Build Back Better Comes to an End
We’re keeping it short this week. Congress has left town to head home and hit the campaign trail, and President Biden is on vacation, so it’s a quiet week.
The 18-month saga of Build Back Better negotiations is ending after the House voted along party lines to pass the Inflation Reduction Act of 2022 (IRA) last Friday afternoon. There were no changes to the version passed by the Senate last weekend. President Biden is expected to sign the bill into law soon.
We’ll be sharing more in-depth analysis with you on the tax-related provisions in the coming weeks, but for now, here are some recent developments in the last week on the IRA:
- The Joint Committee on Taxation (JCT) released updated budget estimates for the version of the IRA that was passed by the Senate.
- Secretary of the Treasury Janet Yellen wrote a letter to the IRS instructing that audit rates should not increase relative to recent years for households making less than $400,000 annually. This is in line with a provision included in the IRA and supported by the Biden administration’s vow to not increase taxes on those making less than $400,000 per year.
Since Congress is out on recess this month, From the Hill will be taking a break for the rest of August. We’ll be back in your inbox on September 6. In the meantime, subscribe to FORsights™ for further updates on the IRA.
IN CASE YOU MISSED IT
- Storm victims in parts of Missouri have until November 15, 2022 to file various individual and business tax returns and make tax payments.
- The National Association of Chemical Distributors is asking the IRS to change superfund chemical excise tax deposit requirements from semi-monthly to quarterly.
- The IRS Security Summit published a Written Information Security Plan (WISP) to help tax professionals, especially those with smaller practices, protect their data and information.
- A group of senators introduced a resolution asking the Biden administration to begin talks between the U.S. and Taiwan to negotiate a tax agreement focusing on trade, technology, and investment.
- The AICPA wrote a letter to the IRS asking for improvements to the agency’s Practitioner Priority Service call line, which continues to experience long wait times.
- Treasury and the IRS released final regulations with guidance to states regarding the process by which to obtain or inspect certain returns and return information (including information about final and proposed denials and revocations of tax-exempt status) for the purpose of administering state laws governing certain tax-exempt organizations and their activities.
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.