Trump settlement would end tax audits. President Trump’s agreement with the federal government would end all pending tax audits of him and his businesses, according to a Justice Department document posted yesterday. The addendum expands an earlier settlement under which Trump agreed to drop his family’s lawsuit against the IRS over the leak of his tax records, while the government created a $1.8 billion “Anti-Weaponization Fund” for people who claim they were targeted by the government. Trump would receive no direct payment from the fund, but ending audits could provide a financial benefit. The tax code bars the president and executive agency heads from directing audits or stopping them, though it is unclear how that rule applies to the settlement.
TIGTA tracks IRS paperless push. The Treasury Inspector General for Tax Administration (TIGTA) says the IRS has made progress on its Zero Paper Initiative, but still faces challenges in reaching a fully digital environment. The IRS awarded four volume-based contracts worth up to $2.3 billion in September 2025 and incurred $9 million in contractor expenses from May through December. During that period, contractors digitized 2.2 million of 11.9 million paper receipts for Forms 940, 941, and 1040. The three forms account for 42 percent of projected paper-filed returns in fiscal year 2026. TIGTA made no recommendations but said it will keep monitoring the initiative.
Wisconsin cigarette tax revenue keeps falling. A new Wisconsin Policy Forum report finds that Wisconsin’s cigarette tax revenue has fallen sharply as smoking declines and vaping grows. Cigarette tax revenue totaled just under $370 million for the fiscal year ending June 2025, the lowest inflation-adjusted amount since 1992 and more than 60 percent below its 2010 peak. Vaping tax revenue has increased more than 500 percent since the state began collecting it in 2020, but Wisconsin’s rate remains low compared with other states and does not apply to vaping fluid sold separately from a device. Public health advocates say lower cigarette revenue can still save the state money if reduced smoking lowers health care costs.
Oregon gas tax increase faces voters. Oregon voters are deciding whether to keep or repeal a transportation funding package that raised the state gas tax from 40 cents to 46 cents per gallon and increased several vehicle-related fees. The Democratic-controlled legislature passed the measure last fall to address transportation budget pressures as fuel-efficient, electric, and hybrid vehicles reduce gas tax revenue. But the referendum comes as national gas prices are rising, making the tax increase politically difficult. Gov. Tina Kotek (D-OR) and other Democrats have acknowledged the measure faces a tough path, while Republicans argue voters are unlikely to support higher fuel costs.
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