Tag Archives: IRS

Trump’s tax cuts are coming. But not much for you, unless you’re very rich.

Republicans in Congress say they plan to pass a tax bill in November. While there’s no way to know what’ll be in a final bill, you can go to the Republican starting point to get a sense of what the end is likely to look like. For most Americans–in fact, for just about everyone except the wealthiest among us–the picture isn’t very exciting.

The grandiosely-titled “Unified Framework for Fixing Our Broken Tax Code,” released in September, would cut taxes by an average of about 1.2% for 95% of the population (everyone with income of up to about $300,000), according to an analysis by the Urban-Brookings Tax Policy Center, which is the go-to source for this stuff.

But that’s just an average; not everyone would get a tax cut. For example, about one of every three taxpayers making $150,000-$300,000 would actually see their taxes increase, mostly because of the loss of itemized deductions such as state income taxes and local property taxes.

If you’re in the top 1%, the outlook is radically different. About half of the total tax cut will go to the top 1%; their bills would be cut by an average of $146,000, according to the Tax Policy Center.

And for the top one-tenth of one percent (people making more than $3.5 million): Say Hello to an average tax cut of $747,000.

The tax breaks also shrink over time for everyone except the top 1%, as The New York Times points out here .

IRS excels at beaurocratese when it screws up

If you sent in an employment tax payment at the April 18 deadline, you did what you were supposed to.  But the IRS sent out notices to many filers that the deposits were late. How did the IRS characterize its own screw-up?  Like this: “Many taxpayers who made employment tax deposits on Monday, April 18,… Continue Reading

ObamaCare tax prep requirements are catching subsidy recipients unaware

The Affordable Care Act made preparing and filing tax returns even more complicated last year (I know, you’d think that wasn’t possible) because of the gymnastics involved in running health insurance subsidies and credits through the tax code. Now we’re learning that thousands of people might lose their health insurance subsidies because they didn’t file… Continue Reading

Hastert and FIFA cases prove the oldest rule in the book: Follow the money!

What does Dennis Hastert’s indictment on apparently Very Very Bad Horrible Terrible Behavior (kudos to Kaili Joy Gray of Wonkette) and the FIFA bribery and kickback scandal (New York Times version here) have in common? They both in part involve people charged with trying to hide or disguise transfers of money—something that is of tremendous… Continue Reading

Is that friendly tax pro really an undercover federal agent?

Today’s nominee for Stuff You Just Cannot Make Up: The New York Times reports that officers from more than three dozen agencies have posed as business people, welfare recipients, political protesters and–yes–even tax professionals, as part of undercover investigations. “At the Internal Revenue Service, dozens of undercover agents chase suspected tax evaders worldwide, by posing… Continue Reading

“The Situation” is in a not-so-good tax situation

Did you know that “Jersey Shore” reality show personality Michael Sorrentino, aka “The Situation”, and his brother Marc, grossed almost $9 million in a variety of ventures over four years? Me neither, until I read the U.S. District Court indictment, reported inThe New York Times,charging the brothers with conspiracy and filing false tax returns. Michael… Continue Reading