Tax Update Blog

Tax News & Views Relief Bill & Biden's Tax Plan Roundup

September 11, 2020 | Blog

By Daniel McNeil

GOP ‘Skinny’ Bill on Coronavirus Aid Is Blocked by Democrats in Senate - Andrew Duehren and Kristina Peterson, WSJ($).

“Both Republicans and Democrats have backed more relief, but have differed on the makeup of the package and the overall price tag. Talks over the summer between Democratic leaders and the Trump administration started to narrow the difference, with the White House settled around $1.5 trillion and Democrats at $2.2 trillion, before the negotiations sputtered out.”

Senate Stalemate Sidelines PPP ReliefJad Chamseddine, Tax Notes ($). “Senate Democrats rejected a targeted COVID-19 relief package that would have extended the Paycheck Protection Program and increased the deduction for charitable contributions as Democrats and Republicans failed to reach a compromise.”

 

No, Joe Biden Will Not Double Your Tax Bill – Tony Nitti, Forbes.

“And while Joe Biden has promised to raise taxes, he is proposing targeted tax increases aimed squarely and solely at those earning more than $400,000. For the 97% of Americans who earn less than $400,000 annually, Biden will preserve the status quo, while proposing new or improved credits that for some, will actually lower, rather than increase, tax liability.”

How Biden’s Tax Plan Would Affect Five American Households – Richard Rubin, WSJ($). “Democratic presidential candidate Joe Biden wants to raise taxes to pay for an agenda that includes fighting climate change and expanding child care, pushing federal revenue about 9% above what it would be without any policy changes in the next decade. What does that mean for individual households?”

“Mr. Biden, the former vice president, would target his tax increases on high-income households, which he defines as those making above $400,000 a year. He said recently that no one making under $400,000 would pay more.”

 

Economic Analysis: TCJA Downsized Deductions DramaticallyMartin Sullivan, Tax Notes($).

“Undoubtedly one of the most welcome provisions of the Tax Cuts and Jobs Act for middle-class America was the near doubling of the standard deduction. New data from the IRS show that the number of taxpayers itemizing deductions declined by 29 million, a 69 percent reduction, from 2017 to 2018. The total amount of itemized deductions declined from $1.35 trillion to $659 billion, a 48 percent reduction.”

Nebraskans to vote on expanding gambling - Zack Budryk, The Hill.

November ballots will contain three measures related to gambling. These include one that would amend the state constitution to allow casino gambling and two more creating taxes and regulations around it.

IRS Warns Taxpayers of Higher Penalties After September 14Tax Notes ($). “The tax deadline was July 15 this year. Taxpayers who submitted an extension have until Oct. 15 to file and do not face the failure to file penalty if they file their taxes by that deadline. But taxpayers need to remember that an extension to file is not an extension to pay. Any taxes they owed after the July 15 deadline are subject to the failure to pay penalty and interest.”

 

IRS issues guidance on COVID-19 testing – Sally P. Schreiber, J.D., Journal of Accountancy. “According to the IRS, Medicaid coverage limited to COVID-19 testing and diagnostic services is not minimum essential coverage under a government-sponsored program.”

Related: Medicaid Coverage Limited to COVID-19 Testing and Diagnostic Services Is Not Minimum Essential Coverage for Premium Tax Credit Purposes – Ed Zollars, Current Federal Tax developments.

 

IRS Adds 6 More Forms to List That Temporarily Can Be Signed With Digital Signatures – Ed Zollars, Current Federal Tax Developments.

The new forms include:

  • Form 706, U.S. Estate (and Generation-Skipping Transfer) Tax Return;
  • Form 706-NA, U.S. Estate (and Generation-Skipping Transfer) Tax Return;
  • Form 709, U.S. Gift (and Generation-Skipping Transfer) Tax Return;
  • Form 1120-ND, Return for Nuclear Decommissioning Funds and Certain Related Persons;
  • Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts; and
  • Form 3520-A, Annual Information Return of Foreign Trust With a U.S. Owner.

 

Amazon picks up show starring Nicolas Cage as Joe Exotic the Tiger KingGael Fashingbauer Cooper, CNET. “Amazon has picked up an eight-episode scripted series starring Nicolas Cage as Joe Exotic, the Oklahoma big-cat park owner whose story captivated a coronavirus-stricken nation in Tiger King. It will be the first television role of Cage's five-decade acting career.”

Amazon creating a show based off a Netflix show…. Interesting move.


Stay informed!


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.