” with a greater focus on online and digital offerings. Details about what that will look like have not been released yet. Bisignano’s letter also indicates TAP will be allowed to “accomplish its work this year.” However, TAP members were told that the panel’s work will conclude on November 30, 2026. ## What is TAP? TAP is a federal advisory committee composed of roughly 75 volunteers who serve three-year terms and are expected to volunteer 200 to 300 hours each year. According to the IRS, TAP staff handles recruiting and administering the volunteers who make up the panel. Members undergo a strict vetting process, including a lobbyist check (applicants must not be a federally registered lobbyist), an Office of Professional Responsibility check, a federal tax compliance check, and a fingerprint background investigation. TAP includes representatives from all 50 states, the District of Columbia, and Puerto Rico, as well as a member representing U.S. taxpayers living and working abroad. Its role is to listen to taxpayers, identify recurring problems, and recommend how the IRS can improve its services, products, and procedures. That can include everything from confusing IRS notices to frustrating administrative processes. TAP members conduct grassroots outreach, participate in meetings and focus groups, and work with IRS program owners on projects. In practical terms, taxpayers tell TAP what’s not working, and TAP takes those concerns to the IRS. The panel traces its roots to 1998, when Treasury created the first Citizen Advocacy Panel as part of a broader push to reform the IRS and give ordinary taxpayers a more direct voice in how the agency operated. The first panel was created in South Florida, with pilot panels following in Brooklyn, the Midwest, and the Pacific Northwest. In 2002, Treasury expanded the program nationwide and renamed it the Taxpayer Advocacy Panel; the first nationwide TAP included 102 members. Since then, the panel says it has forwarded more than 3,169 recommendations to the IRS. Some of those recommendations have led to changes taxpayers would recognize. In a Federal Register notice earlier this year, the IRS credited TAP’s work with helping introduce callback technology on IRS toll-free telephone lines, improving procedures involving third-party authorizations and identity verification, clarifying taxpayer rights involving Form 8821, improving installment agreement notices, and contributing to a complete rewrite of Form 709, the federal gift and generation-skipping transfer tax return. In 2025 alone, TAP submitted 20 referrals containing 188 recommendations. (While the [news announcement](https://www.irs.gov/newsroom/taxpayer-advocacy-panel-issues-2025-annual-report-highlighting-taxpayer-focused-recommendations-to-improve-tax-administration) about the recommendations remains on the IRS website, the link to the annual report redirects back to the IRS’s general Taxpayer Advocate page.) ## A Change of Direction TAP isn’t mandated by Congress. It is a federal advisory committee established by Treasury under its authority to administer the tax laws and governed by the Federal Advisory Committee Act (FACA). Its charter is renewed every two years and is filed with the House Ways and Means Committee, the Senate Finance Committee, and the Library of Congress. That’s what happened recently. In March 2026, Treasury announced it was reestablishing TAP for another two years, saying the panel’s continued operation was “in the public interest.” At the time, Treasury described TAP as providing a “unique, independent structure” for obtaining nationwide grassroots taxpayer input. The government said the panel offered taxpayers a “transparent and structured forum” to influence tax administration and noted that, from December 2023 through November 2025 alone, members conducted more than 1,300 outreach activities and dedicated more than 8,000 hours to reaching more than 150,000 taxpayers. As recently as August 24, the IRS published a Federal Register notice announcing the September 16 public meeting. The agenda included discussion of “new and continuing issues and other activities related to the new TAP year.” The letter outlining the intent to end TAP in its current form followed the next day. Bisignano’s September 17 letter says the new forum would make it easier for more taxpayers, tax professionals, stakeholders, and advocates to share their experiences and ideas directly with the IRS. He also emphasized that the decision “does not diminish the value of the TAP or the contributions of its members.” ## National Taxpayer Advocate Reacts In a separate September 16 letter to Hwang, National Taxpayer Advocate Erin M. Collins praised TAP’s work and acknowledged the coming transition. Collins, whose office has long worked closely with TAP, credited members with improving IRS processes, forms, notices, and procedures. “Some of the best ideas for improving tax administration come from the people who experience it every day,” she wrote. Collins noted that the IRS intends to use new technology and other methods to gather ideas directly from taxpayers and the public. But she stressed that while the method may be changing, the need to listen to taxpayers remains. “The decision to transition from a volunteer panel to a new model for obtaining public feedback does not diminish TAP’s accomplishments or the extraordinary value of the service its members have provided,” Collins wrote. “Quite the opposite.” ## NATP Offers Comment After the announcement, Scott Artman, CEO of the National Association of Tax Professionals (NATP), said, in a statement, “The Taxpayer Advocacy Panel has provided an important connection between the IRS and the people who interact with the tax system every day. As the IRS moves toward a more digital approach, we support finding new ways to broaden that engagement. What matters is that taxpayers and tax professionals continue to have meaningful opportunities to share what they see and experience. We look forward to learning more about the IRS’s plans and working with the agency as this new approach takes shape.” ## What Happens Next? The decision caught many, including me, off guard. It’s unclear what comes next. Bisignano’s letter states only that the IRS will create a broader public-engagement forum with greater emphasis on technology and online interaction. It does not explain how taxpayers will be selected to participate, how recommendations will be developed or tracked, whether meetings will be public, or whether the new forum will operate under FACA. Importantly, under FACA, TAP operates within a formal structure that includes a charter, open-meeting requirements, and other public-accountability measures. Whether the IRS’s new model will preserve those features remains unclear. What is clear is that after more than two decades, TAP in its current form is coming to an end. 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[ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual, Tax Policy, Tax Professionals **Tags:** IRS TAP, TAP, Taxpayer Advocacy Panel --- ### [A Bipartisan Bill Would Expand Taxpayer Rights And Change How The IRS Works](https://www.taxgirl.com/2026/09/19/a-bipartisan-bill-would-expand-taxpayer-rights-and-change-how-the-irs-works/) **Published:** September 19, 2026 **Author:** Kelly Phillips Erb **Excerpt:** A bipartisan Senate bill would change IRS service, taxpayer rights, refunds, paid tax preparer rules, and access to the Tax Court. Here's what you need to know. **Content:** Congress may be divided on many issues, including tax policy, but lawmakers appear to have found common ground on how the tax system should actually work—at least in the Senate. The Senate Finance Committee has approved the Taxpayer Assistance and Service Act (TAS Act) and sent the bill to the full Senate for consideration. The bipartisan package aims to improve IRS service, strengthen taxpayer rights, and make several changes to tax administration. Senate Finance Committee Chairman Mike Crapo (R-Idaho) and Ranking Member Ron Wyden (D-Oregon) worked together on the legislation. Here’s what you need to know. ## What Is The Taxpayer Assistance And Service Act? The TAS Act focuses largely on how taxpayers interact with the tax system, including filing returns, communicating with the IRS, resolving disputes, receiving refunds, and challenging IRS decisions. The package includes more than 60 provisions covering topics ranging from IRS technology and paid tax return preparers to Tax Court jurisdiction, installment agreements, whistle-blowers, and taxpayer protections. Crapo and Wyden have characterized the legislation as an effort to modernize IRS operations and make tax administration more efficient and transparent. ## Better IRS Service And Online Access Several provisions address longstanding complaints about communicating with the IRS. For example, the bill would require greater digitization of paper-filed returns and correspondence, improve IRS online accounts, expand callback options, and provide taxpayers with better information on the status of delayed refunds. The idea is to let taxpayers and tax professionals do more business with the IRS electronically rather than relying on paper correspondence and phone calls (if you’ve ever sent a letter or sat on hold waiting for the IRS, you know this is an issue). ## More Authority For The Tax Court The bill would also give the Tax Court jurisdiction over certain refund suits involving claims of $2 million or less that currently must be brought in federal district court or the Court of Federal Claims. That’s a significant expansion of the Tax Court’s role. Taxpayers can already challenge many proposed deficiencies in Tax Court without first paying the disputed tax, but the court generally does not have jurisdiction over standalone refund suits. The TAS Act would change that for qualifying refund claims, giving taxpayers another forum for resolving those disputes. (You can read more about [recent changes to the U.S. Tax Court here](https://www.taxgirl.com/2026/09/08/tax-court-is-changing-where-and-how-taxpayers-go-to-trial/).) ## New Rules For Paid Tax Return Preparers The bill also addresses how paid tax return preparers are regulated. Currently, attorneys, CPAs, enrolled agents, and certain other tax professionals are subject to professional standards, but unenrolled paid return preparers face no general federal competency or continuing-education requirement. The TAS Act would change that and establish requirements for preparers who are not otherwise exempt. Under the proposal, Treasury could require those preparers to complete up to 18 hours of continuing education each year covering tax law, ethics, and professional responsibility. Additionally, under current law, anyone who prepares or assists in preparing federal tax returns for compensation must have a valid Preparer Tax Identification Number (PTIN) before preparing returns. But Treasury has little wiggle room on PTINs. The bill would give Treasury clearer authority to deny, suspend, or revoke a PTIN for misconduct or failure to meet the new requirements. It would pair that authority with procedural protections, including notice and a hearing before Treasury suspends or revokes a PTIN, as well as the opportunity to appeal an adverse determination under procedures established by Treasury. To protect taxpayers, Treasury could impose a preliminary suspension of up to 180 days when immediate action is necessary to prevent serious harm. ## Protections For Victims Of Bad Preparers The bill also includes protections for taxpayers victimized by fraudulent return preparers, including an unusual problem recently highlighted. The IRS normally has three years to assess additional tax after a return is filed. But there’s no time limit when a fraudulent return is filed with the intent to evade tax. That can create a particularly harsh result when the return preparer—not the taxpayer—committed the fraud, because the taxpayer can be left exposed to an IRS examination years after the ordinary limitations period would have expired. The provision comes just months after the Supreme Court declined to hear a case highlighting the problem. In *Murrin v. Commissioner*, the IRS assessed additional tax on returns filed roughly two decades earlier after discovering that the taxpayer’s return preparer had committed fraud. Murrin maintained that she neither knew about nor participated in the fraud. The Third Circuit held that the preparer’s fraudulent intent was enough to trigger the unlimited assessment period under current law. Murrin asked the Supreme Court to review that interpretation, but the Court denied her petition in June, leaving the Third Circuit’s decision in place. (You can learn more about Circuit Courts here.) The TAS Act would change the statute to provide that the unlimited assessment period applies when the taxpayer intended to evade tax. Basically, Congress would resolve the question the Supreme Court declined to take up. ## Relief For Taxpayers Experiencing Financial Hardship Several provisions focus specifically on taxpayers experiencing financial hardship. Among them, the bill would waive installment agreement user fees for taxpayers whose income falls below 250% of the federal poverty level (for 2026, that’s $39,900 for an individual and $82,500 for a family of four in the 48 contiguous states and Washington, D.C.). It would also waive the fee for taxpayers who establish an installment agreement online and make payments by electronic debit, regardless of that income test. The bill would require the IRS to automatically provide an offset-bypass refund (OBR) for the EITC portion of an overpayment when the taxpayer’s account has already been designated currently not collectible because of economic hardship. With an OBR, the IRS can issue part of your tax refund during severe economic hardship instead of applying the entire amount to past-due federal tax debts. (Importantly, OBRs only apply to back federal taxes, not child support, state debts, or non-tax federal debts.) ## Protection When The IRS Bars Refundable Credits Currently, the law allows the IRS to stop taxpayers from claiming certain refundable credits for multiple years when statutory requirements are met. The TAS Act would add procedural protections, including notice requirements and access to Tax Court review, for bans on claiming the EITC, child tax credit, and American Opportunity Tax Credit. That would give taxpayers a clearer path to challenge the IRS determination rather than simply losing access to the credit. ## Taxpayer Advocate Service And IRS Appeals The bill also includes provisions intended to reinforce the independence of the Taxpayer Advocate Service and the IRS Independent Office of Appeals. Many taxpayers don’t realize that both are designed to operate with a degree of independence within the IRS and to provide important checks within the tax administration system. That’s especially true when taxpayers challenge IRS actions or have trouble resolving problems. Among other changes, the bill would allow the National Taxpayer Advocate to hire attorneys who report directly to the NTA rather than IRS Chief Counsel and give TAS greater access to IRS information, legal advice, and meetings when assisting taxpayers. ## What Happens Next? The Finance Committee overwhelmingly approved the package 26-1 on July 30. On September 17, the bill was placed on the Senate Legislative Calendar as Calendar No. 670. Senate leadership would need to bring it up for consideration. If it passes the Senate, the House would also have to act. Both chambers ultimately must approve identical legislative text before the bill can go to the President. ## Tax Professionals Are Pushing Congress To Act This week, the National Association of Tax Professionals (NATP), representing more than 24,000 tax professionals, urged Crapo and Wyden to work with Senate leadership to bring the legislation before the full Senate. In a September 15 letter, NATP said it “strongly supports” the legislation and highlighted improvements to taxpayer protections, IRS service, and standards for paid tax return preparers. NATP CEO Scott Artman made the organization’s position clear in a statement accompanying the letter, noting, “A 26-1 vote sends a clear message that better taxpayer service and reasonable standards for paid tax return preparers are not partisan goals.” The American Institute of Certified Public Accountants (AICPA) also strongly supports the legislation. ## The National Taxpayer Advocate Is On Board, Too As I noted in June of this year, National Taxpayer Advocate Erin Collins is enthusiastic about the legislation. In July, she followed up, noting that the more than 60 provisions would strengthen taxpayer rights, reduce unnecessary burdens, and improve tax administration for millions of taxpayers. She characterized the package as “far-reaching practical and common-sense improvements” and urged Congress to finish the job and enact the legislation.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=A%20Bipartisan%20Bill%20Would%20Expand%20Taxpayer%20Rights%20And%20Change%20How%20The%20IRS%20Works&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2026%2F09%2Fpexels-n-voitkevich-68632601-scaled.jpg&p%5Btitle%5D=A%20Bipartisan%20Bill%20Would%20Expand%20Taxpayer%20Rights%20And%20Change%20How%20The%20IRS%20Works "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=A%20Bipartisan%20Bill%20Would%20Expand%20Taxpayer%20Rights%20And%20Change%20How%20The%20IRS%20Works "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=A%20Bipartisan%20Bill%20Would%20Expand%20Taxpayer%20Rights%20And%20Change%20How%20The%20IRS%20Works&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual, Politics **Tags:** challenging IRS decisions, receiving refunds, regulate tax preparers, TAS Act, Taxpayer Assistance And Service Act --- ### [What is Domicile? Taxes From A to Z®](https://www.taxgirl.com/2026/09/19/what-is-domicile-taxes-from-a-to-z/) **Published:** September 19, 2026 **Author:** Kelly Phillips Erb **Excerpt:** Learn what domicile means for tax purposes, how it differs from residence, and why your permanent legal home can affect state income and estate taxes. **Content:** Domicile is your permanent legal home—the place you consider home and intend to return to, even if you’re temporarily living somewhere else. (It’s a bit simplistic, but we often say that your residence is where you live, but your domicile is where you intend to die.) ## One domicile at a time You can have more than one residence, but generally only one domicile at a time. Your domicile isn’t necessarily determined by where you spend the most time or where you happen to own a house. States may consider many factors to determine where you really call home, including where you vote, hold a driver’s license, register your car, and maintain important personal and financial ties. Simply buying a house in a lower-tax state—or spending part of the year there—doesn’t automatically change your domicile. ## Why does it matter? Domicile can affect whether a state treats you as a resident for income tax purposes, and it can also play a role in estate and inheritance taxes. The rules vary by state, and some states use separate statutory residency tests in addition to domicile. That’s why taxpayers who split their time among states, move during the year, or maintain homes in more than one state should pay attention to both where they live and where the law considers their permanent home. --- **Taxes come with their own language. Taxes From A to Z® is here to help translate. Find more tax terms and explainers in the [full A to Z collection](https://www.taxgirl.com/tax-glossary/).** [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=What%20is%20Domicile%3F%20Taxes%20From%20A%20to%20Z%C2%AE&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2026%2F09%2Fpexels-robertkso-11373156-scaled.jpg&p%5Btitle%5D=What%20is%20Domicile%3F%20Taxes%20From%20A%20to%20Z%C2%AE "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=What%20is%20Domicile%3F%20Taxes%20From%20A%20to%20Z%C2%AE "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=What%20is%20Domicile%3F%20Taxes%20From%20A%20to%20Z%C2%AE&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Taxes From A to Z® --- ### [IRS Extends Drought Tax Relief for Farmers and Ranchers](https://www.taxgirl.com/2026/09/17/irs-extends-drought-tax-relief-for-farmers-and-ranchers/) **Published:** September 17, 2026 **Author:** Kelly Phillips Erb **Excerpt:** The IRS is extending tax relief for farmers and ranchers who sold livestock because of drought, giving them more time to replace animals and defer gains. **Content:** This past year has been very dry in many parts of the U.S., which has been particularly devastating for farmers and ranchers. As a result, the IRS has announced additional tax relief for those who were forced to sell or exchange livestock because of drought conditions. Under the guidance, affected taxpayers may take more time to replace their livestock and defer tax on any gains from forced sales or exchanges. The relief generally applies to livestock held for draft (work animals), dairy, or breeding purposes when conditions forced a farmer or rancher to sell more animals than would ordinarily be sold under normal business practices. To qualify, the sale or exchange must be attributable to the drought, and the affected area must have been designated as eligible for federal assistance. (Notably, poultry does not qualify, nor do animals raised for slaughter or held for sporting purposes.) ## What does the relief look like? Normally, under section 1033, taxpayers can postpone recognizing gain when property is involuntarily converted, and they purchase qualifying replacement property within a specified period. The usual replacement period is two years, but qualifying weather-related sales of livestock get a longer, four-year replacement period. Congress also authorized the IRS to extend that period further when the drought or other weather conditions persist for more than three years. That’s what Notice 2026-54 does. Under rules previously established in [Notice 2006-82](https://www.irs.gov/pub/irs-drop/n-06-82.pdf), the replacement period can remain open until the end of the taxpayer’s first tax year ending after the applicable region finally experiences a drought-free year. For this purpose, the IRS looks at the county where the drought-related sale occurred as well as all counties contiguous to it. A year is not considered drought-free if severe, extreme, or exceptional drought was reported anywhere in that region during the 12-month period ending August 31. For farmers and ranchers whose four-year replacement period was otherwise scheduled to expire at the end of 2026, the new notice means more time to replace livestock if their region includes an area on the IRS list. The relief is not necessarily limited to a single additional year: if qualifying drought conditions persist, the replacement period can be extended until the region experiences a drought-free year. The specific guidance is found in [Notice 2026-54](https://www.irs.gov/pub/irs-drop/n-26-54.pdf). ## Where does the relief apply? The list includes 49 states (the only state not listed is Alaska), the District of Columbia, Puerto Rico, and other areas that reported exceptional, extreme, or severe drought during the 12-month period ending on Aug. 31, 2026. Normally, this is the part where I’d just link to the list, but it is pretty extraordinary. I think the scope is important, so here’s a look. **Alabama** Counties of Autauga, Baldwin, Barbour, Bibb, Blount, Bullock, Butler, Calhoun, Chambers, Cherokee, Chilton, Choctaw, Clarke, Clay, Cleburne, Coffee, Colbert, Conecuh, Coosa, Covington, Crenshaw, Cullman, Dale, Dallas, DeKalb, Elmore, Escambia, Etowah, Fayette, Franklin, Geneva, Greene, Hale, Henry, Houston, Jackson, Jefferson, Lamar, Lauderdale, Lawrence, Lee, Limestone, Lowndes, Macon, Madison, Marengo, Marion, Marshall, Mobile, Monroe, Montgomery, Morgan, Perry, Pickens, Pike, Randolph, Russell, Saint Clair, Shelby, Sumter, Talladega, Tallapoosa, Tuscaloosa, Walker, Washington, Wilcox, and Winston. **Arizona** Counties of Apache, Cochise, Coconino, Gila, Graham, Greenlee, La Paz, Maricopa, Mohave, Navajo, Pima, Pinal, Santa Cruz, Yavapai, and Yuma. **Arkansas** Counties of Arkansas, Ashley, Baxter, Benton, Boone, Bradley, Calhoun, Carroll, Chicot, Clark, Clay, Cleburne, Cleveland, Columbia, Conway, Craighead, Crawford, Crittenden, Cross, Dallas, Desha, Drew, Faulkner, Franklin, Fulton, Garland, Grant, Greene, Hempstead, Hot Spring, Howard, Independence, Izard, Jackson, Jefferson, Johnson, Lafayette, Lawrence, Lee, Lincoln, Little River, Logan, Lonoke, Madison, Marion, Miller, Mississippi, Monroe, Montgomery, Nevada, Newton, Ouachita, Perry, Phillips, Pike, Poinsett, Polk, Pope, Prairie, Pulaski, Randolph, Saint Francis, Saline, Scott, Searcy, Sebastian, Sevier, Sharp, Stone, Union, Van Buren, Washington, White, Woodruff, and Yell. **California** Counties of Del Norte, Humboldt, Imperial, Inyo, Kern, Los Angeles, Orange, Riverside, San Bernardino, San Diego, Santa Barbara, Siskiyou, and Ventura. **Colorado** Counties of Adams, Alamosa, Arapahoe, Archuleta, Baca, Bent, Boulder, Broomfield, Chaffee, Cheyenne, Clear Creek, Conejos, Costilla, Crowley, Custer, Delta, Denver, Dolores, Douglas, Eagle, El Paso, Elbert, Fremont, Garfield, Gilpin, Grand, Gunnison, Hinsdale, Huerfano, Jackson, Jefferson, Kiowa, Kit Carson, Lake, La Plata, Larimer, Las Animas, Lincoln, Logan, Mesa, Mineral, Moffat, Montezuma, Montrose, Morgan, Otero, Ouray, Park, Phillips, Pitkin, Prowers, Pueblo, Rio Blanco, Rio Grande, Routt, Saguache, San Juan, San Miguel, Sedgwick, Summit, Teller, Washington, Weld, and Yuma. **Connecticut** Planning regions of Southeastern Connecticut and Western Connecticut. **Delaware** Counties of Kent, New Castle, and Sussex. **District of Columbia** District of Columbia. **Florida** Counties of Alachua, Baker, Bay, Bradford, Brevard, Broward, Calhoun, Charlotte, Citrus, Clay, Collier, Columbia, DeSoto, Dixie, Duval, Escambia, Flagler, Franklin, Gadsden, Gilchrist, Glades, Gulf, Hamilton, Hardee, Hendry, Hernando, Highlands, Hillsborough, Holmes, Indian River, Jackson, Jefferson, Lafayette, Lake, Lee, Leon, Levy, Liberty, Madison, Manatee, Marion, Martin, Miami-Dade, Monroe, Nassau, Okaloosa, Okeechobee, Orange, Osceola, Palm Beach, Pasco, Pinellas, Polk, Putnam, Saint Johns, Saint Lucie, Santa Rosa, Sarasota, Seminole, Sumter, Suwannee, Taylor, Union, Volusia, Wakulla, Walton, and Washington. **Georgia** Counties of Appling, Atkinson, Bacon, Baker, Baldwin, Banks, Barrow, Bartow, Ben Hill, Berrien, Bibb, Bleckley, Brantley, Brooks, Bryan, Bulloch, Burke, Butts, Calhoun, Camden, Candler, Carroll, Catoosa, Charlton, Chatham, Chattahoochee, Chattooga, Cherokee, Clarke, Clay, Clayton, Clinch, Cobb, Coffee, Colquitt, Columbia, Cook, Coweta, Crawford, Crisp, Dade, Dawson, Decatur, DeKalb, Dodge, Dooly, Dougherty, Douglas, Early, Echols, Effingham, Elbert, Emanuel, Evans, Fannin, Fayette, Floyd, Forsyth, Franklin, Fulton, Gilmer, Glascock, Glynn, Gordon, Grady, Greene, Gwinnett, Habersham, Hall, Hancock, Haralson, Harris, Hart, Heard, Henry, Houston, Irwin, Jackson, Jasper, Jeff Davis, Jefferson, Jenkins, Johnson, Jones, Lamar, Lanier, Laurens, Lee, Liberty, Lincoln, Long, Lowndes, Lumpkin, McDuffie, McIntosh, Macon, Madison, Marion, Meriwether, Miller, Mitchell, Monroe, Montgomery, Morgan, Murray, Muscogee, Newton, Oconee, Oglethorpe, Paulding, Peach, Pickens, Pierce, Pike, Polk, Pulaski, Putnam, Quitman, Rabun, Randolph, Richmond, Rockdale, Schley, Screven, Seminole, Spalding, Stephens, Stewart, Sumter, Talbot, Taliaferro, Tattnall, Taylor, Telfair, Terrell, Thomas, Tift, Toombs, Towns, Treutlen, Troup, Turner, Twiggs, Union, Upson, Walker, Walton, Ware, Warren, Washington, Wayne, Webster, Wheeler, White, Whitfield, Wilcox, Wilkes, Wilkinson, and Worth. **Hawaii** Counties of Hawaii, Honolulu, Kalawao, and Maui. **Idaho** Counties of Ada, Adams, Bannock, Bear Lake, Benewah, Bingham, Blaine, Boise, Bonner, Bonneville, Boundary, Butte, Camas, Caribou, Cassia, Clark, Clearwater, Custer, Elmore, Franklin, Fremont, Gem, Gooding, Idaho, Jefferson, Jerome, Kootenai, Latah, Lemhi, Lewis, Lincoln, Madison, Minidoka, Nez Perce, Oneida, Owyhee, Power, Shoshone, Teton, Twin Falls, Valley, and Washington. **Illinois** Counties of Adams, Alexander, Bond, Brown, Bureau, Carroll, Cass, Champaign, Christian, Clark, Clay, Clinton, Coles, Cook, Crawford, Cumberland, De Witt, DeKalb, Douglas, DuPage, Edgar, Edwards, Effingham, Fayette, Ford, Franklin, Fulton, Gallatin, Greene, Grundy, Hamilton, Hancock, Hardin, Henderson, Henry, Iroquois, Jackson, Jasper, Jefferson, Jersey, Jo Daviess, Johnson, Kane, Kankakee, Kendall, Knox, LaSalle, Lawrence, Lee, Livingston, Logan, Macon, Macoupin, Madison, Marion, Marshall, Mason, Massac, McDonough, McLean, Menard, Monroe, Montgomery, Morgan, Moultrie, Ogle, Peoria, Perry, Piatt, Pike, Pope, Pulaski, Putnam, Randolph, Richland, Saint Clair, Saline, Sangamon, Schuyler, Scott, Shelby, Stark, Stephenson, Tazewell, Union, Vermilion, Warren, Washington, Wayne, White, Whiteside, Will, Williamson, and Woodford. **Indiana** Counties of Adams, Allen, Benton, Blackford, Boone, Carroll, Cass, Clinton, DeKalb, Delaware, Fountain, Grant, Hamilton, Henry, Howard, Huntington, Jasper, Jay, Madison, Miami, Montgomery, Newton, Parke, Perry, Pulaski, Randolph, Steuben, Tippecanoe, Tipton, Vermillion, Vigo, Wabash, Warren, Wells, White, and Whitley. **Iowa** Counties of Buena Vista, Calhoun, Carroll, Cherokee, Crawford, Davis, Harrison, Henry, Ida, Jefferson, Keokuk, Lee, Lyon, Mahaska, Monona, O’Brien, Osceola, Plymouth, Pottawattamie, Sac, Sioux, Van Buren, Wapello, Washington, and Woodbury. **Kansas** Counties of Barber, Barton, Chautauqua, Cherokee, Cheyenne, Clark, Comanche, Cowley, Crawford, Decatur, Douglas, Edwards, Elk, Ellis, Ellsworth, Finney, Ford, Gove, Graham, Grant, Gray, Greeley, Hamilton, Harper, Harvey, Haskell, Hodgeman, Jefferson, Johnson, Kearny, Kingman, Kiowa, Labette, Lane, Leavenworth, Lincoln, Logan, McPherson, Meade, Miami, Montgomery, Morton, Neosho, Ness, Norton, Osborne, Pawnee, Phillips, Pratt, Rawlins, Reno, Rice, Rooks, Rush, Russell, Saline, Scott, Sedgwick, Seward, Sheridan, Sherman, Stafford, Stanton, Stevens, Sumner, Thomas, Trego, Wichita, Wilson, and Wyandotte. **Kentucky** Counties of Adair, Allen, Anderson, Ballard, Barren, Bath, Bell, Bourbon, Boyd, Boyle, Breathitt, Breckinridge, Bullitt, Butler, Caldwell, Calloway, Carlisle, Carter, Casey, Christian, Clark, Clay, Clinton, Crittenden, Cumberland, Daviess, Edmonson, Elliott, Estill, Fayette, Fleming, Floyd, Franklin, Fulton, Garrard, Graves, Grayson, Green, Greenup, Hancock, Hardin, Harlan, Harrison, Hart, Henderson, Hickman, Hopkins, Jackson, Jessamine, Johnson, Knott, Knox, Larue, Laurel, Lawrence, Lee, Leslie, Letcher, Lewis, Lincoln, Livingston, Logan, Lyon, Madison, Magoffin, Marion, Marshall, Martin, McCracken, McCreary, McLean, Meade, Menifee, Mercer, Metcalfe, Monroe, Montgomery, Morgan, Muhlenberg, Nelson, Nicholas, Ohio, Owsley, Perry, Pike, Powell, Pulaski, Rockcastle, Rowan, Russell, Scott, Simpson, Spencer, Taylor, Todd, Trigg, Union, Warren, Washington, Wayne, Webster, Whitley, Wolfe, and Woodford. **Louisiana** Parishes of Acadia, Allen, Ascension, Assumption, Avoyelles, Beauregard, Bienville, Bossier, Caddo, Calcasieu, Caldwell, Cameron, Catahoula, Claiborne, Concordia, DeSoto, East Carroll, East Feliciana, Evangeline, Franklin, Grant, Iberia, Jackson, Jefferson Davis, Jefferson, La Salle, Lafayette, Lafourche, Lincoln, Livingston, Madison, Morehouse, Natchitoches, Orleans, Ouachita, Plaquemines, Pointe Coupee, Rapides, Red River, Richland, Sabine, Saint Bernard, Saint Charles, Saint Helena, Saint James, Saint John the Baptist, Saint Landry, Saint Martin, Saint Mary, Saint Tammany, Tangipahoa, Tensas, Terrebonne, Union, Vermilion, Vernon, Washington, Webster, West Carroll, West Feliciana, and Winn. **Maine** Counties of Androscoggin, Aroostook, Cumberland, Franklin, Hancock, Kennebec, Knox, Lincoln, Oxford, Penobscot, Piscataquis, Sagadahoc, Somerset, Waldo, Washington, and York. **Maryland** City of Baltimore. Counties of Allegany, Anne Arundel, Baltimore, Calvert, Caroline, Carroll, Cecil, Charles, Dorchester, Frederick, Garrett, Harford, Howard, Kent, Montgomery, Prince George’s, Queen Anne’s, Saint Mary’s, Somerset, Talbot, Washington, Wicomico, and Worcester. **Massachusetts** Counties of Barnstable, Berkshire, Bristol, Dukes, Essex, Franklin, Hampshire, Middlesex, Nantucket, Norfolk, Plymouth, Suffolk, and Worcester. **Michigan** Counties of Allegan, Arenac, Bay, Clare, Dickinson, Gladwin, Gogebic, Gratiot, Huron, Iron, Isabella, Kent, Lake, Mason, Mecosta, Menominee, Midland, Monroe, Montcalm, Muskegon, Newaygo, Oceana, Ontonagon, Osceola, Ottawa, Saginaw, and Tuscola. **Minnesota** Counties of Aitkin, Anoka, Becker, Beltrami, Benton, Carlton, Carver, Cass, Chisago, Clay, Clearwater, Cook, Crow Wing, Dakota, Dodge, Goodhue, Hennepin, Hubbard, Isanti, Itasca, Kanabec, Koochiching, Lac qui Parle, Lake, Lake of the Woods, Lincoln, Lyon, Mahnomen, Mille Lacs, Morrison, Murray, Nobles, Norman, Olmsted, Otter Tail, Pine, Pipestone, Polk, Ramsey, Red Lake, Rice, Rock, Saint Louis, Scott, Sherburne, Stearns, Todd, Wabasha, Wadena, Washington, Wilkin, Wright, and Yellow Medicine. **Mississippi** Counties of Adams, Alcorn, Amite, Attala, Benton, Bolivar, Calhoun, Carroll, Chickasaw, Choctaw, Claiborne, Clarke, Clay, Coahoma, Copiah, Covington, DeSoto, Forrest, Franklin, George, Greene, Grenada, Hancock, Harrison, Hinds, Holmes, Humphreys, Issaquena, Itawamba, Jackson, Jasper, Jefferson, Jefferson Davis, Jones, Kemper, Lafayette, Lamar, Lauderdale, Lawrence, Leake, Lee, Leflore, Lincoln, Lowndes, Madison, Marion, Marshall, Monroe, Montgomery, Neshoba, Newton, Noxubee, Oktibbeha, Panola, Pearl River, Perry, Pike, Pontotoc, Prentiss, Quitman, Rankin, Scott, Sharkey, Simpson, Smith, Stone, Sunflower, Tallahatchie, Tate, Tippah, Tishomingo, Tunica, Union, Walthall, Warren, Washington, Wayne, Webster, Wilkinson, Winston, Yalobusha, and Yazoo. **Missouri** City of Saint Louis. Counties of Barry, Barton, Bates, Benton, Bollinger, Boone, Buchanan, Butler, Callaway, Camden, Cape Girardeau, Carter, Cass, Cedar, Christian, Clark, Clay, Clinton, Cole, Crawford, Dade, Dallas, Dent, Douglas, Dunklin, Franklin, Gasconade, Greene, Henry, Hickory, Howell, Iron, Jackson, Jasper, Jefferson, Johnson, Knox, Laclede, Lafayette, Lawrence, Lewis, Madison, Maries, Marion, McDonald, Miller, Mississippi, Moniteau, Monroe, Montgomery, New Madrid, Newton, Oregon, Osage, Ozark, Pemiscot, Perry, Phelps, Platte, Polk, Pulaski, Ralls, Ray, Reynolds, Ripley, Saint Charles, Saint Clair, Saint Francois, Saint Louis, Sainte Genevieve, Scott, Shannon, Shelby, Stoddard, Stone, Taney, Texas, Vernon, Warren, Washington, Wayne, Webster, and Wright. **Montana** Counties of Beaverhead, Big Horn, Blaine, Broadwater, Carbon, Carter, Cascade, Chouteau, Custer, Daniels, Dawson, Deer Lodge, Fallon, Fergus, Flathead, Gallatin, Garfield, Glacier, Golden Valley, Granite, Hill, Jefferson, Judith Basin, Lake, Lewis and Clark, Liberty, Lincoln, Madison, McCone, Meagher, Mineral, Missoula, Musselshell, Park, Petroleum, Phillips, Pondera, Powder River, Powell, Prairie, Ravalli, Richland, Roosevelt, Rosebud, Sanders, Sheridan, Silver Bow, Stillwater, Sweet Grass, Teton, Toole, Treasure, Valley, Wheatland, Wibaux, and Yellowstone. **Nebraska** Counties of Adams, Antelope, Arthur, Banner, Blaine, Boone, Box Butte, Boyd, Brown, Buffalo, Butler, Cedar, Chase, Cherry, Cheyenne, Clay, Colfax, Cuming, Custer, Dakota, Dawes, Dawson, Deuel, Dixon, Dodge, Douglas, Dundy, Fillmore, Franklin, Frontier, Furnas, Gage, Garden, Garfield, Gosper, Grant, Greeley, Hall, Hamilton, Harlan, Hayes, Hitchcock, Holt, Hooker, Howard, Kearney, Keith, Keya Paha, Kimball, Knox, Lancaster, Lincoln, Logan, Loup, Madison, McPherson, Merrick, Morrill, Nance, Perkins, Phelps, Pierce, Platte, Polk, Red Willow, Rock, Saline, Saunders, Scotts Bluff, Seward, Sheridan, Sherman, Sioux, Stanton, Thomas, Thurston, Valley, Washington, Wayne, Webster, Wheeler, and York. **Nevada** Counties of Churchill, Clark, Elko, Esmeralda, Eureka, Humboldt, Lander, Lincoln, Mineral, Nye, Pershing, and White Pine. **New Hampshire** Counties of Belknap, Carroll, Cheshire, Coos, Grafton, Hillsborough, Merrimack, Rockingham, Strafford, and Sullivan. **New Jersey** Counties of Atlantic, Bergen, Burlington, Camden, Cape May, Cumberland, Essex, Gloucester, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Salem, Somerset, Sussex, Union, and Warren. **New Mexico** Counties of Bernalillo, Catron, Chaves, Cibola, Colfax, Curry, DeBaca, Dona Ana, Eddy, Grant, Guadalupe, Harding, Hidalgo, Lea, Lincoln, Los Alamos, Luna, McKinley, Mora, Otero, Quay, Rio Arriba, Roosevelt, San Juan, San Miguel, Sandoval, Santa Fe, Sierra, Socorro, Taos, Torrance, Union, and Valencia. **New York** Counties of Allegany, Bronx, Cattaraugus, Chautauqua, Clinton, Erie, Essex, Franklin, Genesee, Jefferson, Kings, Livingston, Monroe, Nassau, New York, Niagara, Ontario, Orange, Orleans, Queens, Rensselaer, Richmond, Rockland, Saint Lawrence, Saratoga, Steuben, Suffolk, Sullivan, Ulster, Warren, Washington, Wayne, Westchester, and Wyoming. **North Carolina** Counties of Alamance, Alexander, Alleghany, Anson, Ashe, Avery, Beaufort, Bertie, Bladen, Brunswick, Buncombe, Burke, Cabarrus, Caldwell, Camden, Carteret, Caswell, Catawba, Chatham, Cherokee, Chowan, Clay, Cleveland, Columbus, Craven, Cumberland, Currituck, Dare, Davidson, Davie, Duplin, Durham, Edgecombe, Forsyth, Franklin, Gaston, Gates, Graham, Granville, Greene, Guilford, Halifax, Harnett, Haywood, Henderson, Hertford, Hoke, Hyde, Iredell, Jackson, Johnston, Jones, Lee, Lenoir, Lincoln, Macon, Madison, Martin, McDowell, Mecklenburg, Mitchell, Montgomery, Moore, Nash, New