Baltic Cruises Have Changed But They Still Deliver Big On Culture
Not so long ago, Saint Petersburg was the undisputed crown jewel of Baltic cruises. With its imperial architecture, opulent palaces, and rich cultural heritage, the Russian city was the centerpiece of many itineraries.
It often warranted an overnight stay to give passengers time to watch an evening ballet performance in a historic theatre on top of the cultural experiences and canal cruises by day.
But following Russia's 2022 invasion of Ukraine, Saint Petersburg vanished from cruise schedules. The geopolitical fallout reshaped the Baltic cruise map almost overnight.
In its place, cruise lines have been doubling down on Scandinavia's coastal capitals and adding calls to lesser-known destinations like Klaipeda in Lithuania or the Danish island of Bornholm.
While Saint Petersburg's absence leaves a noticeable gap, the Baltic Sea remains one of Europe's most culturally diverse regions to explore by cruise ship. Cultural Highlights Of Baltic Cruises
From medieval Old Towns and Viking heritage sites to sauna culture and summer archipelagos, these ports offer something truly different, even for seasoned cruisers.
In Stockholm, the journey often begins with a showstopper: the Vasa Museum. Home to a nearly intact 17th-century warship salvaged from the seabed after more than 300 years, it's a staggering display of maritime ambition and failure housed in a museum purpose-built to do it justice.
Helsinki offers a different kind of contrast. Its streets reveal a mix of curving Art Nouveau architecture and sleek Nordic minimalism, with design shops, saunas, and island fortresses adding to the city's offbeat allure.
Just offshore, the sea still feels part of daily life, with ferries and kayaks connecting the urban with the wild.
A clash of architectural styles and modern Nordic design awaits visitors to Helsinki, Finland. getty
Then comes Tallinn, a city that feels like it belongs in a storybook. The medieval Old Town is immaculately preserved, with its red-tiled roofs, watchtowers, and narrow lanes evoking another age entirely. Its compact, walkable nature makes it ideal for cruise visitors.
Riga, often overlooked, is a revelation. Its Art Nouveau quarter is among the finest in the world, with swirling facades and hidden courtyards. The old city blends Hanseatic history with a creative energy that feels distinctly modern.
Further south, Gdańsk wears its turbulent history on its sleeve. Once a major Hanseatic port, then a flashpoint of World War II, the city has rebuilt itself with color and confidence.
In smaller ports, visitors encounter a slower pace and a strong sense of place, often with fewer crowds. Lithuania's Klaipeda was an unexpected highlight for travel writer Deborah Stone.
Writing in The Times , she said it was an e-biking trip in Lithuania that took her breath away: 'Our group of 15 set out to cycle to the Curonian Spit, pedalling along pine-lined paths that gave way to dunes.'
She also picked out the Danish island of Bornholm as another unexpected highlight: 'We sipped wine at one of the country's largest vineyards and ate smoked herring on rye in the fishing village of Snogebaek.' Which Lines Run Baltic Cruises?
The Baltic region has become a popular destination for Americans and Brits eager to tick off multiple European capitals in one trip, as well as Germans and Scandinavians taking advantage of easy regional embarkation points.
A broad spectrum of cruise lines serves the Baltic Sea, offering everything from value-focused voyages to ultra-luxury expeditions.
Viking Ocean Cruises is one of the most prolific operators in the region, with more than 200 departures each year. Their smaller, adult-only ships are designed to maximise time in port and deliver a deeper cultural experience. Overnight stays in cities like Stockholm and Copenhagen often feature on itineraries.
Holland America Line also sails extensively in the Baltic, offering classic mid-size ships and elegant itineraries with plenty of historical context. MSC Cruises is a major presence too, particularly appealing to families and budget-conscious travellers. They offer frequent sailings from Germany and Scandinavia on their larger resort-style ships.
Norwegian Cruise Line and Princess Cruises also run regular summer programs, with Norwegian favouring a flexible, entertainment-rich approach and Princess offering longer itineraries with well-paced port calls.
Luxury lines like Silversea, Seabourn, and Regent Seven Seas cater to guests looking for more refined experiences, often adding lesser-visited ports such as Visby, Klaipeda, or the Danish island of Bornholm. Departure Ports For Baltic Cruises
Most Baltic Sea cruises depart from major Northern European ports. Copenhagen is the standout hub, with strong air connections and easy city access. Stockholm is another frequent starting point, prized for its scenic sailaway through the Swedish archipelago.
