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A new Bloomberg News/Morning Consult poll reveals that 69% of registered voters in seven swing states support higher taxes on billionaires and higher income taxes on individuals earning over $400,000 a year. This widespread support for taxing the rich is seen across party lines, with 58% of Republicans, 83% of Democrats, and 66% of independents approving the idea. The preference for taxing billionaires has grown from a fringe idea to a centerpiece of President Joe Biden's economic policy, which also includes raising the current 21% corporate rate. However, despite this support, swing state voters trust former President Donald Trump more to handle tax policy. The poll also found that half of swing state voters like Mr. Trump's idea of imposing tariffs on imports. The support for populist-inspired tax policy could impact debates in Congress next year, particularly regarding the extension of Mr. Trump's tax cuts. Additionally, increasing the cap on state and local tax (SALT) deductions is likely to be a key tension point in Congress.

 

Accounting Today

CPA Practice Advisor

The budget passed by Congress over the weekend officially rescinds $20bn in long-term spending for the IRS, reducing federal revenues and increasing the cumulative deficit. The Further Consolidated Appropriations Act, 2024 includes the previously agreed-upon cut of $20.2bn from the $80bn allocated for Congress over 10 years. Former IRS Commissioner Charles Rettig noted that the entire $20bn is being taken from the approximately $45bn appropriated for compliance efforts. The budget agreement also prohibits any transfer of funds to enforcement. The IRS has used Inflation Reduction Act enforcement dollars to focus on high-income groups and collect taxes owed by millionaires. John Kelshaw, an enrolled agent, said $60bn is "a great amount of money . . . It's just not as good as $80bn." Doreen Greenwald, president of the National Treasury Employees Union, said the $20bn rescission was disappointing but expected.

 

Journal of Accountancy

The IRS has released an updated version of its whistleblower award form, allowing individuals to report tax violations and potentially receive a monetary reward. The revised Form 211, titled "Application for Award for Original Information," is now available for submission. The IRS Whistleblower Office will continue to accept the previous version of the form for 60 days before requiring the use of the updated form. The award amount, typically ranging from 15% to 30% of the collected proceeds, depends on various factors. Payments are made once all appeal rights have been exhausted.

 

Accounting Today

Maryland could become the first state to adopt worldwide combined reporting for corporate taxes if a House Delegates proposal passes muster among the Senate's leadership ranks. The House spending package includes a provision mandating the reporting system for multinational companies, favoring a worldwide system to prevent profit shifting. However, Senate President Bill Ferguson has expressed skepticism about the bill.

 

Bloomberg Tax

Utah Gov. Spencer Cox has signed a law amending property tax refund procedures, requiring counties to issue warranted tax refunds to taxpayers after an appeal to the county's board of equalization. The law will take effect on May 1st 2024.

 

Bloomberg Tax

Elizabeth Askey has been appointed as the acting chief of the IRS Independent Office of Appeals, taking over from Andrew Keyso who is retiring after 33 years at the agency. Ms. Askey, who has been serving as the deputy chief, joined the IRS in 2022 and has nearly 30 years of experience in private practice. The IRS Independent Office of Appeals is responsible for helping taxpayers resolve tax controversies without litigation. Speaking on Monday at a Practising Law Institute event, Ms. Askey said the appeals office is considering trying out some new approaches to alternative dispute resolution before the end of the year.

 

Bloomberg Tax

Bloomberg Tax

U.S. home prices rose at their fastest rate since 2022 to a fresh record high in January. The S&P CoreLogic Case-Shiller U.S. National Home Price index rose 6%, accelerating from a 5.6% annual increase in December. A measure of values in 20 cities was up 6.6% in January from a year earlier, compared with a 6.2% gain in the previous month. San Diego led those cities with an 11.2% increase, while prices in Los Angeles were up 8.6%. “Homeowners most likely saw healthy gains in the last year, no matter what city you were in, or if it was in an expensive or inexpensive neighborhood,” Brian Luke, head of commodities, real and digital assets at S&P Dow Jones Indices, said in a statement. “No matter which way you slice it, the index performance closely resembled the broad market.”

