Tax News & Views Stimulus Needed But Unlikely Roundup

September 23, 2020

Mnuchin, Powell Agree More Aid Is Needed Despite Economic Bounce – Jad Chamseddine, Tax Notes ($).

“Appearing before the House Financial Services Committee September 22, Treasury Secretary Steven Mnuchin and Federal Reserve Chair Jerome Powell agreed that the country’s economic recovery is in full swing, crediting the recovery in part to bipartisan relief packages passed by Congress in March. But the pair acknowledged that more needs to be done to help vulnerable taxpayers and small businesses.”

Stimulus Bill Before Election Day? Unlikely, Wall Street SaysSergei Klebnikov, Forbes. “Tamara Fucile, a senior adviser for government affairs at the Center on Budget and Policy Priorities, told the AARP that it “doesn't feel like we're going to get a deal” and “the closer you get to the election, I think the harder it is.”


IRS issues more bonus depreciation rules – Sally P. Schreiber, J.D., Journal of Accountancy.

“The IRS issued final regulations (T.D. 9916) providing guidance on additional first-year (bonus) depreciation under Sec. 168(k), which was amended by the law known as the Tax Cuts and Jobs Act, P.L. 115-97. T.D. 9916 provides taxpayers with guidance on issues involving the application of Sec. 168(k) that were not addressed in 2019 final regulations (T.D. 9874). This includes clarifying guidance on the requirements that must be met for property to qualify for the deduction, including used property. The regulations also address recent legislative changes to the depreciation rules for qualified improvement property.”

New York considers hiking taxes for the rich to fill COVID-19 hole – Naomi Jagoda, The Hill. “Policymakers in New York are debating whether to raise state taxes on wealthy residents to address fiscal challenges caused by the coronavirus pandemic.”

“Supporters of increasing New York’s taxes on the wealthy are encouraged by the agreement announced last week by New Jersey Gov. Phil Murphy (D) and lawmakers in that state to raise the tax rate on income between $1 million and $5 million from 8.97 percent to 10.75 percent, matching the rate for income above $5 million. Under the agreement, New Jersey would also provide a rebate of up to $500 to individuals making up to $75,000 and couples making up to $15,000 who have at least one dependent child.”

New Jersey’s Debt Of Nearly $58,000 Per Taxpayer Is Nation’s Highest - Liz Farmer, Forbes. “New Jersey has amassed a whopping $189.6 billion in state debt, a total that equals $57,900 for each taxpayer in the state. It’s the highest taxpayer debt burden in the country, according to the Financial State of the States report released Tuesday by the watchdog group Truth in Accounting.”

State revenue loss due to COVID-19 not as bad as feared – Kay Bell, Don’t Mess With Taxes. “Most states wrapped up their 2020 fiscal year (FY) on June 30. As you might expect, those annual financial numbers were affected by the COVID-19 pandemic. What is surprising, however, is that states' revenue situations weren't as bad as many had feared given the tax issues created by the coronavirus.”


Lenders will not file Form 1099-C for forgiven PPP loans -Alistair Nevius J.D., Journal of Accountancy. “To prevent confusion, the IRS notified lenders on Tuesday that they should not file cancellation-of-debt information returns or furnish payee statements under Sec. 6050P to report the amount of qualifying forgiveness with respect to covered loans made under the Paycheck Protection Program (PPP).”

IRS Increases Scrutiny of Wealthy Taxpayers – Frederic Lee & Kristine A. Parillo, Tax Notes ($). “Both high-net-worth and high-income individuals have come into the compliance crosshairs of the IRS Large Business and International Division this year, according to an IRS official.”


Not all rats like to be tickled, scientists discoverAmanda Kooser, CNET. "The researchers found not all rats like to be tickled and that some rats emitted very high numbers of calls whilst others did not, and these calls are directly related with their emotional experience," the University of Bristol said in a statement on Monday. Rats that laughed the most also had the highest positive emotional response to tickling. Those that didn't laugh weren't enjoying it.”

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