Many German cruises depart from Warnemünde or Kiel, while others begin in Amsterdam or Rotterdam. Longer voyages may also start in Southampton, appealing to British travelers seeking a no-fly option with the likes of Fred Olsen Cruise Lines or Ambassador Cruise Line. How To Pack For Baltic Cruises
Packing for a Baltic cruise requires a bit of balance. The weather in this region can be highly variable, even in summer.
While you might encounter cool sea breezes and the occasional rainy day, especially in coastal cities like Helsinki or Tallinn, you should also be prepared for surprisingly warm, sunny summer days.
Lightweight layers are key, including a waterproof jacket and a mix of long and short sleeves. Comfortable walking shoes are a must for exploring cobbled old towns, and don't forget sunglasses and sunscreen. Daylight hours can be long, especially in the northern ports.
The variation in temperatures surprised travel blogger Charli Moore when she visited the region. She recommends a capsule wardrobe with versatile trousers, thermals, waterproof and warm coats, and multiple shoes to handle cobbles and cold.
While Saint Petersburg's absence has reshaped the region, Baltic cruises continue to thrive as one of Europe's most fascinating cultural cruise itineraries. MORE FROM FORBES Forbes 5 Life Lessons From Finland, Once Again The 'World's Happiest Country' In New Report By David Nikel Forbes How To Pack Smartly For Your Next Cruise Vacation By David Nikel Forbes Avoid These 10 Rookie Mistakes On Your First Cruise By David Nikel
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Boston Globe
17 hours ago
- Boston Globe
Trump criticized the idea of presidential vacations. His Scotland trip is built around golf.
The White House isn't calling Trump's five-day, midsummer jaunt a vacation, but rather a working trip where the Republican president might hold a news conference and sit for interviews with U.S. and British media outlets. Trump was also talking trade in separate meetings with European Commission chief Ursula von der Leyen and British Prime Minister Keir Starmer. Trump is staying at his properties near Turnberry and Aberdeen, where his family owns two golf courses and is opening a third on Aug. 13. Trump played golf over the weekend at Turnberry and is helping cut the ribbon on the new course on Tuesday. Advertisement He's not the first president to play in Scotland: Dwight D. Eisenhower played at Turnberry in 1959, more than a half century before Trump bought it, after meeting with French President Charles de Gaulle in Paris. But none of Trump's predecessors has constructed a foreign itinerary around promoting vacation sites his family owns and is actively expanding. Advertisement It lays bare how Trump has leveraged his second term to pad his family's profits in a variety of ways, including overseas development deals and promoting cryptocurrencies, despite growing questions about ethics concerns. 'You have to look at this as yet another attempt by Donald Trump to monetize his presidency,' said Leonard Steinhorn, who teaches political communication and courses on American culture and the modern presidency at American University. 'In this case, using the trip as a PR opportunity to promote his golf courses.' A parade of golf carts and security accompanied President Trump at Turnberry, on the Scottish coast southwest of Glasgow, on Sunday. Christopher Furlong/Getty President Trump on the links. Christopher Furlong/Getty Presidents typically vacation in the US Franklin D. Roosevelt went to the Bahamas, often for the excellent fishing, five times between 1933 and 1940. He visited Canada's Campobello Island in New Brunswick, where he had vacationed as a child, in 1933, 1936 and 1939. Reagan spent Easter 1982 on vacation in Barbados after meeting with Caribbean leaders and warning of a Marxist threat that could spread throughout the region from nearby Grenada. Presidents also never fully go on vacation. They travel with a large entourage of aides, receive intelligence briefings, take calls and otherwise work away from Washington. Kicking back in the United States, though, has long been the norm. Harry S. Truman helped make Key West, Florida, a tourist hot spot with his 'Little White House' cottage there. Several presidents, including James Buchanan and Benjamin Harrison, visited the Victorian architecture in Cape May, New Jersey. More recently, Bill Clinton and Barack Obama boosted tourism on Massachusetts' Martha's Vineyard, while Trump has buoyed Palm Beach, Florida, with frequent trips to his Mar-a-Lago estate. But any tourist lift Trump gets from his Scottish visit is likely to most benefit his family. 