Audit protection remains in place. The Trump administration has abandoned its $1.8 billion “anti-weaponization” fund, but audit protections for President Trump, his family, and affiliated businesses remain in place, reports The New York Times. The acting attorney general’s order bars certain IRS reviews of already-filed returns, potentially affecting audits that could have carried significant financial consequences.
Trump Account rollout raises security and trust concerns. Former National Taxpayer Advocate and current executive director of the Center for Taxpayer Rights Nina Olson and her colleague Gabriel Zucker argue that the rollout of Section 530A accounts, also known as Trump Accounts, has created confusion. They note unclear guidance on eligibility rules, account uses, and interactions with asset limits for safety net programs as well as doubts about whether low-income families will be able to navigate the sign-up process.
Illinois pauses data center tax incentives. Gov. JB Pritzker (D-IL) plans to pause processing new data center tax incentive applications beginning July 1, after lawmakers did not act on his request to suspend the program for two years. The move reflects growing scrutiny of incentives for facilities that power artificial intelligence, as states weigh potential new investment and jobs against pressure on electric grids, natural resources, and household utility bills.
Itemized: Fact of the Week. Tax breaks for retirement saving are among the largest tax expenditures in the federal tax code. Retirement saving tax expenditures exceeded $300 billion in 2022 and are expected to top $2 trillion over the 2022-2026 period. Those estimates reflect revenue losses from excluding retirement contributions and account earnings from current taxation, partly offset by taxes paid when people withdraw money from pensions and individual retirement accounts.
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