Tax Refund


Prospects for a year-end tax package are… fuzzy. TaxNotes reports on the difficulty in gauging whether a year-end tax package will make it through Congress. Senate tax writers say it’s too soon to tell whether the recent ousting of Rep. Kevin McCarthy (R-CA) as Speaker and the Nov. 17 government funding deadline will affect progress on a tax plan. Given partisan divisions only one thing seems certain: PwC’s Rohit Kumar told TaxNotes of the need to uncover “some element of compromise.”

EV tax credits will be point-of-sale rebates next year. Starting in 2024, consumers who buy or lease a new or used electric or plug-in vehicle will be able to receive an electric vehicle tax credit at the time of purchase. Treasury issued guidance last week on the credits enacted under the Inflation Reduction Act. The near-instant credits of $7,500 for an eligible new vehicle and $4,000 for a qualifying used vehicle will be available to those who meet the credit’s income parameters. Those who receive the credit despite being over the income limit would need to repay the amount when filing their taxes. For new vehicles, the adjusted gross income limit is $300,000 for married couples and $150,000 for individuals.

Former IRS contractor accused of leaking data set to plead guilty this week. Charles Littlejohn faces one count of unauthorized disclosure of tax returns and return information. The felony charge carries a five-year maximum prison sentence. Because so many tax filers’ information was leaked, prosecutors have asked the court for permission to create a public website to notify victims.

IRS places lien on Rudy Giuliani’s property for his tax debt. The former New York City mayor and attorney for former President Donald Trump owes $550,000 in income taxes. The IRS placed the lien on a lakeside condominium in Palm Beach, Florida. 

 

The Daily Deduction will return on October 16.

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