An Option To Withdraw, A Requirement to Withhold
Employers can withdraw their pandemic-era employee-retention tax credit claims. The IRS announced that employers who have not received refunds or cashed checks for employee-retention tax credits can withdraw those claims without any penalty or interest, even if the employer is already an audit related to claiming the credit. An IRS website offers instructions on how to withdraw a claim. Later, the IRS will establish a settlement program for employers who received money from the retention tax credits but want to repay the government and avoid penalties.
Massachusetts’ gambling payouts must now withhold 5 percent of taxable winnings. The Massachusetts Department of Revenue amended a regulation on the withholding of taxes on wages and other payments to include winnings from sports betting, reports TaxNotes (paywall). Those making payouts must withhold 5 percent on winnings subject to Massachusetts income tax and are subject to federal withholding or are lottery winnings of $600 or greater.
Voters will make important choices in next month’s state elections. TPC’s Richard Auxier highlights next month’s key ballot initiatives, ranging from property tax reforms in Colorado and Texas, wealth tax prevention in Texas, cannabis taxes in Ohio, and elections in Louisiana and Virginia. Popular initiatives often spread to other states, but “be wary of anyone projecting one state’s vote onto the national mood,” Richard says.
Colorado lawmakers ask IRS not to tax TABOR refunds. Sen. Michel Bennet (D-CO) and Rep. Joe Neguse (D-CO) have asked the IRS to continue a 30-year precedent and not count Colorado Taxpayer’s Bill of Rights (TABOR) refunds as taxable income. TABOR requires Colorado to return excess revenues to taxpayers. In August, the IRS proposed a policy that could require Coloradans to pay taxes on future TABOR refunds.
Ireland has a budget surplus. The country’s fiscal surplus for 2022 is the largest ever, reaching €8.5 billion ($9 billion) last year thanks to increased tax revenues. In 2021, Ireland had a budget deficit of €6.6 billion because of the Covid-19 pandemic. Other European Union members continue to struggle with deficits, but Ireland has benefited from a surge in corporate tax receipts from multinational corporations based there.
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