Tax news has been anything but slow this summer, with updates on key decisions and enforcement efforts dominating the headlines. The Supreme Court recently ruled on the Moore v. U.S. case, upholding the tax code and sparking reactions from taxpayers and experts alike. Additionally, the IRS announced plans to deny improper high-risk Employee Retention Credit (ERC) claims, with thousands of cases currently under audit. The agency is also cracking down on abusive tax promoters and preparers who have improperly promoted ERC claims.
In light of these developments, the IRS is focusing on hiring to handle the increased workload. The agency is updating its careers website to attract new talent, with a renewed emphasis on enforcement and taxpayer services. Meanwhile, tax professionals are advising individuals to carefully consider the tax consequences of obtaining a U.S. green card or maintaining permanent residency status before making any decisions.
On the personal finance front, the IRS has updated its FAQs on section 127 of the tax code, allowing employers to provide tax-free educational assistance of up to $5,250 to employees. Former President Trump’s proposal to exempt all tips from federal tax has sparked debate, particularly within the service industry where tipped workers may already pay little to no income tax.
As the EURO 2024 tournament captivates fans across the globe, discussions on tax rates and tax policies in participating countries have taken center stage. From estate planning considerations to the impact of digitalization on taxpayer rights, the intersection of taxes and technology continues to evolve. With a new tax technology company launching an AI-powered platform and accounting firm EY partnering with Docusign to offer intelligent agreement management solutions, businesses are adapting to meet the demands of the digital age.
Despite the rapid advancements in tax technology, recent bankruptcy filings by a fintech intermediary underscore the challenges faced by consumers when navigating digital financial services. As the fintech industry grapples with regulatory issues, consumers are reminded of the importance of safeguarding their financial assets in an increasingly digital world. With ongoing updates and developments in the tax landscape, individuals and businesses are urged to stay informed and seek professional guidance to ensure compliance with tax laws and regulations.
