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THURSDAY TAX TIDBITS

Tax Law News: Four States Sue the IRS


The IRS is being sued? How and why? The states: Connecticut, Maryland, New Jersey, and New York have filed a federal court lawsuit to eliminate the cap on state and local taxes (SALT) deductions under the new tax law. In the past, there wasn’t any specified limit to the quantity of taxes one could claim, however now, married taxpayers cannot claim more than $10,000. This can mean a higher federal tax liability for some taxpayers. Not only us this inconvenient for individuals, but it will also cause major social issues. In fourteen states, the SALT cap will drop home values, which leads to a huge loss in societal home equity value. For additional information, check out Forbes article with more details: https://www.forbes.com/sites/kellyphillipserb/2018/07/17/states-sue-irs-treasury-to-strike-down-salt-cap-under-new-tax-law/#54061fa55303

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