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On Monday, the Republican-led House Ways and Means Committee unveiled a tax plan that lifts the state and local tax (SALT) deduction, ends some taxes on tipped income and overtime pay and extends President Donald Trump’s 2017 tax cuts beyond their scheduled December 31st expiry date, partially paid for by rolling back tax breaks for electric cars and clean-energy production. The plan, which senior Ways and Means member Rep. Vern Buchanan (R-FL) described as "a pro-growth, pro-family, America First bill that prioritizes Main Street over Wall Street," would eliminate a credit for purchasing new EVs, phase out between 2029 and 2031 credits for producing renewable energy, create a 5% excise tax on certain payments to residents of foreign countries, raise the SALT cap from $10,000 to $30,000, albeit with income limits in place, temporarily boost the standard deduction and child tax credit while also expanding tax cuts for estates and owners of closely held businesses, and create a new tax preferred savings account for children, dubbed "MAGA - Money Account for Growth and Advancement." Seniors would get an additional $4,000 standard deduction, on top of the existing standard deduction, lasting from 2025 through to 2028, and phasing out once income reaches $75,000 for individuals and $150,000 for married couples. The panel will meet today to consider the tax plan, which is expected to advance easily and get folded into Mr. Trump’s “one big beautiful bill.” 

 

Accounting Today

CPA Practice Advisor

US News and World Report

Wall Street Journal

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The IRS has been authorized to share tax data with Immigration and Customs Enforcement (ICE) following a federal judge's ruling. U.S. District Judge Dabney Friedrich denied a preliminary injunction sought by nonprofit groups, asserting that undocumented immigrants who pay taxes do not have the same privacy protections as U.S. citizens. Alan Butler Morrison, representing the plaintiffs, expressed disappointment but noted: "The case is far from over." The agreement is part of the Trump administration's broader immigration enforcement strategy, which has faced criticism for violating privacy laws. Friedrich clarified that the IRS can only disclose information that assists in criminal investigations, emphasizing that taxpayer identities remain protected.

 

The Baltimore Sun

NPR / National Public Radio

Jon Voight and Sylvester Stallone, along with major Hollywood unions and trade groups, have sent a letter to President Donald Trump advocating for tax measures to boost film and TV production in the U.S. The letter emphasizes that "returning more production to the United States will require a national approach and broad-based policy solutions.” The groups support Mr. Trump's proposal for a 15% corporate tax rate for domestic manufacturing, referencing the expired Section 199 of the federal tax code, which previously allowed film and TV productions to qualify for tax deductions. They also request the extension of Section 181 and increased caps on tax-deductible production expenditures to enhance financial stability for production companies. Amidst rising competition from states like New York, which recently increased its film tax credit, California is urged to enhance its own incentives to retain productions.

 

Bloomberg Tax

Los Angeles Times

U.S. News

The IRS has not met the Payment Integrity Information Act's goal of reducing improper payment rates to below 10%, according to a recent TIGTA report, which revealed that improper payments for four refundable tax credits totaled $21.4bn in fiscal year 2024. The rates for these credits were notably high, with the Net Premium Tax Credit at 29% and the American Opportunity Tax Credit at 28%. The report attributes these errors to complex eligibility rules and challenges in verifying taxpayer information. "For example, when there are taxpayers who claim the same dependent, the IRS cannot determine which taxpayer is eligible," the report said. TIGTA recommended that the IRS seek legislative changes to mitigate these issues, which the IRS has agreed to consider. IRS chief financial officer Teresa Hunter emphasized the importance of these credits for eligible taxpayers while acknowledging the complexities involved in their administration.

 

Accounting Today

The FASB has released an Accounting Standards Update (ASU) aimed at enhancing the identification of the accounting acquirer in FASB ASC Topic 805, Business Combinations. Effective for annual reporting periods starting after December 15th 2026, the ASU allows for early adoption. The update revises guidance for determining the accounting acquirer in transactions primarily involving equity interest exchanges, particularly when the legal acquiree is a variable-interest entity that qualifies as a business. According to the news release, "the determination of the accounting acquirer can significantly affect the carrying amounts of the combined entity's assets and liabilities." The amendments require entities to consider the same factors currently used in other acquisition transactions.

 

Accounting Today

CPA Practice Advisor

Journal of Accountancy

The U.S. government posted a $258bn budget surplus for April, up 23%, or about $49bn, from a year earlier. The Treasury Department attributed the increase to strong tax receipts in the final month of the tax season and record collections of import duties. Treasury reported a $1.049tn budget deficit for the first seven months of fiscal 2025, which started October 1st, up 23%, or $194bn, from a year earlier. Fiscal year-to-date receipts of $3.110tn and outlays of $4.159tn were both records for the year through April, though the deficit itself was not, a Treasury official said.

 

Reuters

Fidelity's trading platforms experienced significant login issues on Monday morning, preventing users from accessing their accounts just as U.S. stock markets began to rally following positive news on U.S.-China trade talks. Thousands of users reported difficulties, leading to frustration as the Standard & Poor's 500 index rose over 2.5%. In response, Fidelity acknowledged the problems on Reddit, saying: "We are working urgently on resolving the issues," while declining to provide further comments.

 

Reuters

Planta, the plant-based restaurant chain founded in 2016 by Steven Salm, has filed for Chapter 11 bankruptcy protection, citing a need to cut costs as U.S. consumers dine out less. The company's parent, CHG US Holdings, along with 17 affiliates, filed for protection in Wilmington, Delaware. Planta said that it views this reorganization as a "strategic opportunity to streamline our cost structure and strengthen our balance sheet." The trend of restaurant bankruptcies continues, with several chains like Red Lobster and TGI Fridays also facing financial difficulties as consumers reduce discretionary spending.

 

Reuters

Texas has reached a settlement with Google for $1.375bn over allegations of data privacy violations, according to Attorney General Ken Paxton. The settlement addresses two lawsuits related to Google's tracking of users' movements, private searches, and biometric data without proper consent, although Google did not admit any wrongdoing. Paxton observed: "In Texas, Big Tech is not above the law," as he highlighted the state's commitment to protecting consumer privacy rights.

 

Reuters

A California bill could prohibit lawyers from sharing fees with non-lawyer-owned firms, countering Arizona's alternative business structure reforms which opened up the sector to competition from private equity and accounting firms.

 

Financial Times

Paul Atkins, chair of the SEC, has announced plans to reform the agency's cryptocurrency policies. The framework aims to clarify the rules for the issuance, custody, and trading of crypto assets while discouraging illegal activities. Atkins, who took office last month, stressed the need for a solid foundation for digital assets, distancing the SEC from political influences. The SEC's new leadership is also reconsidering ongoing legal actions against crypto firms, including Coinbase and Kraken.

 

Bloomberg

Reuters

National Tax Service (NTS) Commissioner Kang Min-su introduced Korea’s advanced system using artificial intelligence (AI) to counter tax evasion at a meeting of mostly Latin American tax officials at the 59th general assembly of the Inter-American Center of Tax Administrations (CIAT) in Santiago, Chile. Kang highlighted extensive efforts by Korea to grow a secure and reliable electronic tax administration, large enough to amass big data, and which could be used as a resource for an AI system aimed at identifying attempts to evade taxes.

 

Korea Times