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TaxBuzz Top 5 - Trump Sues Treasury, IRS for Astounding $10 Billion, Virginia Proposes Over 50 Tax Hikes on Dog Walking, Dry Cleaning, Gyms & More

by
Rebekah Barton
on
1/30/2026
TaxBuzz Top 5 - Trump Sues Treasury, IRS for Astounding $10 Billion, Virginia Proposes Over 50 Tax Hikes on Dog Walking, Dry Cleaning, Gyms & More

Each Friday, TaxBuzz brings you the top five tax and accounting headlines you need to know from the workweek. We know life can get busy and you don't always have time to scroll through your news feed to stay informed.

We weed through all of the week's stories to showcase the most important updates in the tax and accounting world.

1. Trump Sues IRS and Treasury For $10 Billion Over Leaked Tax Records

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Credit: Samuel Corum/Getty Images

President Donald Trump, joined by his sons Donald Trump Jr. and Eric Trump and the Trump Organization, filed a $10 billion lawsuit against the Internal Revenue Service and the U.S. Treasury Department in federal court in Miami, claiming the agencies failed to safeguard his confidential tax returns and allowed them to be leaked to news outlets in 2019–2020. The complaint alleges that poor data protections by a former IRS contractor, who was later sentenced to prison for the breach, caused reputational and financial harm to the plaintiffs.

The suit contends the leak violated strict IRS confidentiality laws and claims the agencies acted with negligence or worse by not preventing unauthorized disclosures to media outlets like The New York Times and ProPublica, which published reporting on Trump’s tax history.

The legal action is unusual because it sees a sitting U.S. president suing two major federal agencies that operate under his own administration, highlighting ongoing tensions over tax privacy and data security.

Trump’s lawyers argue the leaks damaged business reputations and public standing, seeking punitive and compensatory damages; the case may eventually be resolved through settlement negotiations with the Justice Department.

The lawsuit follows a wider backdrop in which the Treasury recently canceled contracts with the consulting firm tied to the contractor who leaked the records, highlighting ongoing concerns about how taxpayer data is protected at the federal level.

2. Virginia Democrats Propose Over 50 Tax Hikes On Services and Goods

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Credit: SeanPavonePhoto/Getty Images

Virginia’s newly Democratic-controlled legislature has introduced more than 50 new tax hike proposals this session, drawing criticism after Gov. Abigail Spanberger campaigned on making life more affordable. The proposals would expand sales and service taxes to cover a wide range of previously untaxed activities and goods, including dog walking and grooming, gym memberships, dry cleaning, home repairs, and even deliveries from companies like Amazon, Uber Eats and UPS.

Lawmakers are also considering new local sales taxes across all Virginia counties and cities, new income tax brackets, and targeted levies on items like gun and ammunition sales and electric landscaping equipment.

Republican critics argue the tax proposals contradict Spanberger’s affordability messaging and could raise costs for residents and small businesses. They say expanding the tax base to everyday services will hit middle-income taxpayers rather than just high earners.

Supporters of the measures say updating the tax code could generate revenue for transportation, infrastructure and public services, giving lawmakers more funding flexibility with a unified Democratic majority in Richmond.

The proposals come as Virginia joins the Regional Greenhouse Gas Initiative, a move that will add fees to electric bills, further fueling debate over the state’s fiscal priorities and cost pressures on households.

3. Georgia Republicans Push to Phase Out Homestead Property Tax by 2032

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Credit: John Coletti/Getty Images

Georgia House Republicans, led by Speaker Jon Burns, unveiled a proposal to gradually eliminate local property taxes on homeowners’ primary residences by 2032, marking one of the most ambitious tax-cut plans in the state’s legislative session. The “HOME Act” would expand the state homestead exemption each year until homeowner property taxes are fully phased out, although other property categories like commercial and rental properties would still be taxed.

Under the plan, local governments and school districts would need to replace more than $5 billion in lost revenue, with options including levying or expanding local sales taxes and charging assessments for specific services. Critics warn that relying on sales taxes could raise costs for everyday purchases.

Burns argues the change would relieve rising tax burdens amid surging home values and make life more affordable for Georgians, but it requires a constitutional amendment approved by both the legislature and voters.

Senate Democrats have criticized the proposal as unrealistic and potentially harmful to funding for schools and local services, noting that property taxes traditionally finance core functions like education and public safety.

The property tax initiative comes alongside broader Republican tax-cut efforts in the Peach State, including separate plans to phase out the personal income tax by 2032, reflecting a wider push to reduce tax burdens ahead of the 2026 election cycle.

4. West Virginia Governor Pushes 10% Income Tax Cut As Part Of Broader Tax Reform

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Credit: Photo by Mike Kline (notkalvin)/Getty Images

West Virginia Gov. Patrick Morrisey is calling on the state Legislature to approve a 10 % across-the-board cut to the personal income tax, saying fiscal discipline and recent economic growth have put the state in a position to return money to taxpayers. Morrisey made the pitch at a press event in Parkersburg alongside tax-cut advocate Grover Norquist, arguing the reduction would help residents cope with rising living costs and keep the state competitive with neighbors like Ohio and Kentucky.

Morrisey said about half of the cut is already built into his proposed budget through spending restraint and cost restructuring, and he urged lawmakers to find offsets to fund the remainder.

Supporters, including Norquist and local business owners, framed the proposal as part of a broader push toward lower taxes and economic growth, saying a sustained reduction could attract jobs and investment.

The governor’s tax cut pitch comes as West Virginia reports nearly $8 billion in new private-sector investment commitments, which officials say strengthens the case for tax relief.

Lawmakers have expressed mixed views on the budget proposal, which would require legislative approval to take effect; some support income tax relief while others are cautious about long-term revenue impacts.

5. Popular Walser Automotive and Broker Charged in Minnesota Tax Evasion Scheme

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Credit: Witthaya Prasongsin/Getty Images

Popular auto sales company, Walser Automotive Group, and automotive broker, William Fredrick Ward, were this week charged in Minnesota with a scheme to evade more than $350,000 in motor vehicle sales taxes by routing high-end vehicle purchases through shell companies in Montana to avoid Minnesota tax and dealer licensing requirements. Prosecutors allege that between March 2020 and August 2023, vehicles were acquired and titled in the names of Montana LLCs — which has no motor-vehicle sales tax — then later sold in Minnesota as “used” to bypass tax obligations.

State investigators say the structure was used to sell multiple high-end cars without collecting or remitting the proper Minnesota sales taxes, and that many vehicles still showed nearly identical odometer readings at sale, suggesting they were never actually used.

The complaint includes at least one felony count for Walser Automotive Group and separate felony and misdemeanor charges for Ward, who prosecutors say acted without a proper motor vehicle broker license and could face up to five years in prison on the felony count.

Authorities allege Walser employees were involved in processing the transactions and knew Ward was presenting himself as an individual buyer to facilitate the tax-avoidance structure, though company representatives have disputed that the arrangement was intended to evade taxes.

Which headline this week most interests you?

Feature Image Credit: Samuel Corum/Getty Images

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Rebekah Barton

Rebekah Barton

Rebekah's search engine optimization career began completely by accident as a college student. Over the course of her career so far, she has "grown up" with the SEO industry, from writing content while juggling classes to managing her own teams of writers and overseeing SEO strategy in subsequent roles. She is excited to bring her passion for high-quality content to CountingWorks, Inc.

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