'Every president is forced to weigh politics versus fun on vacation,' said Jeffrey Engel, David Gergen Director of the Center for Presidential History at Southern Methodist University in Dallas, who added that Trump is 'demonstrating his priorities.' Advertisement 'When he thinks about how he wants to spend his free time, A., playing golf, B., visiting places where he has investments and C., enhancing those investments, that was not the priority for previous presidents, but it is his vacation time,' Engel said. It's even a departure from Trump's first term, when he found ways to squeeze in visits to his properties while on trips more focused on work. Trump stopped at his resort in Hawaii to thank staff members after visiting the memorial site at Pearl Harbor and before embarking on an Asia trip in November 2017. He played golf at Turnberry in 2018 before meeting with Russian President Vladimir Putin in Finland. Trump once decried the idea of taking vacations as president. 'Don't take vacations. What's the point? If you're not enjoying your work, you're in the wrong job,' Trump wrote in his 2004 book, 'Think Like a Billionaire.' During his presidential campaign in 2015, he pledged to 'rarely leave the White House.' Even as recently as a speech at a summit on artificial intelligence in Washington on Wednesday, Trump derided his predecessor for flying long distances for golf — something he's now doing. 'They talked about the carbon footprint and then Obama hops onto a 747, Air Force One, and flies to Hawaii to play a round of golf and comes back,' he said. On the green... Christopher Furlong/Getty ... and in the sand. Christopher Furlong/Getty Presidential vacations and any overseas trips were once taboo Trump isn't the first president not wanting to publicize taking time off. George Washington was criticized for embarking on a New England tour to promote the presidency. Some took issue with his successor, John Adams, for leaving the then-capital of Philadelphia in 1797 for a long visit to his family's farm in Quincy, Massachusetts. James Madison left Washington for months after the War of 1812. Advertisement Teddy Roosevelt helped pioneer the modern presidential vacation in 1902 by chartering a special train and directing key staffers to rent houses near Sagamore Hill, his home in Oyster Bay, New York, according to the White House Historical Association. Four years later, Roosevelt upended tradition again, this time by becoming the first president to leave the country while in office. The New York Times noted that Roosevelt's 30-day trip by yacht and battleship to tour construction of the Panama Canal 'will violate the traditions of the United States for 117 years by taking its President outside the jurisdiction of the Government at Washington.' In the decades since, where presidents opted to vacation, even outside the U.S., has become part of their political personas. In addition to New Jersey, Grant relaxed on Martha's Vineyard. Calvin Coolidge spent the 1928 Christmas holidays at Sapelo Island, Georgia. Lyndon B. Johnson had his 'Texas White House,' a Hill Country ranch. Eisenhower vacationed in Newport, Rhode Island. John F. Kennedy went to Palm Springs, California, and his family's compound in Hyannis Port, Massachusetts, among other places. Richard Nixon had the 'Southern White House' on Key Biscayne, Florida, while Joe Biden traveled frequently to Rehoboth Beach, Delaware, while also visiting Nantucket, Massachusetts, and St. Croix in the U.S. Virgin Islands. George H.W. Bush was a frequent visitor to his family's property in Kennebunkport, Maine, and didn't let the start of the Gulf War in 1991 detour him from a monthlong vacation there. His son, George W. Bush, opted for his ranch in Crawford, Texas, rather than a more posh destination. Advertisement Presidential visits help tourism in some places more than others, but Engel said that for some Americans, 'if the president of the Untied States goes some place, you want to go to the same place.' He noted that visitors emulating presidential vacations are out 'to show that you're either as cool as he or she, that you understand the same values as he or she or, heck, maybe you'll bump into he or she.'
