Tax & Accounting News

TaxBuzz Top 5 - $1 Billion in Unclaimed Tax Refunds Expiring Soon, IRS Chief Counsel Removed After DOGE Clash & More

by
Rebekah Barton
on
3/14/2025
TaxBuzz Top 5 - $1 Billion in Unclaimed Tax Refunds Expiring Soon, IRS Chief Counsel Removed After DOGE Clash & 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 Says Nearly $1 Billion in Unclaimed 2021 Tax Refunds Still Up for Grabs

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Credit: HABesen/Getty Images

The IRS announced that nearly $1 billion in unclaimed tax refunds from 2021 remains available, but time is running out for taxpayers to claim their money. The agency estimates that around 940,000 Americans are still eligible for refunds, with a median amount of $932 per person.

Under federal law, taxpayers typically have three years to file a return and claim a refund. However, due to the extended tax deadlines during the pandemic, the window for claiming 2021 refunds closes on May 17, 2025. If taxpayers fail to submit their returns by then, the government will keep the unclaimed money.

IRS Commissioner Danny Werfel urged taxpayers to check their records, The Hill reports. He noted that lower-income individuals and those who didn’t file due to low wages could still be eligible for a refund. Many filers may also qualify for additional credits, such as the Earned Income Tax Credit (EITC), which could boost their refunds significantly.

To claim a refund, taxpayers must file a 2021 return using paper forms, as online filing is no longer available for that year. The IRS encourages anyone who may have missed filing to act quickly before the deadline passes.

2. Trump Proposes Eliminating Income Taxes for Americans Earning Under $150,000

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Credit: Andrew Harnik/Getty Images

Former President Donald Trump has unveiled a new tax proposal that would eliminate federal income taxes for individuals earning less than $150,000 per year, a plan that could significantly reshape the U.S. tax system. The proposal, which he discussed at a recent campaign event, aims to provide relief to middle-class workers by removing their federal income tax burden while offsetting lost revenue through increased tariffs on foreign imports.

According to Trump, the plan would allow individuals making under $75,000 and married couples earning less than $150,000 to pay no federal income tax. Per a Bankrate report, he argues that the measure would stimulate economic growth by putting more money directly into the hands of working Americans.

However, economists and tax policy analysts warn that the proposal raises major fiscal concerns. Eliminating income taxes for a large portion of the population would require finding alternative sources of revenue, with Trump suggesting higher tariffs as a potential solution. Critics argue that relying on tariffs could lead to increased costs for consumers, potentially offsetting the benefits of tax relief.

While Trump’s proposal has energized his supporters, it faces significant legislative hurdles. Any major tax reform would require congressional approval, and shifting the tax burden away from individuals and onto businesses or foreign imports is expected to spark intense debate.

3. McCormick Executive Warns Proposed Tax Could Push Business Out of Maryland

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A top executive at McCormick & Company, the spice and seasoning giant headquartered in Maryland, has warned that a proposed state tax could force the company to consider moving its operations out of state. The concern stems from Maryland’s proposed corporate tax changes, which business leaders argue would make the state less competitive for major employers.

The tax proposal, which is currently under discussion in the Maryland legislature, seeks to increase taxes on large corporations as part of an effort to generate additional state revenue. However, McCormick’s leadership has raised alarms that such measures could deter investment and job creation in Maryland, particularly as other states offer more favorable tax environments.

Fox Baltimore reports that business advocacy groups and economists have echoed these concerns, noting that Maryland already ranks among the higher-taxed states for corporations. If enacted, they warn that the policy could accelerate the departure of major companies, impacting the state's economy and workforce.

Lawmakers backing the proposal argue that it is necessary to fund critical public services and ensure that large corporations contribute their fair share. However, with Maryland already having seen companies relocate due to tax concerns in recent years, the debate over business taxation remains a contentious issue.

4. Experts Warn Ireland Could Lose Pharma Tax Revenue to the U.S. Amid Trump’s Accusations

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Credit: Catherine Leblanc/Getty Images

​During a recent meeting at the White House with Irish Prime Minister Micheál Martin, President Donald Trump accused Ireland of attracting U.S. pharmaceutical companies through favorable tax policies, resulting in a significant U.S. trade deficit with Ireland. Trump criticized Ireland's low-tax environment, which has drawn major U.S. firms like Pfizer and Apple (Fifth Avenue flagship store pictured above), contributing to the trade imbalance. ​

Experts warn that such accusations could lead U.S. pharmaceutical companies based in Ireland to consider shifting profits back to the U.S. instead of closing manufacturing plants. This potential shift poses a threat to Ireland's fiscal stability, as 75% of its corporate tax revenue comes from U.S. multinationals, with three companies contributing nearly 40%, The Guardian reports. ​

The outlet also noted that approximately €50bn ($54bn) of medicines are exported globally from Ireland every year, according to official data, and many of these “never touch Irish soil”.

“Without these accounting-based exports, Ireland’s trade surplus would be much smaller. The companies may not disappear but their taxable profits in might,” Aidan Regan, a political economy professor at University College Dublin, said.

Despite these tensions, industry representatives remain confident that the 50,000 jobs in Ireland’s pharmaceutical sector will remain stable. ​

5. IRS Chief Counsel Removed After Clashing with DOGE Over Tax Info Sharing

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Credit: Silverman Media Services/Getty Images

According to an Associated Press report shared by PBS, the IRS has removed its Chief Counsel following internal disputes over sharing taxpayer information with DOGE, the informal “Department of Government Efficiency” led by Elon Musk’s deputies. The dismissal comes amid broader tensions between the IRS and the Musk-backed initiative, which has pushed for more aggressive downsizing and restructuring of federal agencies, including the tax authority.

Sources say the conflict centered around concerns that sharing certain taxpayer data could violate federal privacy laws, with the now-former Chief Counsel reportedly pushing back against directives that would have allowed Doge greater access to IRS systems. The removal is the latest in a series of shake-ups within the agency, which has already seen thousands of job cuts under the Trump administration’s budget measures.

Tax policy experts warn that the ongoing turbulence within the IRS could further disrupt tax enforcement and refund processing at a time when Americans are already facing uncertainty over tax filing delays and policy changes.

Which headline this week most interests you?

Feature Image Credit: Natalia Bratslavsky/Getty Images

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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.

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