Lately on the Hill
Here’s a look at recent tax-related happenings on the Hill, which includes some newly introduced bills and IRS tax relief for taxpayers affected by the October 7 attacks in Israel.
- New bills and proposals introduced. Here is a roundup of some of the latest tax-related bills and proposals introduced in Congress:
- The Small Business Succession Planning Act, introduced by Rep. Jason Crow (D-CO), would provide businesses with resources to plan successions, including a one-time $250 tax credit to create a business succession plan and an additional one-time $250 tax credit when the plan is executed.
- The Supporting Early Childhood Educators’ Deductions (SEED) Act, introduced by Senate Finance Committee member Michael F. Bennet (D-CO), would expand the educator expense deduction to include early childhood educators.
- The Volunteer Driver Tax Appreciation Act would raise the charitable mileage tax deduction rate to “help reduce the financial burden on volunteer drivers,” Sens. Amy Klobuchar (D-MN), Tina Smith (D-MN), and Ted Budd (R-NC) said in an October 12 release.
IN CASE YOU MISSED IT
- The IRS has postponed for one year various time-sensitive deadlines for taxpayers affected by the October 7 attacks in Israel, including individuals whose principal residence or sole proprietorship is located in Israel, the West Bank, or Gaza. The IRS has granted tax relief to individuals and businesses affected by attacks in Israel, postponing various tax filing and payment deadlines that occurred or will occur during the period from October 7, 2023 through October 7, 2024. Refer to Notice 2023-71 for specific steps that need to be taken as relief is not automatic for all affected taxpayers.
- Treasury and the IRS issued proposed regulations on the sale of property seized over tax debts that incorporate new technologies like the internet and credit cards, as according to the preamble, the substantial updates are required. Comments and public hearing requests are due by December 15.
- The IRS canceled the October 12 hearing on proposed regulations that identify monetized installment sale transactions and substantially similar transactions as listed transactions, which would subject material advisers and participants to disclosure penalties for failure to report the transactions.
- The IRS has requested comments on regulations that permit the reformation of personal residence trusts or qualified personal residence trusts to comply with applicable requirements under the code. Comments are due by December 11.
- The IRS has issued final regulations that provide guidance on the prohibition of some gifts or contributions to Type I and Type III supporting organizations from individuals in control of a supported organization and on other Type III supporting organization requirements. The final regulations reflect changes to the law made by the Pension Protection Act of 2006. Effective October 16, the rules adopt—with some revisions—proposed regulations.
- The IRS has released Revenue Ruling 2023-19, which covers the fringe benefits aircraft valuation formula. For purposes of Treasury Regulation Section 1.61-21(g), related to the rule for valuing noncommercial flights on employer-provided aircraft, the Standard Industry Fare Level (SIFL) cents-per-mile rates and terminal charge in effect for the second half of 2023 are set forth.
Related to the IRA & CHIPS Act
- The IRS’ strategic operating plan for the Inflation Reduction Act has five objectives through fiscal year 2031, including dramatically improving taxpayer services, resolving taxpayer issues quickly, and delivering cutting-edge technology, the Treasury Inspector General for Tax Administration said in a report. Through June 2023, nearly $2 billion (2.5%) of the IRS’ $78 billion of Inflation Reduction Act funding was budgeted to supplement its fiscal 2023 appropriation, and the fiscal 2023 appropriation zeroed out the business systems modernization account, the report said.
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.