Hanover, Northampton, Onslow, Orange, Pamlico, Pasquotank, Pender, Perquimans, Person, Pitt, Polk, Randolph, Richmond, Robeson, Rockingham, Rowan, Rutherford, Sampson, Scotland, Stanly, Stokes, Surry, Swain, Transylvania, Tyrrell, Union, Vance, Wake, Warren, Washington, Watauga, Wayne, Wilkes, Wilson, Yadkin, and Yancey. **North Dakota** Counties of Adams, Barnes, Billings, Bowman, Burleigh, Cass, Dunn, Emmons, Foster, Golden Valley, Grand Forks, Grant, Griggs, Hettinger, LaMoure, McHenry, McKenzie, McLean, Mercer, Morton, Mountrail, Nelson, Oliver, Pierce, Ransom, Richland, Sheridan, Sioux, Slope, Stark, Steele, Stutsman, Traill, Ward, Wells, and Williams. **Ohio** Counties of Adams, Allen, Auglaize, Belmont, Carroll, Champaign, Clark, Columbiana, Coshocton, Darke, Defiance, Delaware, Erie, Fulton, Guernsey, Hancock, Hardin, Harrison, Henry, Holmes, Huron, Jefferson, Knox, Licking, Logan, Lorain, Lucas, Madison, Marion, Mercer, Monroe, Muskingum, Noble, Ottawa, Paulding, Putnam, Sandusky, Scioto, Seneca, Shelby, Stark, Tuscarawas, Union, Van Wert, Washington, Wayne, Williams, Wood, and Wyandot. **Oklahoma** Counties of Adair, Alfalfa, Atoka, Beaver, Beckham, Blaine, Bryan, Caddo, Canadian, Carter, Cherokee, Choctaw, Cimarron, Cleveland, Coal, Comanche, Cotton, Craig, Creek, Custer, Delaware, Dewey, Ellis, Garfield, Garvin, Grady, Grant, Greer, Harmon, Harper, Haskell, Hughes, Jackson, Jefferson, Johnston, Kay, Kingfisher, Kiowa, Latimer, Le Flore, Lincoln, Logan, Love, Major, Marshall, Mayes, McClain, McCurtain, McIntosh, Murray, Muskogee, Noble, Nowata, Okfuskee, Oklahoma, Okmulgee, Osage, Ottawa, Pawnee, Payne, Pittsburg, Pontotoc, Pottawatomie, Pushmataha, Roger Mills, Rogers, Seminole, Sequoyah, Stephens, Texas, Tillman, Tulsa, Wagoner, Washington, Washita, Woods, and Woodward. **Oregon** Counties of Baker, Benton, Clackamas, Clatsop, Columbia, Coos, Crook, Curry, Deschutes, Douglas, Gilliam, Grant, Harney, Hood River, Jackson, Jefferson, Josephine, Klamath, Lake, Lane, Lincoln, Linn, Malheur, Marion, Morrow, Multnomah, Polk, Sherman, Tillamook, Umatilla, Union, Wallowa, Wasco, Washington, Wheeler, and Yamhill. **Pennsylvania** Counties of Adams, Allegheny, Beaver, Bedford, Berks, Bucks, Cameron, Carbon, Chester, Crawford, Cumberland, Delaware, Elk, Erie, Forest, Franklin, Fulton, Greene, Lancaster, Lebanon, Lehigh, Luzerne, McKean, Monroe, Montgomery, Northampton, Philadelphia, Pike, Potter, Schuylkill, Somerset, Venango, Warren, Washington, and York. **Rhode Island** Counties of Bristol, Kent, Newport, Providence, and Washington. **South Carolina** Counties of Abbeville, Aiken, Allendale, Anderson, Bamberg, Barnwell, Beaufort, Berkeley, Calhoun, Charleston, Cherokee, Chester, Chesterfield, Clarendon, Colleton, Darlington, Dillon, Dorchester, Edgefield, Fairfield, Florence, Georgetown, Greenville, Greenwood, Hampton, Horry, Jasper, Kershaw, Lancaster, Laurens, Lee, Lexington, Marion, Marlboro, McCormick, Newberry, Oconee, Orangeburg, Pickens, Richland, Saluda, Spartanburg, Sumter, Union, Williamsburg, and York. **South Dakota** Counties of Aurora, Beadle, Bennett, Bon Homme, Brookings, Brule, Buffalo, Butte, Charles Mix, Clay, Corson, Custer, Davison, Deuel, Dewey, Douglas, Edmunds, Fall River, Faulk, Gregory, Hand, Hanson, Harding, Hughes, Hutchinson, Hyde, Jackson, Jerauld, Jones, Kingsbury, Lake, Lawrence, Lincoln, Lyman, McCook, Meade, Mellette, Miner, Minnehaha, Moody, Oglala Lakota, Pennington, Perkins, Potter, Sanborn, Stanley, Sully, Todd, Tripp, Turner, Union, Walworth, Yankton, and Ziebach. **Tennessee** Counties of Anderson, Bedford, Benton, Bledsoe, Blount, Bradley, Campbell, Cannon, Carroll, Carter, Cheatham, Chester, Claiborne, Clay, Cocke, Coffee, Crockett, Cumberland, Davidson, Decatur, DeKalb, Dickson, Dyer, Fayette, Fentress, Franklin, Gibson, Giles, Greene, Grundy, Hamilton, Hancock, Hardeman, Hardin, Hawkins, Haywood, Henderson, Henry, Hickman, Houston, Humphreys, Jackson, Johnson, Knox, Lake, Lauderdale, Lawrence, Lewis, Lincoln, Loudon, Macon, Madison, Marion, Marshall, Maury, McMinn, McNairy, Meigs, Monroe, Montgomery, Moore, Morgan, Obion, Overton, Perry, Pickett, Polk, Putnam, Rhea, Roane, Robertson, Rutherford, Scott, Sequatchie, Sevier, Shelby, Smith, Stewart, Sullivan, Sumner, Tipton, Trousdale, Unicoi, Union, Van Buren, Warren, Washington, Wayne, Weakley, White, Williamson, and Wilson. **Texas** Counties of Anderson, Andrews, Angelina, Aransas, Archer, Armstrong, Atascosa, Austin, Bailey, Bandera, Bastrop, Baylor, Bee, Bell, Bexar, Blanco, Borden, Bosque, Bowie, Brazoria, Brazos, Brewster, Briscoe, Brooks, Brown, Burleson, Burnet, Caldwell, Calhoun, Callahan, Cameron, Camp, Carson, Cass, Castro, Chambers, Cherokee, Childress, Clay, Cochran, Coke, Coleman, Collin, Collingsworth, Colorado, Comal, Comanche, Concho, Cooke, Coryell, Cottle, Crockett, Crosby, Culberson, Dallam, Dallas, Dawson, Deaf Smith, Delta, Denton, DeWitt, Dickens, Dimmit, Donley, Duval, Eastland, Ector, Edwards, El Paso, Ellis, Falls, Fannin, Fayette, Fisher, Floyd, Foard, Fort Bend, Franklin, Freestone, Frio, Gaines, Galveston, Garza, Gillespie, Glasscock, Goliad, Gonzales, Gray, Grayson, Gregg, Grimes, Guadalupe, Hale, Hall, Hansford, Hardeman, Hardin, Harris, Harrison, Hartley, Haskell, Hays, Hemphill, Henderson, Hidalgo, Hill, Hockley, Hopkins, Houston, Howard, Hudspeth, Hunt, Hutchinson, Jack, Jackson, Jasper, Jeff Davis, Jefferson, Jim Hogg, Jim Wells, Johnson, Jones, Karnes, Kaufman, Kendall, Kenedy, Kent, Kerr, King, Kinney, Kleberg, Knox, La Salle, Lamar, Lamb, Lavaca, Lee, Leon, Liberty, Limestone, Lipscomb, Live Oak, Llano, Loving, Lubbock, Lynn, Madison, Marion, Martin, Matagorda, Maverick, McCulloch, McLennan, McMullen, Medina, Midland, Milam, Mills, Mitchell, Montague, Montgomery, Moore, Morris, Motley, Nacogdoches, Navarro, Newton, Nolan, Nueces, Ochiltree, Oldham, Orange, Panola, Parker, Parmer, Pecos, Polk, Potter, Presidio, Rains, Randall, Reagan, Red River, Reeves, Refugio, Roberts, Robertson, Rockwall, Runnels, Rusk, Sabine, San Augustine, San Jacinto, San Patricio, San Saba, Scurry, Shackelford, Shelby, Sherman, Smith, Somervell, Starr, Stephens, Stonewall, Swisher, Tarrant, Taylor, Terrell, Terry, Titus, Tom Green, Travis, Trinity, Tyler, Upshur, Upton, Uvalde, Val Verde, Van Zandt, Victoria, Walker, Waller, Washington, Webb, Wharton, Wheeler, Wichita, Wilbarger, Willacy, Williamson, Wilson, Wise, Wood, Yoakum, Zapata, and Zavala. **Utah** Counties of Beaver, Box Elder, Cache, Carbon, Daggett, Davis, Duchesne, Emery, Garfield, Grand, Iron, Juab, Kane, Millard, Morgan, Piute, Rich, Salt Lake, San Juan, Sanpete, Sevier, Summit, Tooele, Uintah, Utah, Wasatch, Washington, Wayne, and Weber. **Vermont** Counties of Addison, Bennington, Caledonia, Chittenden, Essex, Franklin, Grand Isle, Lamoille, Orange, Orleans, Rutland, Washington, Windham, and Windsor. **Virginia** Cities of Alexandria, Bristol, Buena Vista, Charlottesville, Chesapeake, Colonial Heights, Covington, Danville, Emporia, Fairfax, Falls Church, Franklin, Fredericksburg, Galax, Hampton, Harrisonburg, Hopewell, Lexington, Lynchburg, Manassas, Manassas Park, Martinsville, Newport News, Norfolk, Norton, Petersburg, Poquoson, Portsmouth, Radford, Richmond, Roanoke, Salem, Staunton, Suffolk, Virginia Beach, Waynesboro, Williamsburg, and Winchester. Counties of Accomack, Albemarle, Alleghany, Amelia, Amherst, Appomattox, Arlington, Augusta, Bath, Bedford, Bland, Botetourt, Brunswick, Buchanan, Buckingham, Campbell, Caroline, Carroll, Charles City, Charlotte, Chesterfield, Clarke, Craig, Culpeper, Cumberland, Dickenson, Dinwiddie, Essex, Fairfax, Fauquier, Floyd, Fluvanna, Franklin, Frederick, Giles, Gloucester, Goochland, Grayson, Greene, Greensville, Halifax, Hanover, Henrico, Henry, Highland, Isle of Wight, James City, King and Queen, King George, King William, Lancaster, Lee, Loudoun, Louisa, Lunenburg, Madison, Mathews, Mecklenburg, Middlesex, Montgomery, Nelson, New Kent, Northampton, Northumberland, Nottoway, Orange, Page, Patrick, Pittsylvania, Powhatan, Prince Edward, Prince George, Prince William, Pulaski, Rappahannock, Richmond, Roanoke, Rockbridge, Rockingham, Russell, Scott, Shenandoah, Smyth, Southampton, Spotsylvania, Stafford, Surry, Sussex, Tazewell, Warren, Washington, Westmoreland, Wise, Wythe, and York. **Washington** Counties of Adams, Asotin, Benton, Chelan, Clallam, Clark, Columbia, Cowlitz, Douglas, Ferry, Franklin, Garfield, Grant, Island, Jefferson, King, Kitsap, Kittitas, Klickitat, Lewis, Lincoln, Okanogan, Pend Oreille, Pierce, Skagit, Skamania, Snohomish, Spokane, Stevens, Thurston, Walla Walla, Whatcom, Whitman, and Yakima. **West Virginia** Counties of Barbour, Berkeley, Boone, Braxton, Brooke, Cabell, Calhoun, Clay, Doddridge, Fayette, Gilmer, Grant, Greenbrier, Hampshire, Hancock, Hardy, Harrison, Jackson, Jefferson, Kanawha, Lewis, Lincoln, Logan, Marion, Marshall, Mason, McDowell, Mercer, Mineral, Mingo, Monongalia, Monroe, Morgan, Nicholas, Ohio, Pendleton, Pleasants, Pocahontas, Preston, Putnam, Raleigh, Randolph, Ritchie, Roane, Summers, Taylor, Tucker, Tyler, Upshur, Wayne, Webster, Wetzel, and Wyoming. **Wisconsin** Counties of Ashland, Barron, Bayfield, Buffalo, Burnett, Chippewa, Clark, Door, Douglas, Dunn, Eau Claire, Florence, Forest, Green, Iron, Lafayette, Langlade, Lincoln, Marathon, Marinette, Menominee, Oconto, Oneida, Pepin, Pierce, Polk, Portage, Price, Rusk, Saint Croix, Sawyer, Shawano, Taylor, Vilas, Washburn, and Waupaca. **Wyoming** Counties of Albany, Big Horn, Campbell, Carbon, Converse, Crook, Fremont, Goshen, Hot Springs, Johnson, Laramie, Lincoln, Natrona, Niobrara, Park, Platte, Sheridan, Sublette, Sweetwater, Teton, Uinta, Washakie, and Weston. **Republic of the Marshall Islands** Atolls of Utirik and Wotje. **Federated States of Micronesia** State of Kapingamarangi. **Commonwealth of Puerto Rico** Municipalities of Adjuntas, Aguas Buenas, Aibonito, Arroyo, Barranquitas, Bayamon, Cabo Rojo, Caguas, Canovanas, Carolina, Catano, Cayey, Ceiba, Ciales, Cidra, Coamo, Comerio, Corozal, Culebra, Dorado, Fajardo, Guanica, Guayama, Guayanilla, Guaynabo, Gurabo, Hormigueros, Humacao, Jayuya, Juana Diaz, Juncos, Lajas, Las Piedras, Loiza, Luquillo, Maricao, Maunabo, Morovis, Naguabo, Naranjito, Orocovis, Patillas, Penuelas, Ponce, Rio Grande, Sabana Grande, Salinas, San German, San Juan, San Lorenzo, Santa Isabel, Toa Alta, Toa Baja, Trujillo Alto, Utuado, Vega Alta, Vega Baja, Vieques, Villalba, Yabucoa, and Yauco. **Virgin Islands of the United States** Islands of Saint Croix, Saint John, and Saint Thomas. 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** IRS News **Tags:** drought relief, ranchers and farmers --- ### [Charges in "the Largest Tax Evasion Scheme in U.S. History"](https://www.taxgirl.com/2005/08/30/the-largest-tax-fraud-ever-2/) **Published:** August 30, 2005 **Author:** Kelly Phillips Erb **Content:** Eight former KPMG execs have been charged with conspiracy to sell fraudulent tax shelters.  They include former KPMG Deputy Chairman Jeffrey Stein and former officials John Lanning, Richard Smith, Jeffrey Eischeid, Philip Weisner, John Larson, Robert Pfaff, and Mark Watson; a ninth person charged in the scheme is outside tax attorney Raymond Ruble. It is being described as “the largest tax evasion scheme in U.S. history.” The company will pay at least $456 million in fines to the feds as a penalty (KPMG made at least $115 million on the schemes, according to prosecutors).[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Charges%20in%20%E2%80%9Cthe%20Largest%20Tax%20Evasion%20Scheme%20in%20U.S.%20History%E2%80%9D&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Charges%20in%20%E2%80%9Cthe%20Largest%20Tax%20Evasion%20Scheme%20in%20U.S.%20History%E2%80%9D "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Charges%20in%20%E2%80%9Cthe%20Largest%20Tax%20Evasion%20Scheme%20in%20U.S.%20History%E2%80%9D "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Charges%20in%20%E2%80%9Cthe%20Largest%20Tax%20Evasion%20Scheme%20in%20U.S.%20History%E2%80%9D&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** IRS News, Prosecutions, Felonies and Misdemeanors, Tax Professionals **Tags:** KPMG --- ### [Tax Day Freebies, Promotions, Deals and Specials](https://www.taxgirl.com/2014/04/14/tax-day-freebies-promotions-deals-and-specials/) **Published:** April 14, 2014 **Author:** Kelly Phillips Erb **Excerpt:** Ready for some Tax Day relief? Take advantage of these Tax Day freebies and specials on April 15. **Content:** Tax Day is just around the corner. Nobody likes writing a big check to Uncle Sam but there is some good news: Tax Day also means free stuff, promotions, deals, and specials. After you pop your return (or your extension) in the mail, kick back and take advantage of some of the promos and specials. More and more will be popping up so check back today and tomorrow (especially closer to lunch and again at happy hour). I’ll highlight the updated entries for you to make it quick. Here’s what’s on tap so far: **Hotels, Entertainment & Restaurants** **Arby’s.** Arby’s is planning to offer a free Snack-Sized Curly Fry on April 15 at all Arby’s locations nationwide. Guests can visit [Arbys.com](http://www.arbys.com) or Arby’s social channels to [print a coupon](http://coupon.arbys.com/taxday/). **Boston Market.** [Boston Market](http://www.bostonmarket.com/home), the fast-casual restaurant chain, is offering a “Tax Day Deal Chicken Meal” on April 15, when all guests can receive two half-chicken individual meals for just $10.40. The “Tax Day Deal Chicken Meal” offers guests two individual meals, each including a half rotisserie chicken with a choice of two home-style sides and freshly baked cornbread. George Michel (a.k.a. “The Big Chicken”), CEO of Boston Market, [said about the deal](http://www.bostonmarket.com/pdfs/pressReleases/2014/20140402.pdf), “While no one enjoys 1040 forms, our 2 for $10.40 deal provides delicious meals at an affordable price, and that’s something our guests can feel good about this Tax Day.” No coupon is needed to enjoy the offer, which is available at all Boston Market locations on April 15, 2014. **Burritt Room at the Mystic Hotel by Charlie Palmer (San Francisco).** From April 1 – 15, the [Burritt Room at the Mystic Hotel by Charlie Palmer](http://www.mystichotel.com/Eat-Drink/Burritt-Room) is offering a special cocktail called the Tax Man (Gin, Thyme Liqueur, Aperol, Strawberry, Lemon, Seltzer) for $12. **California Tortilla.** Declaring that “Queso Makes Life Less Taxing,” [California Tortilla](http://californiatortilla.com/) is offering free chips and queso with any purchase on April 15, 2014, while supplies last. No coupon is needed: just say “Taxes, Schmaxes” to the cashier to claim your deal. **Esquared Hospitality**. For Tax Day (Tuesday, April 15th), the global restaurant group ESquared Hospitality will be offering [50% off all alcoholic beverages](http://www.e2hospitality.com/blog/tax-day-2014/). Enjoy specialty cocktails, beer, wines by the glass or bottle, and spiked shakes (available at GO Burger Bar & Grill only) at half the price. This promotion includes the following: New York City (BLT Steak New York, BLT Prime, BLT Fish, BLT Fish Shack, BLT Bar & Grill, Casa Nonna, GO Burger Bar & Grill, and Juni); White Plains, NY (BLT Steak White Plains); Hawaii (BLT Steak Waikiki); Atlanta (BLT Steak Atlanta); Charlotte (BLT Steak Charlotte); Chicago (The Florentine); Miami (BLT Steak Miami) and Washington, D.C. (BLT Steak DC). **Gerber Group** venues. [Gerber Group venues](http://gerberbars.com/) Whiskey Park, Whiskey Blue, Living Room, Stone Rose Lounge, and The LCL: Bar & Kitchen will offer a specialty Jalapeño Margarita for $8.88, an ode to New York’s sales tax percentage ($8.8875%). **Great American Cookies.** Great American Cookies says that “Refund or not, you deserve a cookie on #TaxDay.” Stop by participating locations at [Great American Cookies](https://www.greatamericancookies.com/) on April 15 for a free chocolate chip cookie! **Hard Rock Cafe.** This year, on Tax Day, [Hard Rock Cafe](http://www.hardrock.com) is cutting Americans a break across the country by asking them to lay down their wallets and pick up the mic! Warm up those vocal cords as Hard Rock Cafe opens up its stages to give fans a chance to “Sing for Their Supper” on Tuesday, April 15, 2014. On Tax Day, guests will have the opportunity to select their favorite song and take the stage to perform at their local Hard Rock Cafe. Guests who perform a complete song on their Hard Rock Cafe’s live music stage in front of the entire restaurant will receive a free dinner entrée from Hard Rock’s new menu. Singers can choose from a selection of new menu items and classic Hard Rock favorites, including the Grilled Vegetable Sandwich, Arugula Salad with Shaved Marinated Chicken, Legendary Big Cheese Burger, or Veggie Burger as their free meal. NEW -> **Historic Mission Inn Hotel & Spa (Riverside, CA).** Tax Return & Relax. Albert Einstein once said, “The hardest thing in the world to understand is income tax.” The [Mission Inn Hotel & Spa](http://www.missioninn.com/) understands your need to spend a day or two relaxing after filing taxes. They invite you to spend some ‘relaxation time’ with them this April: you may not be able to deduct it, but you’ve certainly earned it! The Tax-Free Package includes overnight Deluxe accommodations; Casey’s Cupcakes for two; a $25 resort gift card to spend at any of the Inn’s award-winning restaurants, lounges, or Kelly’s Spa and Boutique; and complimentary valet parking. Starting at $169\*, available 4/1/14 – 4/30/14. **Hotel Monaco Chicago (Chicago, IL)**. Relax with No Tax. Imbibe, Relax, and Save (IRS)! Put your tax return to good use with a tax break package [at the hotel,](http://www.monaco-chicago.com/) including IMBIBE: $25 beverage credit at South Water Kitchen; RELAX: $50 in-room spa credit during your stay; SAVE: No occupancy or lodging taxes on your room rate. Book online or call 866-610-0081 and mention rate code NOTAX. Valid for stays April 1-30, 2014. Rates are subject to availability; blackout dates may apply. **Hotel Monaco Portland (Portland, OR)**. On April 15, [the hotel](http://www.monaco-portland.com/) will offer complimentary chair massage during wine hour to soothe those ‘taxed’ nerves. There will also be champagne on hand for anyone who wants to toast their refund or chocolate for those who need to forget their financial sorrows/losses. Guests must show the front desk that they owe money to Uncle Sam (a tax return or other official document) to receive a free cocktail at the adjacent Red Star Tavern. The restaurant will also offer up a selection of specialty cocktails for just $4.15. **Hotel Palomar Dallas (Dallas, TX)**. Gimme a Break – Tax Season Special: 10% off best available rate at [the hotel](http://www.hotelpalomar-dallas.com/); $40 food and beverage credit. Available now through May 3, 2014. [Use rate code GMAB](https://gc.synxis.com/rez.aspx?Hotel=26733&Chain=10179&promo=GMAB). **Hotel Palomar Philadelphia (Philadelphia, PA)**. With so many accounting professionals diligently dedicating their waking hours to preparing and filing taxes up until the 11th hour, Kimpton’s [Hotel Palomar Philadelphia](http://www.hotelpalomar-philadelphia.com/) celebrates these hard-working professionals with a new special tax relief happy hour package. For $35 per taxpayer, there will be butler-passed hors d’oeuvres, imported and domestic cheeses, oven-roasted vegetables, and a two-hour open bar catered by Square 1682 (available from April 15-30, 2014). **Kona Ice.** To ease the pain of tax filing, [Kona Ice](http://www.kona-ice.com/) is serving up a frozen cup of tax day relief for tense taxpayers in all areas of the country. On April 16th, the day after Tax Day, the brand will have trucks parked at community parks in all corners of the country to hand out FREE cups of fluffy snow and complimentary Hawaiian leis to all who stop by. The refreshing treat will ensure that there is no taxation without relaxation this tax season and represent the “Chill” Kona Ice is spreading. **Martinis Above Fourth Table + Stage (San Diego, CA)**. [Martinis Above Fourth Table + Stage](http://www.martinisabovefourth.com) will present a show on April 15 called Three Divas – A Lover, A Lot, and A Librarian featuring three of San Diego’s favorite performers. You can get a 15% discount on tickets by using the code TAXDAY15. They say taxes shmaxes! Come out and have some fun! Purchase tickets online @ <http://tinyurl.com/q2sqcge>. NEW -> **Maya Del Sol.** [Maya Del Sol](http://www.mayadelsol.com) is once again offering customers a chance to ‘Pay What Is Fair’ for dinner on tax filing day for the 6th year in a row. From 4 p.m. to 9 p.m. on Tuesday, April 15th, customers at the popular Latin Fusion restaurant will have the opportunity to decide what to pay for their meal. When seated for dinner, customers are given a menu without any prices. Once their meal is complete, guests write in the price they think is fair for their meal, which is what they will be charged. The ‘Pay What Is Fair’ offer will apply to the food menu only; beverages, tax, and gratuity will be excluded. The ‘Pay What Is Fair’ promotion is available only on Tuesday, April 15th, 2014. Reservations are strongly recommended and should be made by calling 708.358.9800. For more details about the promotion, call Paul Abu-Taleb at 708-228-2657 (cell) or 708-358-9800 (restaurant). **Newport Beachside Hotel & Resort (Sunny Isles Beach, FL).** No Taxation without Relaxation. [The hotel ](http://www.newportbeachside.com/)is offering a series of hotel and spa promotions to take the edge off of Tax Day. Enjoy a 7% deduction on hotel stays booked between April 1st and April 30th or cash in on a selection of 1040EZ specials at the Aveda Seven Seas Spa & Salon, including a polish change, eyebrow wax, or hair consultation and trim, available for $10.40 each. For reservations, call 305.949.1300 or toll-free at 800.327.5476. **The Oceanfront Litchfield Inn (Pawleys Island, SC)**. The [Oceanfront Litchfield Inn](http://litchfieldinn.com/) is offering a [1040 EZ Package](https://www.bookonthenet.net/east/RKEres/EresMain.aspx?url=www.litchfieldinn.com&inn_alias=0000009304&promo_code=1040). Enjoy $10.40 off per night. Offer cannot be combined with other offers or promotions. Limited number available. **Orange Leaf Yogurt.** To help ease the pain of Tax Day (4/15), all of the more than [300 Orange Leaf locations](http://www.orangeleafyogurt.com/stores) across the country will be offering customers a great deal: fill your cup for $4.15. On average, this amounts to approximately 50% off, depending on how much froyo and toppings the customer chooses. Claim the offer by visiting the [Orange Leaf Facebook page](https://www.facebook.com/orangeleafyogurt) and downloading a coupon. NEW -> **Park Hyatt Beaver Creek Resort and Spa.** In honor of Tax Day (April 15), tax-filing travelers have reason to celebrate as [Park Hyatt Beaver Creek Resort and Spa](http://beavercreek.hyatt.com/en/hotel/home.html) is offering special incentives throughout the recently renovated resort. Travelers looking to unwind after filing their returns can receive a complimentary Red Rumrunner cocktail at 8100 Mountainside Bar & Grill when they show their W2. As an added perk, since April is also National Stress Awareness Month, Allegria Spa is offering a 20% discount on any massage, body treatment, or facial treatment for those who show their W2 at the award-winning spa. The Allegria Spa offer is valid through April 20th. **Salvatore’s Restaurants (Greater Boston)**. On Tax Day, Tuesday, April 15th, 2014, [Salvatore’s Restaurant](http://www.salvatoresrestaurants.com), the upscale casual Italian eatery with five locations in the Greater Boston area, celebrates the unveiling of its new spring menu with tax-free dining. Offering a special break on Tax Day, Salvatore’s invites diners to sample the menu while enjoying a tax-free dining experience. The special tax break is only available on Tax Day and applies to food purchases only. **Schlotzsky’s.** All [Schlotzsky’s](http://www.Schlotzskys.com) locations are offering one free small “The Original” sandwich with the purchase of chips and a 32 oz. drink on Tax Day, April 15 (no coupon required). NEW -> **Sonny’s BBQ Ribs.** Sonny’s BBQ is offering an Irresistible Ribs Special (IRS). All day, April 15th every Sonny’s BBQ location will be offering half off Sweet & Smokey or House Dry-Rubbed Ribs lunch or dinner plate. “Doing your taxes is a lot like making ribs,” says Dominic Losacco, Vice President of Marketing for Sonny’s BBQ. “It’s a long slow process, but the outcome can be fantastic, if you know what you’re doing.” Sonny’s BBQ is located in AL, GA, FL, KY, LA, MS, NC, SC & TN. Dine-in only and no coupon needed. **Springmaid Beach Resort (Myrtle Beach, SC).** [Springmaid Beach Resort](http://springmaidbeach.com/) is offering a [1040 Taxation Vacation Package](http://www.secure-res.com/rdx.asp?goto=http%3A%2F%2Fwww%2Esecure%2Dres%2Ecom%2Fres%2Fvn2%2Fchecka%2Easp%3Fhotelid%3D3678%26ri%3D135650&orig=TAXPKG). The package includes deluxe accommodations with a $10.40 deduction per night off the room rate and breakfast for two for only $10.40 per night. Offer cannot be combined with other offers or promotions. Limited number available. **Surfside Beach Resort (Myrtle Beach, SC)**. [Surfside Beach Resort](http://www.surfsidebeachresort.com/) is offering a [Tax Day $99 Package](https://www.bookonthenet.net/east/RKEres/EresMain.aspx?url=Surfside_Beach_Resort&inn_alias=0000009425&promo_code=tax99). Studies show the top 1 percent of Americans took a record share of U.S. income last year. In honor of the other 99% hard-working Americans, Surfside Beach Resort is offering two-night stays for $99. Stay Sunday-Thursday from 3/30/14-5/1/14 in one of our Deluxe Two Queen Ocean View Balcony Rooms. This offer includes 2-night accommodations; a deluxe room with a private balcony; complimentary Wi-Fi and Parking; access to our outdoor pool and hot tub; and complimentary coffee service in the lobby. This offer cannot be combined with other offers or promotions, is not valid for groups, and is available for a limited number of rooms. For more information, please call 800-533-7599. NEW -> **Westin New York Grand Central Hotel.** The Tax Is On Us Deal:[ The Westin New York Grand Central ](http://www.WestinNewYorkGrandCentral.com)Hotel is throwing in the tax for free by offering a 15% reduction in rates through December 31, 2014, when booked now through May 15, 2014. (Lodging taxes in NYC are approximately 15%.) Use the rate plan TAXBRK when booking online at www.WestinNewYorkGrandCentral.com. **Shopping & Electronics** **MVPee.com.** [MVPee.com](http://www.mvpee.com) is giving out 1,000 “Abolish the IRS” apple-scented urinal screens FREE to the first 1,000 people that request (+ $3.00 shipping/handling). MVPee.com is the only urinal screen company in the world to provide fresh urinal screens for bars, restaurants, convenience stores, and nightclubs on a monthly basis. **White Aspen Boutique (CA)**. [White Aspen Boutique](http://www.whiteaspenboutique.com) is offering customers 15% off for tax day. Use the [coupon](http://www.whiteaspenboutique.com/?coupon=W-2) here (the coupon code is W-2). **Tax Software & Professionals** **Efile.com.** Efile.com is an online tax company and an IRS-authorized Electronic Return Originator (ERO). Currently, they’re offering an “expecial promo”: efile an extension for $9.95 and get 50% off your tax return (expires October 15, 2014). You can find more info about the offer here: <http://www.efile.com/tax-extension/irs-tax-extension/>. **TaxConnections**. With thousands of tax advisors offering a world of tax expertise, [TaxConnections](http://www.taxconnections.com) invites consumers and tax professionals to TaxConnections Worldwide Directory of Tax Professionals. Consumers can take advantage of a Free Membership to access www.taxconnections.com, while tax professionals can get a 45 Day Free Trial Tax Professional Membership, which includes a full-page native ad on their tax services (to join as an Annual Gold Member and send a message using the “Contact Us Today” button at the bottom of every page on TaxConnections and simply say, “Kelly sent me to TaxConnections!”). **Home & Business Services** **MasterLock.** Master Lock Vault, a free safe and secure online storage and organization system, is offering tax tips and the chance to win one of five $1,000 prizes when customers register for a Vault account as part of the [Master Lock “Tax Relief Rewards” Sweepstakes](http://www.marketwired.com/press-release/Master-Lock-Eases-Tax-Season-Stres%20s-With-Sweepstakes-Tips-Organized-Filing-NYSE-FBHS-1889155.htm). **MyCorporation.** [MyCorporation](http://www.mycorporation.com) is running an “Incorporate or Form an LLC for FREE on Tax Day” promotion. On a day when business owners and entrepreneurs are having to send in tax payments, this is a great way to offer business owners some ‘relief’ from our document processing fees. The promo is good for all 50 states – any state a business owner wants to incorporate in, the fees will be waived. **Philadelphia Business Journal.** It’s As Good As A Refund! This is PBJ’s version of tax relief: [subscribe now](https://secure.bizjournals.com/subscribe/selectTerm?market=philadelphia&csrc=6378&stmp=1&pdoffer=biz_ptpo&cver=00015&ana=et_phil_sbtaxday) and save 25% off the regular subscription price. You’ll receive the Weekly Edition in print and digital formats, and the Apple Newsstand app – at no charge! The offer expires on April 15th at midnight. **South Coast Air Quality Management District (SoCal).** The [annual program](http://www.aqmd.gov/tao/lawnmower.html) to improve air quality by exchanging polluting gas-powered mowers for high-performance electric mowers, registration opens the day after Tax Day on April 16. SoCal residents who exchange a gas mower can get up to 75% off the price of an electric brand-name mower. It’s perfect timing for people who are getting back their tax refunds. Please note that these specials are based on information passed along from companies and their representatives, as well as social media. While I’ve made every effort to make sure that they’re accurate, I haven’t been to each location, so I can’t vouch for all of them. Remember, too, that many of these companies are franchises and may have different promotions or may not participate at all. *If you’re concerned, give a quick call – or tweet – before you show up.* Some companies require a coupon or a “like” on Facebook, and I’ve tried to link to those which do. If you are not sure, then err on the side of checking out websites (I’ve included links, where possible) first. And if you have a lead on a Tax Day deal promotion, deal, or special, let me know. You can tweet [@taxgirl](https://x.com/taxgirl), post a note [on Facebook](https://www.facebook.com/taxgirl), [email me](mailto:kelly.erb@taxgirl.com), or just post in the comments below. Thanks – and happy (tax) returns![![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Tax%20Day%20Freebies%2C%20Promotions%2C%20Deals%20and%20Specials&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Tax%20Day%20Freebies%2C%20Promotions%2C%20Deals%20and%20Specials "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Tax%20Day%20Freebies%2C%20Promotions%2C%20Deals%20and%20Specials "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Tax%20Day%20Freebies%2C%20Promotions%2C%20Deals%20and%20Specials&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Contests and Events **Tags:** April-15, freebies, tax, tax day --- ### [House Passes Bill Aimed at Assisting Victims of Identity Theft Tax Fraud](https://www.taxgirl.com/2016/05/17/house-passes-bill-aimed-at-assisting-victims-of-identity-theft-tax-fraud/) **Published:** May 17, 2016 **Author:** Kelly Phillips Erb **Excerpt:** To combat identity theft-related tax fraud, Rep. Jim Renacci (R-OH) introduced H.R. 3832, or the Stolen Identity Refund Fraud Prevention Act of 2016. The bill, which was co-sponsored by Rep. John Lewis (D-GA), Ranking Member on the Ways and Means Subcommittee on Oversight, passed the House on May 15, 2016. **Content:** Identity theft-related tax fraud topped the most recent IRS list of common tax schemes they call the “Dirty Dozen”. And the problem isn’t getting better. The U.S. Federal Trade Commission (FTC) [reported](http://krebsonsecurity.com/2016/01/ftc-tax-fraud-behind-47-spike-in-id-theft/) 490,000 identity theft complaints in 2015, a 47% increase over 2014. The FTC noted that the biggest contributor to that spike was tax refund fraud, with FTC Chairwoman Edith Ramirez calling it “the largest and fastest growing ID theft category” tracked by the agency. To combat identity theft-related tax fraud, Rep. Jim Renacci (R-OH) introduced [H.R. 3832](https://www.congress.gov/bill/114th-congress/house-bill/3832/text), or the *Stolen Identity Refund Fraud Prevention Act of 2016*. Co-sponsored by Rep. John Lewis (D-GA), Ranking Member on the Ways and Means Subcommittee on Oversight, the bill passed the House on May 15, 2016. The bill includes provisions to: - Establish a centralized point of contact at the IRS for ID theft victims; - Improve taxpayer notification of suspected ID theft; - Require the IRS to submit a study on the feasibility of establishing a program for victims of identity theft-related tax fraud to opt out of electronic filing; and - Establish an Information Sharing and Analysis Center (ISAC) to collect, analyze, and share actionable data and information to detect and prevent identity theft. The bill previously included a provision requiring a Form W-2 to be filed with the taxpayers and the Social Security Administration (remember, Forms W-2 get mailed to SSA, not IRS) by January 31. The extenders’ bill included that provision, and it is [effective for the 2016 tax year](https://www.irs.gov/pub/irs-pdf/iw2w3.pdf). The original bill had also addressed the easy availability of Social Security numbers: employers may now truncate Social Security numbers printed on forms W-2; previously, Social Security numbers could be truncated for forms 1099. The bill now moves on to the Senate. Identity theft is a personal issue for Rep. Renacci: he was also a victim of identity theft. [According to Rep. Renacci](http://renacci.house.gov/index.cfm/2015/10/renacci-lewis-introduce-bill-to-protect-hard-working-taxpayers), “This past tax season, someone used my stolen personal information and filed a fraudulent tax return in my name, claiming a refund. I didn’t learn about this fraud until I received an IRS notice questioning a return I had filed—even though I had not yet even filed.” He continued, “I have heard of many similar stories from Northeast Ohio taxpayers who also were victims of identity theft-related tax fraud. Congress and the IRS must work together with industry to better shield taxpayer dollars from thieves and reduce the hardships caused by this increasing criminal activity.” You can hear more about Rep. Renacci’s story – and the bill – here: ![YouTube thumbnail](https://www.taxgirl.com/wp-content/cache/wpo-youtube-thumbnails/Z9a0ImE2bZk-maxresdefault.webp)![YouTube icon](https://www.taxgirl.com/wp-content/plugins/wp-optimize-premium/images/icon/icons8-youtube-96.svg) If you believe someone may have used your SSN fraudulently to file taxes, notify the IRS immediately. If the IRS contacts you about a potential identity theft issue, respond immediately by calling the number provided or, if instructed, go to [IDVerify.irs.gov](http://IDVerify.irs.gov). You may also need to complete [federal form 14039](https://www.irs.gov/pub/irs-pdf/f14039.pdf), *Identity Theft Affidavit.* If you have previously been in contact with the IRS about an identity theft problem, and it has not yet been resolved, call the IRS Identity Protection Specialized Unit, toll-free, at 1.800.908.4490. If you aren’t sure that your identity has been compromised but you have reason to believe that you are at risk because you’ve lost your wallet or have questionable credit card activity, you’ll also want to contact the IRS Identity Protection Specialized Unit (same number: 1.800.908.4490). For information on how to protect yourself from identity theft, [click here](https://www.taxgirl.com/11-tips-to-protect-you-from-identity-theft-related-tax-fraud/).[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=House%20Passes%20Bill%20Aimed%20at%20Assisting%20Victims%20of%20Identity%20Theft%20Tax%20Fraud&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=House%20Passes%20Bill%20Aimed%20at%20Assisting%20Victims%20of%20Identity%20Theft%20Tax%20Fraud "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=House%20Passes%20Bill%20Aimed%20at%20Assisting%20Victims%20of%20Identity%20Theft%20Tax%20Fraud "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=House%20Passes%20Bill%20Aimed%20at%20Assisting%20Victims%20of%20Identity%20Theft%20Tax%20Fraud&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** ID Theft and Scams, Politics --- ### [Lawsuits Gone Wild: Francis Still Fighting Back Against Foreclosure](https://www.taxgirl.com/2016/05/23/lawsuits-gone-wild-francis-still-fighting-back-against-foreclosure/) **Published:** May 23, 2016 **Author:** Kelly Phillips Erb **Excerpt:** Joe Francis faces foreclosure on his Bel Air estate as JPMorgan Chase, the IRS, Steve Wynn, and other creditors battle over millions in claims. **Content:** It seems that Joe Francis, the man you can blame or thank, depending on your point of view, for those Girls Gone Wild videos, can’t stay out of court. In the latest round of legal battles involving the adult entertainment mogul, JP Morgan Chase Bank (“Chase”) is trying to foreclose on Francis’ ritzy Bel Air estate. If that were the entire story, it would be an easy – and quite frankly, unremarkable – story to tell. But Francis’ story has never been either. To understand why a man once valued at tens of millions of dollars is currently the target of a foreclosure, you need to understand a little of his legal history. And since I write about taxes, you’ve probably guessed that it has something to do with taxes. \[*Keep in mind that this story unfolds over a decade or so, and the sheer number of allegations, charges, and lawsuits filed over that time is pretty mind-blowing.