 

CNN

Bloomberg

Hunter Biden is seeking the dismissal of a criminal case accusing him of evading $1.4m in taxes. His lawyers argue that the charges were politically motivated due to Republican lawmakers investigating President Joe Biden, his father. The trial is set to begin in June, just months before the November presidential election. Hunter Biden, who has pleaded not guilty, also faces a separate criminal case in Delaware over the alleged purchase of a handgun while using illegal drugs. Special Counsel David Weiss, who brought both cases, has accused Hunter Biden's legal team of spreading conspiracy theories. The tax indictment also sheds light on Hunter Biden's foreign business dealings, which are under investigation by Republicans in the House of Representatives. Hunter Biden's defense team is challenging Weiss's appointment as special counsel and arguing that the case is barred by an earlier plea deal.

 

US News and World Report

Texas Attorney General Ken Paxton has reached a settlement to resolve securities fraud charges that were brought against him nearly a decade ago. Mr. Paxton was indicted in 2015 on charges related to stock sales and compensation from a Texas technology firm. Under the deal, the state will drop the charges in 18 months if he pays restitution to investors, completes community service and legal education. Mr. Paxton's lawyer stated that the case has been pending for a long time and it was time to move on. This settlement is being seen as another victory for Mr. Paxton, who has faced corruption allegations since taking office in 2014. The SEC had also sued him for promoting stock without disclosing payments, but the case was dismissed in 2017.

 

The Baltimore Sun

Reuters

U.S. News

Visa and Mastercard have reached a settlement with U.S. merchants regarding swipe fees, potentially saving American shoppers tens of billions of dollars. The settlement caps the credit interchange fees until 2030 and requires the companies to negotiate fees with merchant buying groups. The pact would lower all rates, which average out at around 2%, by 0.04 percentage point for three years, and the average rate across the networks would be lowered by 0.07 percentage point for five years. It is estimated that the savings in swipe fees could amount to around $30bn. The settlement stems from a 2005 lawsuit that alleged merchants paid excessive fees to accept Visa and MasterCard credit cards, and that the companies and their member banks violated antitrust laws. Visa has stated that over 90% of the merchants involved in the settlement are small businesses, with $15m of the settlement allocated for merchant education. The settlement is subject to final approval by the Eastern District Court of New York.

 

CNN

New York Times

The Oregonian

Wall Street Journal

U.S. consumer confidence remains steady despite concerns about high prices and a less optimistic short-term future, according to the Conference Board, whose consumer confidence index dipped slightly to 104.7 in March from 104.8 in February. Economists polled by Reuters had forecast the index rising to 107 from the previously reported 106.7. Americans' short-term expectations for income, business, and the job market fell to 73.8, indicating a potential recession. However, consumers' view of current conditions improved. As consumer spending accounts for about 70% of U.S. economic activity, economists closely monitor consumer behavior to gauge the broader economy. "Recession fears continued to trend downward", said Dana Peterson, chief economist at the Conference Board in Washington. "Meanwhile, consumers expressed more concern about the U.S. political environment compared to prior months."

 

Reuters

US News and World Report

Italy's Economy Minister, Giancarlo Giorgetti, says Italy may maintain and revise its domestic digital services tax if the international deal on taxing rights for large corporations falls through. The global minimum tax agreement aims to reallocate taxing rights on around $200bn in profits from U.S.-based digital giants to the countries where they operate. However, political-electoral dynamics in some major countries, particularly the United States, have made the talks increasingly problematic. Italy, as president of the Group of Seven major democracies, is attempting to revive the negotiations. If a multilateral deal proves impossible, Italy will consider retaining and modifying its own digital tax, taking into account the framework of international relations. Italy's 2019 budget introduced a 3% levy on revenue from internet transactions for digital companies with sales of at least €750m. Italy raised approximately €390m in 2022 through this scheme. In the event of the talks collapsing, Italy could strengthen its tax by expanding the number of companies subject to it, pending an agreement with the United States. Retaliatory tariffs from the U.S. on unilateral digital services taxes in Europe are currently frozen until June under a trade truce.

 

Reuters

Shohei Ohtani, the star player for the Los Angeles Dodgers, has vehemently denied gambling allegations that led to the firing of Ippei Mizuhara, his friend and interpreter. The IRS is currently investigating Mr. Mizuhara, and alleged bookmaker Matthew Bowyer, for criminal activities. Mr Ohtani expressed shock and sadness over the situation, stating that he had no knowledge of his interpreter's gambling problem. Ohtani clarified that he never agreed to pay off any debts or make payments to the bookmaker. The matter has been turned over to the authorities for further investigation.

 

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