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Treasury Department and IRS officials are predicting a decrease of more than 10% in tax receipts by the April 15th deadline compared with 2024, said sources who spoke on the condition of anonymity to share nonpublic data. That would amount to more than $500bn in lost federal revenues. The prediction, officials say, is directly tied to changing taxpayer behavior and President Donald Trump’s actions to reduce staff at the agency. Senior tax agency officials issued detailed warnings about those outcomes to the incoming Trump administration before the president took office. The IRS has dropped investigations of high-value corporations and taxpayers, according to several agency employees involved in those inquiries, because it’s had to triage resources to keep internal systems operating. Two agency commissioners have resigned since Trump took office. The IRS’s head of compliance, Heather Maloy, stepped down effective Friday. A Treasury Department spokesperson described the claims as "sensational and baseless," adding that they "should be dismissed out of hand."

 

CNBC	Washington Post

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Sam Corcos, founder and chief executive of health technology firm Levels, and a member of the Elon Musk-led Department of Government Efficiency, says he has canceled contracts worth around $1.5bn from the IRS's budget. "I think we've so far stopped work and cut about $1.5bn from the modernization budget, mostly projects that were putting us down this death spiral of complexity in our code base," said Corcos, who serves as a special adviser to the Treasury. That's from an annual modernization budget of about $3.7bn, which is in addition to a $3.5bn information technology systems budget, he added.

 

Reuters

Des Moines is proposing to maintain its property tax levy rate at $16.61 per $1,000 of taxable property value for the sixth consecutive year. A public hearing is scheduled for this morning at Des Moines City Hall, allowing residents to voice their opinions on the proposed levy for fiscal year 2026. The city is facing a $17m deficit, attributed to a state-mandated cap on property tax revenue growth and rising service costs. City Manager Scott Sanders has suggested potential service cuts, including the closure of Birdland Pool, which was reversed after public outcry. The local option sales tax, implemented in July 2019, has helped keep the levy rate stable. The property tax bills are influenced by various factors, including assessed property values and the rollback rate, which has dropped to 46.3428% this year.

 

Des Moines Register

Maryland Gov. Wes Moore has reached an agreement on a state budget framework with Democratic leaders to tackle a $3.3bn deficit for the upcoming fiscal year. The plan includes tax increases, such as a new 3% tax on information technology services and a new income tax bracket for those earning over $750,000. Moore stated, “We’ve spoken to Marylanders at all income levels about this plan,” emphasizing that 94% of residents will either see tax cuts or no changes. The budget also proposes $2.3bn in cuts, the most significant in 16 years, although details remain sparse. Lawmakers must finalize a balanced budget by April 7, with Moore expressing optimism about the framework guiding the final bill.

 

U.S. News

The tax debate in Olympia has commenced, with Washington state Senate Democrats proposing significant tax reforms aimed at generating approximately $17bn in new revenue over the next two budget cycles. Senate Majority Leader Jamie Pedersen stated, “This proposal reflects what we've heard from our communities: the wealthiest few should share more of the responsibility of investing in public schools and the services people need.” Key proposals include increasing property tax growth, implementing a 5% business tax on large employers, and introducing a wealth tax on individuals with assets exceeding $50m. While some support the plan, others, including Republican Sen. Chris Gildon, criticize it as regressive. The House is expected to present its own tax package soon, with negotiations on the final budget set to conclude by April 27th.

 

The Columbian

The Treasury Department's Financial Crimes Enforcement Network (FinCEN) issued an interim final rule Friday removing the requirement under the Corporate Transparency Act for U.S. companies and people to report beneficial ownership information to FinCEN. The definition of "reporting company" has been revised to mean only those entities that are formed under the law of a foreign country and that have registered to do business in any U.S. state or tribal jurisdiction by the filing of a document with a secretary of state or similar office (formerly known as "foreign reporting companies"). FinCEN also exempts entities previously known as "domestic reporting companies" from BOI reporting requirements.

 

Accounting Today

A new report from the Federal Reserve Bank of Philadelphia said regional manufacturing activity expanded overall but was less widespread in the month of March. Its diffusion index for current general activity slid to 12.5 in March after plunging to 18.1 in February, although a positive reading still indicates growth. Economists had expected the index to slump to 8.5. The diffusion index for current general activity continued to give back ground after skyrocketing to its highest level since April 2021 in January. The new orders index tumbled to 8.7 in March from 21.9 in February, while the shipments index plummeted to 2.0 in March from 26.3 in February.

 

RTT News

Tether, the creator of the world's largest stablecoin, is "engaging with a Big Four accounting firm" as it pursues an audit of its reserves. Chief executive Paolo Ardoino said: "It's our top priority." Currently, Tether provides quarterly reports but lacks a full audit, which would enhance transparency. Mr. Ardoino said that President Donald Trump's supportive stance on cryptocurrency could facilitate the audit process.

 

Reuters

Apave Group has acquired French carbon accounting firm Aktio to enhance its sustainability and decarbonization expertise. Founded in 2020, Aktio specializes in climate consulting and offers software solutions for companies transitioning to low-carbon operations. With a team of around 40 experts, Aktio has assisted 500 organizations in their decarbonization efforts. Co-founders Laurent Barbezieux, Alex Huyn, and Thibault Faninger emphasized the urgency of democratizing the low-carbon transition, commenting: “Joining the Apave Group... is an exceptional acceleration opportunity for Aktio.” This acquisition will bolster Apave's ‘Green & Social' services, aligning with chief executive Philippe Maillard's vision to support clients in achieving sustainable performance objectives.

 

ESG Today

More states are passing or weighing laws that require employers to offer paid medical or sick leave. Voters in Missouri, Nebraska and Alaska approved paid sick leave laws in November, and at least seven states are considering paid family and medical leave laws this year, according to the National Conference of State Legislatures. Advocates say such laws can lessen financial anxiety and increase employee productivity - although some measures can place stress on smaller employers, which often don’t have a separate human resources department to monitor compliance with mandated leave policies, observes Beth Milito of the National Federation for Independent Business. Meanwhile, experts say the patchwork nature of the laws can be an additional frustration for multi-state employers.

 

The Columbian