* *I’m going to do my best to catch you up to speed, but that necessarily means some details are going to be left out.*\] In 2007, the Department of Justice filed charges against Francis, [alleging](https://www.taxgirl.com/taxgirls-gone-wild/#sthash.fyQerBJb.dpbs) that he, through his companies, Mantra Films Inc. and Sands Media Inc., claimed more than $20 million in false deductions on corporate income tax returns. The indictment also charged that Francis used offshore bank accounts and entities to hide income; of course, you know from the [Panama Papers](https://www.taxgirl.com/what-are-the-panama-papers/) that it’s not illegal to have offshore accounts as long as you disclose and report them, which the IRS says Francis didn’t do. The matter didn’t immediately go to trial. Francis claimed his accountants needed some time to sort out his finances, and he wasn’t in a position to help them since [he was in jail](https://www.taxgirl.com/court-dockets-gone-wild/#sthash.UTEh0RpQ.dpuf). At the time, he was facing six felony counts unrelated to the tax charges, as well as two additional charges of transporting contraband into a cell while locked up on contempt charges. Francis [ended up](https://www.taxgirl.com/girls-gone-wild-founder-files-civil-suit/#sthash.8BPJHea5.dpuf) serving 11 months in jail on charges that he filmed naked underage girls and pleaded no contest to two misdemeanor charges related to possession of contraband. As his tax trial neared, Francis blamed his former chief financial officer for his troubles, claiming he was set up. His version of the events is pretty amazing: he claims that his tax returns were prepared without his knowledge and used to turn him in to the IRS under the whistleblower program. At the time, he vowed to fight the charges. (You can read his side of the story [here](http://www.meetjoefrancis.com/biography/).) Despite the lawsuits and jail time, not everyone thought Francis was a bad guy. One of Francis’ early champions was current GOP presidential frontrunner Donald Trump, who invited Francis to be on “The Apprentice” in 2008. Trump [said, about Francis](https://www.nytimes.com/2008/08/19/business/19francis.html?_r=0): > He’s a smart guy. He’s a brilliant marketer. A lot of people don’t like what he markets, but that’s a different subject. Francis eventually declined Trump’s offer even though a judge [granted his motion](https://www.taxgirl.com/girls-gone-wild-founder-gets-judges-okay-to-star-on-celebrity-apprentice/#sthash.TzMvolYp.dpbs) to be on the show (rumor suggested the decision had [not been](https://www.taxgirl.com/nbc-didnt-want-joe-francis-on-air/#sthash.jZ6C8y4n.dpbs) his to make). Francis can also count the Kardashian family as longtime friends and supporters. Francis [allegedly advised](http://www.dailymail.co.uk/tvshowbiz/article-3251805/How-Kim-4-5million-sex-tape-thanks-Joe-Francis.html) Kim Kardashian to “leak” her infamous sex tape, making the right introductions into the adult film world. Francis was notably present, [posing with Kardashian’s mom](http://www.eonline.com/photos/10239/kim-kardashian-kanye-west-engagement-party-pics/324299), Kris Jenner, at the lavish bash celebrating Kardashian’s engagement to Kanye West in 2013, as well as the couple’s wedding. Earlier this year, Francis also [hosted](http://www.people.com/people/package/article/0,,20981907_20991689,00.html) Kourtney Kardashian’s ex, Scott Disick, at his home in Mexico (more on that home in Mexico in a bit). Francis eventually took time in between parties and media appearances to [plead guilty](https://www.taxgirl.com/girls-gone-wild-founder-takes-plea/#sthash.2ew9FKGa.dpuf) to two counts of filing false tax returns and one count of bribing Nevada jail workers. In addition to his criminal sentence, he still had to face the music on the civil side: the IRS dinged Francis with liens totaling $34 million ($17.7 million for 2001, $11.2 million for 2002, and $4.9 million for 2003). And that brings us to today. According to court documents, before the IRS issued the liens, Francis bought a house financed with a $5,000,000 loan from Washington Mutual (“WaMu”). Chase, which claims it bought the note from WaMu after the bank’s collapse, says Francis didn’t keep up with the payments. In 2013, Chase began foreclosure proceedings, claiming that Francis owed $4,935,365.90 in principal plus late fees, costs, and expenses totaling more than $300,000, all plus interest. Francis answered Chase’s allegations by claiming he didn’t receive proper notice of default, nor did he receive information about how to avoid foreclosure, as required by law. He subsequently filed suit against Chase, claiming “unfair and unlawful business practices” alleging, among other things, that Chase might not be the proper owner of the note. Typically, when a property is in foreclosure, the bank’s main aim is to get paid. But just because the bank may hold a note against the property doesn’t mean it gets paid first – or at all. Other creditors may have priority. And that’s what happened here. It’s hard to keep track of all of the additional parties involved in the latest round of legal battles (for good reason). Many creditors have an interest in the proceedings, including the IRS and Steve Wynn. You already know about the IRS. But Steve Wynn? Even more fantastical. Steve Wynn, Chairman and CEO of Wynn Resorts, is currently ranked #722 on Forbes’ list of billionaires, with an estimated net worth of $2.6 billion. In 2008, Wynn filed two lawsuits against Francis to collect a gambling debt owed to one of his casinos; Wynn [claimed](http://www.law360.com/articles/507862/wynn-asks-9th-circ-to-toss-joe-francis-defamation-suit) that not only didn’t Francis pay up, but he tried to settle the debt by passing a bad marker. Francis sued back, claiming the gambling loss wasn’t his fault (he blamed the loss on liquor and hookers supplied by Wynn) and further alleged that the marker was cashed when Francis was in jail, and Wynn knew that Francis didn’t have money readily available. The legal squabbles didn’t end there: Francis subsequently appeared on television and claimed that Wynn had threatened to kill him and bury him in the desert. Wynn sued Francis again, [alleging defamation](http://abcnews.go.com/US/steve-wynn-awarded-20-million-slander-suit-joe/story?id=17206604), and won another judgment, this one worth more than $40 million: the verdict was [reduced](http://www.reviewjournal.com/news/crime-courts/judge-reduces-award-wynn-defamation-suit) to $19 million after the judge found the award excessive and “clearly the result of the jury’s dislike of the defendant and/or his businesses.” In 2013, Girls Gone Wild Brands, LLC, [filed for bankruptcy](http://www.bloomberg.com/news/articles/2013-02-28/-girls-gone-wild-files-bankruptcy-to-fight-vegas-debt) “to restructure its frivolous and burdensome legal affairs.” That didn’t go so well either. Among other allegations, Francis was threatened with arrest after he [allegedly held onto assets](http://blogs.wsj.com/bankruptcy/2015/05/19/judge-calls-for-arrest-of-girls-gone-wild-founder-joe-francis/), including a 2007 Cadillac Escalade and a 2012 Bentley Flying Spur, that were supposed to be turned over as part of the bankruptcy. At the time, Francis was in his mansion in Mexico, which was [allegedly maintained](http://blogs.wsj.com/bankruptcy/2015/02/26/suit-accuses-joe-francis-of-illegally-spending-girls-gone-wild-money/) with money derived from the company. A source described the house to *People*, [saying](http://www.people.com/people/package/article/0,,20981907_20991689,00.html), “The house has everything you would ever want: drivers, a phone with an ‘anything’ button, pools, boats, ATV’s and a movie theater.” Those legal moves didn’t affect money still owed to the IRS, Wynn, and other creditors, all of whom were named as parties of interest in the foreclosure lawsuit (at least 53 cross-defendants were named in just one court document). In addition, several entities associated with Francis are also involved in the matter. At least two of those entities were used, according to the complaint, to save Francis’ home: Chase alleges that Francis attempted to transfer the home to an entity called Blue Horse Trading, LLC (“Blue Horse”) and that Blue Horse subsequently attempted to transfer title to Fab Films, LLC (“Fab Films”). Procedurally, the whole thing has become a giant scrum with complaints, cross-complaints, and motions for removal. The court will have to determine who now owns the house, whether Chase owns the note, and how much, if any, of the proceeds might be available to creditors. The Court has continued the scheduling conference to June 27, 2016, at 2:00 pm. Currently, real estate site Trulia [estimates](http://www.trulia.com/homes/California/Los_Angeles/sold/1000061452-1111-Bel-Air-Pl-Los-Angeles-CA-90077) the value of the five-bedroom, seven-bathroom home at $6,446,000, though some other estimates suggest the value is closer to $11 million.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Lawsuits%20Gone%20Wild%3A%20Francis%20Still%20Fighting%20Back%20Against%20Foreclosure&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Lawsuits%20Gone%20Wild%3A%20Francis%20Still%20Fighting%20Back%20Against%20Foreclosure "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Lawsuits%20Gone%20Wild%3A%20Francis%20Still%20Fighting%20Back%20Against%20Foreclosure "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Lawsuits%20Gone%20Wild%3A%20Francis%20Still%20Fighting%20Back%20Against%20Foreclosure&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Prosecutions, Felonies and Misdemeanors, Taxes of the Rich and (In)famous **Tags:** Joe Francis --- ### [TIGTA Announces Five Arrests in Massive, Ongoing IRS Phone Scam](https://www.taxgirl.com/2016/05/24/tigta-announces-significant-arrests-in-massive-irs-phone-scam/) **Published:** May 24, 2016 **Author:** Kelly Phillips Erb **Excerpt:** Today, TIGTA announced the arrests of five individuals made in what has been characterized as an "ongoing investigation" into a massive IRS impersonation scam. **Content:** Scammers are still targeting taxpayers. Since October 2013, nearly 6,400 victims have collectively paid over $36.5 million to scammers posing as IRS officials. Over the same period, the Treasury Inspector General for Tax Administration (TIGTA) has received reports of roughly 1.2 million calls to taxpayers demanding they send cash to resolve outstanding tax liabilities. The average amount of money lost in the scam is $5,700. Today, J. Russell George, Treasury Inspector General for Tax Administration (TIGTA), announced the arrests of five individuals made in what has been characterized as an “ongoing investigation” into the scams. Authorities arrested the five individuals in Miami, FL, without incident, and charged them with wire fraud and conspiracy to commit wire fraud. According to the court documents, the five suspects are responsible for almost $2 million in schemes that defrauded more than 1,500 victims. The five individuals are Jennifer Valerino Nunez, Dennis Delgado Caballero, Arnoldo Perez Mirabal, Yaritza Espinosa Diaz, and Roberto Fontanella Caballero. The criminal complaints were filed with the following courts: the U.S. District Court for the District of Minnesota on May 18, 2016 (Yaritza Diaz and Roberto Caballero); the U.S. District Court for the Northern District of Texas on May 16, 2016 (Arnoldo Mirabal); and the U.S. District Court for the Eastern District of Arkansas on May 10, 2016 (Jennifer Nunez and Dennis Caballero). According to U.S. Senator Susan Collins, Chair of the Senate Special Committee on Aging, two of the arrested individuals were identified as a direct result of information provided by a fraud investigator with the Aging Committee’s Hotline. That investigator followed up on an incident report a victim filed in October 2015. The victim had been ordered to wire money to a scammer posing as an IRS agent. Investigators eventually traced the wire transfer to Minnesota and reported it to TIGTA. TIGTA then sent agents to Minnesota, who pulled surveillance tapes and identified two suspects; the investigation led them to three additional suspects. “Putting a stop to aggressive and ruthless scams such as the IRS impersonation scam is among my highest priorities as Chairman of the Senate Aging Committee,” said Senator Susan Collins. “Thanks to the quick actions of the investigators who staff our Fraud Hotline, the Inspector General has made significant arrests in the fight against a pernicious scam. These actions should also put criminals on notice that we will relentlessly pursue those who seek to rob seniors of their hard-earned savings.” In a typical IRS impersonation scheme, scammers [call and claim](https://www.taxgirl.com/as-tigta-continues-to-warn-on-irs-scams-new-treasury-scams-surface/) to be from the IRS or the Department of the Treasury. Calls are often made using Voice over Internet Protocol (VoIP) technology because it’s a cheap, easy way to mask the origin of the calls and “trick” your Caller ID into showing up as the IRS or another agency. The scammers then advise taxpayers that, due to adjustments made on their individual tax accounts, additional tax is owed to IRS. The scammers demand immediate payment over the phone by cash, wire, or services like MoneyGram and Walmart-to-Walmart. In a more recent variation of the scam, the scammers [demanded payment in iTunes gift cards](https://www.taxgirl.com/you-cant-pay-your-taxes-with-itunes-gift-cards-other-sage-advice/). iTunes gift cards can be used to make purchases on the App Store, iTunes Store, iBooks Store, Mac App Store or to buy Apple Music memberships. Requests for payment on the cards – though it sounds outlandish – were successful: according to TIGTA, at least 328 people paid out a total of $1.4 million to the scammers using iTunes gift cards. Timothy Camus, Deputy Inspector General for Investigations, called the scheme “the most pervasive impersonation scheme in the 17-year history of TIGTA.” The investigation remains ongoing. Last year, J. Russell George, Treasury Inspector General for Tax Administration, assured taxpayers that his office was actively pursuing those involved in the fraud, reassuring taxpayers, “\[W\]e will not rest until all individuals associated with this fraud have been brought to justice.” Remember that the IRS has [previously confirmed](https://www.taxgirl.com/irs-alerts-taxpayers-to-new-tax-season-related-phone-scam/) they will not: - Call to demand immediate payment over the phone, nor will the agency call about taxes owed without first having mailed you several bills. - Call or email you to verify your identity by asking for personal and financial information. - Demand payment without giving you the opportunity to question or appeal the amount they say you owe. - Require you to use a specific payment method for your taxes, such as a prepaid debit card. - Ask for credit or debit card numbers over the phone or email. - Threaten to bring in local police or other law-enforcement groups to have you arrested for not paying. If you receive such a call and do not owe tax, don’t engage with the scammer and do not give out any information. Just hang up. If you get an email asking you to visit a website or answer personal questions, do not reply and do not click on any links in the email. If you receive a phone call from someone claiming to be with the IRS, and you owe tax or think you may owe tax, do not give out any information. Call the IRS at 1.800.829.1040 to learn more. You can also contact TIGTA to report scam calls by calling 1.800.366.4484 or by using the “IRS Impersonation Scam Reporting” form on their website. You may also want to report the scam to the Federal Trade Commission by using the [“FTC Complaint Assistant”](https://www.ftccomplaintassistant.gov/GettingStarted?NextQID=216&Selected=t#crnt) to report persons pretending to be from the government; please add “IRS Telephone Scam” in the notes. Don’t fall for the tricks. Keep your personal information safe this tax season by remaining alert. For tips on protecting yourself from identity theft-related tax fraud, [click here](https://www.taxgirl.com/11-tips-to-protect-you-from-identity-theft-related-tax-fraud/). (*Please note that the story has been updated with additional information provided by Sen. Collins and the Senate Aging Committee.*)[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=TIGTA%20Announces%20Five%20Arrests%20in%20Massive%2C%20Ongoing%20IRS%20Phone%20Scam&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=TIGTA%20Announces%20Five%20Arrests%20in%20Massive%2C%20Ongoing%20IRS%20Phone%20Scam "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=TIGTA%20Announces%20Five%20Arrests%20in%20Massive%2C%20Ongoing%20IRS%20Phone%20Scam "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=TIGTA%20Announces%20Five%20Arrests%20in%20Massive%2C%20Ongoing%20IRS%20Phone%20Scam&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** ID Theft and Scams, IRS News **Tags:** identity theft, IRS scams --- ### [Coinbase Customer Responds Anew to IRS Efforts to Identify Bitcoin Users](https://www.taxgirl.com/2017/01/03/coinbase-customer-responds-anew-to-irs-efforts-to-identify-bitcoin-users/) **Published:** January 3, 2017 **Author:** Kelly Phillips Erb **Excerpt:** Today, Coinbase customer and attorney Jeffrey K. Berns, the Managing Partner of Berns Weiss LLP, filed a reply in response to the IRS' response to his motion to intervene and to quash a John Doe summons served by the IRS on Coinbase. **Content:** The ongoing dispute over the IRS’s attempt to issue a “John Doe” summons on Coinbase, a company that facilitates transactions in digital currencies like Bitcoin and Ethereum, continues in court. Today, Coinbase customer and attorney Jeffrey K. Berns, managing partner of Berns Weiss LLP, filed an answer to the IRS’ response to his motion to intervene and quash a “John Doe” summons the IRS served on Coinbase to identify Bitcoin users. The case [began](https://www.taxgirl.com/irs-wants-court-authority-to-identify-bitcoin-users-transactions-at-coinbase/) in November of 2016 with a request filed on behalf of the IRS to serve a “John Doe” summons on all United States Coinbase customers who transferred Bitcoin, a convertible virtual currency, from 2013 to 2015. A “John Doe” summons is an order that does not specifically identify the person but rather identifies a person or ascertainable group or class through their activities. Judge Jacqueline Scott Corley granted the initial request. In response, Berns filed a motion to set aside the ruling and prevent the summons from being issued. He did so as an “intervenor,” meaning he asked the court to allow him to participate in the legal process even though he was not named in the original summons, arguing that the summons was overbroad and would expose private customer data to hackers. Berns was also concerned about the “chilling effect” the summons could have on the entire blockchain technology industry. On December 27, 2016, the IRS [filed a motion in court](https://www.taxgirl.com/irs-fires-back-in-coinbase-case-as-it-seeks-access-to-bitcoin-user-data/) to proceed with the “John Doe” summons. The IRS argued, in part, that since Berns had “outed” himself as a Coinbase customer, he was no longer subject to the summons. That means, the IRS argued, that the matter as it affects Berns was resolved, making the motion moot and clearing the way for the IRS to begin identifying Coinbase customers. However, in the latest round of legal maneuvering, Berns filed a reply to the IRS’s response, countering the IRS’s argument. Berns argues that the IRS is attempting to “artificially moot the motion” because it does not want the Court to scrutinize its actions in pursuing a summons he characterizes as “improper.” Berns also argues that the “John Doe” summons statute does not allow the government to shield itself from inquiries into whether it has acted in good faith. Finally, Berns contends that the Court should reconsider its decision to allow the IRS to issue the summons when questions remain about the IRS’ motives for seeking the information; specifically, Berns disputes that there is any basis for the IRS “or anyone to conclude that it is likely that Coinbase’s customers are engaging in any tax avoidance conduct merely because they opted to transact with virtual currency.” Berns points out that the IRS has withdrawn its summons as it applies to him; the IRS says that because Berns identified himself as a Coinbase customer, it does not need any further information about him from Coinbase. Berns says this proves the summons was issued in bad faith, stating that if the IRS does not need any specific transaction or related information for Berns, it similarly should not need that information for any other Coinbase customer. Berns says that the withdrawal of the summons as it applies to him is merely a “transparent attempt by the IRS to avoid judicial review.” In Berns’ most recent motion, he notes that he is prepared to withdraw his initial motion if the Court reconsiders its initial ruling. His goal, he says, is to protect the rights of Coinbase’s customers “from the clear bad faith conduct of the Government in obtaining the right to serve the IRS summons.” He says additional inquiry into the Government’s motives is necessary. Without further legal action, the motion is scheduled to be heard on January 19, 2017.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Coinbase%20Customer%20Responds%20Anew%20to%20IRS%20Efforts%20to%20Identify%20Bitcoin%20Users&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Coinbase%20Customer%20Responds%20Anew%20to%20IRS%20Efforts%20to%20Identify%20Bitcoin%20Users "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Coinbase%20Customer%20Responds%20Anew%20to%20IRS%20Efforts%20to%20Identify%20Bitcoin%20Users "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Coinbase%20Customer%20Responds%20Anew%20to%20IRS%20Efforts%20to%20Identify%20Bitcoin%20Users&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Cryptocurrency, Law and the Courts **Tags:** Bitcoin, Coinbase, John Doe summons --- ### [IRS Gets Court Approval to Delay Hearing on Access to Coinbase Accounts](https://www.taxgirl.com/2017/02/03/irs-gets-court-approval-to-delay-hearing-on-access-to-coinbase-accounts/) **Published:** February 3, 2017 **Author:** Kelly Phillips Erb **Excerpt:** The Internal Revenue Service (IRS) successfully pushed off a hearing focusing on its efforts to have access to United States Coinbase customer accounts. According to court documents filed this week, the IRS asked the court to delay the hearing, previously scheduled for February 16. **Content:** The IRS successfully pushed back a hearing focused on its efforts to access United States Coinbase customer accounts. According to court documents filed this week, the IRS asked the court to delay the hearing, previously scheduled for February 16. In the most recent filing, the IRS stated that it made the request “not for purposes of delay, but rather because the United States is considering filing a petition to enforce or taking other action with respect to the John Doe summons.” Further, the IRS wrote, “if more time is provided a hearing on movants’ motions may be avoided altogether, sparing the Court’s judicial resources and the Parties’ time and expense.” To date, the move to gain access to Coinbase’s customer accounts has spawned a number of court filings – and could result in even more legal action. Last month, Brian Armstrong, Co-Founder and CEO at Coinbase, noted that the company had been forced into action, [writing](https://medium.com/@barmstrong/coinbase-and-the-irs-c4e2e386e0cf#.whj8p3l3y), “We will likely incur a legal cost of between $100,000 and $1,000,000 in the process of defending our customers from this overly broad subpoena; funds which could be put to better use building innovative products or hiring more employees.” The subpoena resulted from a formal request [filed](https://www.taxgirl.com/irs-wants-court-authority-to-identify-bitcoin-users-transactions-at-coinbase/) by the Department of Justice (DOJ) on behalf of the IRS in November 2016. The subpoena sought to serve a “John Doe” summons on all United States Coinbase customers who transferred convertible virtual currency (specifically, Bitcoin, since the company did not trade Ethereum at that time) from 2013 to 2015. A “John Doe” summons is an order that does not identify a specific person but instead identifies a person or ascertainable group or class through their activities. Judge Jacqueline Scott Corley granted the request. In response, a self-identifying Coinbase customer and managing partner of Berns Weiss, Jeffrey K. Berns, filed a motion to set aside the ruling, which would prevent the summons from being issued. He did so as an “intervenor,” meaning he asked the court to allow him to participate in the legal process even though he was not specifically named in the original summons. Berns argued, among other things, that the summons was overbroad. In late December 2016, the IRS fired back, arguing that because he identified himself as a Coinbase user, Berns was no longer subject to the summons, making his motion moot. In January of 2017, Berns [filed a response](https://www.taxgirl.com/coinbase-customer-responds-anew-to-irs-efforts-to-identify-bitcoin-users/) claiming the IRS was attempting to “artificially moot the motion.” In January of 2017, Coinbase also filed a motion to intervene, claiming that “the IRS offered only the slimmest of support for their expansive request.” That same month, Armstrong upped the ante in the public eye, writing that the company had “worked to comply with all IRS guidance in our space, beginning with the March 2014 guidance on virtual currency” and warning that the IRS summons was not the best way to ensure taxpayers were in compliance. Armstrong [proposed](https://medium.com/@barmstrong/coinbase-and-the-irs-c4e2e386e0cf#.whj8p3l3y) his solution – in the form of better reporting – last month. The IRS did not issue a public comment in response. However, their silence, along with this most recent court filing, might suggest an alternative strategy is in the works. Coinbase has declined to comment. In its filing, the IRS advised the court that the opposing parties “do not object and stipulate to this request for additional time.” In other words, the parties agreed to an extension, which should make it easier for the judge to rubber-stamp the request. The stipulation was confirmed by Berns, who said, “We agreed to the extension, which the Court has now granted, to allow the IRS time to decide if it is going to pursue the documents and information through an enforcement proceeding. We remain hopeful that the IRS will use the additional time to consider the points that we, and others in the virtual currency community, have raised and modified its approach to addressing the concerns it has regarding virtual currency.” Today, the Court agreed to extend the hearing date. Barring any further action, the matter will be heard before Judge Corley on March 23.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=IRS%20Gets%20Court%20Approval%20to%20Delay%20Hearing%20on%20Access%20to%20Coinbase%20Accounts&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=IRS%20Gets%20Court%20Approval%20to%20Delay%20Hearing%20on%20Access%20to%20Coinbase%20Accounts "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=IRS%20Gets%20Court%20Approval%20to%20Delay%20Hearing%20on%20Access%20to%20Coinbase%20Accounts "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=IRS%20Gets%20Court%20Approval%20to%20Delay%20Hearing%20on%20Access%20to%20Coinbase%20Accounts&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Cryptocurrency, IRS News **Tags:** Bitcoin, Coinbase, John Doe summons --- ### [Anonymous Coinbase Customer Will Challenge IRS](https://www.taxgirl.com/2017/07/22/court-allows-anonymous-coinbase-customer-to-challenge-irs-on-info-grab/) **Published:** July 22, 2017 **Author:** Kelly Phillips Erb **Excerpt:** "John Doe 4" has been granted the right to intervene in an ongoing court case between the Internal Revenue Service (IRS) and Coinbase. That gives the anonymous Coinbase customer the ability to contest the IRS' efforts to identify and obtain Coinbase customer information. **Content:** “John Doe 4” has been granted the right to intervene in an ongoing court case between the Internal Revenue Service (IRS) and Coinbase, a company that facilitates transactions of digital currencies like Bitcoin and Ethereum. That gives the anonymous Coinbase customer the ability to contest the IRS’ efforts to identify and obtain Coinbase customer information. The Judge’s Order found that “John Doe 4” made a “sufficient showing of abuse of process to support intervention as of right.” The original matter [began](https://www.taxgirl.com/irs-wants-court-authority-to-identify-bitcoin-users-transactions-at-coinbase/) in November of 2016 with a request filed on behalf of the IRS to serve a “John Doe” summons on all United States Coinbase customers who transferred Bitcoin, a convertible virtual currency, from 2013 to 2015. A “John Doe” summons is an order that does not identify a specific person but instead identifies a person or ascertainable group or class through their activities. The IRS argued that the “John Doe” summons was necessary because they had found evidence of noncompliance and underreporting among Coinbase customers – the agency just couldn’t identify the exact identities and scale of the problem without more information. (You can read more on taxation of cryptocurrencies like Bitcoin [here](https://www.taxgirl.com/are-crypto-riches-tax-free/).) The initial request was [granted](https://www.taxgirl.com/court-grants-irs-authority-to-demand-identities-of-bitcoin-users-transactions-at-coinbase/) and in response, Coinbase customer and attorney Jeffrey K. Berns, the Managing Partner of Berns Weiss LLP, filed a motion to set aside the ruling and prevent the summons from being issued. He did so as an “intervenor,” meaning he asked the court to allow him to participate in the legal process even though he was not specifically named in the original summons. The IRS [fired back](https://www.taxgirl.com/irs-fires-back-in-coinbase-case-as-it-seeks-access-to-bitcoin-user-data/) with a motion asking the court to deny Berns the right to intervene. The IRS argued, in part, that since Berns had “outed” himself as a Coinbase customer, he was no longer subject to the summons, making Berns’ motion moot. Eventually, Berns withdrew his motion to intervene, and in March of 2017, the IRS [filed a new action](https://www.taxgirl.com/irs-tries-again-to-make-coinbase-turn-over-customer-account-data/) seeking to enforce the summons on Coinbase. In May of 2017, Berns Weiss LLP [tried again](https://www.taxgirl.com/anonymous-coinbase-users-seek-to-intervene-in-irs-efforts-to-access-bitcoin-info/), this time filing a motion on behalf of two more Coinbase customers seeking to intervene. The customers, who asked the court to allow them to remain anonymous, sought to quash the “John Doe” summons. Why all of the efforts to stop the summons? Customers – and privacy rights champions – have expressed concern about the sheer breadth of the request. The IRS initially claimed that it needed the “account/wallet/vault registration” information for all U.S. Coinbase users trading in Bitcoin, “including the complete user profile, history of changes to the user profile from account inception, complete user preferences, complete user security settings and history (including confirmed devices and account activity), complete user payment methods, and any other information related to the funding sources for the account.” That was just one request. The IRS was initially seeking all records, including third-party information, related to Bitcoin transactions conducted by U.S. Coinbase customers. The request was enough to catch Congress’s attention. In May, House Ways and Means Committee Chairman Kevin Brady (R-TX), Senate Finance Committee Chairman Orrin G. Hatch (R-UT), and House Ways and Means Oversight Subcommittee Chairman Vern Buchanan (R-FL) [sent a letter](https://www.taxgirl.com/congress-questions-irs-on-efforts-to-access-coinbase-customer-data-2/) to IRS Commissioner John Koskinen requesting additional information on the summons. In the letter, the Congressional officials expressed concern about the basis, scope, and impact of the original summons, which could have affected as many as 500,000 active Coinbase users. The IRS eventually narrowed the scope of its request. Now, the IRS is seeking information for Coinbase users with at least the equivalent of $20,000 in any one transaction type (buy, sell, send or receive) in any one year during the 2013-2015 period. The IRS has also agreed not to seek records for users for which Coinbase filed forms 1099-K during this period or for users whose identity is known to the IRS. With those changes, the records belonging to John Does 1 and 2 are no longer covered by the summons, which means that they cannot intervene. John Doe 3 could not determine whether his records are covered by the narrowed summons, so the court denied his motion to intervene without prejudice. That means that John Doe 3 could make a new request to intervene if he later determines that he would be affected by the narrowed summons. However, John Doe 4 could show the court that his Coinbase records fall within the narrowed summons. As a result, the court granted his motion to intervene. The court also made it clear that it was none too happy with the IRS’ request, declaring that: > The IRS offers no explanation as to how the IRS can legitimately use most of these millions of records on hundreds of thousands of users. The court agrees that there could be a reporting gap between those trading in Bitcoin and those who are reporting those transactions to the IRS but notes “\[u\]nder that reasoning the IRS could request bank records for every United States customer from every bank branch in the United States because it is well known that tax liabilities in general are under reported and such records might turn up tax liabilities.” The court went on to throw a little shade at the agency, finding that: > \[i\]t is thus no surprise that the IRS cannot cite a single case that supports such broad discretion to obtain the records of every bank-account holding American. The IRS did not offer comment, citing pending litigation. You may be wondering why all of the intervention is necessary. Isn’t Coinbase already arguing against the summons? Is it necessary to allow John Doe 4 to contest the summons, too? Yes and yes. The court found that Coinbase has a financial interest in the matter as a company: it wants to make sure the summons “does not negatively impact its financial profits or its valuation.” But John Doe 4? He has a personal interest in the matter. Because those interests differ, the court found it wouldn’t be overreach or duplicative to allow John Doe 4 to argue against the summons at the same time Coinbase was arguing against it. With that, the matter will continue to be fought in court. The IRS will ask the court to allow it to enforce the narrowed summons, and efforts will be made by Coinbase – and now by John Doe 4 – to stop them.