Forbes
20 hours ago
- Forbes
3 Overseas Havens Where Retirees Can Live Rich On Social Security
Santa Marta, Colombia. getty In June, the average monthly Social Security check for retired workers hit $2,005.05. It's a source of income that millions of Americans rely upon when they leave the workforce—but is it enough? According to Consumer Expenditure Surveys data, the average retired household in the U.S. spends around $5,000 per month. That's quite the shortfall. For those looking to get the most bang for buck from their retirement income, a move overseas could be the answer. First, it's important to note that while there are many retirement havens where you can live well on a budget of $2,000 a month or less, making a move overseas does involve additional expenses. You will need to factor in the cost of moving—yourself, your belongings, your pets—and getting legal residency. It's also advisable to have a contingency fund set aside for other expenses such as health care, a rental deposit, trips back home, etc. In addition, you will need to meet the income requirements for the residency visa in your chosen country. Some countries don't require proof of income for residency or have no set minimum amount. Others come with a high income threshold—Ireland's is €50,000 per person per year. All this considered, here are three great overseas options for those looking to stretch their retirement income without compromising on their standard of living. Freedom Beach, Phuket, Thailand. getty Phuket, Thailand's biggest island, is adorned with white sand beaches, turquoise waters, verdant jungle, and majestic limestone cliffs. It's located close to the equator, so enjoys hot to warm weather throughout the year. The average high is 90°F and average low is 75°F. This exotic spot is home to an expat community of more than 100,000—many of them English-speaking—so settling in and making friends can be an easy process. There are two private hospitals in Phuket: Bangkok Phuket Hospital and Phuket International Hospital. They treat thousands of foreigners and locals every year and offer superb quality care and English-speaking staff. The low costs are a big draw, too. Here, many indulgences—from dining out at nice restaurants to spa treatments to fishing trips to health and wellness services—cost much less than what you'd pay in North America. Phuket is a dream destination for outdoor recreation lovers with every kind of water sport imaginable available. Hiking, golf, and padel are popular here, too. Social groups organize around diverse interests and you'll find sports leagues, volunteer opportunities, get-togethers at bars, trivia nights, charity events, networking events, and more on offer here. Thailand's retirement visa is called the Non-Immigrant O-A Visa. The basic requirements are that you are at least 50 years old, receive an income of about $2,000 per month, and carry health insurance. This visa is valid for one year at a time and can be renewed indefinitely. Southeast Asia is famous for its affordability, and while Phuket's popularity with tourists and expats has driven up prices in recent years, it's still budget-friendly by most people's standards and a monthly income of $2,000 would afford you a comfortable life here. Long-term rentals start around $500 a month. Mendoza, Argentina Mendoza, Argentina. getty Mendoza is Latin America's first wine-growing region, and where vines grow, the living is generally good. Here in the interior of Argentina, food, wine, and interesting conversation are the priorities of life. This region's laid-back atmosphere, safe cities, developed infrastructure, unspoiled culture, affordable cost of living, and friendly people combine to create an idyllic lifestyle. This is a good choice for active retirees who aren't ready to sit back and rock on the front porch. You could spend your days skiing, hiking, climbing, playing golf, bird-watching, white-water rafting, kayaking, and even kite-surfing, and your evenings practicing tango. Mendoza has a reputation as one of the most affordable places to live in Argentina, so for North Americans, it's super affordable. You can rent a semi-furnished, two-bedroom apartment for $400 to $1,000 per month. Catch a bus for 50 cents and dine out for $25. A monthly budget of $2,000 would see you living well here. Argentina's retirement visa is known as the Pensionado Visa. The basic requirements are that you're 65 (men) or 60 (women) and receive pension income of five times the minimum salary. This works out to around $1,400. The initial residence permit is valid for one year, but it can be extended for up to three years. You can apply for citizenship in Argentina after just two consecutive years of residency. Mendoza has an arid, four-season climate with average highs of 76°F and lows of 11°F. Summer in Argentina is from December to March and winter is from June to September. Santa Marta, Colombia Santa Marta, Colombia. getty A 90-minute flight from Colombia's capital, Bogotá, on the country's Caribbean coast, lies Santa Marta. Colombia's oldest colonial city, Santa Marta is an under-the-radar gem popular with well-heeled, in-the-know Colombians who vacation here for reasons including its affordability, great