TIGTA finds violations of IRS employee evaluation rules. The Treasury Inspector General for Tax Administration (TIGTA) found instances in which the IRS failed to comply with restrictions on using tax enforcement results to evaluate employees. TIGTA identified 15 violations involving the use of enforcement results to measure employee performance in the Large Business and International Division during fiscal 2025. It also found 14 instances in which the IRS did not document that employees were evaluated on the fair and equitable treatment of taxpayers and three violations involving required quarterly certifications. TIGTA made three recommendations aimed at improving managers’ compliance with the rules.
Missouri targets prediction markets over sports wagering. Missouri Attorney General Catherine Hanaway (R) sent cease-and-desist letters to six prediction market operators for offering sports wagering outside the state’s regulated gambling system, reports Tax Notes (paywall). Missouri requires mobile sportsbooks to pay a $500,000 licensing fee and imposes a 10 percent tax on gross wagering receipts. Prediction markets contend their sports products are federally regulated event contracts rather than sports wagering and therefore are not subject to state gambling taxes and regulations. Missouri’s action follows a Ninth Circuit ruling that sports prediction contracts constitute gambling rather than swaps on news or economic events.
Massachusetts governor proposes two-month gas tax holiday. Gov. Maura Healey (D) is asking lawmakers to suspend Massachusetts’ 24-cent-per-gallon gas tax for two months. The proposal would apply to gasoline and diesel and would take effect seven days after Healey signs it. She said the state would replace the lost gas tax revenue with surpluses from other areas and avoid transportation spending cuts.
Harris continues push for federal gas tax suspension. Rep. Andy Harris (R-MD) is seeking a temporary suspension of federal gasoline and diesel taxes through the end of the year as fuel prices remain elevated. The federal taxes are about 18 cents per gallon for gasoline and 24 cents for diesel, while Maryland levies an additional 46 cents on gasoline and 47 cents on diesel. Harris said lost federal revenue could be replaced with general funds. The House is currently in recess, but Harris said the measure could be considered during a pro forma session through unanimous consent.
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