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Anonymous%20Coinbase%20Customer%20Will%20Challenge%20IRS&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2019%2F10%2Fblur-close-up-court-531970.jpg&p%5Btitle%5D=Anonymous%20Coinbase%20Customer%20Will%20Challenge%20IRS "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Anonymous%20Coinbase%20Customer%20Will%20Challenge%20IRS "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Anonymous%20Coinbase%20Customer%20Will%20Challenge%20IRS&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Cryptocurrency, Law and the Courts **Tags:** Coinbase, crypto, cryptocurrency, United States v Coinbase, virtual currency --- ### [How Women in Leadership are Shaking up the Tax and Accounting Landscape](https://www.taxgirl.com/2021/06/22/women-in-leadership-shaking-up-tax-accounting/) **Published:** June 22, 2021 **Author:** John Luckenbaugh **Content:** According to the Financial and Accounting Women’s Alliance, women make up 50% of all full-time staff at CPA firms but just 27% of partners and principals. Even as more women enter the tax and accounting professions, women in finance remain vastly underrepresented in management and leadership roles. What will it take to buck that trend? # There are many women in finance these days, but there’s still a huge gap in the number of women in leadership roles. In today’s episode of the Taxgirl podcast, Kelly is joined by Kathryn Kaminsky to discuss the gap in women in tax and accounting leadership. Kathryn is Vice-Chair and Trust Solutions Co-Leader at PwC. In this role, she leads the combined Tax and Assurance business. She is a partner with over 25 years of experience serving the financial services industry. Kathryn was recognized in Crain’s 2019 list of Notable Women in Accounting and Consulting. In that role, she focuses on advancing female and diverse professionals in the firm, and she regularly speaks at universities, conferences, and PwC functions about career development and women in leadership. ## Listen to Kelly and Kathryn talk about women in finance in leadership roles: - The power of opening up to colleagues about your life and how doing so can form stronger bonds. - Building strong relationships in business requires empathy and compassion. - Many women feel they can’t ask for help in their work environment. - The importance of providing yourself “a moment to breathe” outside of being everyone’s counselor. - Balancing work and family time can look different for everyone; there shouldn’t be any judgment. - What advice would Kathryn give to younger women about finding a mentor in their workplace? - Nurturing relationships with your allies and mentors at work. - Kathryn’s experience taking tax and accounting classes after graduating with a History degree during undergrad. - The joy of truly loving the work and client relationships in tax and accounting. - Did Kathryn feel any pushback as a woman in leadership? - Whether women and POC in leadership roles feel like they have to be the “voice” of their entire demographic. - How are Diversity and Inclusion initiatives progressing and evolving? - Tax and accounting firms have traditionally resisted change; does that create additional hurdles for Diversity and Inclusion programming? - Kathryn’s hope for PwC and women in finance and accounting in the future? - The impact of sharing support and experiences with family. - Normalizing letting the next generations see that there are many paths to success. ### More about Kelly: Kelly Phillips Erb created and hosts the Taxgirl podcast, your home for tax news, tax info, and tax policy. In each episode, she shares conversations about taxes, money, and the choices we make. Kelly is a tax attorney who works with taxpayers and tax practitioners like you every day. She helps folks out of tax jams, and hopefully, keeps others from getting into them. You can find out more about Kelly [here](https://www.taxgirl.com/about-taxgirl/), and you can follow her on [Twitter](https://x.com/taxgirl), [Facebook](https://www.facebook.com/taxgirl), [Instagram](https://www.instagram.com/therealtaxgirl), and [LinkedIn](https://www.linkedin.com/in/taxgirl/). Kelly Phillips Erb created and hosts the Taxgirl podcast, your home for tax news, tax info, and tax policy. In each episode, she shares conversations about taxes, money, and the choices we make. Kelly is a tax attorney who works with taxpayers and tax practitioners like you every day. She helps folks out of tax jams, and hopefully, keeps others from getting into them. You can find out more about Kelly [here](https://www.taxgirl.com/about-taxgirl/) and you can follow her on [Twitter](https://x.com/taxgirl), [Facebook](https://www.facebook.com/taxgirl), [Instagram](https://www.instagram.com/therealtaxgirl), and [Linkedin](https://www.linkedin.com/in/taxgirl/). ****To subscribe to the podcast (it’s free!) using Apple, Spotify, or your favorite listening app,** [**click here**](https://www.taxgirl.com/taxgirl-podcast/podcast-subscription/)**.**** ### Links mentioned: Kelly’s Website: [Taxgirl](https://www.taxgirl.com/) Kathryn S Kaminsky: [PwC](https://www.pwc.com/us/en/contacts/k/kathryn-kaminsky.html) Kathryn S Kaminsky: [LinkedIn](https://www.linkedin.com/in/kathryn-kaminsky-b981b721/) [Tax + Trust: Understanding The New Expectation for Business](https://news.bloombergtax.com/daily-tax-report/tax-trust-understanding-the-new-expectation-for-business): Kathryn S Kaminsky’s Bloomberg article (6/22/2021) [Have Empathy, Respect Boundaries and Priorities, Be an Ally](https://news.bloombergtax.com/daily-tax-report/have-empathy-respect-boundaries-and-priorities-be-an-ally): Kathryn S Kaminsky’s Bloomberg article (3/23/2021) [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=How%20Women%20in%20Leadership%20are%20Shaking%20up%20the%20Tax%20and%20Accounting%20Landscape&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2021%2F06%2Ftaxgirl-50-image-scaled.jpeg&p%5Btitle%5D=How%20Women%20in%20Leadership%20are%20Shaking%20up%20the%20Tax%20and%20Accounting%20Landscape "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=How%20Women%20in%20Leadership%20are%20Shaking%20up%20the%20Tax%20and%20Accounting%20Landscape "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=How%20Women%20in%20Leadership%20are%20Shaking%20up%20the%20Tax%20and%20Accounting%20Landscape&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Careers, Podcast, Tax Professionals **Tags:** Kathryn Kominsky, kelly erb, kelly phillips erb, kellyphillipserb, PWC, staff at CPA firms, taxgirl, Taxgirl podcast, women in accounting, women in finance, women in law, women in leadership, women in tax --- ### [Court Blocks IRS-ICE Data Sharing Procedure Over Taxpayer Privacy Rules](https://www.taxgirl.com/2026/09/15/court-blocks-irs-ice-data-sharing-procedure-over-taxpayer-privacy-rules/) **Published:** September 15, 2026 **Author:** Kelly Phillips Erb **Content:** A federal appeals court has blocked an IRS procedure for sharing taxpayer information with Immigration and Customs Enforcement (ICE), finding that the process likely violated federal tax privacy law. The ruling from the U.S. Court of Appeals for the D.C. Circuit does not mean the IRS can never share taxpayer information with ICE—or with another federal agency. Federal law permits certain disclosures in limited circumstances. But the court made clear that those exceptions come with rules, and, according to the court, the IRS did not follow them. That matters because taxpayer information is generally confidential under section 6103 of the tax code. The law protects not only copies of tax returns but also “return information,” which can include whether a return was filed, income information, filing status, and even a taxpayer’s address. ## Tax Information Is Generally Confidential The specific part of the tax code that protects your taxpayer information is found in section 6103. There are exceptions to the rule. For example, the IRS may share information with state tax agencies, the Social Security Administration, and law enforcement in certain circumstances. And, under section 6103(i)(2), the IRS may provide limited return information to federal officers and employees for use in certain nontax criminal investigations. But it’s not carte blanche to open records. The requesting agency must provide specified identifying information, including the taxpayer’s name and address, and the information may be disclosed only to officers or employees who are personally and directly engaged in the investigation. That’s not what the court says happened here. ## How The IRS-ICE Arrangement Worked The IRS entered into a data-sharing agreement with the Department of Homeland Security, which oversees ICE. Under the agreement, ICE could ask the IRS for limited information, including last-known addresses, in connection with certain criminal investigations. The IRS relied on section 6103(i)(2) as authority for the disclosures. ICE sought information relating to more than 1.2 million records. The IRS ultimately disclosed last-known address information for approximately 47,000 people after matching ICE-provided data against IRS records. More than 90% of the disclosures ran through an automated “TIN Matching” method that paired a name and taxpayer identification number, then returned the last known address without confirming the address ICE listed was accurate or even valid. Earlier this year, the Treasury Inspector General for Tax Administration (TIGTA) [examined](https://www.tigta.gov/sites/default/files/reports/2026-06/2026ier010fr.pdf) how the IRS carried out the arrangement. TIGTA concluded that the system did not identify and match records accurately and consistently. For example, TIGTA found that the IRS process could allow entries such as “00000” or “99999,” or other obviously invalid data, to pass the initial screening. The IRS later acknowledged that it may have provided last-known addresses in some cases where ICE had supplied incomplete or insufficient address information. Some requests that should have been rejected may have passed through, while other possible matches could fail because of formatting differences. ## The Address Problem The court looked at that same problem. While one statutory requirement is that the requesting agency provide the taxpayer’s address, the IRS procedure did not verify that an address had been supplied. Instead, the court said the system treated the requirement as satisfied if the address field contained a five- or nine-digit number—and that number did not even have to be a valid ZIP code. And ICE did not necessarily have to provide a street name, city, state, or other meaningful address information. As a result, the IRS disclosed taxpayer records in response to requests listing addresses such as “Unknown Address,” “Failed to Provide,” and “NA NA,” as well as partial addresses lacking basic information. That is a significant problem because, in many instances, ICE asked the IRS to provide the very address it had not supplied but was required by statute to provide. The court concluded that the plaintiffs were likely to succeed in showing that the procedure was inconsistent with section 6103. ## Who Was Actually Conducting The Investigation? Under section 6103, taxpayer information may be disclosed only to officers or employees who are personally and directly engaged in the qualifying criminal investigation. The IRS procedure required ICE to populate a point-of-contact field. But, again, the process checked largely whether something had been entered, not whether the person identified actually satisfied the statute. According to the appellate record, ICE identified the same individual as the point of contact for all of the requests. That raised an obvious question: could one person really be personally and directly engaged in that many separate criminal investigations? The district court found it facially implausible “that a single individual could be ‘personally and directly engaged’ in approximately 47,000 criminal matters,” let alone 1.28 million. ## Why Congress Made The Rules So Strict Here’s why all of this matters. Before 1976, the executive branch had considerably more control over access to tax returns and taxpayer information. But the Nixon administration famously sought to use the IRS as a political or investigative weapon, which raised concerns about how tax records should be used. In response, Congress made tax returns and return information confidential unless a specific statutory exception applies. Today, other federal agencies do not get access to IRS data simply because the information would be useful. A statutory exception must apply, and its conditions must be met. That makes sense because the IRS knows an extraordinary amount about taxpayers. A return can reveal where you work, how much you earn, whether you have children, whether you save for retirement, your investments, your business interests, charitable contributions, medical expenses, foreign accounts, and other sensitive financial details. And, of course, our federal tax system depends heavily on voluntary compliance. When we file our tax returns, we turn over significant amounts of private information to the government. The government cannot simply repurpose that information whenever another agency finds it useful. ## What The Court Ruled Circuit Judge Cornelia Pillard wrote that the automated procedure, as implemented, “indisputably contravenes” statutory requirements. The D.C. Circuit affirmed a preliminary injunction blocking the data exchange. The Center for Taxpayer Rights, Main Street Alliance, and two labor unions brought the case, represented by Democracy Forward. The court has not entered a final judgment. Instead, it [concluded](https://media.cadc.uscourts.gov/opinions/docs/2026/09/26-5006-2191763.pdf) that the plaintiffs are likely to succeed on the merits and blocked the procedure while the case, Center for Taxpayer Rights v. Internal Revenue Service, No. 26-5006 (D.C. Cir. Sept. 8, 2026), continues. ## Why It Matters The ruling does not prevent all disclosures of taxpayer information to ICE. Section 6103 still permits qualifying disclosures for certain criminal investigations. What the IRS cannot do, at least under the current injunction, is use a procedure that does not ensure it actually satisfies those statutory requirements. That may sound technical. But when the information at issue comes from tax returns, the rules are supposed to be technical to protect your privacy.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Court%20Blocks%20IRS-ICE%20Data%20Sharing%20Procedure%20Over%20Taxpayer%20Privacy%20Rules&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2026%2F09%2Fpexels-padrinan-2882638-scaled.jpg&p%5Btitle%5D=Court%20Blocks%20IRS-ICE%20Data%20Sharing%20Procedure%20Over%20Taxpayer%20Privacy%20Rules "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Court%20Blocks%20IRS-ICE%20Data%20Sharing%20Procedure%20Over%20Taxpayer%20Privacy%20Rules "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Court%20Blocks%20IRS-ICE%20Data%20Sharing%20Procedure%20Over%20Taxpayer%20Privacy%20Rules&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Individual, Law and the Courts **Tags:** Center for Taxpayer Rights, Center for Taxpayer Rights v. Internal Revenue Service, section 6103, Tax Code Section 6103, taxpayer privacy --- ### [What Is a Casualty Loss? Taxes From A to Z®](https://www.taxgirl.com/2026/09/12/what-is-a-casualty-loss-taxes-from-a-to-z/) **Published:** September 12, 2026 **Author:** Kelly Phillips Erb **Excerpt:** Casualty and theft loss rules have changed significantly in recent years. Here’s what taxpayers need to know about disaster losses, scam-related theft losses, and the records needed to support a deduction. **Content:** A casualty loss is a loss resulting from a sudden, unexpected, or unusual event—think hurricanes, fires, and similar events. For years, casualty losses were generally discussed alongside theft losses, and taxpayers could claim them as deductions, subject to limits. But the TCJA changed the rules, generally limiting personal casualty and theft loss deductions to losses connected with federally declared disasters. Beginning in 2026, Congress made that limitation permanent and added language confirming that certain losses connected with state-declared disasters may also qualify. Those limitations hit scam victims particularly hard, including some who might have been entitled to a loss deduction before 2018. Now, an important exception under Section 165(c)(2) may allow a deduction if the theft arose from a transaction with a profit motive. In a 2025 memo, IRS Chief Counsel outlined several common scam scenarios and concluded that some victims may qualify—including taxpayers tricked into transferring money because they believed they were protecting an investment. The loss must qualify as theft under applicable law, there must be no reasonable prospect of recovery, and the transaction must have been entered into for profit. By contrast, victims of purely personal scams, such as romance or kidnapping scams, generally don’t meet that test. And records matter. To claim a casualty or theft loss, you need to establish what you lost, your basis, the amount of any reimbursement, and other facts supporting the deduction. If those records were lost with your property—or you simply can’t find them—don’t assume you’re out of luck. [As I explained](https://www.taxgirl.com/2026/09/02/the-irs-has-tips-for-rebuilding-records-after-a-disaster-they-work-the-rest-of-the-time-too/?utm_campaign=apple-muffins-carburetors-taxes&utm_medium=referral&utm_source=newsletter.taxgirl.com), you can often reconstruct tax records using IRS transcripts, bank and credit card statements, third-party records, photographs, appraisals, and other evidence. --- **Taxes come with their own language. Taxes From A to Z® is here to help translate. Find more tax terms and explainers in the [full A to Z collection](https://www.taxgirl.com/tax-glossary/).** [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=What%20Is%20a%20Casualty%20Loss%3F%20Taxes%20From%20A%20to%20Z%C2%AE&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2026%2F09%2Fpexels-pixabay-71116-scaled.jpg&p%5Btitle%5D=What%20Is%20a%20Casualty%20Loss%3F%20Taxes%20From%20A%20to%20Z%C2%AE "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=What%20Is%20a%20Casualty%20Loss%3F%20Taxes%20From%20A%20to%20Z%C2%AE "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=What%20Is%20a%20Casualty%20Loss%3F%20Taxes%20From%20A%20to%20Z%C2%AE&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** ID Theft and Scams, Taxes From A to Z® **Tags:** casualty loss, theft loss --- ### [Trump Promised Americans $5,000 if Republicans Win Congress. Here’s the Math.](https://www.taxgirl.com/2026/09/10/trump-promised-americans-5000-if-republicans-win-congress-heres-the-math/) **Published:** September 10, 2026 **Author:** Kelly Phillips Erb **Excerpt:** Trump has promised $5,000 payments to adult U.S. citizens if Republicans win Congress. Here’s the math, the funding questions, and what we know so far. **Content:** President Donald Trump made a big promise this week: If Republicans win both the House and Senate in November, he says every adult U.S. citizen will receive $5,000. “If the Republicans win, you win with us and you get $5,000,” Trump said during the Republican Party’s midterm convention in Dallas. “It will be called the Trump dividend, congratulations.” I’ve already been asked what that means for taxpayers. The short answer is that we don’t know yet. Trump did not provide details on how the payments would work, precisely who would qualify, or how the requirement that the money be spent in the United States would be administered. There is also no legislation authorizing the payments. Congress would have to approve or otherwise authorize the spending; the President cannot simply direct the Treasury to send checks on his own. For now, there isn’t really a tax proposal to analyze. But we can do the math. ## How much would $5,000 payments cost? About 270 million adults live in the United States, but Trump’s promise is narrower. He specifically referred to adult citizens. One current estimate puts that population at about 240 million. Using that estimate: 240 million × $5,000 = $1.2 trillion. That’s trillion with a T. And here’s where context helps. Federal budget numbers have gotten so large that it can be difficult to understand what $1.2 trillion actually means. It’s a lot of zeros. In the most recent complete fiscal year, FY 2025, the federal government collected about $5.23 trillion in revenue. It spent about $7.01 trillion. The proposed $1.2 trillion in payments would be equal to nearly one-quarter of what the federal government collected over the entire fiscal year. Fiscal years run from October 1 through September 30, which means FY 2026 isn’t over yet. Through July, [federal revenue was up](https://www.taxgirl.com/2026/09/01/irs-enforcement-revenue-fell-to-93-8-billion-in-2025/) compared with the same period last year, driven largely by higher individual income and payroll tax collections and customs duties. Federal spending was also up about 5%, or $309 billion, compared with the same period last year. Those numbers aren’t intended to tell you whether a $5,000 payment is good policy or bad policy. They simply provide context for the size of the proposal. ## Where would the money come from? Trump suggested that tariff revenue could provide at least some of the money, and Vice President JD Vance later pointed to tariffs as the source for the proposed dividends. The idea of sending some government savings or revenue back to taxpayers isn’t new. In fact, this isn’t the first—or even the second—such payment Trump has discussed during his second term. In February 2025, investment executive James Fishback proposed a “DOGE Dividend” that would return 20% of savings attributed to the Department of Government Efficiency to federal-income-tax-paying households. Assuming DOGE achieved its then-stated goal of $2 trillion in savings, Fishback calculated that $400 billion could be divided among roughly 78 million qualifying households, producing payments of about $5,000 per household. Elon Musk said he would raise the proposal with Trump. The following day, Trump publicly said his administration was considering giving 20% of DOGE savings to American citizens and using another 20% to pay down federal debt. Asked about the idea again later that day, Trump said, “I love it.” But the proposal never became an authorized payment program, and no DOGE dividend checks were issued. ## Is there enough tariff revenue? In November 2025, Trump proposed another dividend, this time funded with tariff revenue. He said a dividend of at least $2,000 per person would be paid to Americans other than “high income people.” No formal eligibility rules were announced, and the proposal was not enacted by Congress. Those payments were never issued (and with the return of some tariffs following the Supreme Court’s ruling, it’s very likely permanently off the table). The new proposal is considerably larger. At $5,000 for roughly 240 million adult citizens, the cost would be approximately $1.2 trillion. And current tariff revenues aren’t enough to cover that amount in a single year. [Yale’s Budget Lab](https://budgetlab.yale.edu/research/state-us-tariffs) estimates that tariffs currently in place will raise about $1.9 trillion over the next ten years, not in a single year. Other estimates vary depending on the tariffs and economic effects included, but the basic point is the same: projected tariff revenues are generally measured over a decade, while one round of $5,000 payments under the proposal would require roughly $1.2 trillion. ## What questions remain? The proposal also raises many unanswered questions. Would every adult citizen really qualify, or, as Vance has suggested, would higher-income Americans be excluded? Would there be an income phaseout? Would the payments be taxable? Would they come as checks, direct deposits, or refundable tax credits? And how would the requirement that the money be spent in the United States actually work? We don’t know. And that’s why there’s not much tax law to analyze yet. What we can analyze is the scale. At $5,000 per person and roughly 240 million potentially eligible adults, we’re talking about approximately $1.2 trillion, compared with roughly $5.26 trillion collected and $7.01 trillion spent by the federal government in FY 2025. If and when there is an actual proposal—with eligibility rules, a funding mechanism, legislation, or tax provisions—then there will be considerably more to talk about.[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Trump%20Promised%20Americans%20%245%2C000%20if%20Republicans%20Win%20Congress.%20Here%E2%80%99s%20the%20Math.&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2026%2F09%2Fpexels-jonathanborba-14820446-scaled.jpg&p%5Btitle%5D=Trump%20Promised%20Americans%20%245%2C000%20if%20Republicans%20Win%20Congress.%20Here%E2%80%99s%20the%20Math. 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"Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Trump%20Promised%20Americans%20%245%2C000%20if%20Republicans%20Win%20Congress.%20Here%E2%80%99s%20the%20Math.&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Politics **Tags:** DOGE refunds, Donald Trump, tariff refunds, Trump payments --- ### [When a Circuit Court Rules, Who Has to Follow It?](https://www.taxgirl.com/2026/07/06/when-a-circuit-court-rules-who-has-to-follow-it/) **Published:** July 6, 2026 **Author:** Kelly Phillips Erb **Content:** The Supreme Court’s recent refusal to hear Murrin v. Commissioner left a Third Circuit ruling with serious consequences for taxpayers in place. It also raised a broader question that often comes up when federal courts make news: how far does one circuit court’s ruling actually reach? In Murrin, a tax preparer included false or fraudulent entries on the taxpayer’s returns. The preparer also omitted his name and signature from the preparer line, listed different entities as the preparer from year to year, used different post office boxes as business addresses on partnership returns, and mailed partnership returns to different IRS service centers. Years later, long after the ordinary three-year period had expired, the IRS sought to assess about $328,000 in tax, penalties, and interest (the interest alone was more than $250,000 by the time the IRS issued the notice of deficiency). Murrin challenged the assessment, claiming that the statute of limitations had already run. The IRS argued that because the returns were fraudulent, the usual three-year deadline did not apply. The Tax Court agreed with the IRS, and on appeal, the Third Circuit did, too. ## What Is A Circuit Court? When people refer to a “circuit court” in the federal system, they usually mean a U.S. Court of Appeals. These courts sit between the federal district courts and the U.S. Supreme Court. Most federal cases begin in a district court, which is the trial-level court. That’s where the parties build the record, including witness testimony and evidence. In some cases, there may also be a trial (cases are often argued on paper more than in person). If one side believes the district court applied the law incorrectly, it can appeal to the court of appeals. But an appeal is not a second trial. The court of appeals generally does not hear new witnesses, take new evidence, or retry the facts. Its job is to review what happened below and decide whether the law was applied correctly. A circuit court may affirm the lower court’s decision, reverse it, vacate it, or remand the case for further proceedings. When a case is sent back, or remanded, the lower court usually receives instructions about what should happen next. Circuit courts also create precedent. When a circuit court interprets federal law, lower federal courts within that circuit generally have to follow that interpretation unless the Supreme Court says otherwise. That’s why the Third Circuit’s ruling in Murrin matters: lower federal courts within that circuit generally must follow it unless the Supreme Court or the Third Circuit later changes course. ## Does A Circuit Court Ruling Apply Everywhere? A circuit court ruling generally binds only the federal courts within that circuit. That means a Third Circuit decision binds federal district courts in the Third Circuit. It does not automatically control what happens in the Fourth, Fifth, Ninth, or any other circuit. The distinction is important. If the Third Circuit decides a tax issue one way, a taxpayer in Pennsylvania may face a different legal landscape than a taxpayer in California, Texas, or Florida. Courts outside the Third Circuit may still look at the decision and find it persuasive, but they are not required to follow it simply because the Third Circuit said so. That means the same federal statute may be interpreted one way in one part of the country and differently in another. ## Why Are They Called Circuit Courts? The name comes from the way the federal court system is organized. The country is divided into regional circuits, and each circuit has its own court of appeals. So when you hear someone refer to the Third Circuit or Ninth Circuit, they are talking about the federal appellate court for a particular part of the country. Here’s a quick summary: The Federal Circuit also sits in Washington, D.C., but it is different from the regional circuits. Its jurisdiction is largely based on subject matter rather than geography. That includes appeals from the Court of Federal Claims, which can hear federal tax refund suits after the taxpayer has paid the disputed amount. Refund suits filed in federal district court, by contrast, generally go to that district’s circuit court of appeals. ## What Is a Circuit Split? A circuit split happens when different federal courts of appeals reach different conclusions on the same question of federal law. That was part of Murrin’s argument. Murrin claimed that the Third Circuit had split from the Federal Circuit’s earlier decision in BASR Partnership v. United States, which held that the fraud exception applies only when the taxpayer, not a third party, acted with intent to evade tax. Circuit splits matter because they can make a case more likely to attract the Supreme Court’s attention. The Supreme Court does not take most cases, but when federal law means one thing in one part of the country and something else in another, that disagreement can justify review. Even then, review is not guaranteed. In Murrin, the Supreme Court declined to hear the case. ## What Does It Mean When the Supreme Court Denies Cert? When a party asks the Supreme Court to hear a case, that request is called a petition for a writ of certiorari. If the Court agrees to hear the case, it grants cert. If it declines, it denies cert. A denial of cert does not mean the Supreme Court agrees with the lower court. It does not make the lower court’s decision the law of the entire country. It simply means the Supreme Court is not taking that case. That is what happened in Murrin. The Third Circuit’s ruling remains in place, but the Supreme Court did not endorse it. ## Can a Circuit Court Ruling Still Matter Outside Its Circuit? A circuit court decision may not bind the entire country, but it can still influence what happens elsewhere. Other courts may treat it as persuasive authority, federal agencies may rely on it when litigating similar cases, and taxpayers and advisers may adjust their risk calculations once a circuit court has accepted a particular argument. That is especially true in tax cases. A win for the IRS in one circuit can shape how the government approaches similar disputes before other circuits have weighed in. A taxpayer outside the Third Circuit may not be bound by Murrin in the same way, but the case still signals how the IRS may argue the issue. ## What Does It All Mean? Circuit courts are powerful because, for most federal cases, they are the last meaningful stop. The Supreme Court hears only a small fraction of the cases it reviews, so a court of appeals decision often becomes the final word for the parties. But that does not mean every circuit court decision applies nationwide. Most of the time, a circuit court ruling binds the courts within that circuit and serves as persuasive authority elsewhere. That is why Murrin matters, but also why the Supreme Court’s denial should not be mistaken for a nationwide rule. The Supreme Court did not bless the Third Circuit’s reasoning—it left the ruling in place. For taxpayers in the Third Circuit, that is enough. But for taxpayers elsewhere, it is a warning sign—and possibly a preview of the next fight. [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=When%20a%20Circuit%20Court%20Rules%2C%20Who%20Has%20to%20Follow%20It%3F&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2026%2F07%2Fcolin-lloyd-52LVSjj7voc-unsplash-scaled.jpg&p%5Btitle%5D=When%20a%20Circuit%20Court%20Rules%2C%20Who%20Has%20to%20Follow%20It%3F "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=When%20a%20Circuit%20Court%20Rules%2C%20Who%20Has%20to%20Follow%20It%3F "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=When%20a%20Circuit%20Court%20Rules%2C%20Who%20Has%20to%20Follow%20It%3F&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Law and the Courts, Supreme Court **Tags:** Murrin, Murrin v. Commissioner, Supreme Court, what is a circuit court --- ### [Staggering Sanctions Slapped on Wyly Brothers in Offshore Case](https://www.taxgirl.com/2014/09/25/staggering-sanctions-slapped-on-wyly-brothers-in-offshore-case/) **Published:** September 25, 2014 **Author:** Kelly Phillips Erb **Content:** Staggering. That’s how a Manhattan federal judge [described the sanctions](http://www.businessweek.com/news/2014-09-25/wylys-must-pay-staggering-300-million-they-dont-have) imposed against Texas businessman Sam Wyly and his deceased brother’s estate today. The brother could expect to pay nearly $400 million in civil tax-fraud penalties for using offshore trusts to evade reporting requirements. The judgment, plus interest, could be one of the largest sanctions ever imposed on individual taxpayers. Prior to his legal troubles, Wyly was one of the richest people in America. He made the Forbes 400 in 2010, landing at #385, the same year that he made Forbes’ billionaires list. The Texas businessman, along with his brother, Charles, made money from several businesses, including the Bonanza chain of steakhouses. In the 1980s, Wyly made news for gobbling up shares of Michael’s Craft stores: he eventually sold his stake to Bain Capital (yes, of Mitt Romney fame) and Blackstone Group in 2006, netting millions. That same year, Wyly appeared on Forbes’ list of the wealthiest Americans; the next year, he solidified his position as a billionaire. But Wyly was attracting attention from more than just investors. The brothers were summoned to D.C. to testify about their business deals in 2006 following allegations of illegal tax practices. It was assumed the IRS was circling, and the Securities and Exchange Commission (SEC) was sharpening its knives. It wasn’t a new feeling for Wyly. He had his first public run-in with the SEC in 1979. At the time, the SEC investigated Wyly over a bond issue. That case was ultimately settled, and Wyly admitted no guilt. More than 25 years later, Wyly and his brother found themselves under the microscope of the SEC again – this time, the inquiries were directed towards the use of potentially illegal offshore tax shelters. In 2010, the SEC officially charged the pair [with fraud](https://www.sec.gov/litigation/complaints/2010/comp21607.pdf). Four years later, a jury found the Wyly brothers guilty of making more than $500 million by hiding the proceeds of sales of companies in offshore entities. But if this is all about offshore maneuvering, why is it an SEC matter and not, say, an IRS issue? Transparency. [In its complaint](https://www.sec.gov/litigation/complaints/2010/comp21607.pdf), the SEC alleged that the Wylys used a series of entities in garden spots like the Isle of Man and Cayman Islands (yes, both tax havens), to hide the sales of companies in order to avoid official SEC disclosures. That pattern of behavior, it had been alleged, went on for more than a decade. Rather than hide from the tax issue, the defense embraced it, claiming that the offshore trusts were not part of a scheme to avoid SEC regulations but rather part of tax planning. Wyly’s defense attorney claimed that the brothers [merely followed the advice](http://online.wsj.com/news/articles/SB10001424052702304157204579471364109869216) of their legal and financial advisors and “were never given any reason to believe the financial transactions in question were anything other than legal.” The courts did not agree. U.S. District Judge Shira Scheindlin hammered this point home, assessing $123.8 million against Sam Wyly and $63.9 million against the Estate of Charles Wyly (Charles died in 2011) – plus interest. Additional charges were not filed against the pair for potential tax omissions, despite some chatter that they might be. The potentially illegal behavior dates back more than a decade. The statute of limitations for most tax matters is three years, but it stretches to six years if there’s a significant income omission (usually 25%) or, in some cases, tax evasion. It’s been assumed that the IRS felt the statute had likely run or was close to running. With Charles Wyly’s death and Sam Wyly’s increasingly poor health, it may also have been a risky public relations move for the Department of Justice. This came despite a 2006 report from the U.S. Senate Permanent Subcommittee on Investigations, where then Ranking Minority Member Sen. Carl Levin (D-MI) claimed the Wylys [avoided paying $300 million in federal taxes](http://www.dmagazine.com/publications/d-magazine/2013/february/sam-wyly-fight-to-keep-family-fortune?page=2) (be forewarned: it’s a 402-page download). Whatever the reasons, the IRS hasn’t made noise about charges or investigations. Even without jail time and tax penalties, the Wylys are taking a hit from the most recent judgment – which the judge is hoping doesn’t go unnoticed. The fines against them are so huge, the judge noted, that they are “equivalent to approximately 10% of the total penalties and disgorgement ordered in SEC enforcement cases nationwide last year.” That will, it’s hoped, send a message to others engaging in similar behaviors. As for Sam Wyly? He has remained unapologetic about his behavior for years. He’s admitted his role, claiming last year that it was indeed a plan to shave tax dollars from his return [because](http://www.dmagazine.com/publications/d-magazine/2013/february/sam-wyly-fight-to-keep-family-fortune?page=2), he says, “I pay a lot of taxes.”