Tax & Accounting News

TaxBuzz Top 5 - IRS Acting Commissioner Resigns, House Narrowly Approves Budget Plan to Extend 2017 Tax Cuts & More

by
Rebekah Barton
on
4/11/2025
TaxBuzz Top 5 - IRS Acting Commissioner Resigns, House Narrowly Approves Budget Plan to Extend 2017 Tax Cuts & More

Each Friday, TaxBuzz brings you the top five tax and accounting headlines you need to know from the workweek. We know life can get busy and you don't always have time to scroll through your news feed to stay informed.

We weed through all of the week's stories to showcase the most important updates in the tax and accounting world.

1. IRS Agrees to Share Immigrant Tax Data with ICE; Acting Commissioner Resigns

IRS-GettyImages-1431637760-2500
Credit: Silverman Media Services/Getty Images

The Internal Revenue Service (IRS) has entered into an agreement with Immigration and Customs Enforcement (ICE) to provide access to immigrants' tax data for the purpose of identifying and deporting individuals residing illegally in the United States. This arrangement, signed by Treasury Secretary Scott Bessent and Homeland Security Secretary Kristi Noem, permits ICE to submit names and addresses of undocumented immigrants to the IRS for cross-verification against tax records. 

In response to this development, the AP and other outlets report that Acting IRS Commissioner Melanie Krause has announced her resignation. Krause, who assumed the role in February following the retirement of Douglas O'Donnell, is stepping down amid concerns over the legality and ethics of the data-sharing agreement. ​

Critics argue that the agreement violates privacy laws and could discourage tax compliance among immigrant communities. Tom Bowman, policy counsel for the Center for Democracy and Technology, stated that disclosing immigrant tax records to the Department of Homeland Security (DHS) for immigration enforcement "will discourage tax compliance among immigrant communities, weaken contributions to essential public programs, and increase burdens for ... ." 

Additionally, legal experts warn that the IRS's release of information to DHS may violate taxpayer privacy statutes, potentially resulting in criminal and civil sanctions for officials involved. Despite these concerns, the Treasury Department asserts that the agreement is based on "longstanding authorities granted by ... " and aims to protect the privacy of law ... enhancing the ability to pursue criminals. ​

This development is part of the Trump administration's broader immigration enforcement efforts, which have involved multiple federal departments in immigration-related activities. For instance, the Department of Health and Human Services has suspended programs providing legal services to migrant children traveling alone. 

The IRS-ICE data-sharing agreement has sparked a national debate over the balance between immigration enforcement and data privacy, with potential implications for tax compliance and public trust in federal agencies.​

2. IRS Issues Last-Minute Tax Filing Tips Ahead of April 15 Deadline

IRS-GettyImages-1466091657-2500
Credit: HABesen/Getty Images

With the April 15 tax filing deadline approaching, Newsweek shared the IRS's last-minute guidance to assist taxpayers in meeting their obligations and avoiding penalties.​

Key Tips:

Utilize IRS Direct File: This new web-based tool is available in 25 states for simple tax situations, offering a streamlined filing process. ​

File for an Extension if Necessary: Taxpayers unable to complete their returns by April 15 can request a six-month extension using Form 4868. However, it's important to note that this extension applies only to filing, not to payment. Taxes owed must still be paid by April 15 to avoid penalties and interest. ​

Consider Last-Minute IRA Contributions: Contributions to a traditional IRA can be made up until the filing deadline and may reduce taxable income for 2024. For example, a $7,000 contribution could lower a tax bill by approximately $1,540 for those in the 22% tax bracket. ​

Be Aware of Disaster Relief Extensions: Residents in federally declared disaster areas, such as parts of California, Kentucky, and West Virginia, may have extended deadlines. For instance, Los Angeles County taxpayers have until October 15 to file. 

Understand Penalties for Late Filing: Failing to file by the deadline can result in a penalty of 5% of unpaid taxes per month, up to 25%. Late payments incur a 0.5% monthly fee, with interest accruing daily. ​

The IRS also encouraged taxpayers to file electronically and using direct deposit to expedite refunds, which are typically issued within 21 days for e-filers.​

3. House Republicans Advance Plan to Extend Trump-Era Tax Cuts 

Congress-GettyImages-1328998981-2500
Credit: Stefani Reynolds/Bloomberg/Getty Images

On April 10, 2025, the U.S. House of Representatives narrowly approved a budget resolution with a 216–214 vote, advancing efforts to extend President Donald Trump's 2017 tax cuts. The resolution permits the use of budget reconciliation, enabling Republicans to pass significant tax and spending legislation without the threat of a Senate filibuster. 

