On this episode of Tax Breaks, Forbes Senior Writer Kelly Phillips Erb covers the budget resolution Trump signed this past weekend, IRS staffing and budget cuts, and the status of the current tax filing season.
Subscribe to the Tax Breaks Newsletter:
https://www.forbes.com/sites/kellyphillipserb/2025/03/15/tax-breaks-the-government-lights-remain-on-for-now-edition/
0:00 Introduction
0:37 What's In The Continuing Resolution Passed By Congress
6:50 Taxpayer Question
9:53 How To Claim An Unclaimed Tax Return
11:52 Tax Quiz
13:08 Is Gold Good For Your IRA
14:29 Tax Industry Notes
16:14 Outro
SHOW NOTES:
House vote article:
https://www.forbes.com/sites/kellyphillipserb/2025/03/12/house-passes-stopgap-budget-but-shutdown-looms-as-bill-moves-to-senate/
How your House Rep voted: https://clerk.house.gov/Votes/202570
Chief Counsel removed:
https://www.forbes.com/sites/kellyphillipserb/2025/03/13/irs-chief-counsel-pushed-out-after-reported-clash-with-doge-over-taxpayer-data/
Tax Filing Season stat article:
https://www.forbes.com/sites/kellyphillipserb/2025/03/11/as-tax-season-nears-halfway-point-irs-data-shows-taxpayers-still-not-rushing-to-file/
Trump reporting rule article:
https://www.forbes.com/sites/kellyphillipserb/2025/03/14/new-trump-financial-reporting-rule-aims-to-capture-cash-transactions-as-low-as-200/
De-Fi article:
https://www.forbes.com/sites/kellyphillipserb/2025/03/12/in-bipartisan-maneuver-house-votes-to-repeal-biden-era-cryptocurrency-rule/
Where’s My Refund info page on IRS.gov:
https://www.irs.gov/wheres-my-refund
First page of Where’s My Refund?:
https://sa.www4.irs.gov/wmr/
Refund article:
https://www.forbes.com/sites/kellyphillipserb/2025/03/11/does-the-irs-have-your-money-theres-more-than-1-billion-in-unclaimed-refunds-for-tax-year-2021/
IRA and gold:
https://www.forbes.com/sites/jessicaledingham/2025/03/13/benefits-of-adding-gold-to-your-ira/
AICPA/CIMA Economic Outlook Survey:
https://www.aicpa-cima.com/professional-insights/download/aicpa-and-cima-1q25-economic-outlook-survey-1
Subscribe to FORBES: https://www.youtube.com/user/Forbes?sub_confirmation=1
Fuel your success with Forbes. Gain unlimited access to premium journalism, including breaking news, groundbreaking in-depth reported stories, daily digests and more. Plus, members get a front-row seat at members-only events with leading thinkers and doers, access to premium video that can help you get ahead, an ad-light experience, early access to select products including NFT drops and more:
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More From Forbes: http://forbes.com
Forbes covers the intersection of entrepreneurship, wealth, technology, business an
Subscribe to the Tax Breaks Newsletter:
https://www.forbes.com/sites/kellyphillipserb/2025/03/15/tax-breaks-the-government-lights-remain-on-for-now-edition/
0:00 Introduction
0:37 What's In The Continuing Resolution Passed By Congress
6:50 Taxpayer Question
9:53 How To Claim An Unclaimed Tax Return
11:52 Tax Quiz
13:08 Is Gold Good For Your IRA
14:29 Tax Industry Notes
16:14 Outro
SHOW NOTES:
House vote article:
https://www.forbes.com/sites/kellyphillipserb/2025/03/12/house-passes-stopgap-budget-but-shutdown-looms-as-bill-moves-to-senate/
How your House Rep voted: https://clerk.house.gov/Votes/202570
Chief Counsel removed:
https://www.forbes.com/sites/kellyphillipserb/2025/03/13/irs-chief-counsel-pushed-out-after-reported-clash-with-doge-over-taxpayer-data/
Tax Filing Season stat article:
https://www.forbes.com/sites/kellyphillipserb/2025/03/11/as-tax-season-nears-halfway-point-irs-data-shows-taxpayers-still-not-rushing-to-file/
Trump reporting rule article:
https://www.forbes.com/sites/kellyphillipserb/2025/03/14/new-trump-financial-reporting-rule-aims-to-capture-cash-transactions-as-low-as-200/
De-Fi article:
https://www.forbes.com/sites/kellyphillipserb/2025/03/12/in-bipartisan-maneuver-house-votes-to-repeal-biden-era-cryptocurrency-rule/
Where’s My Refund info page on IRS.gov:
https://www.irs.gov/wheres-my-refund
First page of Where’s My Refund?:
https://sa.www4.irs.gov/wmr/
Refund article:
https://www.forbes.com/sites/kellyphillipserb/2025/03/11/does-the-irs-have-your-money-theres-more-than-1-billion-in-unclaimed-refunds-for-tax-year-2021/
IRA and gold:
https://www.forbes.com/sites/jessicaledingham/2025/03/13/benefits-of-adding-gold-to-your-ira/
AICPA/CIMA Economic Outlook Survey:
https://www.aicpa-cima.com/professional-insights/download/aicpa-and-cima-1q25-economic-outlook-survey-1
Subscribe to FORBES: https://www.youtube.com/user/Forbes?sub_confirmation=1