[![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Staggering%20Sanctions%20Slapped%20on%20Wyly%20Brothers%20in%20Offshore%20Case&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=&p%5Btitle%5D=Staggering%20Sanctions%20Slapped%20on%20Wyly%20Brothers%20in%20Offshore%20Case "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Staggering%20Sanctions%20Slapped%20on%20Wyly%20Brothers%20in%20Offshore%20Case "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Staggering%20Sanctions%20Slapped%20on%20Wyly%20Brothers%20in%20Offshore%20Case&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Prosecutions, Felonies and Misdemeanors, Taxes of the Rich and (In)famous **Tags:** offshore, Sam Wyly, SEC, Sen. Carl Levin, tax, tax-fraud --- ### [IRS Service Problems, Funding, and Returning to “Normal”](https://www.taxgirl.com/2021/12/28/irs-service-problems-funding-and-returning-to-normal/) **Published:** December 28, 2021 **Author:** John Luckenbaugh **Content:** While many have complained about long call wait times and difficulty getting IRS help in the past, the pandemic has exacerbated these service problems for the federal agency. As a result, claims take longer to address, and for taxpayers and practitioners alike, reaching an IRS service representative seems nearly impossible. ## Who is to blame for the IRS’s service issues, and what can be done to resolve them? How could adjusting funding to the IRS potentially affect the current status of their operations? On today’s episode of the Taxgirl podcast, Kelly is joined by Bill Smith to discuss the IRS’s difficulties that have emerged since the pandemic and what to expect going forward. Bill is the Managing Director of the CBIZ MHM’s National Tax Office in Washington, DC. He has more than 40 years of experience in both the public and private sectors. In his current role, he consults nationally on a broad range of tax services, including foreign and domestic transactional tax planning for corporations, partnerships, LLCs, and individuals. ### Listen to Kelly and Bill discuss expectations for IRS processes returning to “normal” after the onset of COVID-19: - What are Bill’s thoughts on the IRS’s current operating procedures for addressing taxpayer questions and concerns? What changes has he noticed since COVID-19 began? - Are taxpayers aware of the modern-day challenges and delays in communicating with IRS representatives today, or are tax practitioners more aware of the differences in practices between now and pre-pandemic? How does this affect the relationships between tax practitioners and their clients? - Bill speaks on what he describes as the “ripple effects” of the IRS’s poor operating status. Taxpayers and tax practitioners can’t get the IRS to respond promptly, and the IRS’s reliance on paper requests makes it easy for things to get lost or mixed up. These issues can affect not only taxpayers but their businesses, their relationships with professionals, the practices of tax professionals, and so on. - How may the Taxpayer Advocate Service’s office’s recent announcement about not accepting certain cases impact businesses and citizens who would not receive their refunds on time? - Bill believes the IRS faced significant hardships as it adjusted to remote work. How was their situation different from any other company’s, and to what extent? In what ways did the stimulus payments affect the IRS processes and contribute to their slow processing and service difficulties? - Kelly and Bill discuss the IRS’s technology as partially to blame for their operational issues. How could the IRS improve its technology to resolve some of these problems? Could the controversy over the IRS’s funding be contributing to its technology and operational issues? - How would the proposed amendment to the Build Back Better Act affect the IRS’s processes? If the amendment passes, the IRS would have to explain and implement it. Could this cause adverse effects, considering their current operational status? - The IRS finds it easier to handle “lower hanging fruit” items, such as smaller business audits, than more complex tax issues. How would an amendment that caps the salary of the people who can be audited change this trend? Would the amendment impact the IRS’s income, and if so, what would that mean for their future? - What would Bill consider priorities, or areas of importance to taxpayers, if he were in charge of allocating additional funding to the IRS? Bill explains which areas of the IRS he believes should receive funding to restore normalcy to its processes. ### More about Kelly: Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things she does is help folks out of tax jams and hopefully keep others from getting into them. You can find out more about Kelly[ here,](https://www.taxgirl.com/about-taxgirl/) and you can follow her on[ Twitter](https://x.com/taxgirl),[ Facebook](https://www.facebook.com/taxgirl),[ Instagram](https://www.instagram.com/therealtaxgirl), and[ LinkedIn](https://www.linkedin.com/in/taxgirl/). To subscribe to the podcast (it’s free!) using Apple, Spotify, or your favorite listening app,[ click here](https://www.taxgirl.com/taxgirl-podcast/podcast-subscription/). ### Links: Kelly’s Website –[ Taxgirl](https://www.taxgirl.com/) Bill’s Twitter – [@BillSmithTax1](https://twitter.com/billsmithtax1) Bill’s LinkedIn – [Bill Smith](https://www.linkedin.com/in/billsmithcbizmhm) Bill’s Company Profile – [CBIZ](https://www.cbiz.com/about-us/employee-directory/employee-details/bill-smith) Bill and Kelly’s Forbes Article – Forbes [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=IRS%20Service%20Problems%2C%20Funding%2C%20and%20Returning%20to%20%E2%80%9CNormal%E2%80%9D&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2021%2F12%2Fpexels-nataliya-vaitkevich-8927687-scaled.jpg&p%5Btitle%5D=IRS%20Service%20Problems%2C%20Funding%2C%20and%20Returning%20to%20%E2%80%9CNormal%E2%80%9D "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=IRS%20Service%20Problems%2C%20Funding%2C%20and%20Returning%20to%20%E2%80%9CNormal%E2%80%9D "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=IRS%20Service%20Problems%2C%20Funding%2C%20and%20Returning%20to%20%E2%80%9CNormal%E2%80%9D&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Podcast **Tags:** ask the taxgirl, Congress, Internal Revenue Service, IRS, podcast, tax, tax evasion, taxes from a to z, taxgirl --- ### [IRS Service Problems, Funding, and Returning to “Normal”](https://www.taxgirl.com/2021/12/28/irs-service-problems-funding-and-returning-to-normal/) **Published:** December 28, 2021 **Author:** John Luckenbaugh **Content:** While many have complained about long call wait times and difficulty getting IRS help in the past, the pandemic has exacerbated these service problems for the federal agency. As a result, claims take longer to address, and for taxpayers and practitioners alike, reaching an IRS service representative seems nearly impossible. ## Who is to blame for the IRS’s service issues, and what can be done to resolve them? How could adjusting funding to the IRS potentially affect the current status of their operations? On today’s episode of the Taxgirl podcast, Kelly is joined by Bill Smith to discuss the IRS’s difficulties that have emerged since the pandemic and what to expect going forward. Bill is the Managing Director of the CBIZ MHM’s National Tax Office in Washington, DC. He has more than 40 years of experience in both the public and private sectors. In his current role, he consults nationally on a broad range of tax services, including foreign and domestic transactional tax planning for corporations, partnerships, LLCs, and individuals. ### Listen to Kelly and Bill discuss expectations for IRS processes returning to “normal” after the onset of COVID-19: - What are Bill’s thoughts on the IRS’s current operating procedures for addressing taxpayer questions and concerns? What changes has he noticed since COVID-19 began? - Are taxpayers aware of the modern-day challenges and delays in communicating with IRS representatives today, or are tax practitioners more aware of the differences in practices between now and pre-pandemic? How does this affect the relationships between tax practitioners and their clients? - Bill speaks on what he describes as the “ripple effects” of the IRS’s poor operating status. Taxpayers and tax practitioners can’t get the IRS to respond promptly, and the IRS’s reliance on paper requests makes it easy for things to get lost or mixed up. These issues can affect not only taxpayers but their businesses, their relationships with professionals, the practices of tax professionals, and so on. - How may the Taxpayer Advocate Service’s office’s recent announcement about not accepting certain cases impact businesses and citizens who would not receive their refunds on time? - Bill believes the IRS faced significant hardships as it adjusted to remote work. How was their situation different from any other company’s, and to what extent? In what ways did the stimulus payments affect the IRS processes and contribute to their slow processing and service difficulties? - Kelly and Bill discuss the IRS’s technology as partially to blame for their operational issues. How could the IRS improve its technology to resolve some of these problems? Could the controversy over the IRS’s funding be contributing to its technology and operational issues? - How would the proposed amendment to the Build Back Better Act affect the IRS’s processes? If the amendment passes, the IRS would have to explain and implement it. Could this cause adverse effects, considering their current operational status? - The IRS finds it easier to handle “lower hanging fruit” items, such as smaller business audits, than more complex tax issues. How would an amendment that caps the salary of the people who can be audited change this trend? Would the amendment impact the IRS’s income, and if so, what would that mean for their future? - What would Bill consider priorities, or areas of importance to taxpayers, if he were in charge of allocating additional funding to the IRS? Bill explains which areas of the IRS he believes should receive funding to restore normalcy to its processes. ### More about Kelly: Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things she does is help folks out of tax jams and hopefully keep others from getting into them. You can find out more about Kelly[ here,](https://www.taxgirl.com/about-taxgirl/) and you can follow her on[ Twitter](https://x.com/taxgirl),[ Facebook](https://www.facebook.com/taxgirl),[ Instagram](https://www.instagram.com/therealtaxgirl), and[ LinkedIn](https://www.linkedin.com/in/taxgirl/). To subscribe to the podcast (it’s free!) using Apple, Spotify, or your favorite listening app,[ click here](https://www.taxgirl.com/taxgirl-podcast/podcast-subscription/). ### Links: Kelly’s Website –[ Taxgirl](https://www.taxgirl.com/) Bill’s Twitter – [@BillSmithTax1](https://twitter.com/billsmithtax1) Bill’s LinkedIn – [Bill Smith](https://www.linkedin.com/in/billsmithcbizmhm) Bill’s Company Profile – [CBIZ](https://www.cbiz.com/about-us/employee-directory/employee-details/bill-smith) Bill and Kelly’s Forbes Article – Forbes [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=IRS%20Service%20Problems%2C%20Funding%2C%20and%20Returning%20to%20%E2%80%9CNormal%E2%80%9D&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2021%2F12%2Fpexels-nataliya-vaitkevich-8927687-scaled.jpg&p%5Btitle%5D=IRS%20Service%20Problems%2C%20Funding%2C%20and%20Returning%20to%20%E2%80%9CNormal%E2%80%9D "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=IRS%20Service%20Problems%2C%20Funding%2C%20and%20Returning%20to%20%E2%80%9CNormal%E2%80%9D "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=IRS%20Service%20Problems%2C%20Funding%2C%20and%20Returning%20to%20%E2%80%9CNormal%E2%80%9D&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Podcast **Tags:** ask the taxgirl, Congress, Internal Revenue Service, IRS, podcast, tax, tax evasion, taxes from a to z, taxgirl --- ### [Getting to Know You Again](https://www.taxgirl.com/2026/08/25/getting-to-know-you-again/) **Published:** August 25, 2026 **Author:** Kelly Phillips Erb **Content:** Guess what’s back? It’s Getting to Know You Tuesday (which I realize is an odd thing to announce on a Wednesday). Getting To Know You Tuesday began because of my curiosity. When I started practicing, folks would tell me I didn’t seem like someone who would like tax. I started thinking about who that might be, and it dawned on me: Nobody really knows. Tax professionals come from all walks of life. Some are tax preparers, while others are tax planners. Some focus on offshore work or audit, while others practice partnership tax or criminal tax defense. Some delve into tax policy, while others are content to flip through pages of tax statutes. Some are solos, and some are in-house at large companies. Some teach, some write, some speak. And some do a little bit of everything. That’s one of the things that I love so much about the tax community. It’s also why I started the series, and it’s why I’m doing a reboot. I love the idea so much that I’ve done variations at Forbes and Bloomberg. And now I’m bringing it back to Taxgirl. ## Here’s how it works. Each week or so, I’ll feature a tax pro. Who exactly fits that mold is, of course, subjective, but generally it’s someone with regular exposure to tax and accounting concepts in their job. I’ll ask a set of questions, some serious and some not so much. The questions stay the same from one tax pro to another, updated occasionally to stay current. I’m currently accepting nominations for the series. If you’d like to recommend a tax pro to be featured, send your suggestions to [gtky (at) taxgirl (dot) com](mailto:gtky@taxgirl.com) with the subject: Getting To Know You Tuesday. Self-nominations are totally okay, and encouraged! ## Featured already? And if you’ve previously submitted a nomination, please feel free to resend it. I’ll consider all submissions, even those that were selected, so long as they were more than three years ago. Thanks![![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Getting%20to%20Know%20You%20Again&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2026%2F08%2F2013-06-28-131857-nc.jpeg&p%5Btitle%5D=Getting%20to%20Know%20You%20Again "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Getting%20to%20Know%20You%20Again "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Getting%20to%20Know%20You%20Again&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Getting to Know You Tuesday, Individual, Site Info --- ### [Senate CARES Act 2.0 Includes More Benefits and Stimulus Checks](https://www.taxgirl.com/2020/07/30/senate-cares-act-2-0-includes-more-benefits-another-round-of-stimulus-checks/) **Published:** July 30, 2020 **Author:** Kelly Phillips Erb **Content:** In March of 2020, the Senate passed the Coronavirus Aid, Relief, and Economic Security Act, or the CARES Act. It was bigger than the original Senate proposal but smaller than the subsequent House proposal. Eventually, the two reconciled and the CARES Act became law. In May of 2020, the House introduced and passed a new COVID-19 economic relief proposal. The bill, known as the Health and Economic Recovery Omnibus Emergency Solutions Act, or HEROES Act, did not pass the Senate. At the time, Senate Majority Leader Mitch McConnell (R-KY) said the timing wasn’t right for another bill. But with just a few days to go before federal unemployment benefits run out, that appears to have changed. So far, there is no single bill, but rather a series of proposals. Various committee chairs have drafted their proposals and introduced them separately on the Senate floor. This article focuses on the American Workers, Families and Employers Assistance Act introduced by Sen. Chuck Grassley (R-IA), targeting, well, assistance for workers, families, and employers. It’s a much smaller proposal than the full CARES Act (and the HEROES Act), weighing in at just 168 pages – but remember, it’s just a piece of the overall package. A supplemental proposal, led by Sen. Marco Rubio (R-FL) and Sen. Susan Collins (R-ME), tackles the Paycheck Protection Program (PPP) and business tax incentives. Here’s what Sen. Grassley’s proposal provides: **Unemployment Benefits.** The $600/week federal unemployment supplement is slated to end on July 31, 2020, under the CARES Act. The House HEROES Act would extend it through January 31, 2021, and expand other unemployment-related benefits. **The Senate proposal would continue payments up through October 5, 2020, but at a reduced rate of $200/week.** However, beginning in October, under the Senate bill, the payments would increase so that, when combined with the state unemployment payment, it would represent 70% of lost wages. If an individual state cannot reach 70%, it can suggest an alternative and get a waiver from the Secretary of Labor. Also, beginning in October, the additional payment would count as income when determining eligibility for other benefits. **State Funding.** The proposal would fund reimbursement to states for 80% of their increased costs of providing cash assistance and other short-term help through the [Temporary Assistance for Needy Families (TANF) program](https://www.benefits.gov/benefit/613#:~:text=The%20Temporary%20Assistance%20for%20Needy,job%20preparation%2C%20and%20work%20assistance.), up to a cap of $2 billion. TANF provides families with financial assistance and related support services. State-administered programs may include childcare assistance, job preparation, and work assistance. **Stimulus Checks.** Under the CARES Act, U.S. citizens and residents with adjusted gross income up to $75,000, or $150,000 for married couples (subject to phaseouts), who are not a dependent of another taxpayer and have a work-eligible Social Security number (SSN), were eligible for stimulus checks worth $1,200 per adult and $500 per dependent. As before, there is no “bottom,” so those folks who have no income are eligible. And as before – but in breaking with the HEROES Act – anyone with an ITIN is ineligible; any person with an SSN married to someone who files jointly with a person who has an ITIN remains ineligible. **The Senate proposal largely mirrors the CARES Act with some exceptions:** - Under the CARES Act, for purposes of getting the $500 per child, the law used the same definition for a child as you’d use for the child tax credit. The sticking point for most parents was age: the child must be under 17 at the end of the tax year. That meant taxpayers weren’t entitled to the $500 additional payment for a child over age 16, even if the child lived with you, ate your food, spent your money*, and* slept in your house. A change in the House HEROES Act and the Senate proposal would **allow taxpayers with qualifying dependents (no matter their age) to receive checks.** - As with the HEROES Act, **the Senate proposal would make clear that payments should be automatic for those receiving Social Security retirement or disability benefits (SSDI),** Supplemental Security Income **(SSI), RRB, or VA benefits. - The CARES Act provided that checks were generally not subject to offset except for past-due child support payments. As in the HEROES Act, **the Senate proposal would clarify that the checks are protected from bank garnishment or levy by private creditors or debt collectors. This protection would also be applied retroactively to the CARES Act checks (in keeping with this Senate bill), although it remains unclear how the retroactive provisions would work; as before, I assume it will only apply to any CARES stimulus checks which have not yet been paid out, as well as new checks. - And even though Congress didn’t include any language in the CARES Act prohibiting the payment of checks to [decedents](https://www.taxgirl.com/2020/07/14/irs-now-canceling-stimulus-checks-issued-to-decedents/) and [prisoners](https://www.taxgirl.com/2020/05/06/irs-says-stimulus-checks-paid-to-those-in-jail-should-be-returned/) – and Treasury decided to take those payments away anyway – this time, the Senate proposal did include such language. **Under the Senate proposal, any decedent who died before January 1, 2020, any person in jail when Treasury processes the check, or any individual in prison for all of 2020 may not receive a check.** This language also applies retroactively to CARES Act checks. - One point of confusion under the CARES Act was whether representative payees of Social Security (SSA), Veterans Affairs (VA), and Railroad Retirement Board (RRB) benefits could accept payment. As in the HEROES Act, **the Senate proposal clarifies that a representative payee may accept a check, provided the representative payee uses the payment for the beneficiary.** **Payroll Tax Credits & Deferrals.** Employers would be allowed a payroll tax credit equal to the applicable percentage of the qualified pandemic-related employee benefit expenses. The amount allowed as a credit under the Employee Retention Credit (ERC) is 50% of wages. **The Senate proposal would boost that to 65%** (as compared to 80% in the HEROES Act), and the $10,000 cap for all quarters would be increased to $10,000 per quarter, with a cap of $30,000 for the year (the limit was $45,000 in the HEROES Act); phase-ins would also apply for the credit reduction. A similar credit would apply to self-employed persons, but for employers with more than 100 full-time employees, the credit would be calculated differently: the Senate proposal would raise **that cap to 500.** Under the HEROES Act and the Senate proposal, a credit would be allowable for fixed expenses. Payroll tax deferrals would be allowed for recipients of Paycheck Protection Program (PPP) loans so long as there is no double-dipping. **Work Opportunity Tax Credit (WOTC) Addition.** The WOTC credit is available to employers who hire individuals from certain targeted groups who have consistently faced significant employment barriers. Those targeted groups currently are TANF recipients, qualified veterans, qualified ex-felons, designated community residents, vocational rehabilitation referrals, SNAP recipients, SSI recipients, long-term family assistance recipients, and qualified long-term unemployment recipients. **The Senate proposal would add a new group: 2020 qualified COVID-19 unemployment recipients.** A 2020 qualified COVID-19 unemployment recipient is defined as someone who received unemployment compensation before the hiring date and begins work after the bill becomes law (if it happens), but before January 1, 2021. The Senate proposal also increases the credit amount for the new targeted group to 50% of the first $10,000 of qualified first-year wages (for most target groups, the maximum wages eligible for the WOTC credit are $6,000, and the credit is 40%). **Safe & Healthy Workplace Tax Credit.** **The Senate proposal would introduce a new, refundable payroll tax credit equal to 50% of an employer’s “qualified employee protection expenses” for the period beginning March 12, 2020, and through January 1, 2021.** Those expenses would include COVID-19 testing, protective personal equipment (PPE), cleaning supplies, qualified workplace reconfiguration expenses (like those plexiglass shields that are popping up), and qualified workplace technology expenses (like contactless point-of-sale (POS) systems). The expenses would be capped each quarter based on the average number of employees: $1,000 for each of the first 500 employees, plus $750 for each of the next 500 and 1000 employees, and $500 for each employee over 1,000. Self-employed persons would also qualify. **Assistance For Independent Contractors.** Typically, assistance provided to workers can be used as evidence of control (and thus risk converting an independent contractor into an employee)**. The Senate proposal would allow businesses to offer tax-free assistance – including financial aid and health care expenses – to independent contractors without jeopardizing that status.** **Temporary Carryover For Flexible Spending Arrangements (FSAs).** Mirroring relief found in the HEROES Act, **the Senate proposal would allow taxpayers to carry amounts from FSAs forward into 2021. This would apply to health care and dependent care FSAs.** **State Tax Certainty.** One concern raised during the pandemic was how to assess state and local taxes for workers working remotely. The Senate proposal would allow employees who perform employment duties in multiple states to be subject to income tax only in their state of residence and in any jurisdiction where the employee is present and performing employment duties for more than 30 days during the calendar year (90 days for frontline health-care and other workers). This provision would apply through 2024. And sorry, Phillies, this won’t apply to professional athletes, professional entertainers, qualified, approved film, television, or other commercial video production employees, or certain public figures. And that’s it. You can read the text of the Act [here](https://www.finance.senate.gov/imo/media/doc/SFC%20CARES%202.0%20Legislative%20Text.pdf). It’s short, right? Well, relatively speaking for a stimulus package… But expect it to “bulk up” – those other proposals will eventually be rolled together. Please be mindful that this is NOT YET LAW. There hasn’t even been a vote in the Senate. Don’t spend that stimulus check before it’s in your pocket (or bank account). 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Politics **Tags:** CARES Act, CARES Act 2.0, stimulus bill, stimulus check, stimulus money --- ### [Confusion After President Trump Orders Temporary Payroll Tax Cut](https://www.taxgirl.com/2020/08/13/confusion-after-president-trump-orders-temporary-payroll-tax-cut/) **Published:** August 13, 2020 **Author:** Kelly Phillips Erb **Content:** On August 6, 2020, the Senate adjourned without passing a stimulus package. Senate Majority Leader Mitch McConnell (R-KY) wasn’t involved in the talks, leaving Senate Minority Leader Chuck Schumer (D-NY) and House Speaker Nancy Pelosi (D-CA) to work directly with Treasury Secretary Steve Mnuchin and White House Chief of Staff Mark Meadows. As of Friday night, both sides said they had not reached an agreement. Today, apparently frustrated with Congress’ inaction, President Trump signed Executive Orders that would alter the current scheme. Among them? A payroll tax deferral. Specifically, the Order says: *To that end, today I am directing the Secretary of the Treasury to use his authority to defer certain payroll tax obligations with respect to the American workers most in need. This modest, targeted action will put money directly in the pockets of American workers and generate additional incentives for work and employment, right when the money is needed most.* You can read the entire Order here. Previously, tax policy gurus – from the right and the left – had weighed in, with many doubting whether President Trump had the authority to act on payroll tax collections. **Most tax experts believe only Congress has the power to stop tax collection.** The authority for taking action may be found in the Tax Code, specifically at [section 7508A](https://www.law.cornell.edu/uscode/text/26/7508A), which begins: *In the case of a taxpayer determined by the Secretary to be affected by a federally declared disaster (as defined by* [*section 165(i)(5)(A)*](https://www.law.cornell.edu/uscode/text/26/165#i_5_A)*) or a terroristic or military action (as defined in section 692(c)(2)), the Secretary may specify a period of up to 1 year that may be disregarded in determining, under the internal revenue laws, in respect of any tax liability of such taxpayer—* That typically limits relief to specific geographic areas. However, on March 13, 2020, the President of the United States issued an emergency declaration under the [Robert T. Stafford Disaster Relief and Emergency Assistance Act](https://www.fema.gov/media-library/assets/documents/15271) in response to the ongoing Coronavirus Disease 2019 (COVID-19) pandemic (Emergency Declaration). In other words, every part of the United States currently qualifies as a disaster. The same Tax Code section was cited when the tax season filing deadline was postponed from April 15 to July 15. But here’s what worries some tax policy experts: the President may have the authority to *postpone* the collection of the payroll tax under the Internal Revenue Code, but not the power to forgive those taxes. Congress alone has that authority. The Executive Order acknowledges as much, stating: > *The Secretary of the Treasury shall explore avenues, including legislation, to eliminate the obligation to pay the taxes deferred pursuant to the implementation of this memorandum.* To be clear, the President is asking Treasury to look into whether those payroll taxes can be forgiven. **For now, however, the Executive Order only allows for deferral.** That means – without further action – that the taxes have to be paid. The deferral is effective from September 1, 2020, through December 31, 2020. Some tax experts also questioned earlier this week whether the President had the authority to cap or limit the deferral. But that’s precisely what happened here. The Executive Order says the relief is restricted to “any employee the amount of whose wages or compensation, as applicable, payable during any bi-weekly pay period generally is less than $4,000, calculated on a pre-tax basis, or the equivalent amount concerning other pay periods.” That generally restricts those making more than $100,000 annually. Assuming a complete deferral of Social Security taxes, the average worker could put off paying just under $800 for the term of the deferral, or about $60/week. Everyone else is still responsible for collecting, withholding, and remitting tax. How that will apply to workers with more than one job (or with side gigs) isn’t yet clear. The executive order has directed Treasury to issue guidance. Another potential problem? Those payroll tax funds are generally paid into their respective Social Security and Medicare trust funds (that’s why we call them “[trust fund taxes](https://www.taxgirl.com/2019/04/05/taxes-from-a-to-z-2019-t-is-for-trust-fund-taxes/)“). Historically, Congress has appropriated general fund revenue when making payroll tax cuts to not disrupt Social Security and Medicare trust funds. That’s not what’s happening here, though remember that for now, this is just a deferral. Normally, a deferral just kicks the can down the road. But President Trump signaled this might be more than a deferral earlier today, stating, “If I am victorious on November 3rd, I plan to forgive these taxes and make permanent cuts to the payroll tax… I’m going to make them all permanent.” What that means for Social Security and Medicare in the future is not clear, and appears to be at odds with President Trump’s assurance in 2015 that “I’m not a cutter. I’ll probably be **the only Republican that doesn’t want to cut Social Security**.” He followed up in 2015 by [tweeting](https://twitter.com/realDonaldTrump/status/596338364187602944): *I was the first & only potential GOP candidate to state there will be no cuts to Social Security, Medicare & Medicaid. Huckabee copied me.* > I was the first & only potential GOP candidate to state there will be no cuts to Social Security, Medicare & Medicaid. Huckabee copied me. > > — Donald J. Trump (@realDonaldTrump) [May 7, 2015](https://x.com/realDonaldTrump/status/596338364187602944?ref_src=twsrc%5Etfw) In 2017, Reince Priebus stated clearly on CBS’ Face the Nation: “I don’t think President-elect Trump wants to meddle with Medicare or Social Security. He made a promise during the campaign that that was something he didn’t want to do.” However, payroll taxes fund Social Security and Medicare programs. It’s not clear where the money would come from if payroll tax deferrals were made into permanent cuts. And further confusing the issue? Under the CARES Act, employers can already defer depositing and paying the employer’s portion of Social Security taxes. The deferral applies to deposits and payments of the employer’s share of Social Security tax that would otherwise be required to be made during the period beginning on March 27, 2020, and ending December 31, 2020, with half being due on December 31, 2021, and the remainder due on December 31, 2022. The relief also applies to self-employed persons. I know… I know… My tax colleagues are already groaning at what those payroll tax forms might look like. **There’s a lot to unpack here, so stay tuned: more is sure to come.** The Obama administration pushed through the last payroll tax cut for American workers in 2011, despite concerns that the cut would increase the federal deficit. The theory was then – as now – that the benefit would offset any costs. After the first round, Congress [renewed the temporary payroll tax cuts](https://www.taxgirl.com/2011/12/13/payroll-tax-cuts-extension-part-of-kitchen-sink-bill/) in 2012. In response to the Executive Order, Sen. Ron Wyden (D-OR) [tweeted](https://twitter.com/RonWyden/status/1292209814240497664): *This scheme is a classic Trump con: play-acting at leadership while robbing families of the support they need. This “plan” fails to reinstate supercharged unemployment, and would throw already overburdened state programs into chaos, making it harder to get benefits out the door.* > This scheme is a classic Trump con: play-acting at leadership while robbing families of the support they need. This “plan” fails to reinstate supercharged unemployment, and would throw already overburdened state programs into chaos, making it harder to get benefits out the door. <https://t.co/7C5SymLR4C> > > — Ron Wyden (@RonWyden) [August 8, 2020](https://x.com/RonWyden/status/1292209814240497664?ref_src=twsrc%5Etfw) I’ll continue to update you on those executive orders as more information becomes available. 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Payroll Taxes, Politics **Tags:** payroll tax, payroll tax cuts, President Trump, temporary payroll tax cuts --- ### [Can You Be Arrested for Not Paying Your Student Loans?](https://www.taxgirl.com/2016/02/23/can-you-be-arrested-for-not-paying-your-student-loans/) **Published:** February 23, 2016 **Author:** Kelly Phillips Erb **Excerpt:** What happens when you can't pay your student loan debt? Here's what can happen if you can't pay (and how to avoid it in the first place). **Content:** When a Houston man was picked up by deputy US Marshals earlier this month, the headlines flew fast and furious. Paul Aker claimed that he had been arrested for failing to pay a $1,500 student loan dating back to 1987. Many claimed it took us back to the days of debtor’s prison. Only that’s not the entire story. Yes, Aker did owe on a student loan. But the arrest wasn’t for failing to pay the loan; it was for failing to comply with a court order. According to court documents, Aker borrowed $1500 from Chase Manhattan Bank in 1987, and the Department of Education guaranteed the loan. He was deemed in default on his obligation in 1989; at the time, he had only been credited with $61.91 of principal paid. When Chase could not collect, it transferred the debt to the Department of Education. The Department of Education then tried to collect, picking up an additional $350.31 in what were apparently Department of Treasury offsets (more on offsets later). Aker was sued in court over the remainder of the loan (*USA v. Winford P. Aker*). After he failed to answer a complaint served on him, the court entered a default judgment in favor of the government in 2007. Aker still didn’t pay. Five years later, to collect, the government asked Aker to either explain why he had not complied with an order to pay the remainder or provide his financial documents as requested. The court eventually ordered Aker to appear at a deposition to do just that, specifically noting in an October 31, 2012, order that “If Winford Aker fails to appear, the Court will have him arrested.” Authorities served the arrest warrant on Aker in 2016, but it wasn’t without incident. According to authorities, Aker claimed that he would not cooperate and indicated that he had a gun. The two U.S. Marshals serving the arrest warrant called for backup, and Aker was eventually arrested. Aker’s total student loan-related debt has grown significantly since he initially defaulted. In addition to the student loan bill, which has ballooned to $3,800 with interest, Aker must reimburse the U.S. Marshal $1,258.60 for arresting him, bringing the total owed to more than $5,000. Even though the story isn’t quite as sensational as we were led to believe (bottom line: you don’t go to jail simply for failing to pay your loans), there are some lessons to be learned. Top of the list? Pay your student loans. They won’t go away. Federal loans have no statute of limitations, which means the feds can try to collect indefinitely. So what happens if you can’t pay? Here are some possibilities: - **Your wages may be garnished.** When it comes to debt – whether for tax debts or student loans – the feds have a potentially powerful reach. That includes the ability to garnish your wages (generally up to 15% of your take-home pay) to satisfy your debt. - **You may be sued.** This is more likely with private loans, but you can be sued for the outstanding balance. If that happens, you’re on the hook not only for the debt but also potentially for attorney’s fees and other costs. - **Your mom may be sued.** Okay, this really depends on whether your mom actually co-signed the loan. Any person who co-signs a loan for you is generally subject to the same terms as you: if you fail to pay, the lender will try to get money from the next in line. That could be your mom. Or your dad. Or your great aunt. Don’t leave them to clean up after your mess. - **Your federal income tax refund may be seized.** This is often called “offset” since the seizures are part of the Treasury Offset Program (TOP); the program is administered by the Financial Management Service, a branch of the U.S. Department of the Treasury. Here’s how an offset is supposed to happen: 1. If you owe money to a government agency, such as for student loans, the agency is supposed to give you notice and allow you to resolve or dispute your debt. If you don’t reach a resolution, the agency can send the information about your debt to TOP. This can happen as soon as the debt is more than 90 days delinquent. 2. If you still don’t pay, your name and the amount owed are entered into a TOP database. 3. If you are entitled to receive a payment from the federal government (like a tax refund check), TOP searches the database. 4. If your name pops up, your payment is offset by all or part of the amount you owe pursuant to a formula in order to pay your debt. Generally, up to 100% of your federal income tax refund may be withheld in order to satisfy federal non-tax debts (including student loans), child support, state income tax, and unemployment insurance debts. 5. The remainder, if any, is then sent to you. So what do you do when you feel like you can’t pay back your student loan debt? [Jay S. Fleischman, Esq.](http://www.consumerhelpcentral.com/student-loan-lawyer/), a consumer protection attorney working with student loan borrowers at Shaev & Fleischman, LLP, offers the following tips: 1. **Get Organized.