Per Reuters, the budget framework includes approximately $5 trillion in tax reductions and proposes at least $1.5 trillion in federal spending cuts over the next decade. It also allows for a $5 trillion increase in the national debt ceiling. Key provisions aim to extend the 2017 tax cuts and introduce new tax breaks, such as eliminating taxes on tips and expanding the Child Tax Credit.

The passage followed intense negotiations within the Republican Party, as fiscal conservatives initially resisted the plan due to concerns over insufficient spending cuts. Speaker Mike Johnson and Senate Majority Leader John Thune secured support by promising substantial reductions in future legislation. ​ 

Democrats and some moderate Republicans have criticized the budget, warning that it could adversely affect healthcare and social welfare programs. Analysts estimate that the proposed measures could add approximately $5.7 trillion to the federal debt over the next decade. ​

The resolution now sets the stage for Republicans to draft comprehensive legislation encompassing tax cuts, increased defense and border security spending, and significant revisions to energy, health, and social safety-net programs. The GOP aims to finalize the bill by Memorial Day following the congressional recess.

4. Texas Legislature Advances $51 Billion Property Tax Relief Plan Amid Sustainability Concerns

Texas-GettyImages-486986907-2500
Credit: Donovan Reese/Getty Images

The Texas Legislature is advancing a two-year, $337 billion budget that allocates a record $51 billion—approximately 15% of the total budget—to property tax relief, the Texas Tribune reports. This initiative aims to maintain and expand tax cuts enacted since 2019, including $44.5 billion dedicated to sustaining existing reductions and $6.5 billion earmarked for new cuts. 

Key components of the plan involve "compression," where the state compensates school districts to lower local property tax rates, and increasing the homestead exemption from $100,000 to $140,000, with proposals to raise it further for seniors. ​

While the tax cuts have provided relief to homeowners—some experiencing nearly a 28% reduction in their property tax bills in 2023—fiscal experts and some lawmakers express concerns about the long-term sustainability of such substantial allocations. They caution that the surpluses funding these cuts, bolstered by federal COVID-19 aid and inflation-driven sales tax revenues, may not persist.

The budget's passage reflects the state's commitment to property tax relief but also underscores the need for careful fiscal planning to ensure the viability of these measures in future economic climates.​

5. Iowa Republicans Propose Doubling Homestead Exemption in Property Tax Overhaul

Iowa-GettyImages-2128028045-2500
Credit: Davel5957/Getty Images

Iowa Republican lawmakers have introduced a revised property tax reform proposal that includes doubling the homestead exemption from $25,000 to $50,000. This change aims to provide greater relief to homeowners by reducing the taxable value of their primary residences. For instance, a homeowner with a property assessed at $150,000 would now be taxed on $100,000 of that value, rather than $125,000 under the previous exemption. 

The updated legislation, presented as Senate Study Bill 1227 and House Study Bill 328, also proposes an immediate elimination of the state's "rollback" system, which currently limits the taxable portion of a property's assessed value. In its place, the bill introduces a "revenue-restricted" system, capping annual property tax revenue growth for local governments at 2%. However, this cap could increase to 5% during periods of high inflation, as determined by the Consumer Price Index. 

To address concerns from local governments about potential revenue shortfalls, the Des Moines Register notes that the proposal includes a "minimum budget guarantee" to ensure financial stability, particularly for smaller communities. Additionally, the state would assume responsibility for approximately $400 million in K-12 school funding, shifting this burden from local property taxes to the state budget. 

While Republican leaders express confidence that these measures will provide meaningful tax relief and predictability for homeowners, some Democrats remain cautious. House Minority Leader Jennifer Konfrst emphasized the need for clear evidence that the bill will effectively lower residential property tax rates before offering full support. ​

The revised bills are currently under consideration and have not yet been scheduled for subcommittee review. 

Which headline this week most interests you?

Feature Image Credit: Fotografie Link/Getty Images

share this post
Rebekah Barton

Rebekah Barton

Rebekah's search engine optimization career began completely by accident as a college student. Over the course of her career so far, she has "grown up" with the SEO industry, from writing content while juggling classes to managing her own teams of writers and overseeing SEO strategy in subsequent roles. She is excited to bring her passion for high-quality content to CountingWorks, Inc.

Recommended Professionals

In the face of economic uncertainty, TaxBuzz is the industry's most up-to-date tax information.

Join 60,000 who get our weekly newsletter. No spam.

Need help selecting a firm?

Use our specialized search engine and get matched to the best accounting and tax firm for your needs.

Get Started

Related Posts

Latest Posts