July 20, 2020 | Blog
Mnuchin Testimony focuses on short-term stimulus – Mel Schwarz, Eide Bailly. “Treasury Secretary Mnuchin testified before the House Small Business Committee. Several of his comments suggest that the Administration may be changing its focus as to which provisions should be included in the Senate version of the latest COVID bill that is expected to be released on Monday.”
“It is noteworthy that Mnuchin did not mention the payroll tax holiday idea that the President has said must be in the bill for him to sign. Reports are that a number of Republican players are working hard to talk the President out of that position, and it may be quietly abandoned if not included in the package McConnell is expected to unveil on Monday.”
Mnuchin Wants PPP Extended With Restrictions for New Relief Bill - Alexis Gravely, Tax Notes($). “he Trump administration is advocating a reauthorization of the Paycheck Protection Program (PPP) in Congress’s next relief package to allow businesses to get a second loan, according to Treasury Secretary Steven Mnuchin.”
COVID-19 relief - The Senate Steps to the Plate – Mel Schwarz, Eide Bailly. “The Senate is expected to turn to the latest round of COVID-19 relief this coming week. Majority leader McConnell has stated that he plans to have a new stimulus package ready to discuss with Republican Senators on Monday”.
Corporations Seek Tax-Credit Cash-Out in Next Coronavirus Relief Plan – Richard Rubin, WSJ ($). “Duke Energy Corp., Ford Motor Co., Occidental Petroleum Corp. and others could benefit if Congress includes a tax credit cash-out proposal in its next economic-relief legislation. Such a move, which is among ideas being considered by lawmakers and the Trump administration, could improve corporate cash flow by tens of billions of dollars.”
“The tax proposal’s backers, which include the National Association of Manufacturers, Rep. Jodey Arrington (R., Texas) and a coalition organized by accounting firm PwC LLP, see reasons for optimism. Many credits in question have broad bipartisan support because they subsidize activities Democrats favor, including renewable energy and affordable housing. The net long-run cost to the government of accelerating the credits would be smaller than the immediate cash infusion for companies, because the plan would largely move tax credits from later years up to 2020.”
Phishing, Fake Charities And IRS Impersonators Top 2020 Dirty Dozen Scam List – Ashlea Ebeling, Forbes. “The Internal Revenue Service released its annual Dirty Dozen tax scams today with a warning about aggressive and evolving schemes related to Covid-19 tax relief, especially economic income payments, the stimulus checks meant to help taxpayers through the financial downside of the coronavirus.”
IRS' 555 telephone exchange is real – Kay Bell, Don’t Mess With Taxes. “The Electronic Federal Tax Payment System (EFTPS), which I've used for years by logging onto its web page, also is available by phone if you don’t have a computer or online service provider handy. In this case, you can use your EFTPS account to make a tax payment by calling the payment option at 1 (800) 555-3453. Yep, 555. The prefix used for all those fake phone numbers in television shows and movies.”
Fed expands Main Street Lending Program to more not-for-profits – Jeff Drew, Journal of Accountancy. “The Federal Reserve Board announced Friday that it has modified the Main Street Lending Program to provide greater access to credit for not-for-profit organizations such as educational institutions, hospitals, and social service organizations.”
Economic Analysis: Federal Revenue Continues Historic Decline – Martin A. Sullivan , Tax Notes ($). “The dramatic drop in revenue is attributable to a massive contraction of employment and economic activity in the United States as well as legislative and administrative actions cutting and postponing tax payments. The only larger first-half decline in the postwar period was in 2009 when an ailing stock market dragged down individual income tax receipts in the first half of that year even more than the 35 percent decline in 2020.”
This is a roundup of tax news and opinion. Any opinions expressed or implied are those of the author and not necessarily those of Eide Bailly. Opinions found in linked items are those of the authors of the linked item, not of your bloggers or of Eide Bailly. “$” means link may be behind a paywall. Items here do not constitute tax advice.