Relief Talks Fire Back Up Across Congress - Jad Chamseddine, Tax Notes:
A bicameral group of lawmakers released a framework to jump-start negotiations for a coronavirus relief package that includes Paycheck Protection Program deductibility, while a group of senators sought to include tax relief for brewers in a must-pass spending bill...
The proposal to make some PPP loans deductible has bipartisan and bicameral support and widespread support in the business community. Groups such as the U.S. Chamber of Commerce and the National Restaurant Association have been lobbying Congress to make additional capital available to small businesses that took PPP loans.
But the group of lawmakers introducing the framework say they are not sure whether it will get support among congressional leaders.
If this happens, it will have to come together quickly. Stay tuned, and mark your calendar for the Eide Bailly Legislative Update scheduled for next Tuesday, December 8 for the latest developments.
Outlining a Path for Tax Policy Compromises - Erica York, Tax Policy Blog:
Such a bargain could pair canceling the upcoming changes in tax law that would work against a swift economic recovery—these include the requirement to amortize R&D costs and the phaseout of bonus depreciation—with expansions in the CTC and EITC that would support vulnerable households. At the same time, additional relief measures, such as extended unemployment insurance, recovery payments, and liquidity measures for businesses are also warranted given the ongoing public health crisis and economic conditions.
There is a growing refrain among tax policy circles that pairing these groups of policies together—canceling TCJA expirations and expanding individual tax relief—could help lawmakers on both sides of the aisle come together to reach a deal.
Supreme Court Justices Question IRS Shield in Tax-Shelter Case - Richard Rubin and Brent Kendall, Wall Street Journal ($):
Supreme Court justices sharply questioned arguments by the federal government that certain tax regulations can’t be challenged in court before they are enforced.
Justices across the ideological spectrum, including Samuel Alito, Stephen Breyer, Elena Kagan and Neil Gorsuch, expressed skepticism about the government’s position during an hour-long oral argument Tuesday.
The case involves the ability of the IRS to require taxpayers to disclose transactions the IRS considers suspect - here, microcaptive insurance transactions.
Justices Appear Open to Anti-Injunction Act Carveout - Kristen A. Parillo, Tax Notes ($). "Justices Stephen G. Breyer and Sonia Sotomayor were particularly vocal in highlighting the limited options available to companies like CIC Services that want to protest the compliance burdens imposed by Notice 2016-66, 2016-47 IRB 745, which designated microcaptive insurance transactions as transactions of interest requiring disclosure by taxpayers and their advisers."
Federal appeals court says state not required to refund withholding to bankrupt farm estate. The Eighth Circuit said Iowa did not have to refund tax withheld priof to the filing of a Chapter 12 farm bankruptcy. Link: 10. 20-6011.
Related: Can I file Bankruptcy to Eliminate My Tax Debt?
Governor Newsom Announces Immediate Assistance for Businesses Impacted by COVID-19 Including Temporary Tax Relief and $500 Million in Grants - California Office of Governor. "The temporary tax relief entails an automatic three-month income tax extension for taxpayers filing less than $1 million in sales tax, extends the availability of existing interest and penalty-free payment agreements to companies with up to $5 million in taxable sales and provides expanded interest free payment options for larger businesses particularly affected by significant restrictions on operations based on COVID-19 transmissions."
3 Ways to Handle Increased Volume and Nexus Changes After Cyber Monday - Kristen Cooper, TaxJar. "With the flurry of online sales, there’s a good chance you may be approaching or have surpassed economic nexus in a few new states during Cyber Monday."
Related: Identifying Your Sales Tax Risks.
10 tax moves to make in December 2020 - Kay Bell, Don't Mess With Taxes. "Check, and adjust if necessary, your withholding. If you don't pay enough in taxes throughout the year, either via payroll withholding or estimated taxes (more on this in a minute), you could end up facing a surprisingly large tax bill next year. The easiest way to avoid this is to adjust your withholding. Now."
Taxpayers Still have Time to Take Advantage of Special Charitable Deduction Rules for 2020 - CCH Tax Group:
As the end of 2020 approaches, individuals should remember that some special rules apply to charitable contributions deductions for the year. These include an
- Taxpayer who itemize can deduct up to 100% of their AGI for cash donations.
- Non-itemizers can claim a new $300 above-the-line charitable deduction.
These rules currently apply only for the 2020 tax year, so individual who want to take advantage of them must act before the end of the year.
With Biden Tax Plan, Should You Accept 2020 Pay Or Delay Until 2021? - Robert Wood, Forbes. "Given taxes and filing deadlines, would your prefer pay in 2020 or the first week in January?"
Get Ready for Taxes: Steps to take now to make tax filing easier in 2021 - IRS. "An important first step to getting taxes ready is to gather all tax records. Having records organized makes preparing a tax return easier. It may also help discover potentially overlooked deductions or credits."
Subhyperporcine Taxpayers Win Conservation Easement Valuation Case Notwithstanding Testimony of Their Own Expert Witness - Chaim Gordon. "Aside from some entertaining quotes and a new word, the opinion is interesting because Judge Holmes rejected both parties’ expert witness reports—both of which had determined a lower value than the Taxpayers had claimed on their respective returns—and determined that the fair market value (“FMV”) of the conservation easement was worth at least as much as the amount reported on the Taxpayers’ respective returns."
I just want to find a way to use "subhyperporcine" in a conversation.
The FBAR (Report of Foreign Bank and Financial Accounts): Everything You Need to Know - Jason Freeman, Freeman Law. "A failure to file a FBAR report may result in criminal exposure—that is, the possibility of a criminal indictment or investigation."
Related: Considering Foreign Operations? You Need a Global Mobility Program.
A Tax on Remote Work: Yes or No? - Renu Zaretsky, TaxVox. "Bottom line: A work-from-home tax is too small a solution for a big problem."
Grover Cleveland: History’s Unlikely Man of the Hour - Joe Thorndike, Tax Notes Opinions. "If the story of Grover Cleveland has a lesson for Donald Trump, it’s probably about perseverance. After his defeat in 1888, Cleveland remained a player in national politics, and just four years later, his doggedness paid off with a return to the White House."
Today in history: Enron files for Chapter 11 bankruptcy protection on December 2, 2001. Seems like yesterday.
And today is National Mutt Day. Celebrate with your favorite dog of indeterminate origin.
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.