The Internal Revenue Service sent pink slips to almost 1,400 employees, according to a court document filed earlier this week in a lawsuit brought by unions against the federal government.
In a previous document filed by the Treasury Department in the lawsuit being heard in the Northern District of California, officials said 1,446 Treasury employees would be laid off. The IRS provided specifics of those layoffs on Tuesday, saying 1,399 of those 1,446 actually work at the IRS.
According to this week’s court document, reduction-in-force notices were sent to..
1 – 527 staffers in exam and collections
2 – 489 staffers in information and IT services
3 – 297 staffers in shared services and administration support
4 – Smaller numbers of staffers in Treasury Department and the Community Development Financial Institutions Fund.
The federal court in California previously issued an injunction limiting layoffs during the government shutdown. According to this week’s court document, the layoff notices weren’t sent to any employees covered by the injunction.
The furloughs are in addition to a workforce reduction of about 25% as of May through incentive programs such as deferred resignation, according to a report released in July by the Treasury Inspector General for Tax Administration.
It’s obviously going to be even more difficult to get anything done at the Service this coming tax season. At this point, the electronic fax machines aren’t even working and don’t even try to call any of the 800 numbers for any reason whatsoever.
My question becomes, “If the Government is still shut down in January or February of next year, will we actually need to file and pay our income taxes for 2024?”
Then I pinch myself and remember that no matter what actually happens in the world, the IRS will always demands that taxes to be paid in full and on time. If not, there’s always penalties and enforcement actions.
Let me leave you with this…
There’s an interesting change that’s been happening in the Hospitality Industry. It’s happened quietly but rather quickly.
The no tax on tips code section of the One Big Beautiful Bill Act allows certain workers to deduct up to $25,000 in “qualified tips” annually from 2025 through 2028. The problem is that mandatory gratuities, such as the 15% to 20% that restaurants often impose on parties of six diners or more, aren’t eligible for the deduction.
Many restaurants have been changing their mandatory gratuity policies because they want this income to count as qualified tips for their workers under the new tax law. Doing so makes it easier for them to hire and retain qualified workers
If you haven’t already noticed the change, most restaurants no longer have the mandatory service charge for parties of six or more at their establishments. You’ll probably also see this when booking your Holiday Parties for the upcoming season.
When you have questions, please let me know…
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Payroll Services, or Accounting and Tax Work, you have but to ask. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
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