Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
Tax Head
Region
IRS adds online option, details for Kwong-related refund claims
The IRS has introduced an online option and additional procedural details for taxpayers filing refund claims related to the Kwong case. This development streamlines the process for affected individuals seeking to recover taxes, providing clearer guidance on eligibility and submission requirements. The Kwong case involves specific tax refund entitlements, and the IRS update aims to reduce administrative burden by enabling digital filing. Taxpayers and practitioners can now access the online portal to submit claims more efficiently, reflecting the IRS's broader effort to modernize taxpayer services and improve accessibility for controversy-related refund procedures.
Taxes and the 2026 World Cup: FIFA is the Real Winner
This article examines the tax arrangements surrounding the 2026 FIFA World Cup hosted across the United States, Canada, and Mexico. It highlights how FIFA, as an international non-profit, typically negotiates significant tax exemptions from host nations, including exemptions from corporate income tax, VAT, and other levies on revenues generated during the tournament. The piece explores how FIFA structures its operations to minimize tax liabilities while host governments absorb costs and forego substantial tax revenues. It raises broader questions about the fairness of tax concessions granted to major sporting bodies and the public policy implications for host country taxpayers.
Hemel: Madisonian Nonprofit Law and Checks and Balances
Daniel Hemel examines the intersection of Madisonian constitutional principles and nonprofit law, exploring how checks and balances apply to nonprofit organizations and their tax-exempt status. The analysis considers how the structure of nonprofit law reflects broader constitutional design principles, with implications for tax exemption oversight and IRS regulatory authority over nonprofits. The piece is relevant to tax policy discussions around the governance and accountability of tax-exempt entities under Section 501(c) and related provisions of the Internal Revenue Code.
A Few Problems with Targeting Energy Companies with a Stock Buyback Tax
The Tax Foundation critiques proposals to target energy companies with a stock buyback excise tax, arguing the policy is poorly designed and economically harmful. The piece examines how a punitive excise tax on share repurchases by oil and gas firms would distort capital allocation, reduce investment, and fail to function as an effective windfall profits measure. It contends that such a tax conflates stock buybacks with excess profits and would create unintended consequences across the broader corporate sector, not just energy companies, undermining the case for using excise taxes as targeted fiscal instruments.
IRS Shares Data with More Than 1,000 Organizations, Some of Which It Can’t Identify
A report by the Treasury Inspector General for Tax Administration (TIGTA) reveals that the IRS has data-sharing agreements with over 1,120 organizations, and alarmingly cannot identify some of them. The findings raise serious concerns about taxpayer data privacy, security controls, and oversight within the IRS's data governance framework. TIGTA flagged the lack of adequate tracking and accountability for these agreements. The article is directly relevant to tax administration and compliance, touching on how sensitive taxpayer information is managed, shared, and potentially exposed, with implications for IRS reform and Congressional oversight of the agency's data practices.
There Is No Low-Tax Case for Tariffs
The Tax Foundation argues there is no credible low-tax justification for tariffs, rebutting claims that import duties serve as a legitimate alternative to income or consumption taxes. The article contends that tariffs function as hidden taxes on consumers and businesses, raise costs across supply chains, and distort trade patterns without delivering meaningful fiscal benefits. It challenges the framing of tariffs as pro-growth policy, asserting they undermine the efficiency gains associated with genuine tax reduction. The piece situates tariffs within the broader debate over trade and tax policy in the United States.
NY Tax on Remote Work Again Withstands Professor’s Challenge
A New York court has again upheld the state's 'convenience of the employer' rule, rejecting a professor's challenge to New York's taxation of remote work income. Under this rule, New York taxes income earned by nonresidents working remotely for New York employers unless the remote arrangement is necessitated by the employer. The ruling reinforces New York's aggressive stance on taxing out-of-state remote workers, a contentious issue that has grown significantly post-pandemic and continues to raise questions about the constitutionality of such tax regimes.
OECD Helping Developing Nations On Min. Tax, Transparency
The OECD is providing technical assistance and capacity-building support to developing nations to help them implement the global minimum tax (Pillar Two) and improve tax transparency standards. The initiative aims to ensure lower-income countries can effectively adopt the 15% global minimum corporate tax rules and participate in international tax transparency frameworks. This support addresses concerns that developing nations lack the administrative infrastructure to enforce these complex measures, potentially missing out on revenue gains while multinational enterprises shift profits.
Remembering Bill Archer
A tribute to Bill Archer, the former Republican congressman from Texas who served as chairman of the House Ways and Means Committee. Archer was a significant figure in U.S. tax policy, known for his advocacy of fundamental tax reform, including his push to abolish the income tax and replace it with a consumption-based tax system. His tenure on the Ways and Means Committee made him one of the most influential voices in shaping American tax legislation during the 1990s, and his legacy continues to influence tax reform debates.
A new era of international tax cooperation
The article discusses emerging frameworks for international tax cooperation, likely addressing efforts by global bodies such as the UN or OECD to coordinate tax rules across jurisdictions. It explores how multilateral agreements and information-sharing mechanisms are reshaping the international tax landscape, potentially covering topics such as the global minimum tax under Pillar Two, base erosion measures, and the push by developing nations for greater representation in setting global tax standards. The piece reflects on whether new cooperative frameworks represent a genuine shift in power dynamics between developed and developing countries in international taxation.
