Department of Justice explains why it thinks Treasury can refuse to turn over Trump’s tax returns. In a 33-page memo, the Department of Justice argues that House Ways & Means Chair Richard Neal’s request for the returns was based political motivations and a desire to make President Trump’s tax returns public. Neal likely will file a lawsuit soon to compel Treasury to abide by his request.
Treasury releases final GILTI regs. The department released its long-awaited guidance on the global minimum tax provisions of the Tax Cuts and Jobs Act. The regs provide some relief for some high-taxed income of US multinationals that is hit by the GILTI.
Tune in Thursday for the IRS/TPC Research Conference on Tax Administration. The IRS and TPC will hold their 9th annual conference on tax administration. Researchers from the IRS, other government agencies, academia, and private organizations will discuss some of the latest analyses of ways to make tax administration as effective as possible. Space is limited, but the presentations and discussions will be live streamed here.
On the Hill this week. On Wednesday, the House Ways & Means Oversight Subcommittee will hold a hearing on ending a TCJA tax on some fringe benefits of tax-exempt organization employees. Democrats are likely to propose repealing the tax. The House Financial Services Subcommittee on National Security, International Development and Monetary Policy will hold a hearing on the economic impact of recent tax and trade policies.
Corporate tax revenue fell far more than initially expected. Treasury reported a 31 percent drop in corporate tax revenue in the first year of the TCJA, nearly twice as much as forecast. Corporate taxes are now at their lowest level in 50 years. For more on the TCJA and corporate taxation, watch the webcast of this TPC event here.
Will Maine’s cities and towns be able to collect sales tax on meals and lodging? The Maine Senate rejected a proposal to allow cities and towns to impose a voter-approved 1 percent tax on meals and lodging. The Maine House has countered with a proposal to allow the levy on lodging only. City officials complain they must rely on property tax revenue alone.
Wisconsin’s Senate budget committee approves $450 million in new individual income tax cuts. The GOP-led panel estimates that the cuts will save an average taxpayer $75 this year and $136 in 2020. The income tax reduction is smaller than the one proposed by Democratic Governor Tony Evers, but unlike Evers, the GOP version would not pay for the cuts by raising taxes on large manufacturers or closing other corporate tax loopholes.
Arizona’s sales tax tracking system wasn’t. The Arizona Auditor General finds that the state’s Department of Revenue failed to identify many businesses that owe sales taxes and erased active businesses from its tracking system. The Department of Revenue’s online portal reportedly is difficult to navigate and staff cuts in the department have resulted in fewer audits. The department agrees with the findings and is working to correct issues.
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