During a hearing, Judge Illston indicated she was likely to grant the plaintiff’s motion. She stated that the Office of Management and Budget and the Office of Personnel Management appeared to be disregarding laws during the government spending lapse. Illston believes the plaintiffs will demonstrate that the actions are both illegal, beyond their authority, and arbitrary. The case was brought by the American Federation of Government Employees and the American Federation of State, County and Municipal Employees, representing 800,000 federal workers.
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The IRS recently released updated federal income tax brackets and standard deductions for 2026, applicable for returns filed in 2027. The agency increased income thresholds for each bracket, along with adjustments to long-term capital gains brackets, estate and gift tax exemptions, and earned income tax credit eligibility. For the 2026 tax year, the top tax rate of 37% will apply to individuals with taxable income exceeding $640,600 and married couples filing jointly with income above $768,700.
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The Trump administration, backed by private tax-filing corporations, has officially shut down the IRS’s Direct File service, a free online tax-filing option. This decision comes despite positive reviews and a 94% satisfaction rate from users who saved an average of $160 annually on filing fees. The program was projected to save Americans billions annually and provide billions more in tax credits to low-income families. The move was influenced by months of lobbying from private tax-filing companies and GOP congresspeople who had received campaign donations from the tax preparation industry, leading to the program’s demise and financial gain for these companies.
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In a recent federal court filing, the IRS announced a significant shift in its interpretation of the Johnson Amendment. This change allows churches to endorse political candidates to their congregations without the risk of losing their tax-exempt status. The IRS stated that communications on matters of faith through usual channels do not violate the Johnson Amendment as properly interpreted. This filing was part of a joint motion to settle a lawsuit with the National Religious Broadcasters and two Texas churches, challenging the amendment’s constitutionality.
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The IRS has proposed a policy change that would allow pastors to endorse political candidates from the pulpit without jeopardizing their church’s tax-exempt status, effectively creating an exemption from the Johnson Amendment. This proposed interpretation stems from a joint court filing with the National Religious Broadcasters Association, aiming to halt enforcement of the amendment against the plaintiffs. The Johnson Amendment currently prohibits tax-exempt organizations, including churches, from endorsing or opposing political candidates, but the IRS now suggests this should not apply to communications during religious services through regular channels. This stance, though largely mirroring existing IRS practices, could significantly increase political expression within churches, as noted by experts in nonprofit law.
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Critically ill 9/11 first responders are facing a devastating situation: they are being denied access to the very program designed to provide them with essential healthcare. This isn’t a simple bureaucratic snafu; it’s a systemic failure impacting individuals who risked their lives during a national tragedy. The program, intended to support those who suffered health consequences from their 9/11 response efforts, has seen a massive surge in enrollment, far exceeding initial projections. This increase underscores the long-term health impacts of the disaster and the significant need for sustained support.
The sheer volume of applicants has unfortunately exposed a critical funding gap.… Continue reading
The US Internal Revenue Service’s (IRS) plan to rescind Harvard University’s tax-exempt status is a highly controversial move, sparking intense debate and raising serious questions about the potential abuse of power. This action has ignited a firestorm, with many questioning the fairness and legality of targeting a specific institution in this manner. The move feels particularly arbitrary, prompting comparisons to authoritarian regimes that selectively enforce laws against their political opponents.
This potential action is not just about Harvard; it’s about the implications for all non-profit organizations. The concern is that this sets a dangerous precedent, allowing the government to target any entity it deems undesirable, creating a chilling effect on free speech and academic freedom.… Continue reading
The IRS is nearing a deal with DHS to aid in locating undocumented migrants, involving ICE providing names and addresses to the IRS for verification. This agreement, a narrower version of an earlier proposal, would represent a significant change in IRS policy, requiring high-level DHS approval for each request. The IRS would confirm addresses, not proactively provide data to ICE, though this still raises privacy concerns given the strict confidentiality rules surrounding taxpayer information. This development follows a lawsuit from immigrant rights groups challenging the legality of such information sharing.
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In response to her termination, Traci DiMartini, former IRS head of human resources, claims her dismissal stemmed from revealing the Office of Personnel Management’s role in federal employee firings under the DOGE administration. The stated reasons for her dismissal included “ineffective management” of employee purges and “insubordination.” DiMartini further alleges her refusal to mandate weekend work for IRS staff to accommodate a DOGE employee contributed to her firing. She intends to contest her termination.
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The current administration, characterized by an “anti-state state” approach, prioritizes dismantling government functions outside of policing, funneling resources to private enterprise. This strategy, coupled with mass firings at agencies like the IRS, aims to cripple public services and justify further budget cuts, ultimately benefiting the ultra-wealthy. Tax resistance, drawing historical parallels to past civil disobedience movements, is presented as a method to expose this governmental corruption and the resulting harm to the public. Withholding taxes becomes a form of political protest, aiming to highlight the misuse of public funds and the deliberate undermining of essential services.
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John Q. Hosedrinker 
Matt Underwood