** The first step in getting past feeling overwhelmed is figuring out how much you owe and to which lenders. For federal student loans, you can search [the National Student Loan Data System](https://www.nslds.ed.gov/nslds/nslds_SA/), which is the U.S. Department of Education’s central database for student aid. You can use your Federal Student Aid username and password to access the system; if you don’t have a username and password or have forgotten your credentials, you can easily create or reset your access. There’s no centralized database for private student loans, so you’ll need to get a copy of your credit report and review the information. Your school may also be able to provide you with a list of the lenders that helped finance your education, so call the financial aid office if you need more help. 2. **Review Your Income and Expenses.** Most people don’t have a clear sense of how much money comes in each month or how much they spend. In order to determine your ability to pay your student loans, you need to have a sense of how much is available in your budget – and where you may be able to reduce some of your monthly expenses. 3. **Review Federal Repayment Options.** The U.S. Department of Education offers several repayment options for federal student loans. There are 4 income-dependent options that can set your monthly payments at an affordable level and lead to discharge of your unpaid loan after a number of years. Though there may be tax consequences, these plans can make it easier for you to make your payments on a timely basis. There’s no cost to enroll in one of the income-dependent repayment options, and you can determine the applicable payment amounts with the U.S. Department of Education’s [Repayment Estimator](https://studentloans.gov/myDirectLoan/mobile/repayment/repaymentEstimator.action). If you log in with your FSA username and password, the system will use your current loans to provide you with an accurate repayment figure. 4. **Contact Your Private Lenders.** Private student loans don’t come with the repayment options available to federal borrowers, but that doesn’t mean you’re out of luck. Contact your lender to see whether it offers reduced payment options and forbearance. 5. **Resolve Default Early.** Federal student loans offer several default-resolution options. You may be able to consolidate your federal loans out of default at no cost through the U.S. Department of Education’s [Direct Consolidation Loan Program](http://www.loanconsolidation.ed.gov/). Other options include rehabilitation, which enables borrowers to make reasonable and affordable payments to the debt collector for a period of time, after which the loan is taken out of default and brought current. Though private student loan lenders aren’t required to offer rehabilitation programs, you should contact your bank to see if there are options available to help you get out of default. Even if your lending institution doesn’t allow you to rehabilitate your defaulted loans, you should talk with the debt collector and look into a voluntary repayment agreement or settlement. 6. **Remain Responsive.** Student loan borrowers who are behind on payments often stop opening their mail and answering the phone because of the stress of being in debt. This can cause people to miss crucial notices about pending lawsuits, administrative wage garnishments, tax offsets, and judgments. Keeping lines of communication open allows you to respond in a timely manner and avoid legal and administrative enforcement actions. You’ll also know when your lenders are able to offer repayment and settlement opportunities. Finally, Fleischman says that “it’s in your best interests to be proactive when faced with student loan debt so that you can work to resolve issues quickly and effectively.” And remember, “Ignoring the problem won’t make it go away.” [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Can%20You%20Be%20Arrested%20for%20Not%20Paying%20Your%20Student%20Loans%3F&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2021%2F01%2Fpexels-suzy-hazelwood-1422673.jpg&p%5Btitle%5D=Can%20You%20Be%20Arrested%20for%20Not%20Paying%20Your%20Student%20Loans%3F "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Can%20You%20Be%20Arrested%20for%20Not%20Paying%20Your%20Student%20Loans%3F "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Can%20You%20Be%20Arrested%20for%20Not%20Paying%20Your%20Student%20Loans%3F&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Collections, Education **Tags:** student debt, student loan, student loan debt, student loan interest deduction --- ### [Government Will Allow More Student Financial Aid Flexibility](https://www.taxgirl.com/2017/04/26/department-of-education-moves-to-make-student-loan-process-easier-while-irs-tool-is-down/) **Published:** April 26, 2017 **Author:** Kelly Phillips Erb **Excerpt:** Applying for financial aid isn't going to be as bad as feared this year after all. The Department of Education Department has agreed to allow colleges and universities more flexibility to use as part of their verification procedures while the Data Retrieval Tool (DRT) is unavailable. **Content:** Applying for financial aid isn’t going to be as bad as feared this year after all. The Department of Education has agreed to allow colleges and universities more flexibility to use other methods as part of their verification procedures while the Data Retrieval Tool (DRT) is unavailable. The DRT was shut down in March of this year after the Internal Revenue Service (IRS) noticed suspicious activity related to the tool. IRS Commissioner John Koskinen told a Senate Finance Committee [in April](https://www.taxgirl.com/irs-says-up-to-100000-taxpayers-potentially-affected-in-student-loan-tool-breach/) that taxpayer data may have been compromised. While the exact number of affected taxpayers has not yet been determined, Koskinen told the Committee it could be as many as 100,000. As a result, while the IRS initially planned to shut down the tool for a few weeks, the IRS and Federal Student Aid (FSA) later released a joint announcement saying the DRT would be offline until the start of the next FAFSA season. This has created problems for students and their families who rely on the DRT to complete the Free Application for Federal Student Aid (FAFSA). The FAFSA information is used to determine financial aid for the school year. In the most recent FAFSA cycle, 19,757,764 applications were submitted; about one-quarter were from students completing the FAFSA for the first time. The DRT isn’t the only tool you can use to complete the FAFSA. You can find the information needed to complete the FAFSA on a previously filed tax return. To complete a 2016–17 and 2017–18 FAFSA, students should manually enter 2015 tax information from the tax return filed in 2016 (not the 2016 tax information used to file in 2017). Students who do not have a copy of the appropriate tax return can order a tax transcript directly from the IRS using the Get Transcript tool at [www.irs.gov/transcript](https://www.irs.gov/transcript), or by calling 1.800.908.9946 to order a copy. Filling out the FAFSA manually can slow the financial aid process or cause errors. To help, Lynn B. Mahaffie, the Acting Assistant Secretary for Postsecondary Education, [issued a letter](https://ifap.ed.gov/dpcletters/attachments/GEN1704.pdf) directing schools to “consider a signed paper copy of the 2015 IRS tax return that was used by the tax filer for submission to the IRS as acceptable documentation to verify FAFSA/ISIR tax return information.” Additionally, colleges no longer need to collect documentation from the IRS or other tax authorities verifying that the family did not file a 2015 tax return (the so-called “Verification of Nonfiling”). Instead, the applicant or the applicant’s family can provide the school with a signed statement certifying that the individual has not filed and is not required to file a 2015 income tax return, and a listing of the sources of any 2015 income earned by the individual from work and the amount of income from each source together with a form W–2, or equivalent, for each source of that income. Secretary of Education Betsy DeVos [said about the new measures](https://www.ed.gov/news/press-releases/secretary-education-betsy-devos-announces-new-flexibilities-fafsa-filers-impacted-irs-drt-suspension), “These flexibilities are an important step toward making the process easier. They help applicants who normally would have used the IRS DRT to more easily complete the application process.” She added, “We will continue to look for additional ways to ease the burdens created by the IRS DRT outage until the tool can be restored with added security measures in place later this year.” The new flexibilities begin immediately and apply to both the 2016-17 and 2017-18 FAFSA processing and verification cycles. 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Education, IRS News --- ### [The Tax Treatment of Student Loan Repayment](https://www.taxgirl.com/2018/06/26/what-you-should-know-about-taxes-and-student-loan-repayment/) **Published:** June 26, 2018 **Author:** Kelly Phillips Erb **Excerpt:** There may be tax consequences for repaying - or not repaying - what you owe. When it comes to paying back student loans, here's what you need to know. **Content:** Last month, borrowers across the country were pretty excited to learn that hundreds of millions of dollars in student loans were potentially eligible for student loan forgiveness. As part of the Consolidated Appropriations Act of 2018, folks who had been enrolled in a previously ineligible repayment plan could now be eligible for loan forgiveness. Pretty great, right? Before you celebrate too much, do your homework: There may be tax consequences for repaying – or not repaying – what you owe. When it comes to paying back student loans, here’s what you need to know. **1. There are limited tax advantages for paying your [student loans](https://www.taxgirl.com/2014/04/02/taxes-from-a-to-z-2014-s-is-for-student-loans/).** The good news first. While not even remotely close to the kind of tax break you can get for, say, [buying a house](https://www.taxgirl.com/2018/06/20/buying-a-house-dont-do-it-for-the-tax-breaks/), you may be able to deduct some of your [student loan interest](https://www.taxgirl.com/2015/03/19/understanding-your-forms-1098-e-student-loan-interest-statement/) on your tax return. And if you’re struggling and someone else makes a payment on your behalf, you may still be able to claim the deduction because it may be treated as though you made the payment. **2. If you do not pay what you owe, your federal income tax refund may be offset.** That’s a fancy way of saying it can be seized. If you default or otherwise don’t pay your student loans, up to 100% of your federal income tax refund may be taken to satisfy your debt. According to the most recent data released by the Federal Reserve, borrowers have accumulated [$1.48 trillion in student loan debt](https://www.federalreserve.gov/releases/g19/current/default.htm). The number of borrowers hovers around 44.2 million, bringing the average amount owed to $33,484.16 (remember that some borrowers like me took out loans to pay for undergrad and graduate school, which can skew those averages). You can imagine that paying off those loans, combined with interest and other debt, can be burdensome. While most borrowers, like me, pay their loans back, not all do. Buried under crushing debt, some student loan borrowers default (the rate is about 11%) while others scramble to find student loan forgiveness available under federal programs. **3. If you do not pay what you owe, you may be required to claim the amount that has been written off as income.** You should always start with this premise because it can be true whether your debt is uncollectible (when you default) or forgiven (if you take advantage of certain repayment plans). And, if someone is responsible for your student loan bill, like your parents or another co-signer, they may also get smacked. That’s because, under our current tax system, [canceled debt](https://www.taxgirl.com/2017/03/18/taxes-from-a-to-z-2017-c-is-for-canceled-debt/) is treated as though someone wrote you a check. That applies not only to student loans, but also to other debt, like credit card debt and mortgages. Eventually, the lender may decide that you’re simply not going to pay. That moment is referred to as an “identifiable event” by the Internal Revenue Service (IRS) and happens when a lender believes that you cannot pay all that you owe. This could result from an agreement (for example, you negotiate a settlement), a contract (the terms of a loan repayment program), or legal action (a lawsuit, including bankruptcy). And, unless otherwise excluded (more on that in a moment), it also includes the terms of [many repayment schemes](https://studentaid.ed.gov/sa/repay-loans/understand/plans/income-driven) like: - an income-based repayment plan (IBR); - an income-contingent repayment plan (ICR); - a pay-as-you-earn repayment plan (PAYE); and - a revised pay-as-you-earn repayment plan (REPAYE). *Here’s a quick example:* Let’s say that you owed $100,000 in student debt and under the terms of an income-based repayment plan, you agreed to make payments for 25 years. At the end of that time, let’s say that you still owe $20,000. Both you and the lender have agreed in advance that you won’t owe any more money after those 25 years. But that $20,000 isn’t completely “gone” – it’s considered forgiven debt and is reportable as taxable income in the year of the identifiable event. When the identifiable event occurs, whether it’s an immediate default or the end of a 25-year term, the lender will likely issue you a Form 1099-C, *Cancellation of Debt*. Form 1099-C [reports](https://www.taxgirl.com/2016/02/10/understanding-your-tax-forms-2016-form-1099-c-cancellation-of-debt/) the amount being discharged and, unless you qualify for an exception or an exemption, you may have to report that amount as taxable income. Even if you qualify for an exception or exclusion, you may still receive a Form 1099-C. This is because the lender is responsible for reporting the transaction, including the amount of cancellation of debt and the date of cancellation, and may know whether you might qualify for an exception or an exclusion. However, if the lender knows the discharge of debt would not be reportable (for example, if it were a gift between related parties or if there were a qualifying bankruptcy), the lender shouldn’t issue Form 1099-C. **4. You may be able to claim an exemption or an exclusion like insolvency.** But don’t get too excited: When it comes to student loan forgiveness, the possible exceptions and exclusions in the Tax Code are limited. That’s because the laws are written to limit your options. In most cases, for example, it’s easier to discharge a Macy’s credit card than a student loan in bankruptcy. A more common exclusion is *insolvency*. If you were insolvent just before your debt was canceled, you can exclude the debt from your income. Use the [insolvency worksheet](https://www.irs.gov/pub/irs-pdf/p4681.pdf) to figure out whether this applies to you. Generally, you are [insolvent](https://www.taxgirl.com/2015/03/17/taxes-from-a-to-z-2015-i-is-for-insolvency/) if the total of all of your liabilities was more than the value of all of your assets immediately before your debt was canceled. **5. Forgiveness under certain federal loan programs is excludable.** That’s what all of the excitement was about last month. If your student loan is forgiven as the result of a qualified program, that debt forgiveness isn’t included in your income for tax purposes. Generally, to qualify, your loan must have been made by the federal government, a state or local government, certain tax-exempt public benefit corporations, or an educational institution. These loans are generally those that require you to get a job or serve in an area with unmet needs. Specifically, loans that are forgiven through [Public Service Loan Forgiveness (PSLF)](https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/public-service/temporary-expanded-public-service-loan-forgiveness?utm_content=&utm_medium=email&utm_name=&utm_source=govdelivery&utm_term=) and the [Teacher Loan Forgiveness Program (TLFP)](https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/teacher) are not taxable. **6. Forgiveness due to death and disability is excludable – for now.** It’s pretty shocking that it took this long, but following tax reform, a borrower who dies or becomes permanently disabled before paying off student loans now qualifies for tax-free loan forgiveness. [Under Sec. ](https://www.congress.gov/bill/115th-congress/house-bill/1/text)[11031 of the new tax bill](https://www.congress.gov/bill/115th-congress/house-bill/1/text), Section 108(f) of the Tax Code is amended to exclude loan forgiveness as the result of “death or total and permanent disability of the student.” The exclusion, which had been championed for years, is meant to put an end to [tragic stories](https://www.taxgirl.com/2016/07/22/no-more-gotcha-bill-would-exempt-student-loan-forgiveness-from-tax/) like that of Regina Friend, who made news when, following the death of her son, she received a $14,000 tax bill on the $55,400 loan for his education, which had been forgiven. Unfortunately, the exclusion is temporary: Like many of the new tax provisions for individuals, it disappears in 2026. When it comes to student debt and taxes, it’s not all elementary. It’s important that you understand the law so that you can take advantage of any tax breaks or exclusions, and so you can plan for any tax consequences. As always, if you have questions, I recommend that you talk to your tax professional. Some limited resources are available through the Department of Education, your lender, and the IRS. 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Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Education, Individual **Tags:** insolvency, offset, student loan, student loan debt --- ### [IRS Issues Guidance on the Tax Treatment of Discharged Student Loans](https://www.taxgirl.com/2020/01/15/irs-offers-guidance-on-tax-treatment-of-discharged-student-loans/) **Published:** January 15, 2020 **Author:** Kelly Phillips Erb **Content:** The IRS has issued guidance for some taxpayers who took out federal or private student loans to finance attendance at a nonprofit or for-profit school. The guidance offers relief for students whose loans have been discharged by the Department of Education and who meet specific criteria. Typically, a discharge of indebtedness is a taxable event: The cancellation of debt is treated as income to the debtor. Under this recent guidance, affected students will not recognize income from the discharge. That means that the taxpayer should not report the amount of the discharged loan on his or her federal income tax return. The break applies to students who: - **Participated in the Closed School discharge process.** The Closed School discharge process allows the Department of Education to discharge a federal student loan obtained by a student (or the student’s parent) who attended school when it closed or withdrew from the school just before it closed. - **Borrowers who participated in the Defense to Repayment discharge process.** The Defense to Repayment process allows the Department of Education to discharge a Federal Direct Loan obtained by a student (or the student’s parent) if the borrower can prove that a school’s actions would give rise to a cause of action against the school under applicable state law. - **Borrowers who participated in legal settlement discharge actions.** Federal and state governmental agencies have brought several lawsuits to resolve allegations of unlawful business practices, including unfair, deceptive, and abusive acts and practices, against for-profit schools and specific private lenders that offered student loans at those schools. The guidance extends relief provided in Rev. Proc. 2015-57, Rev. Proc. 2017-24, and [Rev. Proc. 2018-39](https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMzAsInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjAyMDAxMTUuMTU2MDAzMjEiLCJ1cmwiOiJodHRwczovL3d3dy5pcnMuZ292L2lyYi8yMDE4LTM0X0lSQiNSUC0yMDE4LTM5In0.TbIwdIV0rG1NEEhfxPHj5RSm_yA_Ji4DD3rcwraS1wY/br/74023752373-l). As with previous guidance, the Treasury Department and the IRS believe that federal and private student loan borrowers may be able to exclude discharged loans under the insolvency exclusion under [section 108(a)(1)(B)](https://www.law.cornell.edu/uscode/text/26/108). A taxpayer is considered insolvent if the taxpayer’s liabilities are more than their assets immediately before the discharge Student loan borrowers may also be able to exclude income under fraudulent or material misrepresentations made by schools or specific private lenders to students, or under other tax law authority. However, determining which exclusions might apply to individual taxpayers requires a detailed look at each taxpayer’s facts and circumstances. That creates a significant compliance burden for taxpayers and a disproportionate administrative burden on the IRS. As a result, the IRS established a safe harbor—if they meet the criteria—to allow those students some relief. The relief is also extended to any creditor that would otherwise be required to file information returns and furnish statements to affected students. To avoid confusion, the IRS strongly recommends that creditors not provide students (nor the IRS) with a [Form 1099-C, Cancellation of Debt – Internal Revenue Service](https://www.irs.gov/pub/irs-pdf/f1099c.pdf). For more information, see [Revenue Procedure 2020-11](https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMjcsInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjAyMDAxMTUuMTU2MDAzMjEiLCJ1cmwiOiJodHRwczovL3d3dy5pcnMuZ292L3B1Yi9pcnMtZHJvcC9ycC0yMC0xMS5wZGYifQ.lf40zqHHBbTNKSeVw-ajW1egTyEk68ce7OV1sCvs_cQ/br/74023752373-l). [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=IRS%20Issues%20Guidance%20on%20the%20Tax%20Treatment%20of%20Discharged%20Student%20Loans&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2019%2F11%2Faccomplishment-ceremony-education-graduation-267885.jpg&p%5Btitle%5D=IRS%20Issues%20Guidance%20on%20the%20Tax%20Treatment%20of%20Discharged%20Student%20Loans "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=IRS%20Issues%20Guidance%20on%20the%20Tax%20Treatment%20of%20Discharged%20Student%20Loans "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=IRS%20Issues%20Guidance%20on%20the%20Tax%20Treatment%20of%20Discharged%20Student%20Loans&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Education **Tags:** discharge of indebtedness, IRS, student loan, student loan debt --- ### [Student Loan Relief Provisions Extended Through 2020](https://www.taxgirl.com/2020/08/09/student-loan-relief-provisions-extended-through-end-of-2020/) **Published:** August 9, 2020 **Author:** Kelly Phillips Erb **Content:** On August 6, 2020, the Senate adjourned without passing a stimulus package. Senate Majority Leader Mitch McConnell (R-KY) wasn’t involved in the talks, leaving Senate Minority Leader Chuck Schumer (D-NY) and House Speaker Nancy Pelosi (D-CA) to work directly with Treasury Secretary Steve Mnuchin and White House Chief of Staff Mark Meadows. As of Friday night, both sides said they had not reached an agreement. On Saturday, apparently frustrated with Congress’ inaction, President Trump issued several Executive Orders and Memoranda affecting payroll taxes, unemployment benefits, eviction procedures, and student loans. (Real quick: An executive order is an official, legally binding mandate passed down from the President, and must be printed in the Federal Register. An executive memorandum is basically the same thing, except a memorandum doesn’t have to be published in the Federal Register.) Since the orders were issued separately, I’m tackling them separately. With respect to student loans, the Order says: *In light of the national emergency declared on March 13, 2020, the Secretary of Education shall take action pursuant to applicable law to effectuate appropriate waivers of and modifications to the requirements and conditions of economic hardship deferments described in section 455(f)(2)(D) of the Higher Education Act of 1965, as amended, 20 U.S.C. 1087e(f)(2)(D), and provide such deferments to borrowers as necessary to continue the temporary cessation of payments and the waiver of all interest on student loans held by the Department of Education until December 31, 2020.* You can read the entire Order here. Here’s some context. On March 27, 2020, Congress passed the “Coronavirus Aid, Relief, and Economic Security Act” or the “CARES Act.” The final version was bigger than the original Senate proposal but smaller than the subsequent House proposal. Included in the CARES Act’s provisions were the suspension of payments for student loans under the Federal Family Education Loan and Direct Loan programs – without interest – through September 30, 2020. Additionally, collection efforts for those loans were supposed to stop during that time, including garnishments and tax refund offsets. The President’s Order now directs the Secretary of Education to extend the student loan relief through the end of the year. Some confusion remains about how far that relief will go, including whether the collections pieces will be extended, which would affect tax refund offsets; we’ll have to wait for official guidance from the Department of Education for more information. However, as before, the Order applies to federally held student loans and does not extend to federal student loan borrowers whose debt is held by private lenders or their colleges (representing about 9 million borrowers). The suspension is voluntary, with the Order making clear that, “All persons who wish to continue making student loan payments shall be allowed to do so, notwithstanding the deferments provided pursuant to subsection (a) of this section.” The President promised to extend the relief further, in remarks he made from the Trump National Golf Club in Bedminster, New Jersey, on August 8: *Earlier this year, we slashed student loans’ interest rates to zero percent and suspended student loan payments, and Congress extended that policy through September 30th. Today, I’m extending this policy through the end of the year, and we’ll extend it further than that — most likely, right after December 1st. So we look like we’re going to be extending that. They’re paying zero interest. And again, not their fault that their colleges are closed down and not their fault that they’re unable to get what they bargained for.* [![Facebook](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/facebook.png)](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&t=Student%20Loan%20Relief%20Provisions%20Extended%20Through%202020&s=100&p%5Burl%5D=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&p%5Bimages%5D%5B0%5D=https%3A%2F%2Fwww.taxgirl.com%2Fwp-content%2Fuploads%2F2020%2F11%2Fpexels-pixabay-267885.jpg&p%5Btitle%5D=Student%20Loan%20Relief%20Provisions%20Extended%20Through%202020 "Share on Facebook")[![twitter](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/twitter.png)](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&text=Hey%20check%20this%20out "Share on Twitter")[![linkedin](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/linkedin.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F&title=Student%20Loan%20Relief%20Provisions%20Extended%20Through%202020 "Share on Linkedin")[![mail](https://www.taxgirl.com/wp-content/plugins/social-media-feather/synved-social/addons/extra-icons/image/social/circle/96x96/mail.png)](mailto:?subject=Student%20Loan%20Relief%20Provisions%20Extended%20Through%202020&body=Hey%20check%20this%20out:%20https%3A%2F%2Fwww.taxgirl.com%2Ftag%2Frelationships%2F "Share by email") ### Want more Taxgirl? Get tax news, explainers, deadlines, and more delivered straight to your inbox. [ Subscribe → ](https://newsletter.taxgirl.com/) **Categories:** Education, Politics **Tags:** executive order, President Trump, student loan, student loan debt, student loan relief --- ## Pages ### [Home](https://www.taxgirl.com/) **Published:** July 27, 2026 **Author:** Kelly Phillips Erb **Content:** - [ ![Two older male employees](https://www.taxgirl.com/wp-content/uploads/2026/10/pexels-rdne-8124239-768x512.jpg) ](https://www.taxgirl.com/2026/10/24/roth-catch-up-rules-2026/) [Individual](https://www.taxgirl.com/category/individual/) \| [Retirement and Pension](https://www.taxgirl.com/category/retirement-pension/) ## [New Roth Retirement Catch-Up Rules For 2026: What To Know](https://www.taxgirl.com/2026/10/24/roth-catch-up-rules-2026/) ByKelly Phillips Erb October 24, 2026 New Roth catch-up rules affect some workers aged 50 and older in 2026. Find out who must make Roth contributions and what it means for your taxes. [ Read More New Roth Retirement Catch-Up Rules For 2026: What To Know ](https://www.taxgirl.com/2026/10/24/roth-catch-up-rules-2026/) - [ ![American and canadian flags waving side by side on tall flagpoles against a cloudy sky](https://www.taxgirl.com/wp-content/uploads/2026/10/pexels-thomas-k-268383750-28449348-300x200.jpg) ](https://www.taxgirl.com/2026/10/22/itin-from-a-to-z/) [Taxes From A to Z®](https://www.taxgirl.com/category/taxes-from-a-to-z/) ### [What Is An ITIN? Taxes From A to Z®](https://www.taxgirl.com/2026/10/22/itin-from-a-to-z/) ByKelly Phillips Erb October 22, 2026October 24, 2026 - [ ![Glass of whiskey](https://www.taxgirl.com/wp-content/uploads/2026/10/pexels-marceloverfe-29463707-199x300.jpg) ](https://www.taxgirl.com/2026/10/22/supreme-court-home-distilling-whiskey-ban/) [Individual](https://www.taxgirl.com/category/individual/) \| [Law and the Courts](https://www.taxgirl.com/category/law-and-the-courts/) \| [Supreme Court](https://www.taxgirl.com/category/scotus/) \| [You Be the Tax Judge](https://www.taxgirl.com/category/you-be-the-tax-judge/) ### [Can You Make Whiskey At Home? The Supreme Court Will Decide](https://www.taxgirl.com/2026/10/22/supreme-court-home-distilling-whiskey-ban/) ByKelly Phillips Erb October 22, 2026 - [ ![Close up of hands typing on a laptop keyboard on a desk](https://www.taxgirl.com/wp-content/uploads/2026/10/pexels-alicia-christin-gerald-1447380217-36175215-300x200.jpg) ](https://www.taxgirl.com/2026/10/21/fake-social-security-statement-scam/) [ID Theft and Scams](https://www.taxgirl.com/category/id-theft-scams/) \| [Technology](https://www.taxgirl.com/category/technology/) ### [Fake Social Security Statement Scam Targets Your Computer](https://www.taxgirl.com/2026/10/21/fake-social-security-statement-scam/) ByKelly Phillips Erb October 21, 2026 # Tax News & Analysis - [ ![Logan graf](https://www.taxgirl.com/wp-content/uploads/2026/10/dsc04791-3-768x768.jpg) ](https://www.taxgirl.com/2026/10/20/getting-to-know-logan-graf-cpa/) [Getting to Know You Tuesday](https://www.taxgirl.com/category/getting-to-know-you-tuesday/) \| [Interviews and People](https://www.taxgirl.com/category/interviewspeople/) \| [Tax Professionals](https://www.taxgirl.com/category/tax-professionals/) ## [Getting To Know You Tuesday: Logan Graf](https://www.taxgirl.com/2026/10/20/getting-to-know-logan-graf-cpa/) ByKelly Phillips Erb October 20, 2026October 20, 2026 Meet Logan Graf, a Texas CPA, content creator, and Counter founder who’s challenging the traditional accounting firm model with humor and fresh ideas. [ Read More Getting To Know You Tuesday: Logan Graf ](https://www.taxgirl.com/2026/10/20/getting-to-know-logan-graf-cpa/) - [ ![Home improvements](https://www.taxgirl.com/wp-content/uploads/2026/10/pexels-kseniachernaya-5691545-768x1150.jpg) ](https://www.taxgirl.com/2026/10/19/home-office-renovations-tax-court-verdict/) [Law and the Courts](https://www.taxgirl.com/category/law-and-the-courts/) \| [You Be the Tax Judge](https://www.taxgirl.com/category/you-be-the-tax-judge/) ## [You Be The Tax Judge: The Home Office Makeover Verdict](https://www.taxgirl.com/2026/10/19/home-office-renovations-tax-court-verdict/) ByKelly Phillips Erb October 19, 2026 Can you deduct home office renovations? See how the Tax Court ruled on a $24,728 deduction and what today’s tax rules mean for working from home. [ Read More You Be The Tax Judge: The Home Office Makeover Verdict ](https://www.taxgirl.com/2026/10/19/home-office-renovations-tax-court-verdict/) - [ ![Paying with a credit card](https://www.taxgirl.com/wp-content/uploads/2026/10/pexels-karola-g-5717969-768x512.jpg) ](https://www.taxgirl.com/2026/10/19/irs-direct-credit-card-tax-payments/) [Collections](https://www.taxgirl.com/category/collections/) \| [IRS News](https://www.taxgirl.com/category/irs-newsannouncements/) ## [IRS Clears The Way For Direct Credit Card Tax Payments](https://www.taxgirl.com/2026/10/19/irs-direct-credit-card-tax-payments/) ByKelly Phillips Erb October 19, 2026 New IRS rules allow direct credit and debit card tax payments, but processing fees remain. Here’s what taxpayers need to know. [ Read More IRS Clears The Way For Direct Credit Card Tax Payments ](https://www.taxgirl.com/2026/10/19/irs-direct-credit-card-tax-payments/) - [ ![Keys to a house](https://www.taxgirl.com/wp-content/uploads/2026/10/pexels-kindelmedia-7579192-768x576.jpg) ](https://www.taxgirl.com/2026/10/16/irs-interest-rates-november-2026/) [Families and Tax](https://www.taxgirl.com/category/families-tax/) \| [IRS News](https://www.taxgirl.com/category/irs-newsannouncements/) ## [IRS Announces New Interest Rates For November: What They Mean For Loans And Estate Planning](https://www.taxgirl.com/2026/10/16/irs-interest-rates-november-2026/) ByKelly Phillips Erb October 16, 2026 The IRS has announced November 2026 interest rates. See how new AFRs affect family loans, installment sales, and estate planning strategies. [ Read More IRS Announces New Interest Rates For November: What They Mean For Loans And Estate Planning ](https://www.taxgirl.com/2026/10/16/irs-interest-rates-november-2026/) - [ ![Key in door lock](https://www.taxgirl.com/wp-content/uploads/2026/10/as_photography-house-1407562_1280-768x512.jpg) ](https://www.taxgirl.com/2026/10/15/deed-fraud-home-title-theft/) [ID Theft and Scams](https://www.taxgirl.com/category/id-theft-scams/) \| [Individual](https://www.taxgirl.com/category/individual/) ## [Can Someone Steal Your House? What You Should Know About Deed Fraud](https://www.taxgirl.com/2026/10/15/deed-fraud-home-title-theft/) ByKelly Phillips Erb October 15, 2026October 18, 2026 Can someone steal your house? Learn how deed fraud works, who’s at risk, and how to protect your home from scammers and fraudulent property transfers. [ Read More Can Someone Steal Your House? What You Should Know About Deed Fraud ](https://www.taxgirl.com/2026/10/15/deed-fraud-home-title-theft/) - [ ![Man in shop](https://www.taxgirl.com/wp-content/uploads/2026/10/pexels-silverkblack-36766877-768x432.jpg) ](https://www.taxgirl.com/2026/10/15/hot-assets-from-a-to-z/) [Small Business](https://www.taxgirl.com/category/small-or-home-based-business/) \| [Taxes From A to Z®](https://www.taxgirl.com/category/taxes-from-a-to-z/) ## [What Are Hot Assets? Taxes From A to Z®](https://www.taxgirl.com/2026/10/15/hot-assets-from-a-to-z/) ByKelly Phillips Erb October 15, 2026October 24, 2026 What are hot assets in tax law? Learn how IRC Section 751 treats certain partnership assets and why selling them can trigger ordinary income instead of capital gains. [ Read More What Are Hot Assets? Taxes From A to Z® ](https://www.taxgirl.com/2026/10/15/hot-assets-from-a-to-z/) --- ### [About Taxgirl® | Kelly Phillips Erb](https://www.taxgirl.com/about-taxgirl/) **Published:** April 28, 2007 **Author:** Kelly Phillips Erb **Content:** I’m Kelly Phillips Erb, better known as Taxgirl. Years ago, I found myself sitting in Moot Court at law school, wearing an oversized, itchy blue suit. It was a horrible experience. In a desperate attempt to avoid anything like that in the future, I enrolled in a tax course. I loved it. I signed up for another. Before I knew it, in addition to my JD, I had an LL.M. in Taxation. I needed only to don my cape… Taxgirl® was born. While at law school, I interned at the estate & gift tax attorney division of the Internal Revenue Service (IRS), where I participated in the review and audit of federal estate tax returns. At one audit, where I was the lead, opposing counsel read my report, looked at his file, and said, “Gentlemen, she’s exactly right.” I nearly fainted. Today, I’m a managing shareholder at [The Erb Law Firm, P.C.](https://www.erblaw.com/), where I advise individuals, families, and businesses on tax, estate, and trust matters. My practice includes estate and tax planning, wills and trusts, and tax compliance and controversy, with experience in both domestic and international tax issues. I’m licensed to practice in Pennsylvania and before the U.S. Tax Court. I’m also a longtime tax writer. These days, you can find my work right here at Taxgirl.com and in my [Taxgirl newsletter](https://newsletter.taxgirl.com/), where I cover tax news, policy, law, and tax and financial crime. Previously, I was a senior writer at Forbes and served as a staff writer and Insights & Commentary Team Lead at Bloomberg Tax. Over the years, I’ve written and been interviewed about taxes for CNN Money, CNBC, Reuters, Time, and U.S. News & World Report, and I’ve been asked to explain taxes in plain English by NPR’s Marketplace, Esquire, CBS Radio, Inc., Martha Stewart Living, MarketWatch, and plenty of podcasts. That plain-English part matters to me: tax can be complicated without being incomprehensible. Speaking of podcasts, I also host the [Taxgirl Podcast](https://www.taxgirl.com/taxgirl-podcast/). It’s been on a bit of a hiatus, but a relaunch is in the works — so keep an eye out. I also speak regularly on tax and legal topics at conferences, law schools, universities, bar associations, and professional events across the country. I present continuing education programs that qualify for CLE and CPE credit, and I’ve spoken for