Melissa Nann Burke The Detroit News Published 10:37 p.m. UTC Aug 17, 2018 Washington — Four Michigan tea party groups will share in a $3.5 million class-action settlement reached with the Internal Revenue Service after five years of litigation, according to the lead attorney for the plaintiffs. A judge signed off on the settlement between the IRS and hundreds of tea party groups last week over what the groups said was improper scrutiny and illegal targeting for political purposes during the tax-exemption application process. The IRS has said it made changes so that similar targeting won’t happen in the future. It’s still unclear how much the Michigan groups each would receive. The judge must still rule on a motion for reimbursement of attorneys fee and incentive payments for the five class representatives, said Edward D. Greim, attorney for the class of more than 400 members. Greim said several Michigan groups were part of the class, … [Read more...] about Mich. tea party groups to share IRS scrutiny settlement
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IRS employees to be held accountable for misconduct in new bill: Sen. Enzi
By Henry Fernandez Published August 16, 2018 Politics FOXBusiness Facebook Twitter Comments Print video IRS employees aren’t being held accountable for bad behavior: Sen. Enzi Sen. Mike Enzi (R-Wyo.) discusses why he and Sen. Richard Burr (R-N.C.) introduced two new bills to try to hold IRS employees accountable for bad behavior. Two new bills introduced in the Senate are aimed at ensuring accountability at the Internal Revenue Service (IRS). Continue Reading Below The IRS Accountability Act of 2018 amends the IRS Restructuring and Reform Act of 1998 to allow the removal or transfer of senior executive employees at the agency based on misconduct or performance. “We had people that were rehired after misconduct or poor performance so bad that their folder was marked ‘Do Not Re-Hire,’” Senate Budget Committee Chairman Sen. Mike Enzi (R-Wyo.) told FOX Business’ David Asman on Thursday. Sen. Enzi along with … [Read more...] about IRS employees to be held accountable for misconduct in new bill: Sen. Enzi
IRS proposes rules to govern new small business deduction
NEW YORK — Small business owners have gotten more information about a new tax break many will get, with the IRS issuing proposed regulations that explain the deduction for qualified business income and which company owners can claim it. Some of the new details include how to handle a spouse's income, whether side businesses qualify, and the rules for losses in one or more businesses. Under the new tax law, many owners can deduct 20 percent of their qualified business income, up to a ceiling that's equal to 20 percent of their taxable income minus capital gains. Qualified business income is earned from a company operated as a sole proprietorship, partnership or S corporation. These businesses are known as pass-throughs because the company income "passes through" to owners' 1040 forms, where it is reported to the IRS. Business owners of any kind can get the full 20 percent deduction as long as their taxable income — which includes earnings outside their companies — is … [Read more...] about IRS proposes rules to govern new small business deduction
More Americans may owe the IRS next tax season
By Brittany De Lea Published August 06, 2018 Personal Finance FOXBusiness Facebook Twitter Comments Print video Trump administration looks to cut capital gains taxes Money Map Press' Keith Fitz-Gerald on the Trump administration considering capital gains tax cuts and the state of the markets. Some taxpayers may owe the IRS more than they expect next April, after changes were made to individuals’ tax liabilities via the Tax Cuts and Jobs Act last year. Continue Reading Below According to a simulation conducted by the Government Accountability Office (GAO), which reviewed the revised federal tax withholding tables for 2018 implemented by the IRS and the Treasury Department, 21% of workers are at risk of having their taxes underwithheld – 3 million more than projections based on the old tax code. These taxpayers will owe the IRS money at the end of the year. Only 6% of taxpayers are expected to have wages accurately withheld, … [Read more...] about More Americans may owe the IRS next tax season
So your wife embezzled $500,000 and the IRS wants to tax you
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By Laura Saunders The Wall Street Journal Sun., Aug. 5, 2018 Rick Jacobsen’s wife embezzled nearly $500,000. After her conviction, the Internal Revenue Service asked him to pay more than $100,000 of taxes due on her theft. Yes, embezzled funds are taxable, and Mr. Jacobsen and his wife had filed joint tax returns. But Mr. Jacobsen fought back, arguing his own case before a Tax Court judge. He said he didn’t know about the embezzlement and shouldn’t be forced to pay because he was an “innocent spouse.” In an opinion released last month, he won relief from about $150,000 of tax, interest and penalties. “I’m no angel, but I pay my taxes. I spoke from the heart, and the judge believed me,” says Mr. Jacobsen, who is 54 and currently works at a cheese-processing plant in Plymouth, Wis. Mr. Jacobsen’s odyssey through the tax system shows the perils of signing a joint return with a tax cheat. It also shows that such … [Read more...] about So your wife embezzled $500,000 and the IRS wants to tax you