Fuel your success with Forbes. Gain unlimited access to premium journalism, including breaking news, groundbreaking in-depth reported stories, daily digests and more. Plus, members get a front-row seat at members-only events with leading thinkers and doers, access to premium video that can help you get ahead, an ad-light experience, early access to select products including NFT drops and more:
https://account.forbes.com/membership/?utm_source=youtube&utm_medium=display&utm_campaign=growth_non-sub_paid_subscribe_ytdescript
Stay Connected
Forbes newsletters: https://newsletters.editorial.forbes.com
Forbes on Facebook: http://fb.com/forbes
Forbes Video on Twitter: http://www.twitter.com/forbes
Forbes Video on Instagram: http://instagram.com/forbes
More From Forbes: http://forbes.com
Forbes covers the intersection of entrepreneurship, wealth, technology, business an
Category
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LearningTranscript
00:00Welcome to Tax Breaks. I'm your host, Kelly Phillips Erb. I'm a senior writer for Forbes,
00:10and you may have seen me around the web as Tax Girl. I'm also a tax attorney, and I work with
00:15taxpayers and tax professionals like you every day. There's a lot to talk about, so let's get
00:21started. This week, the lights are still on in D.C. More shakeups at IRS, increased financial
00:28scrutiny from the government, reading your tax transcripts, investing your IRA in gold,
00:34tax trivia, tax filing deadlines, and more. As the deadline loomed, Congress voted to avoid
00:40a government shutdown. That's after the Democrats' leader, Senator Chuck Schumer,
00:45a Democrat out of New York, voted yes on a procedure to advance a spending vote.
00:51The Senate vote follows an earlier vote in the House to fund the government through September
00:5630, 2025. The final House vote was 217 to 213, with only one Republican, Thomas Massey of
01:04Kentucky, voting no, and only one Democrat, Jared Golden of Maine, voting yes. The Congressional
01:11Budget Office, or CBO, estimates that the bill will cost $1.6 trillion. That breaks down into
01:18$893 billion for defense and $708 billion for non-defense spending. The continuing resolution,
01:27or CR, largely mirrors the previous year's funding measures, while increasing military
01:32spending by $6 billion and cutting $13 billion in non-defense spending. It also includes a boost in
01:39Immigration and Customs Enforcement, or ICE, deportation operations and claws back $20.2
01:46billion of IRS funding. This is in addition to earlier cuts.
01:51Cuts to the IRS budget weren't the only issues for the tax agency this week.
01:56Weeks after the acting IRS commissioner departed, another high-profile staffer is leaving.
02:02Acting Chief Counsel William Paul has been removed and is expected to be replaced by
02:07Andrew D'Mello. Paul was reportedly demoted because he refused to cooperate with Elon
02:13Musk's Department of Government Efficiency, or DOGE, as DOGE representatives allegedly sought
02:20to share taxpayer information with other federal agencies. The Chief Counsel, a position that dates
02:26back to 1866, is the chief legal advisor to the IRS commissioner on all matters related to the
02:33interpretation, administration, and enforcement of tax laws and other legal issues. Attorneys in the
02:40Chief Counsel's office serve as lawyers for the IRS. They provide IRS and taxpayers with guidance
02:47on interpreting federal tax laws and represent the IRS in litigation matters, typically in tax court.
02:54Before recent personnel counts, the Chief Counsel organization had approximately 2,600 employees.
03:02Other IRS cuts are still in the news. To date, approximately 7,000 probationary
03:08employees in the IRS have been fired. While probationary employees are often recent hires,
03:13meaning within the last one to two years, they don't have to be. Those who have been serving
03:17for years but were recently moved or promoted into a new position also qualify as probationary.
03:24However, a U.S. district judge in California called the terminations of probationary employees
03:30unlawful and ordered their reinstatement. The order impacts all fired probationary employees
03:36from six federal agencies, including the U.S. Treasury, the home of the IRS.
03:43That relief for IRS employees may be short-lived, as reports suggest that the IRS will make
03:49additional dramatic cuts to its workforce. The exact numbers, estimates are between 20 and 50%,
03:55and the timing of those cuts have not been confirmed. But even as cuts are happening,
04:01tax season is rolling on. IRS data from the fifth week of the tax filing season,
04:06the week ending February 28, 2025, continues to suggest that taxpayers are not excited about
04:13filing this tax season. Numbers for tax filing and processing of tax returns remain low,
04:20a mark that has not changed since the beginning of the filing season.