organizations including the AICPA, National Association of Tax Professionals, Pennsylvania Bar Institute, Drexel University, Villanova University School of Law, and others. Whether I’m talking to tax professionals, lawyers, students, or taxpayers, the goal is the same: making complicated topics accessible without dumbing them down. I also believe pretty strongly in putting all of this tax and legal knowledge to good use. Over the years, I’ve volunteered through the IRS Volunteer Income Tax Assistance (VITA) program — including a memorable trip to rural Alaska to prepare tax returns for free — and today I volunteer with Philadelphia Volunteer Lawyers for the Arts and Legal Aid of Southeastern Pennsylvania. Turns out there are plenty of ways to be Taxgirl without writing about taxes. And to clarify, there are a number of folks flitting about the internet who seem to think it’s okay to use my trademarks (Taxgirl®, Ask The Taxgirl®, and Taxes From A To Z®). It’s not. I’ve spent more than 20 years building and protecting the Taxgirl brand, including taking legal action when necessary. If you find yourself a bit confused about whether something you see online is actually me, here are a few tips: - If it says Taxgirl® and doesn’t talk about tax, it’s probably not me. And if it’s giggly stuff about staying out too late and partying, also not me (I have three kids- who are you kidding?). - And if it involves anything illicit, definitely not me — remember, [my mother could be reading](https://www.taxgirl.com/blog-info/official-comment-policy/). - I don’t answer questions on Yahoo or other sites like Quora, and I don’t sell tax (or other) software. - Most importantly, if it’s a tax site not affiliated with Taxgirl.com, it’s not me. --- ### [Taxes From A To Z®: Tax Terms, Explained](https://www.taxgirl.com/tax-glossary/) **Published:** August 12, 2026 **Author:** Kelly Phillips Erb **Content:** Taxes are confusing enough without the jargon. Over the years, my annual *Taxes From A to Z* series has tackled everything from AGI to zero-coupon bonds — one letter, one term, one plain-English explanation at a time. This tax glossary pulls those posts together into a single reference, so whether you’re trying to figure out what “basis” actually means or why the IRS cares about “constructive receipt,” you can just jump to the letter you need. No law degree required — just a little patience for the alphabet. One quick caveat: Some entries reference tax rules that have since changed (dollar amounts, expired provisions, etc.). Always check the post date and verify current figures before relying on older entries. ### A - [Abatement](https://www.taxgirl.com/2026/08/26/what-is-abatement-taxes-from-a-to-z/) - [Actual Expense Method](https://www.taxgirl.com/2015/03/03/taxes-from-a-to-z-2015-a-is-for-actual-expense-method/) - [Affordable Care Act](https://www.taxgirl.com/2014/03/03/taxes-from-a-to-z-2014-a-is-for-affordable-care-act/) - [Affordable Care Act Reporting](https://www.taxgirl.com/2017/03/16/taxes-from-a-to-z-2017-a-is-for-affordable-care-act-reporting/) - [Alimony](https://www.taxgirl.com/2012/03/03/taxes-from-a-to-z-a-is-for-alimony/) - [Alimony](https://www.taxgirl.com/2019/03/09/taxes-from-a-to-z-2019-a-is-for-alimony/) - [Annual Contribution Limits](https://www.taxgirl.com/2018/03/08/taxes-from-a-to-z-2018-a-is-for-annual-contribution-limits/) - [Annualized Income Installment Method](https://www.taxgirl.com/2013/03/04/taxes-from-a-to-z-2013-a-is-for-annualized-income-installment-method/) - [Applicable Federal Rates](https://www.taxgirl.com/2011/03/03/taxes-from-a-to-z-a-is-for-applicable-federal-rates/) - [ATIN](https://www.taxgirl.com/2020/06/26/taxes-from-a-to-z-2020-a-is-for-atin/) ### B - [Back Pay](https://www.taxgirl.com/2017/03/17/taxes-from-a-to-z-2017-b-is-for-back-pay/) - [Bad Debt Expense](https://www.taxgirl.com/2013/03/05/taxes-from-a-to-z-b-is-for-bad-debt-expense/) - [Barter](https://www.taxgirl.com/2012/03/04/taxes-from-a-to-z-b-is-for-barter/) - [Basis](https://www.taxgirl.com/2014/03/04/taxes-from-a-to-z-2014-b-is-for-basis/) - [BEAT Regs](https://www.taxgirl.com/2020/06/27/taxes-from-a-to-z-2020-b-is-for-beat-regs/) - [Bona Fide Residence Test](https://www.taxgirl.com/2015/03/04/taxes-from-a-to-z-2015-b-is-for-bona-fide-residence-test/) - [Bonus](https://www.taxgirl.com/2018/03/09/taxes-from-a-to-z-2018-b-is-for-bonus/) - [Bonus Depreciation](https://www.taxgirl.com/2026/09/02/what-is-bonus-depreciation-taxes-from-a-to-z/) - [Business Mileage](https://www.taxgirl.com/2011/03/04/taxes-from-a-to-z-b-is-for-business-mileage/) ### C - [Canceled Debt](https://www.taxgirl.com/2017/03/18/taxes-from-a-to-z-2017-c-is-for-canceled-debt/) - [Capital Losses](https://www.taxgirl.com/2012/03/05/taxes-from-a-to-z-c-is-for-capital-losses/) - [Carpooling](https://www.taxgirl.com/2013/03/06/taxes-from-a-to-z-2013-c-is-for-carpooling/) - [Casualty Loss](https://www.taxgirl.com/2026/09/12/what-is-a-casualty-loss-taxes-from-a-to-z/?doing_wp_cron=1789194427.4372189044952392578125) - [Choate](https://www.taxgirl.com/2018/03/10/taxes-from-a-to-z-2018-c-is-for-choate/) - [Clothing and Costumes](https://www.taxgirl.com/2014/03/06/taxes-from-a-to-z-2014-c-is-for-clothing-and-costumes/) - [Commuting Expenses](https://www.taxgirl.com/2015/03/06/taxes-from-a-to-z-2015-c-is-for-commuting-expenses/) - [Corrective Distributions](https://www.taxgirl.com/2011/03/05/taxes-from-a-to-z-c-is-for-corrective-distributions/) - [Credit for the Elderly Or the Disabled](https://www.taxgirl.com/2019/03/13/taxes-from-a-to-z-2019-c-is-for-credit-for-the-elderly-or-the-disabled/) - [Cryptocurrency Reporting](https://www.taxgirl.com/2020/06/28/taxes-from-a-to-z-2020-c-is-for-cryptocurrency-reporting/) ### D - [De Minimis](https://www.taxgirl.com/2020/06/30/taxes-from-a-to-z-2020-d-is-for-de-minimis/) - [Deductible Taxes](https://www.taxgirl.com/2012/03/06/taxes-from-a-to-z-d-is-for-deductible-taxes/) - [Dependents](https://www.taxgirl.com/2017/03/19/taxes-from-a-to-z-2017-d-is-for-dependents/) - [Depreciation](https://www.taxgirl.com/2011/03/06/taxes-from-a-to-z-d-is-for-depreciation/) - [Direct Deposit](https://www.taxgirl.com/2018/03/12/taxes-from-a-to-z-2018-d-is-for-direct-deposit/) - [Disability Income](https://www.taxgirl.com/2015/03/08/taxes-from-a-to-z-2015-d-is-for-disability-income/) - [Disaster Relief](https://www.taxgirl.com/2013/03/07/taxes-from-a-to-z-2013-d-is-for-disaster-relief/) - [Domicile](https://www.taxgirl.com/2026/09/19/what-is-domicile-taxes-from-a-to-z/) - [DRIP](https://www.taxgirl.com/2014/03/09/its-time-to-spring-forward-but-why-and-why-does-it-feel-so-early-this-year-energy-policy-and-saving-money-have-a-thing-or-two-to-do-with-it/) - [Due Dates](https://www.taxgirl.com/2019/03/15/taxes-from-a-to-z-2019-d-is-for-due-dates/) ### E - [Early Distributions](https://www.taxgirl.com/2011/03/07/taxes-from-a-to-z-e-is-for-early-distributions/) - [Early Distributions](https://www.taxgirl.com/2015/03/11/taxes-from-a-to-z-2015-e-is-for-early-distributions/) - [Earned Income Tax Credit (EITC)](https://www.taxgirl.com/2019/03/18/taxes-from-a-to-z-2019-e-is-for-earned-income-tax-credit-eitc/) - [Educator Expenses](https://www.taxgirl.com/2012/03/08/taxes-from-a-to-z-e-is-for-educator-expenses/) - [Educational Assistance](https://www.taxgirl.com/2013/03/08/taxes-from-a-to-z-2013-e-is-for-educational-assistance/) - [EE Bonds](https://www.taxgirl.com/2014/03/10/taxes-from-a-to-z-2014-e-is-for-ee-bonds/) - [Eligible Rollover Distributions](https://www.taxgirl.com/2017/03/20/taxes-from-a-to-z-2017-e-is-for-eligible-rollover-distributions/) - [Enrolled Agent](https://www.taxgirl.com/2018/03/13/taxes-from-a-to-z-2018-e-is-for-enrolled-agent/) - [Estimated Tax](https://www.taxgirl.com/2026/09/26/what-is-estimated-tax-taxes-from-a-to-z/) - [Extended Due Dates](https://www.taxgirl.com/2020/07/01/taxes-from-a-to-z-2020-extended-due-dates/) ### F - [Fair Debt Collection Practices Act (FDCPA)](https://www.taxgirl.com/2019/03/19/taxes-from-a-to-z-2019-f-is-for-fair-debt-collection-practices-act-fdcpa/) - [Fat Finger Error](https://www.taxgirl.com/2017/03/21/taxes-from-a-to-z-2017-f-is-for-fat-finger-error/) - [FBAR](https://www.taxgirl.com/2011/03/08/taxes-from-a-to-z-f-is-for-fbar/) - [FBAR](https://www.taxgirl.com/2026/10/03/what-is-an-fbar-taxes-from-a-to-z/) (2026) - [Fellowships and Scholarships](https://www.taxgirl.com/2013/03/10/taxes-from-a-to-z-2013-f-is-for-fellowships-and-scholarships/) - [Filing Status](https://www.taxgirl.com/2016/03/20/taxes-from-a-to-z-2016-f-is-for-filing-status/) - [Foreign Tax Credit](https://www.taxgirl.com/2014/03/12/taxes-from-a-to-z-2014-f-is-for-foreign-tax-credit/) - [Found Money](https://www.taxgirl.com/2018/03/15/taxes-from-a-to-z-2018-f-is-for-found-money/) - [FSA](https://www.taxgirl.com/2012/03/10/taxes-from-a-to-z-f-is-for-fsa/) - [FTE](https://www.taxgirl.com/2020/07/02/taxes-from-a-to-z-2020-f-is-for-fte/) ### G - [Garnished Wages](https://www.taxgirl.com/2014/03/14/taxes-from-a-to-z-2014-g-is-for-garnished-wages/) - [Ghost Preparer](https://www.taxgirl.com/2018/03/16/taxes-from-a-to-z-2018-g-is-for-ghost-preparer/) - [GI Bill](https://www.taxgirl.com/2017/03/23/taxes-from-a-to-z-2017-g-is-for-gi-bill/) - [Gift Expenses](https://www.taxgirl.com/2012/03/11/taxes-from-a-to-z-g-is-for-gift-expenses/) - [GILTI](https://www.taxgirl.com/2020/07/06/taxes-from-a-to-z-2020-g-is-for-gilti/) - [Golden Parachutes](https://www.taxgirl.com/2011/03/09/taxes-from-a-to-z-g-is-for-golden-parachutes/) - [Government Debt](https://www.taxgirl.com/2013/03/11/taxes-from-a-to-z-2013-g-is-for-government-debt/) - [Grantor Trust](https://www.taxgirl.com/2026/10/10/what-is-a-grantor-trust-taxes-from-a-to-z/) - [Gross Estate](https://www.taxgirl.com/2019/03/20/taxes-from-a-to-z-2019-g-is-for-gross-estate/) - [Gross Income Test](https://www.taxgirl.com/2015/03/14/taxes-from-a-to-z-2015-g-is-for-gross-income-test/) ### H - [Hardship Withdrawal](https://www.taxgirl.com/2013/03/15/taxes-from-a-to-z-2013-h-is-for-hardship-withdrawal/) - [Harvesting Losses](https://www.taxgirl.com/2017/03/24/taxes-from-a-to-z-2017-h-is-for-harvesting-losses/) - [Head of Household](https://www.taxgirl.com/2020/07/07/taxes-from-a-to-z-2020-h-is-for-head-of-household/) - [Hobby Loss Rules](https://www.taxgirl.com/2018/03/19/taxes-from-a-to-z-2018-h-is-for-hobby-loss-rules/) - [Holding Period](https://www.taxgirl.com/2014/03/15/taxes-from-a-to-z-2014-h-is-for-holding-period/) - [Home Improvements](https://www.taxgirl.com/2012/03/12/taxes-from-a-to-z-h-is-for-home-improvements/) - [Home Office Deduction](https://www.taxgirl.com/2019/03/21/taxes-from-a-to-z-2019-h-is-for-home-office-deduction/) - [Hot Assets](https://www.taxgirl.com/2026/10/15/hot-assets-from-a-to-z/) - [Household Employees](https://www.taxgirl.com/2011/03/10/taxes-from-a-to-z-h-is-for-household-employees/) - [Household Employees](https://www.taxgirl.com/2015/03/15/taxes-from-a-to-z-2015-h-is-for-household-employees/) ### I - [Inflation](https://www.taxgirl.com/2020/07/07/taxes-from-a-to-z-2020-i-is-for-inflation/) - [Injured Spouse](https://www.taxgirl.com/2012/03/13/taxes-from-a-to-z-i-if-for-injured-spouse/) - [Innocent Spouse](https://www.taxgirl.com/2019/03/23/taxes-from-a-to-z-2019-i-is-for-innocent-spouse/) - [Insolvency](https://www.taxgirl.com/2011/03/11/taxes-from-a-to-z-i-is-for-insolvency/) - [Insolvency](https://www.taxgirl.com/2015/03/17/taxes-from-a-to-z-2015-i-is-for-insolvency/) - [Installment Agreement](https://www.taxgirl.com/2018/03/20/taxes-from-a-to-z-2018-i-is-for-installment-agreement/) - [Internal Revenue Code](https://www.taxgirl.com/2014/03/17/taxes-from-a-to-z-2014-i-is-for-internal-revenue-code/) - [Investment Income Expense](https://www.taxgirl.com/2017/03/26/taxes-from-a-to-z-2017-i-is-for-investment-income-expense/) - [IRA Rollover](https://www.taxgirl.com/2013/03/17/taxes-from-a-to-z-2013-i-is-for-ira-rollover/) - [ITIN](https://www.taxgirl.com/2026/10/22/itin-from-a-to-z/) ### J - [Jackpot](https://www.taxgirl.com/2019/03/24/taxes-from-a-to-z-2019-j-is-for-jackpot/) - [Jeopardy Assessment](https://www.taxgirl.com/2020/07/08/taxes-from-a-to-z-2020-j-is-for-jeopardy-assessment/) - [Job Search Expenses](https://www.taxgirl.com/2012/03/14/taxes-from-a-to-z-j-is-for-job-search-expenses/) - [Joint Accounts](https://www.taxgirl.com/2018/03/21/taxes-from-a-to-z-2018-j-is-for-joint-accounts/) - [Junk Bonds](https://www.taxgirl.com/2017/03/27/taxes-from-a-to-z-2017-j-is-for-junk-bond/) - [Junk Fees](https://www.taxgirl.com/2013/03/19/taxes-from-a-to-z-2013-j-is-for-junk-fees/) - [Jury Duty Pay](https://www.taxgirl.com/2014/03/18/taxes-from-a-to-z-2014-j-is-for-jury-duty-pay/) - [Jury Pay](https://www.taxgirl.com/2011/03/12/taxes-from-a-to-z-j-is-for-jury-pay/) - [J Visa](https://www.taxgirl.com/2015/03/19/taxes-from-a-to-z-2015-j-is-for-j-visa/) ### K - [Keogh Plans](https://www.taxgirl.com/2014/03/20/taxes-from-a-to-z-2014-k-is-for-keogh-plans/) - [Kiddie Tax](https://www.taxgirl.com/2012/03/15/taxes-from-a-to-z-k-is-for-kiddie-tax/) - [Kiddie Tax](https://www.taxgirl.com/2019/03/25/taxes-from-a-to-z-2019-k-is-for-kiddie-tax/) - [Kiddie Tax](https://www.taxgirl.com/2020/07/12/taxes-from-a-to-z-2020-k-is-for-kiddie-tax/) - [Kidnapped Children](https://www.taxgirl.com/2013/03/20/taxes-from-a-to-z-2013-k-is-for-kidnapped-children/) - [Kin (Crypto)](https://www.taxgirl.com/2018/03/22/taxes-from-a-to-z-2018-k-is-for-kin-crypto/) - [Koskinen](https://www.taxgirl.com/2015/03/20/taxes-from-a-to-z-2015-k-is-for-koskinen/) - [Strike Price](https://www.taxgirl.com/2017/03/28/taxes-from-a-to-z-2017-k-is-for-strike-price/) ### L - [Late Filing & Late Payment Penalties](https://www.taxgirl.com/2017/03/29/taxes-from-a-to-z-2017-l-is-for-late-filing-late-payment-penalties/) - [Legal Entity](https://www.taxgirl.com/2020/07/12/taxes-from-a-to-z-2020-l-is-for-legal-entity/) - [Legal Expenses](https://www.taxgirl.com/2015/03/22/taxes-from-a-to-z-2015-l-is-for-legal-expenses/) - [Levy](https://www.taxgirl.com/2012/03/16/taxes-from-a-to-z-l-is-for-levy/) - [Like-Kind Exchanges](https://www.taxgirl.com/2011/03/14/taxes-from-a-to-z-l-is-for-like-kind-exchanges/) - [Line of Credit](https://www.taxgirl.com/2018/03/23/taxes-from-a-to-z-2018-l-is-for-line-of-credit/) - [Lost Property](https://www.taxgirl.com/2014/03/23/taxes-from-a-to-z-2014-l-is-for-lost-property/) ### M - [Making Work Pay Credit](https://www.taxgirl.com/2012/03/17/taxes-from-a-to-z-m-is-for-making-work-pay-credit/) - [Marginal Tax Rate](https://www.taxgirl.com/2017/03/30/taxes-from-a-to-z-2017-m-is-for-marginal-tax-rate/) - [Mark-to-Market Taxation](https://www.taxgirl.com/2020/07/13/taxes-from-a-to-z-2020-m-is-for-mark-to-market-taxation/) - [Married Filing Separate](https://www.taxgirl.com/2011/03/15/taxes-from-a-to-z-m-is-for-married-filing-separate/) - [Medical Expenses](https://www.taxgirl.com/2019/03/27/taxes-from-a-to-z-2019-m-is-for-medical-expenses/) - [Medicare Payments](https://www.taxgirl.com/2014/03/24/taxes-from-a-to-z-2014-m-is-for-medicare-payments/) - [Mileage](https://www.taxgirl.com/2018/03/26/taxes-from-a-to-z-2018-m-is-for-mileage/) - [Miscellaneous Income](https://www.taxgirl.com/2013/03/23/taxes-from-a-to-z-2013-m-is-for-miscellaneous-income/) - [Municipal Bonds](https://www.taxgirl.com/2015/03/24/taxes-from-a-to-z-2015-m-is-for-municipal-bonds/) ### N - [Name Change](https://www.taxgirl.com/2011/03/16/taxes-from-a-to-z-n-is-for-name-change/) - [Name Change](https://www.taxgirl.com/2014/03/26/taxes-from-a-to-z-2014-n-is-for-name-change/) - [Nexus](https://www.taxgirl.com/2020/07/18/taxes-from-a-to-z-2020-n-is-for-nexus/) - [NIIT](https://www.taxgirl.com/2018/03/27/taxes-from-a-to-z-2018-n-is-for-niit/) - [Nonrefundable Tax Credits](https://www.taxgirl.com/2015/03/25/taxes-from-a-to-z-2015-n-is-for-nonrefundable-tax-credits/) - [Notice](https://www.taxgirl.com/2019/03/28/taxes-from-a-to-z-2019-n-is-for-notice/) - [Notice of Deficiency](https://www.taxgirl.com/2013/03/25/taxes-from-a-to-z-2013-n-is-for-notice-of-deficiency/) - [NSF](https://www.taxgirl.com/2017/03/31/taxes-from-a-to-z-2017-n-is-for-nsf/) ### O - [Offer in Compromise](https://www.taxgirl.com/2012/03/19/taxes-from-a-to-z-o-is-for-offer-in-compromise/) - [Offset](https://www.taxgirl.com/2011/03/17/taxes-from-a-to-z-o-is-for-offset/) - [OID](https://www.taxgirl.com/2015/03/27/taxes-from-a-to-z-2015-o-is-for-oid/) - [Opportunity Zone](https://www.taxgirl.com/2019/03/29/taxes-from-a-to-z-2019-o-is-for-opportunity-zone/) - [Ordering Rules](https://www.taxgirl.com/2013/03/28/taxes-from-a-to-z-2013-o-is-for-ordering-rules/) - [Ordinary and Necessary](https://www.taxgirl.com/2020/07/18/taxes-from-a-to-z-2020-o-is-for-ordinary-necessary/) - [Organ Donation](https://www.taxgirl.com/2018/03/28/taxes-from-a-to-z-2018-o-is-for-organ-donation/) - [Over-the-Counter Medicines](https://www.taxgirl.com/2017/04/02/taxes-from-a-to-z-2017-o-is-for-over-the-counter-medicines/) - [Overpayment](https://www.taxgirl.com/2014/03/27/taxes-from-a-to-z-2014-o-is-for-overpayment/) ### P - [Pass-Through Deduction](https://www.taxgirl.com/2019/03/30/taxes-from-a-to-z-2019-p-is-for-pass-through-deduction/) - [Passive Activity Rules](https://www.taxgirl.com/2013/03/29/taxes-from-a-to-z-2013-p-is-for-passive-activity-rules/) - [Pease Limitations](https://www.taxgirl.com/2017/04/05/taxes-from-a-to-z-2017-p-is-for-pease-limitations/) - [Penalty on Estimated Tax](https://www.taxgirl.com/2012/03/20/taxes-from-a-to-z-p-is-for-penalty-on-estimated-tax/) - [Personal Exemption](https://www.taxgirl.com/2014/03/29/taxes-from-a-to-z-2014-p-is-for-personal-exemption/) - [Personal Exemption](https://www.taxgirl.com/2020/07/19/taxes-from-a-to-z-2020-p-is-for-personal-exemption/) - [Personal Property Taxes](https://www.taxgirl.com/2015/03/28/taxes-from-a-to-z-2015-p-is-for-personal-property-taxes/) - [Presidential Election Fund](https://www.taxgirl.com/2011/03/18/taxes-from-a-to-z-p-is-for-presidential-election-fund/) - [Private & Parochial Schools](https://www.taxgirl.com/2018/03/29/taxes-from-a-to-z-2018-p-is-for-private-parochial-schools/) ### Q - [Form 1099-Q](https://www.taxgirl.com/2013/03/30/taxes-from-a-to-z-2013-q-is-for-form-1099-q/) - [QDRO](https://www.taxgirl.com/2014/03/31/taxes-from-a-to-z-2014-q-is-for-qdro/) - [Qualified Appraisal](https://www.taxgirl.com/2020/07/22/taxes-from-a-to-z-2020-q-is-for-qualified-appraisal/) - [Qualified Business Income](https://www.taxgirl.com/2019/03/31/taxes-from-a-to-z-2019-q-is-for-qualified-business-income/) - [Qualified Dividends](https://www.taxgirl.com/2012/03/21/taxes-from-a-to-z-q-is-for-qualified-dividends/) - [Qualifying Relative](https://www.taxgirl.com/2018/04/02/taxes-from-a-to-z-2018-q-is-for-qualifying-relative/) - [Qualifying Widow(er) With Dependent Child](https://www.taxgirl.com/2015/03/29/taxes-from-a-to-z-2015-q-is-for-qualifying-widower-with-dependent-child/) - [Questionable Refund Program](https://www.taxgirl.com/2011/03/19/taxes-from-a-to-z-q-is-for-questionable-refund-program/) - [Quid Pro Quo](https://www.taxgirl.com/2017/04/06/taxes-from-a-to-z-2017-q-is-for-quid-pro-quo/) ### R - [Real Estate Investment Trust (REIT)](https://www.taxgirl.com/2019/04/03/taxes-from-a-to-z-2019-r-is-for-real-estate-investment-trust-reit/) - [Recapture](https://www.taxgirl.com/2013/04/02/taxes-from-a-to-z-2013-r-is-for-recapture/) - [Refund](https://www.taxgirl.com/2012/03/22/taxes-from-a-to-z-r-is-for-refund/) - [Relief Funds](https://www.taxgirl.com/2018/04/03/taxes-from-a-to-z-2018-r-is-for-relief-funds/) - [Required Minimum Distributions](https://www.taxgirl.com/2020/07/30/taxes-from-a-to-z-2020-r-is-for-required-minimum-distributions/) - [Rollover](https://www.taxgirl.com/2015/03/30/taxes-from-a-to-z-2015-r-is-for-rollover/) - [Roth IRA](https://www.taxgirl.com/2011/03/20/taxes-from-a-to-z-r-is-for-roth-ira/) - [Rounding Off](https://www.taxgirl.com/2017/04/08/taxes-from-a-to-z-2017-r-is-for-rounding-off/) - [Royalties](https://www.taxgirl.com/2014/04/01/taxes-from-a-to-z-2014-r-is-for-royalties/) ### S - [Scams](https://www.taxgirl.com/2015/03/31/taxes-from-a-to-z-2015-s-is-for-scams/) - [Security Deposit](https://www.taxgirl.com/2019/04/04/taxes-from-a-to-z-2019-s-is-for-security-deposit/) - [Simplified Option for the Home Office Deduction](https://www.taxgirl.com/2017/04/10/taxes-from-a-to-z-2017-s-is-for-simplified-option-for-the-home-office-deduction/) - [Standard Deduction](https://www.taxgirl.com/2012/03/23/taxes-from-a-to-z-s-is-for-standard-deduction/) - [Statute of Limitations](https://www.taxgirl.com/2013/04/03/taxes-from-a-to-z-2013-s-is-for-statute-of-limitations/) - [Statutory Employees](https://www.taxgirl.com/2011/03/21/taxes-from-a-to-z-s-is-for-statutory-employees/) - [Student Loans](https://www.taxgirl.com/2014/04/02/taxes-from-a-to-z-2014-s-is-for-student-loans/) - [Sunset](https://www.taxgirl.com/2020/07/31/taxes-from-a-to-z-2020-s-is-for-sunset/) - [Surviving Spouse](https://www.taxgirl.com/2018/04/04/taxes-from-a-to-z-2018-s-is-for-surviving-spouse/) ### T - [Tax Home](https://www.taxgirl.com/2020/08/02/taxes-from-a-to-z-2020-t-is-for-tax-home/) - [Tax Treaty](https://www.taxgirl.com/2017/04/11/taxes-from-a-to-z-2017-t-is-for-tax-treaty/) - [Taxpayer Bill of Rights](https://www.taxgirl.com/2018/04/05/taxes-from-a-to-z-2018-t-is-for-taxpayer-bill-of-rights/) - [Tenancy and Joint Ownership](https://www.taxgirl.com/2013/04/05/taxes-from-a-to-z-2013-t-is-for-tenancy-and-joint-ownership/) - [Third Party Designee](https://www.taxgirl.com/2011/03/22/taxes-from-a-to-z-t-is-for-third-party-designee/) - [Tip Income](https://www.taxgirl.com/2014/04/03/taxes-from-a-to-z-2014-t-is-for-tip-income/) - [Trust Fund Taxes](https://www.taxgirl.com/2019/04/05/taxes-from-a-to-z-2019-t-is-for-trust-fund-taxes/) - [Tuition & Fees Deduction](https://www.taxgirl.com/2012/03/24/taxes-from-a-to-z-t-is-for-tuition-and-fees-deduction/) ### U - [Unadjusted Basis](https://www.taxgirl.com/2019/04/07/taxes-from-a-to-z-2019-u-is-for-unadjusted-basis/) - [Unclaimed Reimbursement](https://www.taxgirl.com/2014/04/05/taxes-from-a-to-z-2014-u-is-for-unclaimed-reimbursement/) - [Underpayment Penalty](https://www.taxgirl.com/2015/04/02/taxes-from-a-to-z-2015-u-is-for-underpayment-penalty/) - [Undue Hardship](https://www.taxgirl.com/2020/08/03/taxes-from-a-to-z-2020-u-is-for-undue-hardship/) - [Unemployment Compensation](https://www.taxgirl.com/2011/03/23/taxes-from-a-to-z-u-is-for-unemployment-compensation/) - [United States Tax Court](https://www.taxgirl.com/2017/04/12/taxes-from-a-to-z-2017-u-is-for-united-states-tax-court/) - [Unrealized Gains and Losses](https://www.taxgirl.com/2013/04/07/taxes-from-a-to-z-2013-u-is-for-unrealized-gains-and-losses/) - [Unreasonable Compensation](https://www.taxgirl.com/2012/03/25/taxes-from-a-to-z-u-is-for-unreasonable-compensation/) - [Unused Sick Leave](https://www.taxgirl.com/2018/04/06/taxes-from-a-to-z-2018-u-is-for-unused-sick-leave/) ### V - [Vacation Home](https://www.taxgirl.com/2012/03/26/taxes-from-a-to-z-v-is-for-vacation-home/) - [Vesting](https://www.taxgirl.com/2014/04/07/taxes-from-a-to-z-2014-v-is-for-vesting/) - [Veterans’ Benefits](https://www.taxgirl.com/2015/04/03/taxes-from-a-to-z-2015-v-is-for-veterans-benefits/) - [Virtual Currency](https://www.taxgirl.com/2017/04/13/taxes-from-a-to-z-2017-v-is-for-virtual-currency/) - [VITA](https://www.taxgirl.com/2011/03/25/taxes-from-a-to-z-v-is-for-vita/) - [VITA](https://www.taxgirl.com/2019/04/08/taxes-from-a-to-z-2019-v-is-for-vita/) - [Voluntary Bankruptcy](https://www.taxgirl.com/2018/04/09/taxes-from-a-to-z-2018-v-is-for-voluntary-bankruptcy/) - [Voluntary Disclosure](https://www.taxgirl.com/2013/04/08/taxes-from-a-to-z-2013-v-is-for-voluntary-disclosure/) - [Voluntary Withholding](https://www.taxgirl.com/2020/08/04/taxes-from-a-to-z-2020-v-is-for-voluntary-withholding/) ### W - [W-4](https://www.taxgirl.com/2011/03/27/taxes-from-a-to-z-w-is-for-w-4/) - [W-9](https://www.taxgirl.com/2018/04/10/taxes-from-a-to-z-2018-w-is-for-w-9/) - [Wage Base](https://www.taxgirl.com/2020/08/17/taxes-from-a-to-z-2020-w-is-for-wage-base/) - [Wash Sale](https://www.taxgirl.com/2012/03/27/taxes-from-a-to-z-w-is-for-wash-sale/) - [Wash Sale](https://www.taxgirl.com/2017/04/14/taxes-from-a-to-z-2017-w-is-for-wash-sale/) - [Withholding From Wages](https://www.taxgirl.com/2015/04/04/taxes-from-a-to-z-2015-w-is-for-withholding-from-wages/) - [Worker’s Compensation](https://www.taxgirl.com/2013/04/11/taxes-from-a-to-z-2013-w-is-for-workers-compensation/) - [Worthless Securities](https://www.taxgirl.com/2014/04/08/taxes-from-a-to-z-2014-w-is-for-worthless-securities/) ### X - [1040-X](https://www.taxgirl.com/2011/03/29/taxes-from-a-to-z-x-is-for-1040-x/) - [Schedule X](https://www.taxgirl.com/2019/04/10/taxes-from-a-to-z-2019-x-is-for-schedule-x/) - [X (or XD)](https://www.taxgirl.com/2017/04/15/taxes-from-a-to-z-2017-x-is-for-x-or-xd/) - [X Tax](https://www.taxgirl.com/2020/08/20/taxes-from-a-to-z-2020-x-is-for-x-tax/) - [XD](https://www.taxgirl.com/2014/04/09/taxes-from-a-to-z-2014-x-is-for-xd/) - [Xe.com](https://www.taxgirl.com/2018/04/11/taxes-from-a-to-z-2018-x-is-for-xe-com/) - [X-Mark (Signature)](https://www.taxgirl.com/2012/03/28/taxes-from-a-to-z-x-is-for-x-mark-signature/) ### Y - [Yacht](https://www.taxgirl.com/2014/04/11/taxes-from-a-to-z-2014-y-is-for-yacht/) - [Year End](https://www.taxgirl.com/2012/03/29/taxes-from-a-to-z-y-is-for-year-end/) - [Year-End Bonus](https://www.taxgirl.com/2013/04/13/taxes-from-a-to-z-2013-y-is-for-year-end-bonus/) - [Year-To-Date](https://www.taxgirl.com/2011/03/30/taxes-from-a-to-z-y-is-for-year-to-date/) - [Years Certain Annuity](https://www.taxgirl.com/2015/04/06/taxes-from-a-to-z-2015-y-is-for-years-certain-annuity/) - [Yegg](https://www.taxgirl.com/2019/04/11/taxes-from-a-to-z-2019-y-is-for-yegg/) - [Yield Rate](https://www.taxgirl.com/2020/09/14/taxes-from-a-to-z-2020-y-is-for-yield-rate/) - [Yo-Yo Market](https://www.taxgirl.com/2018/04/12/taxes-from-a-to-z-2018-y-is-for-yo-yo-market/) - [Your Rights As A Taxpayer](https://www.taxgirl.com/2017/04/16/taxes-from-a-to-z-2017-y-is-for-your-rights-as-a-taxpayer/) ### Z - [Code Z](https://www.taxgirl.com/2011/04/03/taxes-from-a-to-z-z-is-for-code-z/) - [Zero](https://www.taxgirl.com/2012/03/30/taxes-from-a-to-z-z-is-for-zero/) - [Zero Percent Rate](https://www.taxgirl.com/2017/04/17/taxes-from-a-to-z-2017-z-is-for-zero-percent-rate/) - [Zip Drive](https://www.taxgirl.com/2019/04/12/taxes-from-a-to-z-2019-z-is-for-zip-drive/) - [Zloty](https://www.taxgirl.com/2015/04/07/taxes-from-a-to-z-2015-z-is-for-zloty/) - [Zoning Costs](https://www.taxgirl.com/2018/04/13/taxes-from-a-to-z-2018-z-is-for-zoning-costs/) - [Zoo Memberships](https://www.taxgirl.com/2014/04/12/taxes-from-a-to-z-2014-z-is-for-zoo-memberships/) It’s a work in progress. If you see something missing from the tax glosssary, it may be on its way. And if you have a suggestion, [let me know](mailto:kelly.erb@taxgirl.com). --- ### [Subscribe](https://www.taxgirl.com/taxgirl-podcast/podcast-subscription/) **Published:** August 7, 2020 **Author:** Kelly Phillips Erb **Content:** # Listen To Taxgirl Taxes, money, the IRS, financial crime, and the stories behind the headlines. There’s always something to talk about. The **Taxgirl Podcast** explores the issues that affect taxpayers and tax professionals, with conversations, insights, and a little perspective along the way. Whether you’re catching up on the latest tax news or digging into a topic that deserves a closer look, you can listen directly on [Taxgirl.com](https://www.taxgirl.com/) or subscribe through your favorite podcast platform. ### Find The Podcast Choose your favorite way to listen: - [Amazon Music](https://www.amazon.com/dp/B08K592S9Z/ref=cm_sw_em_r_mt_dp_RXXRT7QKQ41GEFJ4HWFD) - [Apple Podcasts](https://podcasts.apple.com/us/podcast/taxgirl-podcast/id1523075095) - [Captivate](https://taxgirl.captivate.fm/) - [Spotify](https://open.spotify.com/show/1D2FkhkOP1KzwLwDGByie9?si=xbT0acHeS9SoeSolZss0Fg) ### Prefer To Read? I’ve got you covered. The **Taxgirl Newsletter** brings tax news, IRS updates, court decisions, financial crime stories, and more straight to your inbox. You’ll also find familiar Taxgirl features, useful deadlines, and a few surprises. And it’s free! [**Subscribe To The Taxgirl Newsletter**](https://newsletter.taxgirl.com/subscribe) --- ### [Start Here: A Guide to Taxgirl](https://www.taxgirl.com/blog-info-2/) **Published:** July 26, 2026 **Author:** Kelly Phillips Erb **Content:** Welcome to Taxgirl®. I’m Kelly Phillips Erb, a tax attorney, writer, and the person behind Taxgirl. I’ve been writing about taxes for more than 20 years, with a focus on explaining what’s happening—and why it matters—without assuming you already speak tax. Taxgirl covers federal and state tax news, IRS developments, court cases, tax policy, financial crime and scams, and the occasional tax story that is simply too strange or interesting to ignore. Some articles are written for taxpayers. Others dig into issues affecting tax professionals, lawyers, businesses, and the tax system itself. The goal is the same: **to make complicated tax stories easier to understand.** ## Looking for something? Here are a few places to start: [**Tax News & Analysis**](https://www.taxgirl.com/category/irs-newsannouncements/) Breaking developments, IRS news, legislation, court decisions, and analysis of what they mean. [**Ask The Taxgirl®**](https://www.taxgirl.com/ask-the-taxgirl/) Real tax questions from readers, answered in plain English. [**Taxes From A to Z®**](https://www.taxgirl.com/tax-glossary/) Short explainers covering tax terms and concepts—from adjusted basis to withholding and plenty in between. [**You Be the Tax Judge**](https://www.taxgirl.com/category/you-be-the-tax-judge/) Real tax cases with a twist: you get the facts and make the call before finding out how the court ruled. [**Getting To Know You Tuesday**](https://www.taxgirl.com/category/getting-to-know-you-tuesday/) Meet the people who work in and around tax: accountants, lawyers, enrolled agents, academics, government officials, financial professionals, and others with interesting stories to tell. [**Taxgirl + Pop Culture**](https://www.taxgirl.com/category/pop-culture/) Because taxes turn up everywhere—including movies, television, music, sports, celebrity news, and occasionally places nobody expected them to. ## Get Taxgirl in your inbox The **Taxgirl Newsletter** is where I pull everything together each week: tax news, reader questions, quick explainers, trivia, deadlines, interesting links, and other things worth knowing. You can [**subscribe here**](http://newsletter.taxgirl.com). ## Looking for me? Want to know more about my background? Visit [**About Taxgirl**](https://www.taxgirl.com/about-taxgirl/). Interested in having me speak, appear on a podcast or program, provide commentary, or collaborate on a project? Visit [**Work With Taxgirl**](https://www.taxgirl.com/work-with-taxgirl/). ## Taxgirl Podcast If you haven’t subscribed yet, you can listen to the **podcast** directly on the website. Choose your season: - [Season 1](https://www.taxgirl.com/taxgirl-podcast/podcast-episode-guide-season-1/ "Podcast Season 1") - [Season 2](https://www.taxgirl.com/taxgirl-podcast/podcast-episode-guide-season-2/ "Podcast Season 2") - [Season 3](https://www.taxgirl.com/taxgirl-podcast/podcast-season-3/ "Podcast Season 3") ## The Extras Finally, I get lots of questions about process. You can find the nitty-gritty, behind-the-scenes info at the links below: - [Disclaimer (I am a lawyer, after all)](https://www.taxgirl.com/blog-info/notice-and-disclaimer/ "My Disclaimer") - [My Comment Policy](https://www.taxgirl.com/blog-info/official-comment-policy/) - [Design and Trademark](https://www.taxgirl.com/blog-info-2/blog-info/) - [Privacy Policy](https://www.taxgirl.com/blog-info/privacy-policy/?doing_wp_cron=1785089264.0558199882507324218750) I hope you found what you came for—and then some! If you like the site, do me a favor and spread the word. I don’t buy shares, links, or otherwise attempt to game the system. I just depend on readers like you. So if you could share on Facebook, Twitter, or your platform of choice, I’d be ever so grateful. You’ll find the share buttons on each post or page. I appreciate you! --- ### [Work With Taxgirl](https://www.taxgirl.com/work-with-taxgirl/) **Published:** August 27, 2026 **Author:** Kelly Phillips Erb **Content:** ## Speaking, media & collaborations Taxes are complicated. Talking about them doesn’t have to be. I’m Kelly Phillips Erb — tax attorney, writer, speaker, and the person behind Taxgirl®. For more than 20 years, I’ve been explaining tax law, policy, and the stories behind the numbers to taxpayers, tax professionals, lawyers, journalists, and just about anyone willing to listen. Whether you’re looking for a speaker, an expert source, a podcast guest, or a collaborator, I’d love to hear what you have in mind. [Work With Me](#inquiry) --- ## Speaking & Events I speak regularly at conferences, professional events, law schools, universities, webinars, and continuing education programs. My presentations can be tailored for tax, accounting, and legal professionals or broader audiences, and I present programs that qualify for CLE and CPE credit. Topics I regularly speak about include: - Tax law and policy - IRS enforcement, compliance, and taxpayer issues - Tax controversy - Estate and tax planning - Tax scams, fraud, and financial crime - Tax issues in the news - Making sense of complicated or changing tax rules I’m available for keynotes, panels, moderated conversations, webinars, and other live and virtual events. Recent appearances include AICPA ENGAGE, NATP Taxposium, PrimeGlobal’s Tax & Assurance Summit, The Tax Retreat, NCACPA’s Professional Women’s Conference, and programs for EY, the Pennsylvania Bar Institute, Drexel University, and Villanova University Charles Widger School of Law. Have something else in mind? Ask. Some of my favorite presentations have started with, “We have this idea…” --- ## Media & Interviews Need someone who can explain a complicated tax story without making your audience wish they’d changed the channel? I’ve spent much of my career translating tax law into plain English. I’m available for television, radio, podcasts, print and digital interviews, and expert commentary on breaking tax news and broader tax and financial topics. My commentary and work have appeared in or on outlets including CNN, CNBC, NPR’s Marketplace, the BBC, Reuters, Time, Esquire, Martha Stewart Living, The Philadelphia Inquirer, and others. I previously served as a senior writer at Forbes and as a staff writer and Insights & Commentary Team Lead at Bloomberg Tax. **Journalist or producer on deadline?** Please say so when you get in touch. --- ## Partnerships & Collaborations I’m open to working with organizations and brands on projects that make sense for Taxgirl and the people who read, watch, and listen to my work. That might include: - Sponsored or partner-supported content - Educational campaigns - Events and webinars - Podcast collaborations - Interviews and conversations - Special projects - Other creative ideas that fit the Taxgirl audience Trust matters to me. Any collaboration has to make sense editorially, professionally, and for my audience. I don’t promote something simply because someone is willing to pay for it. If you have an idea that involves taxes, money, law, financial crime, or helping people better understand any of the above, I’m interested in hearing it. --- ## A Little About Me I’m a tax attorney with more than 25 years of experience and the creator of Taxgirl®, a tax-writing brand I’ve been building for more than two decades. In addition to writing and speaking, I’m a managing shareholder at The Erb Law Firm, P.C. (Erblaw), where my practice includes tax and estate planning, wills and trusts, tax compliance and controversy, and domestic and international tax matters. My work has been recognized by the International Tax Review’s Global Tax 50, the Philadelphia Business Journal’s “40 Under 40,” Main Line Today’s “Power Women,” the Pennsylvania Bar Association, and the National Association of Enrolled Agents. [Read More About Taxgirl](https://www.taxgirl.com/about-taxgirl/) --- ## Let’s Work Together Have a speaking opportunity, media request, partnership idea, or something I haven’t thought of? Tell me what you’re working on. Work With Taxgirl Inquiry Δ First Name Last Name Email Your organization Your website What are you reaching out about? Speaking or event Media or interview Partnership or collaboration Podcast Something else Tell me a little about what you have in mind. Event or deadline date Send Inquiry --- ### [Ask The Taxgirl®](https://www.taxgirl.com/ask-the-taxgirl/) **Published:** May 2, 2007 **Author:** Kelly Phillips Erb **Content:** Have a tax question? Ask The Taxgirl®. For years, I’ve answered questions from taxpayers about the IRS, tax returns, deductions, credits, tax bills, estate and gift taxes, and all the other things that make people wonder, “Wait, is that really how this works?” Some questions have quick answers. Others are more complicated. And sometimes, especially because this is tax, the answer really is, “It depends.” If you have a question that you haven’t seen answered, consider Ask The Taxgirl®. ## Tax Questions, Answered With Ask The Taxgirl®, I take real questions from readers and answer them in plain English. I generally choose questions that will be useful to more than one taxpayer, especially when I’m seeing the same issue come up repeatedly or when a tax topic is making news, so keep that in mind. You can find recent examples in issues of the Taxgirl newsletter: - [September 16 (2026) Edition](https://newsletter.taxgirl.com/p/tax-news-never-takes-a-break) - [September 9 (2026) Edition](https://newsletter.taxgirl.com/p/apple-muffins-carburetors-taxes) - [September 2 (2026) Edition](https://newsletter.taxgirl.com/p/taxgirl-07b6e9c828e74a26) If you aren’t a regular subscriber, you can [subscribe here](https://newsletter.taxgirl.com/subscribe)—it’s free. ## How To Ask Have a question of your own? You can send it to <askthetaxgirl@taxgirl.com>. Before you do, there are a few things you should know. ## Before You Ask 1\. **Keep it focused.