Pillars on a Government building

Lately on the Hill

  • Congress passed a temporary appropriations bill to fund the federal government through December 16. 
    • Sen. Joe Manchin agreed to remove his reform proposal from the funding bill.
    • Congress is expected to be out for six weeks, starting October 1, as members campaign for midterm elections in November.
  • Democrats introduced the STOCK Act 2.0 in the House. This is the bill that would ban members of Congress, their spouses and dependent children, the president, vice president, political appointees, judicial officers, and leaders of Federal Reserve banks from stock trading. Once elected, public officials would have to divest their financial investments or place them in a qualified blind trust. There are exceptions for mutual funds, ETFs, Treasury bills, government bonds, Thrift Savings Plans, and equity in small businesses that don’t present a conflict of interest.
    • This bill is unlikely to come up for a vote before midterm elections.
    • Republicans were not included in drafting the legislative text, so they’re unlikely to support it, and some Democrats have also said they won’t vote for this bill.
  • Republican senators introduced a bill to repeal book minimum tax. Sen. John Barrasso introduced the Repealing the Ill-Conceived and Problematic (RIP) Book Minimum Tax Act, which proposes to repeal the corporate minimum tax introduced in the Inflation Reduction Act of 2022
    • Rep. Jodey Arrington is introducing companion legislation in the House. 
    • This bill is unlikely to go anywhere in the current Congress, but if Republicans take control of the House and/or Senate after midterm elections, this bill could come up for negotiation in future tax legislation.
    • Meanwhile, a group of senators on the Senate Finance Committee wrote a letter to Treasury Secretary Janet Yellen encouraging Treasury to strongly implement the corporate alternative minimum tax to ensure that its intended purpose of raising revenue from billion-dollar corporations isn’t diluted. 
  • Legislation introduced to prevent taxation of broadband grants. A bipartisan group of senators introduced the Broadband Grant Tax Treatment Act (BGTTA) to amend the Internal Revenue Code to ensure that funding directed for the implementation of broadband from the Infrastructure Investment and Jobs Act and the American Rescue Plan will not be considered taxable income. 
  • Bipartisan bill introduced to prohibit name, image, and likeness tax write-offs for college sports. Sens. John Thune and Ben Cardin introduced the Athlete Opportunity and Taxpayer Integrity Act, which would prohibit individuals and organizations from using the charitable tax deduction for contributions that compensate college or incoming college athletes for the use of their name, image, and likeness.

IN CASE YOU MISSED IT

  • Hurricane Ian victims throughout Florida now have until February 15, 2023 to file various federal individual and business tax returns and make tax payments. This includes returns having a filing deadline on or after September 23, 2022.
  • The IRS issued final regulations requiring companies to disclose beneficial ownership information for those who own at least 25% of a company as part of the agency’s focus on battling money laundering. The information is reported to the Treasury’s Financial Crimes Enforcement Network (FinCEN), which recently published a fact sheet on the new rules. The list of entities that are exempt is extensive, and the most notable exception appears to be a “large operating company.” This is defined as an entity that employs more than 20 full-time employees in the United States, maintains a physical office in the United States, and filed an IRS Form 1120, 1120-S, or 1065 in the previous year showing more than $5 million of gross receipts. The effective date is January 1, 2024. 
  • In response to disruptions resulting from Hurricane Ian, the IRS will not impose a penalty when dyed diesel fuel with a sulfur content that does not exceed 15 parts-per-million is sold for use or used by emergency vehicles on the highway in the state of Florida. This relief begins on September 28, 2022 and will remain in effect through October 19, 2022.
  • The IRS announced the availability of new voice and chat bots to help taxpayers set up payment plans and provide information on collection notices or related topics.
  • In Notice 2022-43, the IRS extended the replacement period for farmers and ranchers forced to sell livestock because of drought conditions, providing one more year to replace livestock and defer tax on any gains from the forced sales. 
  • The IRS issued final regulations increasing enrollment and renewal user fees for enrolled agents from $67 to $140. 
  • The IRS announced special per diem rates effective October 1, 2022 to substantiate expenses for lodging, meals, and incidental expenses when traveling away from home. 

This newsletter features developing content that is subject to change at any time. It does not constitute legal or tax advice. Consult your professional advisors prior to acting on the information set forth herein. 
 

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