climate, soft golden sands, and warm Caribbean waters. It's a geographically diverse spot, with the Caribbean Sea to the north and west, Tayrona National Park to the east, and Colombia's Sierra Nevada mountain range to the south. The historical center is filled with quaint, narrow lanes, white-washed Spanish-colonial architecture, and squares lined by everything from pizza joints to burger bars to more upscale Italian and Mediterranean food. The newer part of the city features an attractive seafront park, plenty of small cafés and bars, as well as boutique hotels, excellent seafood restaurants, and a cruise-ship port. There's also a 256-slip marina and new, tasteful condo projects all around. And, of course, golden sand beaches offering a wealth of recreation activities. Colombia's overall standard of health care is the best in Latin America—better ranked by the World Health Organization than both Canada and the United States. There is less English spoken in Santa Marta than in other Latin American beach destinations so you'll need to pick up some Spanish to get by here. Colombia offers a handful of different residency options, including a retiree-specific visa (the Pensionado Visa). The basic requirement is that you receive a pension of about $1,000 per month. This gets you residency for one to three years at a time. Santa Marta has a tropical dry climate with average high of 91°F and lows of 75°F. A budget of $2,000 a month will go a long way in Santa Marta. Monthly rentals start at around $400. MORE FROM FORBES Forbes Retiring Abroad On A Military Pension—3 Expat Havens For U.S. Veterans By Kathleen Peddicord Forbes 5 European Towns Where You Can Buy Property For Under $100,000 By Kathleen Peddicord Forbes Claiming Social Security Overseas: A Quick Guide For U.S. Citizens By Kathleen Peddicord
Forbes
2 days ago
- Forbes
Tax Breaks: The All Work And A Little Bit Of Play Edition
Las Vegas, Nevada, USA at the Welcome to Las Vegas Sign at dusk. getty I started to write this week's newsletter while I was in Las Vegas—it was the last stop on my multi-conference tour. (If I owe you a return call or an email, this is totally why.) There were so many highlights—from speaking about the One Big Beautiful Bill Act to sharing details about my volunteer income tax assistance experience (VITA) in Alaska and other pro bono opportunities like the Chester County Mobile Home Assessment Project to co-hosting a fun tax trivia game (newsletter readers would have been at a clear advantage in that one). The biggest thrill, of course, was meeting so many tax professionals (including current and former IRS employees), taxpayers, and readers. I'm often asked where I can get my inspiration for my articles, and that's the answer—it's you. Whether you're a tax professional getting a fingerprinting notice or a taxpayer struggling to understand a collection notice, you're likely not the only one on the receiving end of that issue. And as the IRS shrinks (more on that in a moment), it will be up to us as a community to make sure not only that we share more information with each other, but that we share the best, timeliest, most accurate information possible. That's what I try to do each week. It's not lost on me that you have a lot of choices, and that your time is valuable. It means a lot to me that you choose to click through our newsletter. Thank you. Now, let's get into it. Increasingly, companies have been asking (or demanding) that employees return to the office, claiming that it fosters a stronger company culture and enhances productivity. To woo employees back, or to make sure they're not angry/hangry when ordered back, companies have been expanding perks such as on-site gyms, childcare facilities, and, of course, free food and beverages. Beginning January 1, the food part will be more expensive for employers, meaning more of them could revert to B.Y.O.S. (Bring Your Own Snacks). Congressional Republicans, who extended so many other tax breaks (and added some new ones) in the One Big Beautiful Bill Act (OBBBA) President Donald Trump signed on July 4th, decided they would allow a current deduction for employers who provide meals and snacks to expire—except that is, for certain employees, such as those working in restaurants and in Alaskan fishing vessels and fish processing facilities. (No, we're not making it up. The fishy part was one of the concessions Alaska Senator Lisa Murkowski extracted from her Republican colleagues for her crucial support.) Another perk at work—but one that's not going anywhere—is a retirement account. The rules surrounding retirement accounts? That's another story since they are constantly changing. Retirement account owners above a certain age are required to take annual distributions from their accounts, known as required minimum distributions (RMDs). Failure to take the full distribution can incur a penalty. But there's some good news: the penalty was recently reduced. Thanks to a recent law, the penalty is now only 25% of the amount that should have been distributed but wasn't, instead of the longstanding 50%. In addition, the penalty can be reduced to 10% if the mistake is corrected in a timely manner, and the penalty can be avoided completely by