Despite the simple and catchy sound-bites, the “no tax on tips” and “no tax on overtime” opportunities under the One Big Beautiful Bill Act (the “OBBBA”) have limits and require administration by both employers and employees. Most significantly, the tax savings are in the form of deductions, rather than exclusions, which means that tips and overtime are still subject to FICA and other employment taxes
On January 1, 2023, the IRS mileage rate increased to 65.5 cents per mile for driving done for business purposes. This is a three (3) cent increase from the rate set for the second half of 2022. According to the IRS, this rate applies “to electric and hybrid-electric automobiles, as well as gasoline and diesel-powered vehicles” and was calculated “based on an annual study
United States v. Easterday, 539 F.3d 1176 (9th Cir. 2008)
Jack Easterday operated a chain of nursing homes. Between 1998 and 2005, the payroll taxes for his company and its subsidiaries were approximately $45 million of which only $26 million was paid to the IRS. In his criminal trial for failure to pay over payroll taxes, Easterday did not dispute that he failed to