Tax Breaks Podcast Summary

Host Introduction

• Host: Kelly Philips Serb
  • Senior writer for Forbes
  • Known as Tax Girl
  • Tax attorney

Topics Discussed

• Government shutdown avoidance
• IRS shakeups
• Increased financial scrutiny
• Reading tax transcripts
• Gold investments in IRA
• Tax trivia
• Tax filing deadlines

Government Shutdown Avoidance

• Congress voted to avoid a government shutdown
• Key figures: Senator Chuck Schumer (Democrat, NY)
• House vote: 20-117 to 211-3
• Bill cost estimated at $1.6 trillion
  • $893 billion for defense
  • $78 billion for non-defense
• CR mirrors previous year
  • Increase of $6 billion in military spending
  • $13 billion cut in non-defense spending
  • Boost in ICE deportation operations
  • Claw back of $20.2 billion in IRS funding

IRS Shakeups

• Acting IRS commissioner departed
• Chief counsel William Paul removed, Andrew Dello expected replacement
• Issues with sharing taxpayer information with other federal agencies
• IRS employment cuts
  • 7,000 probationary employees fired
  • U.S. District Judge in California deemed terminations unlawful
  • Potential further cuts between 20-50%

Financial Scrutiny and Regulations

• Treasury’s Financial Crimes Enforcement Network (FinCEN) increase in activities
  • New reporting for transactions over $200 in certain California and Texas ZIP codes
• Repeal of Biden era reporting requirement on decentralized finance (DeFi)
  • DeFi refers to peer-to-peer financial services on blockchain

Reading Tax Transcripts

• Explanation of Tax Code TC 570
  • Indicates delay in processing tax returns
  • Often due to fraud checks or additional information requests
• Use "Where’s My Refund" tool for updates
  • Updates once a day

Tax Refunds

• Over $1 billion in unclaimed tax refunds from 2021
  • Deadline to file for 2021 refunds: April 15, 2025
  • Highest potential refunds: NY, PA, RI, MA, IL
  • Lowest potential refunds: CA, NJ, MN, MT

Tax Trivia

• In 1914, IRS received 350,000 tax returns
• By 1945, 50 million tax returns processed annually
• In 2024, 139 million returns received by tax day

Investing in Gold for IRAs

• Gold and precious metals allowed in IRAs
  • Must meet purity standards
  • Stored in IRS-approved depositories
  • Collectible coins generally not permitted
  • ETFs as an alternative investment

Quick Updates

• April 1st deadline for retirees aged 73 in 2024 to begin RMDs
• Business executives’ optimism declined from 67% to 47%
  • Concerns about inflation and tariffs

Conclusion

• Encourages feedback and sharing
• Audio of the episode available on forbes.com

Note: Taxes are complicated, but staying informed doesn't have to be painful.