convincing the IRS to waive it because you had a reasonable cause for missing the RMD. As you can tell, RMDs from IRAs and 401(k)s can become a major tax burden during retirement—but you may be able to turn the tables and change RMDs from burdens into opportunities. But it takes planning. There are strategies to optimize your RMDs, including taking your RMD as a qualified charitable distribution, which would reduce taxable income. The QCD is usually the best way for those older than age 70½ to make charitable gifts. You can find more strategies (for traditional retirement accounts, not Roth accounts) here. Speaking of retirement, Forbes has posted its list of the Best Places To Retire Abroad In 2025. The list of top 24 countries from Albania to Thailand, includes 96 recommended spots, based on costs, amenities, health care, language, crime, climate risk, and whether U.S. retirees are welcome. (Did your favorite spots make the list? Let me know!) If you're not sure about making a move, check out the Forbes guide to planning a foreign retirement, with real-life examples, including Baltimore-reared Larry Swift, who, at age 59, relocated with a partner to Thessaloniki, the second largest city in Greece, 300 miles north of Athens. The rent on his large three-bedroom apartment is almost $4,000 a month, but he has a view of the Aegean Sea, was able to get rid of his car, and finds the overall cost of living manageable. Plus, he says, 'The food is great.' Of course, you don't have to move abroad to save on taxes. Just ask In-N-Out CEO Lynsi Snyder, who is relocating to Tennessee and taking a brand-new In-N-Out corporate office with her. According to Fortune, Snyder broadly references the business environment that In-N-Out faced in California as tricky to navigate. On the flip side, Forbes ranks Tennessee as the 7th most business-friendly state in the U.S. Here's a look at three key tax benefits of In-N-Out's move to Tennessee. Fun fact: I've never been to an In-N-Out. We didn't have one in my hometown, and I believe I'm legally required to only frequent Wawa while in Pennsylvania. I'm always fascinated by the kinds of goods and services that we frequent—loyalty can take you pretty far. A 2024 survey found that 80% consumer communities (like students, teachers, or the military) identify more strongly with their community than they do with their age group, political affiliation, or where they live. I get that. My tax community—that's you—is where I'm most comfortable. Our goal at Forbes is to continue building that community, and we have a few plans in motion to make that happen. Keep an eye out in future editions of the newsletter—we'll share those details as soon as we're able. Enjoy your weekend, Kelly Phillips Erb (Senior Writer, Tax) Questions You may be able to deduct your gambling losses. getty This week, a reader asked: I'm really interested in the people who are complaining about gambling limits in the new tax law. I didn't even know that you could deduct your losses at all! How does that work? Casual gamblers—those who aren't in the trade or business of gambling—must report and pay taxes on any winnings. Winnings include those from lotteries, raffles, horse races, and casinos. It includes cash winnings and the fair market value of prizes, such as cars and trips. Under current law, you can also deduct your gambling losses, but only if you itemize your deductions on Schedule A. The amount of losses you deduct can't be more than the amount of gambling income you reported on your return. Importantly, you must keep a record of your winnings and losses. Here's an example. Let's assume you have winnings of $50,000 and losses of $50,000. You can deduct all of your losses. (Professional gamblers—those who consider gambling to be their trade or business—report their gambling activity on Schedule C. Professional gamblers have the benefit of deducting ordinary and necessary business expenses in addition to losses. Any net income is subject to self-employment taxes.) Under the One Big Beautiful Bill Act, beginning in 2026, you can deduct only up to 90% of the amount of your losses during the taxable year (you can still deduct your related business expenses if you were a professional gambler). Here's an example: Let's assume you have winnings of $50,000 and losses of $50,000. You can only deduct $45,000 in losses (90% of $50,000). That means you are paying tax on $5,000 of income even though you broke even at the slots/table/casino. You can see why high-dollar gamblers in particular, are incensed: this has the potential to add thousands (or more) to their tax bill. As noted in a previous newsletter, members of Congress are already walking the provision back. Rep. Troy Nehls (R-Texas), who voted yes on OBBBA, is cosponsoring legislation to reverse the provision. Do you have a tax question that you think we should cover in the next newsletter? We'd love to help if we can. Check out our guidelines and submit a question here. Statistics, Charts, and Graphs The IRS workforce dropped from 103,000 employees in January 2025 to approximately 77,000 in May 2025 (a 25% reduction). Those numbers, which have been previously reported, have now been confirmed by the Treasury Inspector