Trump appointees have been left furious after being asked to ‘immediately’ pay thousands of dollars in deferred payroll taxes, which they thought would be forgiven

donald trump melania trump
Former President Donald Trump and former first lady Melania Trump.

  • Members of Trump’s admin were asked to pay the payroll tax Trump deferred, Politico reported.
  • Trump deferred some payroll tax in August 2020, sidestepping Congress in an emergency declaration.
  • “I just wish I had the option to opt-out,” a former administration staffer told Politico.
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Some staffers from President Donald Trump’s administration have reportedly seen their tax bills spike as they’re being asked to pay payroll taxes deferred by the president.

Politico reported that members of Trump’s administration have reportedly been receiving letters asking them to pay Social Security taxes that were deferred, with at least one bill reaching $1,500.

“If the indebtedness is not paid in full within 30 calendar days, we intend to forward this debt to the Department of Treasury, Treasury Offset Program, for further collection,” said a copy of a letter sent May 18, 2021, by an accounting officer from the Office of Administration.

Trump set the policy on August 8, 2020, in a memo to Treasury Secretary Steven Mnuchin, directing Mnuchin to defer some payroll taxes to “put money directly in the pockets of American workers” who needed it most.

Trump sidestepped Congress to make the change because the pandemic was “of sufficient severity and magnitude to warrant an emergency declaration.”

As many as 1.3 million federal workers may have had some of their payroll taxes deferred under the measure, as Insider reported in September. Under the plan, earners paid less than $4,000 every two weeks wouldn’t have to pay the 6.2% tax out of their paychecks from September through the end of the year.

Now, the government’s looking for those deferred taxes, according to Politico. The report quoted several former administration staffers who called the bills “unacceptable.” One said: “It’s just a very unfortunate situation.”

The letter published by Politico included a “Voluntary Repayment Agreement” as an attachment, with an option to pay via credit or debit card.

One anonymous Trump appointee told the publication that the former president had a “good plan,” but, “I just wish I had the option to opt-out.”

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Former Treasury Secretary Steven Mnuchin is planning an investment fund backed by Persian Gulf wealth funds, report says

FILE PHOTO: U.S. Treasury Secretary Steven Mnuchin testifies before a Senate Finance Committee hearing on the President's FY2021 Budget on Capitol Hill in Washington, U.S., February 12, 2020. REUTERS/Yuri Gripas/File Photo

Former Treasury Secretary Steven Mnuchin is planning to launch an investment fund that will be backed by sovereign wealth funds in the Persian Gulf region and other investors, the Washington Post reported on Tuesday.

Citing two people familiar with the matter, the Washington Post said the fund will invest in areas including financial technology and entertainment, among other potential sectors. 

The United Arab Emirates, Kuwait, Qatar and Saudi Arabia control some of the Persian Gulf region’s largest investment funds, according to the Sovereign Wealth Fund Institute.

Mnuchin traveled to the region frequently during his time as the head of the US Treasury, usually in relation to the treasury’s mission to combat terrorism financing. 

Before his tenure in the White House, Mnuchin worked as a filmmaker and on Wall Street, including a 17 year stint at Goldman Sachs.

 

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TurboTax and H&R Block say they have fixed the issues that prevented $600 stimulus checks from being paid out

protest stimulus
Protesters rally to demand economic relief during the coronavirus pandemic.

  • TurboTax and H&R Block said they’d fixed issues that were delaying $600 stimulus payments from the Internal Revenue Service.
  • “We have been working tirelessly with the Treasury and IRS to get stimulus payments to our customers. We know how important these funds are for so many Americans and we regret that an IRS error caused a delay,” a TurboTax spokesperson told Insider via email.
  • In a statement, the IRS said: “The IRS and tax industry partners are taking immediate steps to redirect stimulus payments to the correct account for those affected. 
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TurboTax and H&R Block said they’d fixed issues that were delaying $600 stimulus payments from the Internal Revenue Service.

“We have been working tirelessly with the Treasury and IRS to get stimulus payments to our customers. We know how important these funds are for so many Americans and we regret that an IRS error caused a delay,” a TurboTax spokesperson told Insider via email.

In the middle of last week, the tax-filing companies said they were experiencing issues with some payments, many of which were being sent to the wrong accounts. Some payments were sent to closed accounts. The issues caused delays for some taxpayers who were seeking relief.

H&R Block on Friday said it had processed “all stimulus payments” to millions of its clients. TurboTax said it began depositing delayed payments on Friday.  

Congress approved the new $600 payments as part of December’s $900 billion stimulus bill. President Donald Trump signed the bill on December 28. The IRS then launched a website to help taxpayers track their new payments. But the system stumbled last week, with H&R Block and TurboTax both saying some would be delayed.  

“It is possible the IRS sent your second stimulus payment to a different place than your first stimulus payment,” said H&R Block in a statement posted on its website. 

The IRS on Thursday said some payments will be sent as prepaid debit cards instead of paper checks. On Friday, it added that 100 million taxpayers had already received their payments. 

The agency said Friday: “The IRS and tax industry partners are taking immediate steps to redirect stimulus payments to the correct account for those affected. The IRS anticipates many additional taxpayers will receive payments following this effort.”

 

 

 

 

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