Tax Refund

IRS says “name, image, and likeness” (NIL) collectives can’t be structured as charities. The Wall Street Journal reports (paywall) on charitable collectives, which have grown in the wake of the NCAA’s 2021 rule that allows college athletes to sign endorsement deals that use NILs. Some collectives have claimed charitable status to solicit tax-deductible donations from wealthy boosters of athletes. Under the structure, a wealthy donor could give $100,000 and save $37,000 in federal taxes. The IRS finds that collectives often provide too much private benefit to individuals to be a recognized charitable class. 

Manchin says Treasury oversteps authority with clean energy vehicle credit. In a letter to the department, Sen. Joe Manchin (D-WV), Chair of the Senate Energy and Natural Resources Committee, said Treasury’s proposed regulations on critical mineral requirements for the new clean energy vehicle tax credit have “seriously misconstrued the plain language and clear purpose” of the law. He argues that “Treasury has no such power” to substitute its approach to mineral requirements for that of Congress.  

The tax season is smoother than last year, but there are fewer filers. TPC’s Robert Weinberger shares the takeaways from the 2023 tax season. The season is calmer thanks to improved telephone service and reduced backlogs in return processing and correspondence. But the number of returns filed declined by 1.9 percent through April 28, largely because of the expiration of COVID-19-related tax breaks and natural disasters that affected large swaths of the country. Without the new or enhanced tax credits available in 2020 and 2021, lower-income households have less reason to file.

Could a boost in the standard deduction kill the mortgage and charitable deductions? TPC’s Howard Gleckman and Rob McClelland consider the question, given a proposal by House Republicans to temporarily increase the standard deduction as an inflation-fighting tool. Howard shows that the bill would not likely slow inflation, but it could have one unintended and beneficial consequence. “By accelerating the recent trend of making itemized deductions useless for the vast majority of households, it may encourage more lawmakers to ask themselves, ‘Why even keep them?’”

A plan to repeal Wisconsin’s personal property tax. Wisconsin’s Democratic Gov. Tony Evers and Republican-led legislature announced an agreement to repeal the personal property tax. The bill to repeal the tax does not include a mechanism to reimburse municipal governments for lost revenue, but a provision in the state budget and money set aside in the last budget would cover those costs. 


For the latest tax news, subscribe to the Tax Policy Center’s Daily Deduction. Sign up here to have it delivered to your inbox weekdays at 8:00 am (Mondays only when Congress is in recess). We welcome tips on new research or other news. Email Renu Zaretsky at [email protected].

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