General for Tax Administration (TIGTA). According to IRS records, more than 25,000 employees either separated, accepted a deferred resignation program offer, or took some other incentive to leave. These departures represent 25% of the IRS's workforce—and some job positions were impacted more than others. For example, approximately 27% of tax examiners (they review and process tax returns) and 26% of revenue agents (they conduct audits) left the agency. IRS employee reductions, by business unit. Kelly Phillips Erb Business units at the IRS were impacted at different rates. The top six business units affected by the cuts are: Small Business/Self-Employed (SB/SE) helps small business and self-employed taxpayers understand and meet their tax obligations. SB/SE reported a 35% reduction. The Human Capital Office (HCO) supports IRS employees with Human Resource topics. HCO reported a 28% reduction. Information Technology (IT) supports IRS employees by delivering IT services and solutions. IT reported a 25% reduction. Tax Exempt & Government Entities (TE/GE) helps taxpayers with pension plans, exempt organizations, and government entities comply with tax laws. TE/GE reported a 25% reduction. Taxpayer Services (TS) helps taxpayers understand and comply with tax laws. TS reported a 20% reduction. Large Business and International (LB&I) helps corporations and partnerships with assets greater than $10 million to comply with tax laws, including emerging international issues. LB&I reported a 19% reduction. Every state and the District of Columbia and Puerto Rico have been impacted by the reductions. A Deeper Dive U.S. shareholders with interests in controlled foreign corporations may see a change to tax bills after the One Big Beautiful Bill Act. getty While several individual income tax provisions of the One Big Beautiful Bill Act (OBBBA) like 'no tax on tips' have been in the headlines, a set of notable changes to the existing Global Intangible Low-Tax Income ('GILTI') inclusion rules have largely been overlooked—even though they could impact individual taxpayers. GILTI is part of the international tax system. Before the enactment of the Tax Cuts and Jobs Act of 2017 (TCJA), many U.S. shareholders with interests in controlled foreign corporations ('CFCs') could defer income tax on the CFC's non-passive or 'active' trade or business income. A CFC is a foreign corporation registered and operating in a jurisdiction different from that of its controlling owners. In the U.S., this means a company where at least half of its shareholders are U.S. shareholders, based on voting power or the total value of the company (other rules may apply). Before the TCJA, instead of paying income tax on the CFC's business income each year, U.S. shareholders paid income tax only when the funds earned from the CFC's business were repatriated to them in the form of a dividend. The TCJA modified the deferral rules, requiring U.S. shareholders to report most active business income of a CFC as a GILTI inclusion, even if the funds were never repatriated to the U.S. (If this sounds familiar, it's related to the repatriation tax provisions raised in a recent Supreme Court case, Moore v. U.S.) OBBBA makes several important revisions to the GILTI framework. As an initial matter, it eliminates the GILTI inclusion reduction for a net deemed tangible income return (NDTIR). Because foreign corporations no longer receive an NDTIR for eligible depreciable assets, U.S. shareholders may see an increase in Net CFC Tested Income and as a result, an increase in tax. OBBBA also permits U.S. corporate shareholders (or individual shareholders with a Code section 962 election) to claim a deemed foreign tax credit with respect to the Net CFC Tested Income amounts—these shareholders may claim an increased 90% of the foreign taxes allocable to the income. You're likely getting the sense that the U.S. tax rules associated with CFCs are complex and nuanced. That's certainly true. If you have an interest in a CFC, be sure to consult with your tax advisor to find out how these changes might impact you. Tax Filings And Deadlines 📅 September 30, 2025. Due date for individuals and businesses impacted by recent terrorist attacks in Israel. 📅 October 15, 2025. Due date for individuals and businesses affected by wildfires and straight-line winds in southern California that began on January 7, 2025. 📅 November 3, 2025. Due date for individuals and businesses affected by storms in Arkansas and Tennessee that began on April 2, 2025. Tax Conferences And Events 📅 July 28-30, 2025. Tax Summit 2025. Grand America Hotel, Salt Lake City. Registration required. 📅 August 5-September 16 (various dates), 2025. IRS Nationwide Tax Forum in New Orleans, Orlando, Baltimore and San Diego. Registration required (discounts available for some partner groups). 