04:24While the IRS may be slowing down, the Treasury's Financial Crimes Enforcement Network,
04:29or FinCEN, may be coming busier. The Trump administration is seeking more information
04:34about financial transactions for those who live or do business in one of 30 zip codes in California
04:41and Texas near the border. Beginning in April, FinCEN will require money service businesses
04:47in those zip codes to report those Americans who spend more than $200 in cash or cash equivalent
04:54on items like money orders and traveler's checks. That's a dramatic expansion of the
04:59standard $10,000 cash reporting rule. The MSB designation, again, that's for money service
05:05businesses, includes businesses like check cashing services, sellers of traveler's checks or money
05:11orders, and money transmitters. The increased reporting rule is in sharp contrast to eliminate
05:16other reporting requirements. The House of Representatives has voted to repeal a Biden-era
05:22reporting requirement focused on decentralized finance, or DeFi. The bill reverses the DeFi
05:29broker rule, published by the Treasury in December 2024. The rule created reporting
05:35requirements for trading front-end service providers that work directly with users on
05:40digital asset transactions. DeFi refers to peer-to-peer financial services on the blockchain.
05:47In simple terms, it's crypto and digital currency without the banks, financial service companies,
05:52or other middlemen. DeFi brokers are a little more challenging to define, as stakeholders pointed out
05:58after the final regulations were made public. Notably, DeFi brokers are decentralized. It's
06:05right there in the name, and as such do not collect information from users that would be
06:10needed to comply with the rule. The vote now moves to the Senate, which voted earlier to overturn the
06:16rule. Procedurally, however, the vote has to happen again to line up with the House vote. As you can
06:22tell, there's a lot happening in the tax and budget space right now. We're doing our best to sort out
06:28fact from speculation as we aim to keep you informed. I know it can be a bit overwhelming.
06:33Having so much happen during tax season keeps tax professionals and taxpayers on edge. I hope that
06:39you'll take a break, go on a long walk, enjoy a Guinness and some corned beef and cabbage, or do a
06:43little early spring gardening. Feel free to drop me a note and let me know how you're keeping sane
06:48during the tax season. Now let's answer a taxpayer question. This week, a reader asked,
06:55my tax refund is late. When I checked my transcript, there was a code 570. Am I being audited?
07:02So here's my answer. I generally encourage taxpayers to take advantage of their IRS
07:07online account, including taking a peek at their transcript when appropriate. That said, while IRS
07:14transcripts can be helpful, they can also be complicated if you're not sure what you're
07:18looking at. That includes transcript codes, or TC, on your account. One of those codes is TC570,
07:27or TC570, which is a catch-all. It simply means that there's a delay in processing your tax return.
07:34You'll note that it's typically accompanied by the words, additional account action pending.
07:39The code TC570 doesn't necessarily mean that you did anything wrong. Importantly, you don't
07:46need to do anything further until you hear from the IRS. There's no need to call and spend time
07:51on hold, for example. The IRS may send you a letter asking for more information. This is often when
07:57testing indicates that there might be fraud on the account. When that happens, the account is flagged
08:03and the IRS stops processing your return. The IRS may send you a letter asking for more information.
08:10This is often when testing indicates that there might be fraud on the account.
08:14When that happens, the account is flagged and the IRS stops processing your return. They'll usually
08:20send you a letter with information and further instructions. If identity theft is suspected,
08:26you'll typically receive a letter 5071C asking you to verify your identity. If so,
08:33follow the instructions found in that letter. TC570 could also be triggered for other reasons,
08:40like questions about credits that you claimed on your return or income that you reported.
08:45If that's the case, expect a letter asking for more information. If you receive a letter from
08:51the IRS, it's important to respond promptly. If you don't, your tax return could be further delayed.
08:58Once the IRS has resolved the issue, you may see TC571. That's the thumbs up. If you see TC846
09:07after that, that means that the IRS has finally issued your tax refund. With that, I don't
09:13recommend using the transcript tool to check on your refund. The fastest, best way to get
09:19information about your refund is to use the Where's My Refund tool, available on irs.gov
09:25and also as an app. Refund status is typically available within 24 hours after the IRS receives
09:32your e-filed return for the current tax year or four weeks after mailing your paper tax return.
09:38And remember, the IRS only updates the tool once a day, usually overnight, so there's no benefit
09:44to checking throughout the day. If you have a tax question or matter that you think we should cover
09:49in the next episode, let us know. You'll find more information in the show notes. Of course, if you
09:54follow me on Forbes, you know that I love looking at statistics and enjoy a good chart or map.
