Posts tagged IRS
Commentary: Why does the US have it in for gig workers?
February 9, 2025 // There’s no argument that the gig economy has surged dramatically, particularly since the pandemic. More than 20m new businesses have launched since 2020, the great majority of those representing side hustlers, independent contractors and freelancers. According to data reported in Forbes, an estimated 64 million Americans, representing 38% of the US workforce, did freelance work in 2023, which is up by 4 million people over the previous year, and contributed almost $1.3tn in annual earnings to the US economy. Is the IRS that fearful over the loss of tax revenues? As a business owner, I don’t pay employer taxes when I hire freelancers. But the freelancer is responsible for paying a “self-employment” tax when they file their tax returns, so if they’re doing what they’re supposed to do, there shouldn’t be much difference. Most states have similar tax arrangements. If a taxpayer fails to report those earnings, then that’s on them. They’re breaking the law and risk penalties or even prison.
Federal employees confused, angered by Trump’s offer to quit
February 3, 2025 // “I’ve got my whole entire life invested in the federal government,” said the staffer, who also spent time in the military. “I’m not going to throw everything away.” Across the United States, multiple federal workers who spoke with CNN said they weren’t willing to sacrifice benefits beyond their salaries – including health and retirement benefits and student loan forgiveness – not to mention careers. They requested their names not be used for fear of retaliation.
Legal options for job seekers impacted by Trump’s hiring freeze
January 22, 2025 // For federal civilian job seekers with offers in hand, President Donald Trump’s federal hiring freeze has brought sudden uncertainty — and limited recourse. The freeze, signed into effect Monday at noon, stops hiring for civilian federal employees and is part of a broader plan to downsize the federal workforce.
New York’s Fastest-Growing Union Is Management’s Best Friend — and Some Workers Don’t Even Know They’re Members
December 20, 2024 // Though she last worked for Five Borough two months ago, she stopped receiving pay stubs long before that, she said — paperwork that would have had to show deductions, including for union dues. Supervisors ignored her repeated requests for pay records, she said. Through such voluntary recognition deals with management, less than a decade after its founding, HHWA has exploded in size. It currently claims some 43,000 members, up from 14,141 in 2018. An investigation into Home Healthcare Workers of America by THE CITY, based on interviews with past and current members, legal records and other public statements, reveals that this fast-growing union is a tool of company management in the form of a labor organization.
Illinois needs responsible Tier 2 pension reform
November 22, 2024 // Illinois is at risk of getting in costly trouble with the federal government over its Tier 2 public employee retirement benefits. Here’s a solution that doesn’t make the state’s monstrous public pension debt even worse. Illinois’ public pension problems are facing a new threat impacting the newer hires covered under the more modest “Tier 2” retirement benefits: the state can either add $280 million a year into their plans or face the feds demanding over $856 million a year.
IRS Agents Union Endorses Kamala Harris, Cites Inflation Reduction Act Windfall
September 24, 2024 // “The administration also delivered agency budgets that provide federal employees with additional staffing and resources, including significant new investments to rebuild the IRS under the Inflation Reduction Act.” Indeed, the Inflation Reduction Act, for which Harris cast the deciding vote to break a Senate deadlock, boosts the IRS budget by $80 billion, enabling the agency to hire an additional 87,000 employees – while increasing the union’s membership in the process. However, the IRS expansion won’t just increase union membership, it’ll also help the agency to collect an additional $5 trillion of tax increases Harris wants, analysis by Americans for Tax Reform (ATR) finds:
Foxx Expands Investigation of Biden-Harris Scheme to Use Pension Assets for Big Labor
July 31, 2024 // “The Committee on Education and the Workforce (Committee) is investigating attempts by the Biden-Harris administration and certain pension funds to leverage retirement assets for the benefit of organized labor. The Internal Revenue Code (Code) makes public pensions eligible for significant tax subsidies if, among other things, their benefits are part of a plan ‘for the exclusive benefit of [an employer’s] employees or their beneficiaries.’ The Committee seeks information to determine whether the law is being undermined by the Biden-Harris administration and violated by certain pension funds. … The Internal Revenue Service (IRS) has an obligation to enforce the provisions of the Code to ensure that taxpayers are not improperly subsidizing a retirement plan that does not, in fact, comply with the Code’s exclusive benefit requirement. To the extent that CalPERS is using plan assets for the benefit of social or political causes, the plan’s tax status is no longer valid.”
OPINION: Would Harris Be Better than Biden for Independent Contractors?
July 11, 2024 // It’s imperative for the tens of millions of Americans who earn some or all of their income as independent contractors to understand where she stands when it comes to money that is earned through self-employment. The record shows that Harris poses a real threat to independent contractors’ income, and for many of us, to our entire careers.
Former Local 98 President Brian Burrows Sentenced to Four Years in Prison for Embezzlement of Union Funds, Filing False Government Reports, and Tax Fraud
June 28, 2024 // United States Attorney Jacqueline C. Romero announced that Brian Burrows, 64, of Mount Laurel, NJ, was sentenced today by United States District Court Judge Jeffrey L. Schmehl to 48 months’ imprisonment, three years of supervised release, forfeiture of $135,689.11, an $1,800 special assessment, and restitution to be determined later, for crimes arising from his embezzlement of funds belonging to Local 98 of the International Brotherhood of Electrical Workers (“Local 98”). Burrows had served as the President of Local 98 since 2008. The only person who held a higher office in the union was his codefendant, Business Manager John Dougherty.
Biden Administration Unveils Historic Rules for High-Paying Clean Energy Jobs The White House
June 19, 2024 // Clean energy projects that meet the requirements of these final rules will receive a fivefold increase for clean energy tax credits for deployment of wind, solar, nuclear, hydrogen, and other clean energy technologies, as well as for projects receiving allocations under the Section 48C Advanced Energy Projects credit., providing a significant incentive for project developers to pay prevailing wages to workers for construction, alteration, and repair of clean energy projects and to hire registered apprentices to earn while they learn by working on those projects. Secretary of the Treasury Janet Yellen and Acting Secretary of Labor Julie Su also published a blog highlighting the use of Project Labor Agreements as a best practice for large construction projects and a tool to help project developers comply with the prevailing wage and apprenticeship requirements. Project Labor Agreements, or pre-hire collective bargaining agreements that set the terms and conditions for employment on a construction project, help workers and developers alike by providing strong worker and wage protections while ensuring a reliable supply of skilled workers to help deliver projects on time and on budget.