📅 September 17-18, 2025. National Association of Tax Professionals Las Vegas Tax Forum. Paris Hotel, Las Vegas, Nevada. Registration required. Trivia Which Las Vegas casino opened on December 26, 1946, followed by a three-story hotel on March 1, 1947, and is now considered the oldest continuously operating resort on the Strip? (A) Caesars Palace (B) Flamingo (C) Sahara (D) Tropicana Find the answer at the bottom of this newsletter. Positions And Guidance The IRS issued a memorandum highlighting changes aimed at reducing case cycle times for corporate taxpayers. The Interim Guidance Memorandum (IGM), Reinforcing the Customer Focused, High Efficiency Large Business & International Examination Process, provides guidance for phasing out Acknowledgement of Facts (AOF) information document request process in examinations by 2026; expanding use of Accelerated Issue Resolution (AIR) to large corporate cases; and a stronger review of Fast Track Settlement (FTS) denials. The changes will be implemented in 2025 and 2026. The IRS and Security Summit partners continue to warn tax professionals to be wary of evolving phishing emails and other schemes to steal sensitive taxpayer data and offer steps tax pros can take to protect sensitive taxpayer information. This is the second in the five-part Protect Your Clients; Protect Yourself summer series, organized annually by the Security Summit, which includes tax professionals, industry partners, state tax agencies, and the IRS. The public-private partnership has worked together since 2015 to protect the tax system and taxpayers from identity theft and fraud. The IRS has published Internal Revenue Bulletins 2025-30 and 2025-31. The IRS reminds Business Tax Account (BTA) users that Designated Officials must revalidate their accounts by July 29 to maintain access. Designated Officials who do not revalidate their accounts by July 29, 2025, will need to request access to the account again, either as a Designated Official or as a user of another type. Noteworthy Thirty-seven percent of Americans have experienced fraudulent activities after being personally and/or professionally impacted by a natural disaster, according to a recent survey conducted by The Harris Poll on behalf of the American Institute of CPAs (AICPA). The most common activity reported was identity theft. In a recent survey conducted by The Harris Poll on behalf of the American Institute of CPAs (AICPA), Americans were asked which type of tax filing and payment relief would be most helpful after experiencing a natural disaster. Thirty-five percent say it would be helpful to have the IRS further extend the tax relief (i.e., extension on filing taxes and payment) beyond what was initially provided when the state of emergency was declared. If you're considering buying an electric vehicle (EV), you may want to act soon. The federal tax credit of up to $7,500 for new EVs and up to $4,000 for used EVs expires on September 30, 2025. Taxpayers are reporting that the IRS is sending out late filing notices even when taxpayers are on extension. This includes taxpayers in federally declared disaster areas where tax relief includes automatic extensions. The IRS has been notified of the issue. SolomonEdwards, a professional services firm focused on solving critical business challenges for companies undergoing growth, change or compliance-driven events, announced the promotion of Carissa Robb to managing partner of its Banking & Financial Services (BFS) practice. Katten announced that Loren R. Lembo has joined as a partner in the firm's Transactional Tax Planning practice based in the New York office. Lembo focuses her practice on domestic and international tax matters in the financial services space. The Tax Law Center is launching a project focused on rebuilding and remaking the federal tax administration system, following significant losses in IRS workforce and leadership, broad deregulation efforts benefiting special interests, violations of taxpayer privacy, and attempted interference in audits. The project will provide analysis, recommendations, and blueprints in areas including improving legal structures and norms to protect taxpayer privacy, strengthening IRS funding levels and mechanics, engaging in guidance on the new tax law, and responding to deregulatory actions. — If you have tax and accounting career or industry news, submit it for consideration here or email me directly . In Case You Missed It Here's what readers clicked through most often in the newsletter last week: You can find the entire newsletter here. Trivia Answer The answer is (B) Flamingo. neon sign for Flamingo hotel, Las Vegas, NevadaThe Flamingo Las Vegas is the oldest hotel and casino still in operation on the Strip, followed by the Sahara (1952), Tropicana (1957) and Caesar's Palace (1966). The Flamingo was launched by Billy Wilkerson, founder of The Hollywood Reporter, who financed the project with mobsters, including Benjamin "Bugsy" Siegel. Siegel was killed by an unknown shooter in June 1947 while he was at his girlfriend's home. His girlfriend at the time was Virginia Hill (an urban legend suggests that her nickname was "Flamingo" due to her long, thin legs, which led to the name of the hotel, although this has been largely discredited). A few years after Siegel's death, in 1954, a grand jury indicted Hill on four counts of tax evasion—she was accused of not paying $227,000 in tax ($2,721,983.16 in today's dollars). She fled to Europe to avoid jail. Feedback How did we do? We'd love your feedback. If you have a suggestion for making the newsletter better, submit it here or email me directly.
