Tax filers will soon receive Intuit Turbotax settlement checks. After the report of ProPublica and subsequent action by the 50 state and District of Columbia attorneys general, states prepare to distribute checks to consumers who were tricked into paying for TurboTax software. New York Attorney General Letitia James, who led the investigation into the software company’s practices, said the mailing of checks will begin next week. Intuit’s agreement with the states amounts to $141 million that will go to 4.4 million low-income customers. Payments will range from $29 to $85, depending on how many years the consumer has used TurboTax.
The SCOTUS revision of the ‘Chevron’ doctrine could affect the main tax regulations. writing in tax notes (paywall), attorney Jasper Cummings discusses the ramifications of an upcoming US Supreme Court case revisiting precedent established under Chevron vs. the National Resource Defense Council, which describes how much courts must cede to the regulatory agency’s expertise in resolving disputes. Overturning Chevron’s doctrine could “undermine Treasury’s power to enforce tax laws, particularly international tax rules and other overly broad rules,” Cummings writes.
The Pennsylvania Senate votes to reduce the Philadelphia traveler’s tax. The Republican-controlled chamber approved a measure that would reduce a law that allows Philadelphia to impose a travel tax to suburban residents. The tax has been in effect since the Great Depression. Under the bill, Philadelphia would no longer be allowed to tax wages on people who work from home, even if their employers are in the city. For those who perform some of their duties outside of the city, Philadelphia could only tax earnings in proportion to the amount of work performed in the city.
Maine lawmakers take another step toward repealing the state sales tax on diapers. A House panel advanced a measure that exempt from sales tax all diapers, including adult diapers and diaper accessories like covers and pins. To date, consumers in 22 states pay no tax on diaper purchases.
TPC and UNC Tax Center virtual event on May 16: “Raising Revenue from Corporations”. Join TPC and the University of North Carolina Tax Center for a discussion on the new minimum tax on reported financial income for large US corporations, the special tax on stock repurchases, and the tax treaty overall proposed. Keynote speaker Itai Grinberg, former US Treasury Department Assistant Assistant Secretary for Multilateral Negotiations, will discuss the new global tax deal for multinational corporations approved by the European Union, Japan and other jurisdictions. Two expert panels will assess the effects of proposals to use corporate financial income as the tax base and to impose an additional tax on corporate share repurchases. Learn more and sign up here.
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