Tax Investigations, Debt-Free Students, And The Quest For Good Information
Senators Ron Wyden and Sheldon Whitehouse want answers on DOJ’s investigation of Caterpillar, Inc. TaxNotes reports (paywall) on the letter sent by Wyden (D-OR), chair of the Senate Finance Committee, and Whitehouse (D-RI), chair of the Senate Budget Committee, to the US Department of Justice (DOJ) Tax Division. They write that Trump administration appointees to the DOJ appear to have handled a tax fraud investigation into Caterpillar, Inc., in a “highly irregular manner.” Specifically, “political interference” may have “prevented an investigation into a multibillion-dollar corporate tax fraud scheme.”
President Biden proposes to make student loan forgiveness tax-free forever. In 2021, the American Rescue Plan Act provided that forgiven student loan debt was not subject to federal income taxes. That provision expires on Dec. 31, 2025. President Biden has proposed making that provision permanent. Absent that provision, CNBC reports, a federal income tax bill could range between $1,200 and $15,400, depending on a borrower’s circumstances.
Tax filers: Avoid filing errors… and “TaxTok.” The IRS has shared guidelines to avoid tax return mistakes, processing delays, and refund adjustments. The agency’s guidelines are reliable, in contrast to much advice shared on TikTok. Financial advisers and tax experts report a rise in clients who end up receiving bad tax information by searching platforms like TikTok, known as “TaxTok”—especially Generation Z clients.
Always a reliable source for tax policy information: TPC’s now updated and expanded Briefing Book. Tax policies at federal, state, and local levels are ever-changing, especially this year with a presidential election coming up and key provisions of the Tax Cuts and Jobs Act set to expire in 2025. Meanwhile, states and localities face tough choices after three years of state tax cuts while federal Covid-19 relief ends. To help students, the press, government staffers—anybody who wants to understand current law and keep up with fast-changing proposals and reforms—TPC has updated its widely read and cited Briefing Book. With nearly 240 online pages, TPC’s latest Briefing Book contains a wealth of information on all things tax, budgets, and economic and social policy.
Tune in at 9:30 am today: Radical Tax Simplification. During the online and in-person Brookings Institution/TPC event, participants will learn about current issues facing tax simplification and four major revenue-neutral proposals for federal income tax reforms. They’ll see a demonstration of a new TPC online tool that allows anyone to compare their current filing requirements and tax burdens to the proposed alternatives. They’ll learn more during a panel discussion moderated by Richard Rubin of The Wall Street Journal. Viewers can join the conversation and ask questions of the speakers by emailing [email protected] or on X/Twitter using the hashtag #TaxSimplification. Register and watch here.
For the latest tax news, subscribe to the Tax Policy Center’s Daily Deduction. Sign up here to have it delivered to your inbox weekdays at 8:00 am (Mondays only when Congress is in recess). We welcome tips on new research or other news. Email Renu Zaretsky at [email protected].