India, China Call Broad US Forced Labor Tariffs Not Justified
India and China have jointly challenged broad US tariffs imposed under forced labor justifications, arguing they lack sufficient legal and factual basis under international trade rules. Both nations contend the sweeping tariff measures are disproportionate and not adequately justified under WTO frameworks or US trade law. The dispute highlights ongoing tensions over US customs and trade enforcement tools, particularly the Uyghur Forced Labor Prevention Act and related import restrictions, which have significantly affected exports from both countries.
Communications Audits: Is a 5% Sample Still a Reasonable Program?
This article examines whether a 5% sample rate remains adequate for communications audits, which review telephone, internet, and related utility invoices to identify billing errors, unused services, and tax overcharges. Communications audits have a direct tax angle as telecom invoices often include sales tax, excise tax, and regulatory fee errors that businesses can recover through refunds or credits. The piece questions if modern billing complexity — driven by cloud services, hybrid work, and bundled contracts — demands higher sample rates to catch tax and fee discrepancies that a 5% review might miss.
Denim Co. Unlawfully Passed On Tariff Costs, Customer Says
A customer has filed a lawsuit against a denim company alleging it unlawfully passed on tariff costs to consumers in violation of contractual or statutory obligations. The case centers on whether the retailer was legally permitted to transfer import tariff burdens directly to buyers, raising questions about pricing practices and tariff cost allocation under trade and consumer protection law. The dispute reflects broader litigation trends as companies have sought to recoup increased costs from US tariffs imposed on imported goods.
IRS Failed to Meet Veteran Hiring Goal
The IRS failed to meet its veteran hiring goals, according to a report highlighting the agency's workforce management shortcomings. The IRS is required under federal law to prioritize hiring veterans, but fell short of mandated targets. This has implications for the agency's overall staffing capacity, which affects its ability to process tax returns, conduct audits, and enforce tax compliance. Chronic understaffing at the IRS has long been linked to reduced tax enforcement effectiveness and a widening tax gap, making workforce issues a significant concern for tax administration in the United States.
Kalshi Sues Illinois to Nullify New Prediction Market Tax Law
Prediction market platform Kalshi has filed a lawsuit against Illinois seeking to nullify a newly enacted state tax law targeting prediction markets. The legal challenge contests the validity of Illinois's tax on prediction market transactions, raising constitutional and regulatory arguments. The case highlights growing legislative scrutiny of prediction markets as they expand into regulated financial products. The outcome could have significant implications for how states tax emerging financial instruments and whether such targeted tax laws can withstand legal challenges.
Chain Transactions – The Most Common Mistakes
An analysis of the most common VAT mistakes made in chain transactions, where goods are sold through multiple parties before reaching the final customer. Key errors include incorrectly identifying which supply is the 'moved' supply, misapplying zero-rating to intra-community transactions, failing to account for intermediary operator status, and incorrectly handling triangulation simplifications. The article draws on EU VAT Directive rules and case law to clarify how businesses should determine the place of supply, allocate transport, and apply exemptions correctly to avoid VAT disputes and penalties.
Resale of Electricity to the Grid Is Subject to VAT
This article addresses whether the resale of surplus electricity back to the grid by households or businesses is subject to VAT. It examines the conditions under which electricity sellers qualify as taxable persons for VAT purposes, including the regularity and economic nature of the activity. Drawing on EU VAT Directive principles and relevant case law, it concludes that grid resale generally constitutes an economic activity subject to VAT, with implications for prosumers, solar panel owners, and energy companies regarding registration obligations and input tax recovery.
Short-Term Accommodation in a Residential Unit – VAT and PIT Treatment
This article explores the tax treatment of short-term accommodation rentals within residential units, covering both VAT and personal income tax (PIT) implications. It examines when such rentals qualify as VAT-exempt residential letting versus taxable short-term accommodation services, the role of ancillary services in determining VAT status, and applicable thresholds. On the PIT side, it addresses how rental income is classified, what deductions are available, and how platforms such as Airbnb affect reporting obligations. The analysis provides guidance for individual landlords navigating dual tax obligations across these rental arrangements.
TIGTA Made 91 Surprise Visits to IRS Taxpayer Assistance Centers. Here’s What Happened
The Treasury Inspector General for Tax Administration (TIGTA) conducted 91 unannounced inspections of IRS Taxpayer Assistance Centers (TACs) to evaluate service quality and compliance. The visits assessed whether centers were properly staffed, accessible to taxpayers, and meeting service standards. Findings highlighted operational issues and areas needing improvement in how the IRS delivers in-person taxpayer support. The report underscores ongoing scrutiny of IRS administrative performance and accountability, with implications for how the agency allocates resources and serves individuals seeking face-to-face assistance with tax matters.
Senate Democrat Demands Records on DOJ, IRS Settlement Planning
A Senate Democrat has formally demanded records related to settlement planning discussions between the Department of Justice and the IRS. The inquiry raises concerns about potential political interference in tax enforcement and settlement decisions, touching on the independence of tax administration. The demand for records signals congressional oversight scrutiny over how the IRS and DOJ coordinate on resolving high-profile tax disputes and settlements, with broader implications for the integrity of federal tax controversy processes and enforcement priorities.
Get the Friday Digest
Every Friday, a curated summary of the week's tax news delivered to your inbox. Choose what you want to hear about — no noise, no spam, unsubscribe anytime.
Tax heads you care about(select all that apply)
Regions you care about(select all that apply)
Your email is never shared or sold. You can unsubscribe at any time. Built in compliance with GDPR.