Tax News & Views Relief, Tax Credits, and National Park Roundup

February 26, 2021

Democrats call for relief package to waive taxes on unemployment benefits – Naomi Jagoda, The Hill. “A group of House Democrats is urging leadership to provide tax relief for recipients of unemployment benefits in the $1.9 trillion coronavirus relief package the House is expected to vote on this week.”

"The relief package that the House is considering this week extends federal unemployment programs, but it doesn't exempt any unemployment benefits from taxes. The Democratic lawmakers who wrote the letter are sponsors of a bill that would exempt the first $10,200 in unemployment insurance (UI) received last year from federal income taxes, and they want their measure to be included in a manager's amendment to the relief package."

Democrats Strive to Keep Child Credit Expansion in Relief Package – Jad Chamseddine, Tax Notes. “Senate Democrats are hopeful that monthly advance child tax credit payments will remain in the relief package and not be stripped away by the Senate parliamentarian under budget reconciliation rules.”

House Members Introduce Bill to Cancel Research Amortization – Alexis Gravely, Tax Notes ($). “The bill would eliminate the five year-amortization requirement that is scheduled to go into effect in 2022. Under the TCJA, businesses will have to amortize their research costs over five years rather than deducting them in the year in which they were incurred.”

“If this bill is not passed, the U.S. would be the only developed country that requires amortization of R&D expenses — making our manufacturers less innovative, less competitive and stifling the creation of high-paying jobs,” David Eiselsberg of NAM said in a release.”

Manhattan DA obtains Trump tax returns – Naomi Jagoda, The Hill. “CNN, which first reported on the new development, reported that prosecutors have obtained millions of pages of documents, including tax returns from January 2011 to August 2019, financial statements and documents concerning the preparation and review of the tax returns.”

Coke, Whirlpool Keep Tax Court Losses Off the Books – Richard Rubin and Theo Francis, WSJ($). “When court rulings and tax regulations go against them, companies have an effective way to minimize or defer the bottom-line costs. They don’t count them, and announce that they will beat the government in the future.”

Connecticut House Passes Remote Worker Protection Measures – Lauren Loricchio, Tax Notes. “The bill's remote worker provisions would apply for the 2020 tax year. It would allow Connecticut residents who paid income tax to another state with a convenience of the employer rule in place to obtain an income tax credit for the amount paid to the other state.”

Stimulus Checks And Filing Your 2020 Tax Return-Hurry Up Or Wait? – Peter J Reilly, Forbes. “The American Rescue Plan Act of 2021, "the Biden stimulus package" is not law, as I write this. It seems very likely to pass though and some people may want to take action in anticipation of it. That would be filing your 2020 federal income tax return immediately. Others may want to put off filing that return even if it is ready to go and they are itching to pull the trigger.”

AICPA seeks certainty on filing deadline and relief for 2020 tax year – Alistar M Nevius, J.D, Journal of Accountancy. “In the letter, sent on Tuesday from Christopher Hesse, CPA, chair of the AICPA Tax Executive Committee, the AICPA urged Treasury and the IRS to announce any pending tax filing and payment deadline postponements by March 1.”

Today in History: Grand Teton National Park is established

“Home to some of the most stunning alpine scenery in the United States, the territory in and around Grand Teton National Park also has a colorful human history. The first Anglo-American to see the saw-edged Teton peaks is believed to be John Colter. After traveling with Lewis and Clark to the Pacific, Colter left the expedition during its return trip down the Missouri in 1807 to join two fur trappers headed back into the wilderness. He spent the next three years wandering through the northern Rocky Mountains, eventually finding his way into the valley at the base of the Tetons, which would later be called Jackson Hole.”

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