** Tell me enough to understand the issue, but I don’t need every detail of your tax life. A question like “Should I file Married Filing Jointly or Married Filing Separately?” probably needs more information. Your shoe size and your mother’s maiden name? Definitely not. 2\. **Give me a little time.** I get a lot of questions, and I can’t answer them all. I tend to prioritize questions that are timely, come up often, or are likely to help many readers. That being said, while I try to answer as many questions as possible, I can’t answer them all. If your question feels urgent, don’t wait for me—seek out a tax professional. 3\. **Email is the way to go.** I prefer email. Don’t leave tax questions on my voicemail—I won’t be able to return those calls. Don’t post personal information (like your phone number or Social Security number, both of which happen with alarming regularity) in the comments or on [Facebook](https://www.facebook.com/taxgirl) or other social media. And please put the subject of your question in the email subject line so it doesn’t disappear into the spam folder. 4\. **Protect your privacy.** Questions may be published on Taxgirl.com, in [my newsletter](https://newsletter.taxgirl.com/subscribe), or on the podcast, so don’t include anything you wouldn’t want made public. Don’t post anything that you wouldn’t want your mother—or mine—to see, and do not include personally identifiable information like your phone number or Social Security number (see again #3). 5\. **Remember that this isn’t legal representation.** I can explain tax rules and answer general tax questions, but I can’t call the IRS about your refund, intervene in your audit, or represent you in a tax matter unless you are actually my client and we have a representation agreement. **One more thing:** if you’re already sitting in an audit—or you’re hiding in a closet while the feds bang on your door—this is not the time to email Ask The Taxgirl®. Put down the phone or computer and find a qualified tax professional who can help you with your specific situation. And please don’t send advertisements, promotions, tax treatises, or political pitches disguised as questions. I promise, I can tell. ## Ask Your Question Ready? Email your question to askthetaxgirl@taxgirl.com. And once more, with feeling: *Questions and answers published as part of Ask The Taxgirl® are for general informational purposes and are not legal or tax advice for your individual circumstances. Submitting a question does not create an attorney-client relationship.* --- ### [Podcast Season 3](https://www.taxgirl.com/taxgirl-podcast/podcast-season-3/) **Published:** January 7, 2022 **Author:** Kelly Phillips Erb **Content:** # Season Three (**2022)** 78: [Navigating the Ever-Changing World of Sales Tax in 2022](https://www.taxgirl.com/2022/01/04/navigating-the-ever-changing-world-of-sales-tax-in-2022/) (with Liz Armbruester of Avalara) 79: [The OECD Global Minimum Tax Deal: What to Expect](https://www.taxgirl.com/2022/01/11/the-oecd-global-minimum-tax-deal-what-to-expect/) (with George Salis of Vertex, Inc.) 80: [Ask The Taxgirl – Answering Listener Questions](https://www.taxgirl.com/2022/01/25/ask-the-taxgirl-answering-listener-questions/) 81: [Impacts on the Tax Profession in 2022](https://www.taxgirl.com/2022/02/01/impacts-on-the-tax-profession-in-2022/) (with Tony Novak, CPA) 82: [What Taxpayers Need to Know About Tax Prep](https://www.taxgirl.com/2022/02/08/tax-preparation-what-taxpayers-need-to-know/) (with Mark Steber, Senior VP and Chief Tax Information Officer at Jackson Hewitt Tax Service) 83: [Making Sense of Tax Season in 2022](https://www.taxgirl.com/2022/02/15/tax-season-and-the-pandemics-challenges/) (with Amber Gray-Fenner, EA) 84: [Education and Student Loan Survival](https://www.taxgirl.com/2022/02/22/education-and-student-loan-survival/) (with Bobby Matson of Payitoff) 85: [Making Sense of the Child Tax Credit in 2022](https://www.taxgirl.com/2022/03/01/the-ever-evolving-child-tax-credit/) (with David Newville and Gabriel Zucker of Code for America) ****To subscribe to the podcast (it’s free!) using Apple, Spotify, or your favorite listening app,** [**click here**](https://www.taxgirl.com/taxgirl-podcast/podcast-subscription/)**.**** --- ### [A Favor?](https://www.taxgirl.com/blog-info-2/a-favor/) **Published:** September 7, 2020 **Author:** Kelly Phillips Erb **Content:** Did you find my content helpful? If so, can you give me a review on your favorite platform or share on social? I don’t buy shares, links or otherwise attempt to game the system. I just depend on readers like you to spread the word. So if you could share on Facebook, Twitter or your platform of choice, I’d be ever so grateful. You’ll find the share buttons on each post or page. **Thank you so much! I appreciate your support.** --- ### [My Disclaimer](https://www.taxgirl.com/blog-info-2/notice-and-disclaimer/) **Published:** February 12, 2012 **Author:** Kelly Phillips Erb **Content:** Let’s make sure we understand a few things about this disclaimer, ok? 1. Unless you have a representation letter in hand, you and I don’t have an attorney-client relationship, capiche? I mean, I’m sure you’re a nice person. I appreciate you stopping by the blog. But it doesn’t mean anything more (I’m having a weird deja vu to a couple of bad dates in college). 2. Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. This blog isn’t meant to offer you legal advice. If you have real questions – i.e., you’re hiding in a closet while the feds bang on your door – you need to consult with a tax professional. If you live in my corner of the world, that might be me. But see #1. 3. I do work at a [law firm](http://www.erblaw.com). Some might even say I’m a partner at said law firm. But this blog is in no way affiliated with my law firm — I mention it here for transparency, not because the firm runs, edits, or endorses a word of what I write. The other partner and my malpractice carrier insist on it. And I have to live with one of them. And it’s not my malpractice carrier. So, again, see #1. 4. I’m not responsible for anything anybody says on this blog except me. But play nice. I don’t want to have to throw you out of here (there’s that deja vu to college again). 5. And one more thing. I’m not here to help you cheat the system. That should be obvious. But just in case it’s not, I want to reiterate that the content of this blog won’t help you game anything. It will also fail to make you rich, lose weight, get white teeth, or regrow hair that has been lost. I can’t guarantee dates or life matches (in fact, it’s arguable that if your friends find out that you read a tax blog, you could lose points). I have never made a good stock tip, and I can’t buy your gold. I’m also miserable at making pie. --- ### [Comments](https://www.taxgirl.com/blog-info-2/official-comment-policy/) **Published:** May 3, 2007 **Author:** Kelly Phillips Erb **Content:** Here’s my comment policy: 1. **Introduce yourself.** I don’t need a copy of your license, your Social Security number, or a note from your mother. It is, however, helpful to know who you are, like “a lawyer from Alabama” or “a confused mom.” But don’t pretend to be someone else. If I believe that you’re impersonating another person, I’ll have no choice but to delete you. We have to have some measure of decorum here. 2. **To cut down on spam, registration may be required.** Comments may be held in moderation if you’ve never commented before or if you include lots of links. Lots of links make me wonder. 3. **Keep it clean and reasonably nice.** My mother could be reading. And the last thing I need is a call from my mother explaining that people on my blog aren’t very nice. 4. **No spam, no selling products or services, and no free advertising for your own blog.** Talk to Google or Yahoo if you need advertising. And if you’re a lawyer trolling for business, shame on you. Get your own blog. 5. **Keep your personally identifiable information out of your question.** This is the internet, remember? If you say things like, “I’m the only doctor in my town and my wife is blind,” folks may know it’s you. And clearly posting your phone number or Social Security Number in a comment means that other people—lots of other people—are going to see it. I’m not going to redact or edit your comment, although I reserve the right to delete it. So please use common sense. 6. **You may disagree with some of the comments.** Any comments on the site are the opinions of the folks who wrote them. Not me. I am not responsible for anything that anyone else writes. 7. **Don’t make me have to delete you**. I’m a middle child, and that will just stress me out. And hey, just because you left a comment on my site doesn’t mean that we’re all attorney-client privileged already. For more about what I do, [click here](https://www.taxgirl.com/about-taxgirl/). To find out how to ask questions, [click here](https://www.taxgirl.com/ask-the-taxgirl/). --- ### [Podcast Season 2](https://www.taxgirl.com/taxgirl-podcast/podcast-episode-guide-season-2/) **Published:** July 6, 2021 **Author:** Kelly Phillips Erb **Content:** # **Season Two (2021)** 26: [Learning From Celebrity Tax Problems To Save You Time And Money](https://www.taxgirl.com/2021/01/05/business-management-learning-from-high-profile-celebrity-tax-problems/?doing_wp_cron=1610119954.8044619560241699218750) (with Greg Zyblut, Esq.) 27: [HSA Tax Deductions: Using Your Healthcare For Tax Breaks And Retirement](https://www.taxgirl.com/2021/01/12/hsa-tax-deductions-using-your-healthcare-for-tax-breaks-and-retirement/) (with Megan Gorman, Esq.) 28: [IRS Criminal Investigation: Talking Taxes And The Law With Chief Jim Lee](https://www.taxgirl.com/2021/01/19/irs-criminal-investigation-talking-taxes-and-the-law-with-chief-jim-lee/?doing_wp_cron=1611192554.3446240425109863281250) (with IRS-CI Chief Jim Lee) 29: [Tax Whistleblowers: The Ins And Outs Of Reporting Tax Fraud](https://www.taxgirl.com/2021/01/26/irs-whistleblowers-the-ins-and-outs-of-reporting-tax-fraud/?doing_wp_cron=1612801274.7307620048522949218750) (with Gregory Krakower, Esq.) 30: [Working From Home Tax Issues: How The Coronavirus Complicates Tax Filing](https://www.taxgirl.com/2021/02/02/working-from-home-tax-issues-coronavirus-complicates-tax-filing/) (with Tim Speiss, Esq.) 31: [Cannabis Taxes: How The IRS Is Handling The Cannabis Industry](https://www.taxgirl.com/2021/02/09/cannabis-taxes-how-irs-handling-cannabis-industry/?doing_wp_cron=1614181466.2805509567260742187500) (with Katye Maxson-Landis, CPA) 32: [Shrinking The Tax Gap](https://www.taxgirl.com/2021/02/16/shrinking-the-tax-gap/) (with former IRS Commissioner Charles Rossotti) 33: [Minorities In Business: Overcoming Bias And Finding Success](https://www.taxgirl.com/2021/02/23/minorities-in-business-overcoming-bias-and-finding-success/) (with SEER Interactive CEO Wil Reynolds) 34: [How To Save (And Spend) A Lump Sum Of Money, Including Your Stimulus Check](https://www.taxgirl.com/2021/03/02/how-to-save-spend-lump-sum-money-2021-stimulus-check-tax-refund/) (with Tania Brown, CFP) 35: [Maryland’s New Digital Advertising Tax: Is It A Workable Solution?](https://www.taxgirl.com/2021/03/09/maryland-digital-advertising-tax-law/) (with George Salis of Vertex) 36: [Combatting Economic Inequality](https://www.taxgirl.com/2021/03/16/combatting-economic-inequality/) (with Rebecca Thompson of Prosperity Now) 37: [The Tax Hurdles Of Moving Abroad](https://www.taxgirl.com/2021/03/23/tax-hurdles-moving-abroad/) (with Virginia La Torre Jeker, Esq.) 38: [Nanny Taxes: What To Know About Being A Household Employer](https://www.taxgirl.com/2021/03/30/nanny-taxes-what-to-know-being-household-employer/) (with Jay Schulze, President, HomeWork Solutions) 39: [Accidental Tax Resident: COVID-19’s Impact On The Substantial Presence Test](https://www.taxgirl.com/2021/04/06/accidental-tax-resident-covid-19-impact-substantial-presence-test/) (with Diane Nobile, Esq., of Saul Ewing) 40: [IRS Jobs: Why You Should Work For The IRS](https://www.taxgirl.com/2021/04/13/irs-jobs-work-for-the-irs/) (with Robin Bailey Jr., Chief Human Capital Officer, of IRS) 41: [Crypto Taxes: Cryptocurrency Compliance In 2021](https://www.taxgirl.com/2021/04/20/crypto-taxes-cryptocurrency-compliance-2021/) (with Wendy Walker of Sovos Compliance) 42: [Everything You Need To Know About R&D Tax Credits](https://www.taxgirl.com/2021/04/27/r-d-tax-credit-everything-you-need-to-know/?doing_wp_cron=1621267485.3488368988037109375000) (with Ari Palmer-Salafia, the CEO and founder of TaxTaker) 43: [NFTs And The Tax Implications Of Using An NFT Marketplace](https://www.taxgirl.com/2021/05/04/nfts-and-the-tax-implications-of-using-an-nft-marketplace/) (with Ben Weiss, CEO of Coinflip) 44: [The Increasing Importance Of Data Security](https://www.taxgirl.com/2021/05/11/the-increasing-importance-of-data-security/) (with Robert Capps, VP of emerging tech for NuData Security) 45: [Women In Business: The Road To The Top Of The Tax Profession](https://www.taxgirl.com/2021/05/18/women-in-business-the-road-to-the-top-of-the-tax-profession/) (with Kate Barton, Global Vice Chair at EY) 46: [How To Utilize The Foreign Earned Income Exclusion](https://www.taxgirl.com/2021/05/25/how-to-utilize-the-foreign-earned-income-exclusion/) (with Allyson Lindsey, managing partner of Bright Tax) 47: [How Virtual Tax Prep Can Be A Better Experience For Tax Pros and Taxpayers](https://www.taxgirl.com/2021/06/01/online-tax-services-how-to-choose-best-tax-software/) (with Donald Nelson, EA) 48: [Transfer Pricing: Digital Transformations and Transparency](https://www.taxgirl.com/2021/06/08/transfer-pricing-valuation-international-taxation-transparency/) (with Andrew O’Brien-Penney and Tamara Levin of Baker McKenzie) 49: [How Family Wealth Planning is Evolving to Benefit Every American Family](https://www.taxgirl.com/2021/06/15/family-wealth-planning-every-american-family-inheritance-tax/?doing_wp_cron=1624384699.9879810810089111328125) (with Claudia Tordini and Richard S. Franklin of Appanage) 50: [How Women in Leadership are Shaking Up the Tax & Accounting Landscape](https://www.taxgirl.com/2021/06/22/women-in-leadership-shaking-up-tax-accounting/) (with Kathryn S. Kaminsky of PwC) 51: [Marriage Finances and Matrimonial Law: Family Asset Planning After Divorce](https://www.taxgirl.com/2021/06/29/marriage-finances-matrimonial-law-family-asset-planning-divorce/) (with Mela Garber of Anchin) 52: [Child Tax Credit Explained: 2021 Tax Changes Affecting American Families](https://www.taxgirl.com/2021/07/06/child-tax-credit-explained-2021-tax-changes-affecting-american-families/) (with Elaine Maag of Brookings Institution and Professor Francine Lipman or Boyd School of Law, UNLV) 53: [How Technology in Finance Provides Job Security to Savvy Tax Professionals](https://www.taxgirl.com/2021/07/13/technology-in-finance-job-security/) (with Jody Padar, CPA, of Botkeeper) 54: [Tax Basics on TikTok: How to Grow an Engaging Social Media Following](https://www.taxgirl.com/2021/07/20/tax-basics-grow-social-media-following/) (with Duke Alexander Moore, EA) 55: [What You Need To Know About The G20 & A New Global Minimum Tax Rate](https://www.taxgirl.com/2021/07/27/g20-global-minimum-corporate-tax-rate/) (with Mimi Song of CrossBorder Solutions) 56: [Diversity and Inclusion in Finance & How to Boost Momentum](https://www.taxgirl.com/2021/08/03/diversity-and-inclusion-in-finance-how-to-boost-momentum/) (with Derrick Coleman of Creative Financial Staffing) 57: [Do Billionaires Pay Income Tax? ProPublica’s New Viral Tax Leak](https://www.taxgirl.com/2021/08/10/do-billionaires-pay-income-tax-propublicas-new-viral-tax-leak/?doing_wp_cron=1629121016.5331521034240722656250) (with Steve Rosenthal of Urban-Brookings Tax Policy Center at the Urban Institute) 58: [How To Improve Financial Literacy And Money Management Post-Pandemic](https://www.taxgirl.com/2021/08/17/how-to-improve-financial-literacy-and-money-management-post-pandemic/) (with Jacquette Timmons of Pricing Made Human) 59: [How to Make Sense of the Gig Economy and Self Employment Tax](https://www.taxgirl.com/2021/08/24/how-to-make-sense-of-the-gig-economy-and-self-employment-tax/) (with Sagar Shah, CPA) 60: [The Value of Michael Jackson’s Intellectual Property After His Death](https://www.taxgirl.com/2021/08/31/the-value-of-michael-jacksons-intellectual-property-after-his-death/) (with Scott Weingust and Aaron Stumpf of Stout) 61: [Keeping Up with New Tax Technology Amid the Changing Tax Code](https://www.taxgirl.com/2021/09/07/keeping-up-with-new-tax-technology-amid-the-changing-tax-code/) (with Jerry Musi of RSM US LLP) 62: [Businesses Can Save Big with ERC Pandemic Relief](https://www.taxgirl.com/2021/09/14/businesses-can-save-big-with-erc-pandemic-relief-until-2023/?doing_wp_cron=1633644769.4122960567474365234375) (with Dan Chodan, CPA, of Trout CPA) 63: [Unpacking Britney Spears’ Conservatorship from an Attorney’s Perspective](https://www.taxgirl.com/2021/09/21/unpacking-britney-spears-conservatorship-from-an-attorneys-perspective/) (with attorney Alexandra “Sasha” Golden) 64: [How to Start Your Tax Career: Top Tips from a Senior Tax Reporter](https://www.taxgirl.com/2021/09/28/how-to-start-your-tax-career-top-tips-from-a-senior-tax-reporter/?doing_wp_cron=1633644531.0204939842224121093750) (with Allyson Versprille of Bloomberg Tax) 65: [Small Business Tax Compliance is Simplified with New Intuitive Technology](https://www.taxgirl.com/2021/10/05/small-business-tax-compliance-is-simplified-with-new-intuitive-technology/) (with Sona Akmakjian, CPA, of Avalara) 66: [How to Understand, Mitigate, and Defend Tax Penalties](https://www.taxgirl.com/2021/10/12/how-to-avoid-tax-penalties-and-seek-the-best-tax-advice/?doing_wp_cron=1640713356.2569940090179443359375) (with attorney Andrew Gradman) 67: [State and Local Taxes the New North Star? A Big Shift in the Tax World](https://www.taxgirl.com/2021/10/19/state-and-local-taxes-the-new-north-star-a-big-shift-in-the-tax-world/) (with attorney Jamie Szal of Brann and Isaacson) 68: [Work from Home Benefits & Compliance: Is Remote the New Normal?](https://www.taxgirl.com/2021/10/26/work-from-home-benefits-compliance-is-remote-the-new-normal/) (with Nishant Mittal of Topia) 69: [New Generation of Tax Talent: Young Voices’ Future of Finance](https://www.taxgirl.com/2021/11/02/new-generation-of-tax-talent-young-voices-future-of-finance/) (with two student winners of the 2021 Bloomberg Tax writing competition: Elliot Bramham and Travis Nix) 70: [Work Anywhere Policies Transform the Tax Profession & Attract New Talent](https://www.taxgirl.com/2021/11/09/work-anywhere-policies-transform-the-tax-profession-attract-new-talent/) (with Kathryn Kaminsky of PwC) 71: [How to Beat Burnout & Prioritize Employees’ Health and Wellbeing](https://www.taxgirl.com/2021/11/16/how-to-beat-burnout-prioritize-employees-health-and-wellbeing/) (with Iralma Pozo) 72: [International Tax Competition & the Impact of a Global Minimum Tax](https://www.taxgirl.com/2021/11/23/tax-competitiveness-explained-impact-of-the-oecds-global-tax-minimum/) (with Daniel Bunn of The Tax Foundation) 73: [How to Improve Company Culture Amid the Great Resignation](https://www.taxgirl.com/2021/11/30/how-to-improve-company-culture-amid-the-great-resignation/) (with Jay Steinfeld of blinds.com) 74: [Working Moms & Parents Finding New Support Systems Post Pandemic](https://www.taxgirl.com/2021/12/07/working-moms-parents-finding-new-support-systems-post-pandemic/) (with attorneys Lisa Jerles and Mara of All Before Dinner) 75: [Sin Tax Scandal? The Hidden Underbelly of these Buzzy Excise Taxes](https://www.taxgirl.com/2021/12/14/sin-tax-scandal-the-hidden-underbelly-of-these-buzzy-excise-taxes/) (with Thomas Shohfi of Lally School of Management at Rensselaer Polytechnic Institute) 76: [Fighting Financial Crime with More Transparency after Panama Papers Drama](https://www.taxgirl.com/2021/12/21/fighting-financial-crime-with-more-transparency-after-panama-papers-drama/) (with Daniel Wager of Financial Crime Compliance at LexisNexis Risk Solutions) 77: [IRS Service Problems, Funding, and Returning to “Normal”](https://www.taxgirl.com/2021/12/28/irs-service-problems-funding-and-returning-to-normal/) (with Bill Smith of CBIZ) ****To subscribe to the podcast (it’s free!) using Apple, Spotify, or your favorite listening app,** [**click here**](https://www.taxgirl.com/taxgirl-podcast/podcast-subscription/)**.**** --- ### [Podcast Season 1](https://www.taxgirl.com/taxgirl-podcast/podcast-episode-guide-season-1/) **Published:** August 7, 2020 **Author:** Kelly Phillips Erb **Content:** # **Season One (2020)** 1: [Desperation and Loans in a Time of Crisis](https://www.taxgirl.com/2020/07/12/desperation-and-loans-in-a-time-of-crisis/) (with Rev. Jeff Grant) 2: [Stress During Tax Season](https://www.taxgirl.com/2020/07/20/the-rise-of-stress-during-tax-season/) (with Jeena Cho, Esq.) 3: [Online Businesses & Taxes](https://www.taxgirl.com/2020/07/27/learning-the-burden-or-benefit-of-online-businesses-paying-taxes/) (with Brad Scott) 4: [What You May Not Know About Civil Forfeiture](https://www.taxgirl.com/2020/08/03/civil-forfeiture/) (with Dan Alban, Esq.) 5: [Following The Money: All About IRS-Criminal Investigations](https://www.taxgirl.com/2020/08/10/the-influence-of-the-irs-criminal-investigation-for-taxpayers/) (with former IRS-CI Chief Don Fort) 6: [Let’s Talk About Addiction, Mental Illness & Stigma (Yes, Lawyers Have It, Too)](https://www.taxgirl.com/2020/08/17/suffering-stigma-with-mental-struggles/) (with Brian Cuban, Esq.) 7: [Trademark & The Cost Of Protecting Your Brand](https://www.taxgirl.com/2020/08/24/balancing-cost-with-deductibility-on-intellectual-property/) (with Kelley Keller, Esq.) 8: [What Successful People Have Learned About Money](https://www.taxgirl.com/2020/08/31/fighting-mental-stigmas-on-the-path-to-success/) (with Nicole Lewis-Keeber) 9: [How The Pandemic Has Impacted Job Growth In The Tax & Accounting Fields](https://www.taxgirl.com/2020/09/07/the-pandemic-impact-on-employment-growth/?doing_wp_cron=1599525570.3419380187988281250000) (with Ryan O’Keefe) 10: [The Original Survivor’s Big Win & What Happened When He Was Charged With Tax Evasion](https://www.taxgirl.com/2020/09/14/the-original-survivor-winners-white-collar-criminal-case/?doing_wp_cron=1600119989.6878368854522705078125) (with Richard Hatch) 11: [Being A Minority In The Tax Profession](https://www.taxgirl.com/2020/09/21/being-a-minority-in-the-tax-industry/) (with Eric Pierre, CPA) 12: [Preparing & Managing For A Sandwich Generation Household](https://www.taxgirl.com/2020/09/28/preparing-and-managing-for-a-sandwich-generation-household/?doing_wp_cron=1601645475.4802870750427246093750) (with Victor Medina, Esq.) 13: [What You Need To Know About Cryptocurrency & Tax](https://www.taxgirl.com/2020/10/05/have-confidence-not-conflict-with-cryptocurrency/) (with David Kemmerer of CryptoTrader.tax) 14: [An Offer You Can’t Refuse: A Look At The Mob Museum](https://www.taxgirl.com/2020/10/12/explore-early-irs-criminal-cases-through-the-museum/) (with Geoff Schumacher) 15: [Bookkeeping Is More Than Just Numbers: Understanding Why It Matters](https://www.taxgirl.com/2020/10/19/bracing-your-businesss-bookkeeping/) (with Nicole Davis, CPA) 16: [Understanding The Shifting Sales Tax Laws](https://www.taxgirl.com/2020/10/26/understanding-the-shifting-tax-laws/) (with Scott Peterson of Avalara) 17: [The Basics Of Bankruptcy](https://www.taxgirl.com/2020/11/02/the-unpublished-truths-and-basics-of-bankruptcy/?doing_wp_cron=1604434544.0488309860229492187500) (with Salene Kraemer, Esq.) 18: [What’s Next For Recipients Of The Paycheck Protection Program](https://www.taxgirl.com/2020/11/09/what-is-next-for-recipients-of-the-paycheck-protection-plan/?doing_wp_cron=1605749910.7269148826599121093750) (with Tony Nitti, CPA, of RubinBrown) 19: [How Low-Income Taxpayer Clinics Can Help With Tax Disputes](https://www.taxgirl.com/2020/11/17/tax-dispute-law-assistance-through-the-litc/?doing_wp_cron=1605750087.9934389591217041015625) (with William Schmidt of Kansas Legal Services) 20: [Organizing Tips To Keep Your Life, Business, And Tax Information In Better Shape](https://www.taxgirl.com/2020/11/25/organizing-tips-keep-tax-information-financials-business-office-organization-better/) (with Karen Caccavo) 21: [Everything You Need To Know About Student Loan Repayment & Student Loan Debt](https://www.taxgirl.com/2020/12/01/student-loan-repayment-college-tuition-student-loan-debt-personal-finances/) (with Jay Fleischman, Esq.) 22: [Managing Risk With Tax Insurance: What Is It And How Can It Help?](https://www.taxgirl.com/2020/12/08/tax-insurance-what-is-insurance-when-you-might-need-tax-insurance-and-tax-insurance-premiums-for-businesses/) (with Justin Berutich, Esq.) 23: [PNC Christmas Price Index: The True 12 Days Of Christmas Cost In 2020](https://www.taxgirl.com/2020/12/15/pnc-christmas-price-index-12-days-of-christmas-cost-2020/) (with Amanda Agati of PNC Bank) 24: [Year-End Taxes: What You Should Be Thinking About At The End Of 2020](https://www.taxgirl.com/2020/12/22/year-end-taxes-maximizing-tax-deductions-estate-planning-and-asset-allocation-at-the-end-of-2020/?doing_wp_cron=1610120103.8286550045013427734375) (with Lisa Colletti, Esq.) 25: [What Is FATCA? And Who Should Be Reporting Foreign Accounts On Their Tax Returns?](https://www.taxgirl.com/2020/12/29/what-is-fatca-and-the-fbar-who-should-be-filing-foreign-accounts-on-their-taxes/) (with Matt Lee, Esq.) ****To subscribe to the podcast (it’s free!) using Apple, Spotify, or your favorite listening app,** [**click here**](https://www.taxgirl.com/taxgirl-podcast/podcast-subscription/)**.**** --- ### [Taxgirl Podcast](https://www.taxgirl.com/taxgirl-podcast/) **Published:** June 26, 2020 **Author:** Kelly Phillips Erb **Content:** # Welcome to the Taxgirl podcast! The number of words in the Tax Code is estimated to be one million–about the same length as the entire Harry Potter series. Add in IRS regulations, revenue rulings, and case law and it can be… a lot. And it’s constantly changing: In 2017, the National Taxpayer Advocate reported to Congress that there have been almost 5,900 changes to the tax code since 2001 – an average of more than one a day over that time frame. We all need a little help to sort it out. Each week on the Taxgirl Podcast, I talk to the best in the business. And these aren’t crazy technical dives: they are interesting and easy-to-digest looks at topics that matter to you. It’s all you need to stay ahead on the most important tax issues. You can find and subscribe to the podcast – for free – on taxgirl.com – or on your favorite apps or platforms. ## Podcast Episode Lists You can find a list of episodes here: - [Season One (2020)](https://www.taxgirl.com/taxgirl-podcast/podcast-episode-guide-season-1/ "Season 1") - [Season Two (2021)](https://www.taxgirl.com/taxgirl-podcast/podcast-episode-guide-season-2/ "Season 2") ## Subscriptions & Social You can find out how to subscribe to the podcast [here](https://www.taxgirl.com/taxgirl-podcast/podcast-subscription/). You can follow the podcast on social here: - [Twitter](https://www.twitter.com/taxgirlpodcast) - [Facebook](https://www.facebook.com/TaxgirlPodcast) ## Feedback And I always welcome your feedback! You can reach out to me about the podcast [here](mailto:podcast@taxgirl.com). Thanks for listening to the Taxgirl podcast. *Because paying taxes is painful… but hearing about them shouldn’t be.* --- ## Categories ### [Ask the Taxgirl](https://www.taxgirl.com/category/ask-the-taxgirl/) **Description:** Real tax questions from real readers, answered. Got a question of your own? This is where Taxgirl answers them. --- ### [Careers](https://www.taxgirl.com/category/careers/) **Description:** Career news, advice, opportunities, and conversations about working and building a career in tax, law, accounting, and related fields. --- ### [Charitable Organizations](https://www.taxgirl.com/category/charitable-organizations/) **Description:** Charitable giving, nonprofit tax rules, and what donors and organizations need to know to give (and receive) the right way. --- ### [Collections](https://www.taxgirl.com/category/collections/) **Description:** IRS collections, tax debt, liens, levies, and what to do when you owe the IRS more than you can pay right now. --- ### [Contests and Events](https://www.taxgirl.com/category/contests-and-events/) **Description:** Contests, giveaways, events, appearances, and other opportunities to connect with Taxgirl—online and in person. --- ### [Corporate](https://www.taxgirl.com/category/corporate/) **Description:** Corporate tax news — from filing obligations to policy changes affecting businesses of every size. --- ### [Cryptocurrency](https://www.taxgirl.com/category/cryptocurrency/) **Description:** Crypto and taxes — reporting requirements, IRS enforcement, and what digital asset holders need to know at tax time. --- ### [Education](https://www.taxgirl.com/category/education/) **Description:** Tax breaks, credits, and rules for students, parents, and educators — everything about taxes and paying for school. --- ### [Environment](https://www.taxgirl.com/category/environment/) **Description:** Green tax credits, environmental policy, and how sustainability and climate initiatives show up in the tax code. --- ### [Estate and Gift Tax](https://www.taxgirl.com/category/estate-gift/) **Description:** Estate planning, gift tax rules, and everything that happens when wealth passes from one generation (or person) to the next. --- ### [Families and Tax](https://www.taxgirl.com/category/families-tax/) **Description:** Tax issues affecting families, including children, education, marriage, divorce, caregiving, homeownership, estate planning, and other family-related tax considerations. --- ### [Fix the Tax Code Friday](https://www.taxgirl.com/category/fix-the-tax-code-friday/) --- ### [Getting to Know You Tuesday](https://www.taxgirl.com/category/getting-to-know-you-tuesday/) **Description:** A recurring series getting a little more personal — behind-the-scenes looks at Taxgirl and the people in the tax world. --- ### [Government and Federal Agencies](https://www.taxgirl.com/category/governmentfederal-agencies/) **Description:** Coverage of the IRS, Treasury, and other federal agencies — policy shifts, leadership changes, and how they affect taxpayers. --- ### [Healthcare](https://www.taxgirl.com/category/healthcare-2/) **Description:** Tax rules around healthcare — insurance mandates, medical deductions, HSAs, and how healthcare policy shows up on your tax return. --- ### [History](https://www.taxgirl.com/category/history/) **Description:** A look back at tax law, IRS history, and the stories behind how we got the tax system we have today. --- ### [ID Theft and Scams](https://www.taxgirl.com/category/id-theft-scams/) **Description:** Tax scams, identity theft, and fraud schemes to watch out for — how they work, how to spot them, and how to protect yourself. --- ### [Individual](https://www.taxgirl.com/category/individual/) **Description:** Tax news and guidance for individual taxpayers — filing tips, deductions, refunds, and everything else that hits your personal return. --- ### [International](https://www.taxgirl.com/category/international/) **Description:** Cross-border tax issues, expat filing rules, and international tax policy — because taxes don’t stop at the U.S. border. --- ### [Interviews and People](https://www.taxgirl.com/category/interviewspeople/) **Description:** Conversations and profiles — interviews with tax professionals, newsmakers, and the people shaping the world of tax. --- ### [IRS News](https://www.taxgirl.com/category/irs-newsannouncements/) **Description:** The latest straight from the IRS — new rules, deadlines, guidance, and announcements explained in plain English. --- ### [Just for Fun](https://www.taxgirl.com/category/just-for-fun/) **Description:** Tax history, trivia, and the lighter side of the tax world — because even tax law can be entertaining sometimes. --- ### [Law School](https://www.taxgirl.com/category/law-school-stuff/) **Description:** Tax law from an academic angle — law school life, legal education, and the path to becoming a tax attorney. --- ### [Military](https://www.taxgirl.com/category/military/) **Description:** Tax rules and benefits for service members and veterans — deployment, combat pay, and military-specific tax breaks. --- ### [Podcast](https://www.taxgirl.com/category/taxgirlpodcast/) **Description:** Episodes, updates, and news from the Taxgirl podcast — tax talk in audio form. --- ### [Politics](https://www.taxgirl.com/category/politics/) **Description:** Where tax policy meets politics — legislation, elections, and the debates in Washington that decide how (and how much) you’re taxed. --- ### [Pop culture](https://www.taxgirl.com/category/pop-culture/) **Description:** What movies, music, and celebrity headlines can teach us about taxes — Taxgirl’s take on tax in pop culture and the news. --- ### [Prosecutions, Felonies and Misdemeanors](https://www.taxgirl.com/category/prosecutions-felonies-and-misdemeanors/) **Description:** Tax crime doesn’t pay — coverage of tax fraud, evasion, and financial crime prosecutions, and what they mean for the rest of us. --- ### [Refund](https://www.taxgirl.com/category/refund/) **Description:** Everything about tax refunds — timing, tracking, delays, and what to do if yours isn’t showing up. --- ### [Retirement and Pension](https://www.taxgirl.com/category/retirement-pension/) **Description:** 401(k)s, IRAs, pensions, and Social Security — the tax rules that follow you into retirement and how to plan around them. --- ### [Sales Tax](https://www.taxgirl.com/category/sales-tax/) **Description:** State and local sales tax news — rates, exemptions, and the rules retailers and shoppers need to know. --- ### [Supreme Court](https://www.taxgirl.com/category/scotus/) **Description:** Supreme Court tax cases and rulings — how the nation’s highest court shapes tax law, one decision at a time. --- ### [Site Info](https://www.taxgirl.com/category/site-info/) **Description:** Announcements about Taxgirl — site changes, redesigns, downtime, newsletter updates, and anything else happening behind the scenes. --- ### [Small Business](https://www.taxgirl.com/category/small-or-home-based-business/) **Description:** Tax tips and guidance built for small business owners and the self-employed — deductions, filings, and the stuff that actually applies to you. --- ### [Sports and Tax](https://www.taxgirl.com/category/sports-tax/) **Description:** Where sports and tax law collide — contracts, trades, endorsements, and the tax questions that come with playing (or owning) the game. --- ### [State and Local Tax (SALT)](https://www.taxgirl.com/category/state-local/) **Description:** State and local tax news — from state income tax quirks to property tax fights, because not all tax battles happen in Washington. --- ### [Tax Forms](https://www.taxgirl.com/category/tax-forms/) **Description:** Breaking down IRS forms line by line — what they mean, who needs them, and how to fill them out right. --- ### [Tax Policy](https://www.taxgirl.com/category/tax-policy/) **Description:** Deep dives into tax policy — the laws, proposals, and reforms shaping the tax code, explained without the jargon. --- ### [Tax Professionals](https://www.taxgirl.com/category/tax-professionals/) **Description:** News, practice tips, and industry updates for CPAs, enrolled agents, attorneys, and everyone else working in tax professionally. --- ### [Tax Stats](https://www.taxgirl.com/category/tax-stats/) **Description:** Numbers that tell the story — IRS data, filing statistics, and what the figures reveal about taxes in America. --- ### [Taxes From A to Z®](https://www.taxgirl.com/category/taxes-from-a-to-z/) **Description:** Taxgirl’s own Taxes From A to Z® series — breaking down tax concepts and terms one letter at a time, in plain English. --- ### [Taxes of the Rich and (In)famous](https://www.taxgirl.com/category/taxes-of-the-rich-and-infamous/) **Description:** Celebrity tax troubles, high-profile scandals, and what the ultra-wealthy get away with — or don’t — when it comes to taxes. --- ### [Technology](https://www.taxgirl.com/category/technology/) **Description:** Tech meets tax — from IRS digital tools to crypto, AI, and the tech trends reshaping how taxes get filed and enforced. --- ### [Freelancers and Creators](https://www.taxgirl.com/category/freelancers-independent-contractors/) **Description:** Tax news, rules, and practical guidance for freelancers, creators, gig workers, independent contractors, and other self-employed taxpayers. --- ### [Payroll Taxes](https://www.taxgirl.com/category/payroll-taxes/) **Description:** Tax news, rules, and practical guidance on payroll taxes, including withholding, employment taxes, reporting requirements, and employer responsibilities. --- ### [Investing](https://www.taxgirl.com/category/investing/) **Description:** Tax news, rules, and practical guidance for investors, including capital gains and losses, stocks, real estate, retirement accounts, and other investments. --- ### [Law and the Courts](https://www.taxgirl.com/category/law-and-the-courts/) **Description:** Tax cases, court decisions, legal developments, and analysis of the laws and rulings that shape the tax world. --- ### [You Be the Tax Judge](https://www.taxgirl.com/category/you-be-the-tax-judge/) **Description:** Think you know how the court should rule? You Be the Tax Judge gives you the facts from real tax cases, lets you make the call, and then reveals what the court decided. --- ### [Guest Posts](https://www.taxgirl.com/category/guest-posts/) ---