Tax Update Blog

Tax News & Views House Stimulus Roundup

October 5, 2020 | Blog
By Daniel McNeil

Beyond Stimulus Checks, Here’s How Much You Could Get From The House Stimulus Package – Rob Berger, Forbes. 

The revised Heroes Act includes a second round of stimulus checks, officially called Economic Impact Payments. The amounts are the same as the first round:

  • $1,200 for individuals
  • $2,400 for joint filers, and
  • $500 for qualified dependents.

Fewer Than 0.5 Percent of Very High Income Households Paid As Little Tax As Donald Trump – Howard Gleckman, Forbes.

“The bottom line is this: If Trump made $1 million or more (or compares himself to people who did) and paid just $750 in federal income tax in 2016, he was an extreme outlier. Of the 420,000 households that reported at least $1 million in AGI for 2016, fewer than 2,000 paid as little as Trump did.”

Four Months To Eternity In Prison If Trump Tax Data Leaker Caught – Peter J Reilly, Forbes. “There is a good chance that the New York Times NYT story on Trump’s tax returns required some criminal activity by somebody or some somebodies in order to make it happen.”

Why Biden Would Start Tax Increases at $400,000 a Year - Richard Rubin, WSJ($). “The $400,000 threshold spares all but 1.8% of households, a group projected to earn 24.8% of adjusted gross income in 2021, according to the Penn Wharton Budget Model. Above that line, tax increases would begin to bite. The top 0.1% of households would see their personal effective tax rates jump to 38.4% from 27.8%.”

 

The Credit That Could Produce Rare Agreement on Pandemic Relief – Marie Sapirie, Tax Notes ($). “The Trump and Biden campaigns agree on at least one thing: Tax credits for families with children are political winners.”

 

SBA Issues Notice Regarding Impact of Change of Ownership for PPP Borrower – Ed Zollars, Current Federal Tax Developments. “The Small Business Administration has issued guidance related to PPP loans when there is a change in ownership of the borrowing business.[1]  The notice provides for the required procedures when there is a change in ownership.”

The notice defines a change in ownership as when any of the following take place:

  • At least 20 percent of the common stock or other ownership interest of a PPP borrower (including a publicly traded entity) is sold or otherwise transferred, whether in one or more transactions, including to an affiliate or an existing owner of the entity,
  • The PPP borrower sells or otherwise transfers at least 50 percent of its assets (measured by fair market value), whether in one or more transactions, or
  • A PPP borrower is merged with or into another entity.[2]

Gambling Income: It’s Not Personal, Sonny. It's Business. – Martin Sullivan, Tax Notes($).

“The income taxation of gambling is a mess. Several features of the Tax Cuts and Jobs Act changed gamblers’ income taxes, but the whole shabby system still rests on a foundation of harsh statutory law, inadequate information reporting, spotty recordkeeping, imprecise factual determinations, and a poorly informed gambling public. Many pay extra tax to avoid hassle. Many others are easily able to underreport income. Everybody considers the system unfair.”

Mail Backlog Dominates IRS Exam, Collection, Correspondence – William Hoffman, Tax Notes($). “The IRS will offer abatements of some failure-to-file penalties while it continues to deal with the mail backlog caused by the coronavirus shutdown that has hampered examination, collection, and taxpayer service.”

“Around 5 million pieces of mail remain stored at various IRS processing facilities around the country, about half of which involve tax returns, Laura Baek, executive director (intake and technical support) at the IRS Taxpayer Advocate Service, said October 2 during an American Bar Association Section of Taxation virtual meeting.”


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This is a roundup of tax news and opinion. Any opinions expressed or implied are those of the author and not necessarily those of Eide Bailly. Opinions found in linked items are those of the authors of the linked item, not of your bloggers or of Eide Bailly. “$” means link may be behind a paywall. Items here do not constitute tax advice.