Tax Breaks newsletter took a look back at some tax history intertwined with Labor Day celebrations. It highlighted wartime tax resistance during World War II and President Roosevelt’s veto of the Revenue Act of 1943. The IRS’s Digital First Initiative aimed to modernize taxpayer services by porting COBOL and Assembly code into Java to reduce operational costs. Additionally, the Voluntary Disclosure Practice allowed taxpayers to disclose their willful conduct in exchange for no criminal prosecution, but the program underwent changes in 2024.
A notable criminal tax case involving Hunter Biden, the son of President Joe Biden, resulted in an unexpected guilty plea to federal tax charges through an Alford plea, maintaining innocence while acknowledging guilt. Great records were emphasized in a recent U.S. Tax Court case where a lack of substantiation led to disallowed business expenses. A homicide investigation in San Diego unraveled a massive Covid fraud scheme involving potential tax refund fraud by gang members exploited a drafting error on IRS Form 7202.
There was a reader question on the difference between the federal deficit and debt, highlighting how deficits represent yearly shortfalls while debt accumulates over time from multiple deficits. Congress returning from a five-week break faced issues like the Tax Relief for American Families and Workers Act and a potential government shutdown. The newsletter also featured updates on tax filings and deadlines, upcoming tax conferences and events, as well as positions and guidance from the IRS.
Noteworthy industry news included reports on the AICPA & CIMA Economic Outlook Survey, changes in law firms’ partnerships, and new hires in tax practices. PwC’s announcement of tracking UK employees’ office presence sparked interest. The latest issue also included trivia on the origin of a Las Vegas casino’s name, with the answer being Flamingo, inspired by gangster Bugsy Siegel’s girlfriend, Virginia Hill. Feedback on the newsletter was welcomed for future improvements.
