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TIGTA Breaks Down IRS Workforce Reduction as More Cuts Loom The Treasury Inspector General for Tax Administration (TIGTA) reviewed details of workforce reduction efforts taken by the IRS thus far, with more downsizing at the agency expected now that the tax filing season has concluded
Tax Court Again Uses Functional Test to Deem Partners Limited In Name . . . The Tax Court in a May 28 memorandum opinion again sided with the IRS in Soroban, finding the limited partners were limited partners “in name only” and did not qualify for the Section 1402(a)(13) exception for federal tax purposes
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Bessent Discusses Vision for IRS, Tax Reform with Lawmakers At a May 6 hearing, Bessent told the House Appropriations Financial Services and General Government Subcommittee that though the IRS “just concluded a successful tax filing season,” it “still needs significant reforms to deliver efficient and cost-friendly results ”
How to comply with the new IRS digital asset regulations To effectively navigate the new IRS digital asset reporting regulations, tax professionals should focus on implementing practical strategies and utilizing the right tools Start by conducting a comprehensive review of your current reporting processes and identify areas that need adjustment to accommodate digital asset transactions
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Tax Policy Groups Seek Withdrawal of Partnership Basis Shifting Guidance The IRS should withdraw guidance issued last year providing that certain partnership transactions between related parties lack economic substance when conducted purely to reduce federal tax liability through basis adjustments, stakeholders told the agency, in light of the new administration's decision to eliminate relevant final regs
Former Taxpayer Advocate Olson on IRS Cuts, DOGE Center for Taxpayer Rights Executive Director Nina Olson, the previous National Taxpayer Advocate, warned that IRS workforce reductions and the agency’s involvement with the Department of Government Efficiency will hinder tax collections, discourage voluntary compliance, and erode taxpayer trust
IRS Staff Cuts Could Have ‘Catastrophic Impact’ on Filing Season With reports that “mass layoffs” are ahead — which would further slash IRS staffing — the lawmakers say there could be a “catastrophic impact” on the current filing season Their chief concern: “the ability of Americans to quickly get tax refunds and assistance filing their taxes ”
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