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2 days ago | 
news.bloombergtax.com | Kim Dixon |Zach Cohen
Tax on Millionaires Could Raise $400 BillionAn idea mulled by some Republicans for a new 40% tax rate on the income of millionaires could raise about $400 billion over a decade, according to two new estimates provided to Bloomberg News. GOP lawmakers could use the revenue to help offset the costs of enacting several of President Donald Trump’s campaign tax promises, from exempting taxes on tips and overtime to potential new tax breaks for senior citizens.
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6 days ago | 
news.bloombergtax.com | Kim Dixon |Zach Cohen
Tax Writers Rake In FundsThe looming expiration of many parts of the 2017 GOP tax law at year’s end has accelerated fundraising for congressional tax writers, as well as President Donald Trump’s nominee to lead the IRS. Between the first quarter of 2023 and the most recent quarter, GOP tax writers saw double digit fundraising boosts, according to Federal Election Commission filings released this week.
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1 week ago | 
news.bloombergtax.com | Kim Dixon |Chris Cioffi
The IRS is set to have its fourth leader since the beginning of the year after the Trump administration named Gary Shapley as acting commissioner. Current Acting Commissioner Melanie Krause will step down in mid-May after a clash over the IRS sharing tax information with the Department of Homeland Security in a bid to deputize the agency for immigration enforcement.
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1 week ago | 
news.bloomberglaw.com | Erin Schilling |Kim Dixon
About 20,000 IRS workers—roughly one-fifth of the agency—are taking the Trump administration’s second deferred resignation offer, according to a person familiar with the matter. That uptake effectively reverses the staff hikes that came with the Democrats’ tax-and-climate law and accomplishes in one fell swoop the upwards of 25% cuts proposed by billionaire Elon Musk’s so-called efficiency advisers.
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1 week ago | 
news.bloombergtax.com | Erin Schilling |Kim Dixon
About 20,000 IRS workers—roughly one-fifth of the agency—is taking the Trump administration’s second deferred resignation offer, according to a person familiar with the matter. The second offer comes as the IRS has already started its formal reduction-in-force plan. The IRS had about 100,000 workers at the beginning of this year. The deal allows for employees to be on paid administrative leave through Sept.
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1 week ago | 
news.bloombergtax.com | Kim Dixon |Zach Cohen |Herb Jackson
Republicans Push Forward on Trump’s Social Security Tax PledgeRepublicans are plowing ahead with their plan to extend the GOP’s 2017 tax law along with enacting President Donald Trump’s campaign promises. But one of those promises in particular faces a big obstacle in the procedure Republicans are using to avoid the need for Democrats’ votes. Trump’s pledge to eliminate taxes on Social Security income runs up against the budgetary procedure that allows lawmakers to bypass the Senate filibuster.
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2 weeks ago | 
news.bloomberglaw.com | Erin Schilling |Kim Dixon |Martha Mueller Neff
New ethics filings reveal connections between IRS commissioner-pick Billy Long and companies promoting a pandemic-era credit associated with fraud and tribal tax credits the Treasury Department has said is not authorized by law or regulation. President Donald Trump late last year tapped the former House Republican from Missouri to lead the tax collection agency.
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2 weeks ago | 
news.bloomberglaw.com | Martha Mueller Neff |Kim Dixon
EmailApril 4, 2025, 8:29 PM UTCThe IRS has begun a new round of layoffs starting with the Office of Civil Rights and Compliance, according to an email seen by Bloomberg Tax. About 75% of the office will be reduced through a reduction in force. The latest top line estimate for cuts at the agency is about 20 to 25%, though it isn’t final yet, a person familiar with the situation said.
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2 weeks ago | 
news.bloomberglaw.com | Zach Cohen |Kim Dixon
Key House Republicans are pledging to oppose their party’s tax bill if it increases a write-off for residents of high-tax states by just $15,000 per filer, complicating lawmakers’ bid to advance the signature legislation. Rep. Mike Lawler (R-N.Y.) in a post on X rejected a proposed increase of the $10,000 limitation on the federal deduction for state and local taxes—known as SALT—to $25,000.
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3 weeks ago | 
news.bloomberglaw.com | Kim Dixon |Martha Mueller Neff
Daily Tax Report ®EmailApril 2, 2025, 5:08 PM UTCThe hard-charging effort led by billionaire Elon Musk to reshape the federal workforce at the IRS and other agencies might lead to lasting changes. But what it means for taxpayers still isn’t fully realized. Listen here and subscribe to Talking Tax on Apple Podcasts, Spotify, Megaphone, or Audible. Some efforts to buy out or fire employees have been postponed until after the filing season ends in April, and are facing legal action.