10:00This week, I'm focused on tax refunds. The IRS may have your money. The tax agency says that more
10:07than $1 billion in outstanding tax refunds remains unclaimed from the 2021 tax year.
10:14The agency estimates that more than 1.1 million taxpayers might have qualified for a tax refund
10:21but did not file a federal income tax return in order to claim it. If you were due a tax refund,
10:28typically you must file a federal income tax return to get your money. Taxpayers usually
10:33have three years to file and claim their tax refunds. If you don't file within those three years,
10:38the money becomes the property of the U.S. Treasury. The three-year window for filing your
10:432021 tax return would close on April 15, 2025. The IRS estimated how many people in each state
10:52might be entitled to a tax refund based on their data. Taxpayers in New York, Pennsylvania,
10:58Rhode Island, Massachusetts, and Illinois are expected to have the highest median potential
11:05refund. California, Idaho, New Jersey, Minnesota, and Montana taxpayers are expected to have the
11:12lowest refunds. Not surprisingly, taxpayers in the most populated states are missing out the most.
11:19More than 100,000 taxpayers in each of California and Texas may be entitled to a tax refund for the
11:272021 tax year, followed by New York, Florida, and Pennsylvania. Taxpayers in less populated states
11:35may be missing out too, with thousands of taxpayers in Wyoming, North Dakota, Vermont, South Dakota,
11:42and the District of Columbia also reporting potentially unclaimed refunds. If you think
11:48you're due a tax refund, time is running out to claim your money. Now it's time for a little tax
11:54trivia. The IRS expects to receive more than 140 million individual tax returns for the tax year
12:022024 by the Tuesday, April 15 deadline. In the first year of the modern federal income tax system,
12:09those tax returns received in 1914. Approximately how many returns did the IRS received? Here are
12:17your choices. A. 350,000. B. 750,000. C. 1.5 million. D. 3 million. I'll give you a minute.
12:30The answer is A. 350,000. By 1945, IRS was processing 50 million individual tax returns annually. In 2024, the IRS received
12:57139,137,000 individual income tax returns by tax day and 164,473,000 by year end.
13:09Now it's time for a deeper dive, and it's a look at gold and retirement accounts. The markets may
13:15be down, but the price of gold is up. Over the past five years, the price of gold has increased
13:20by more than 78%, with each bar of gold bullion costing more than $1 million. So does that make
13:28precious metals a good choice for your IRA? The tax code allows certain precious metals to be
13:34held in an IRA under section 408m3 of the tax code. To qualify, gold must meet specific purity standards
13:42with bullion bars and coins typically needing to be at least 99.5% pure. There are other rules.
13:49This is tax law, after all. For example, the gold must be stored in an IRS-approved
13:55depository. That means personal storage of gold, such as at home or in a safe, is prohibited.
14:01And not all gold products qualify. Collectible coins, for example, are usually not permitted.
14:06If you do not want to have physical ownership of the bullion, your IRA can buy shares of an
14:12exchange-traded fund, or ETF, that follows the value of a precious metal. That's according to
14:17Private Letter Ruling 2007-3202. The bottom line, you can invest in some non-traditional assets
14:26like precious metals or ETFs in your IRA. Now for something a little more brief, some quick
14:32tax and accounting newsmakers. April 1st will be here soon, and it's the deadline for retirees who
14:38turned 73 in 2024 to begin receiving the Required Minimum Distributions, or RMDs, from IRAs, 401ks,
14:48and other retirement plans. Under a special rule, IRA owners and participants born after December 31st,
14:551950, and who turned 73 in 2024 can delay their first Required Minimum Distribution, or RMD,
15:04until April 1st, 2025. The April 1st deadline is for the first year only. For subsequent years,
15:11the distribution is due by December 31st. Further, taxpayers receiving their first Required
15:18Minimum Distribution, or RMD, for 2024 in 2025—that's by that April 1st deadline—must take out a second RMD
15:27for 2025 by December 1st, 2025. And a post-election boost in business executives' optimism about the
15:36U.S. economy has moderated, declining from a more than three-year high of 67 percent last quarter
15:43to 47 percent this quarter. The American Institute of CPAs, or AICPA, and the Chartered Institute of
15:51Management Accountants, CMIA, Economic Outlook Survey, found these results. The shift reflects
15:58growing concerns about inflation and tariffs, according to the survey, which polls chief
16:03executive officers, chief financial officers, controllers, and other certified public accountants
16:09in U.S. companies who hold executive and senior management accounting roles. And that's a wrap.
16:16Thanks to all of you who continue to watch, comment, and share the show. I'd love to know
16:21what you thought of this episode. You can send an email with your feedback to kerb at forbes.com,
16:28and if you like it, please share. You can also find a link to the audio of each episode
16:33on forbes.com. Thanks for listening, because paying taxes is painful,
16:38but hearing about them shouldn't have to be.