Tax News & Views Senate Stimulus and Wrong Button Roundup

March 5, 2021

Senate Makes More Tax Changes to Stimulus Package as Debate Begins – Jad Chamseddine, Tax Notes. “The Senate voted to start debate on a stimulus package that would make several changes to the tax code, including limiting deductions for the compensation of highly paid corporate executive officers and expanding the employee retention tax credit.”

"Among its changes to the House-passed bill, the Senate substitute would deny a deduction for compensation in excess of $1 million for the eight highest-paid employees — plus the CEO or CFO — of publicly traded companies. Under current law, the deduction is denied only for the three highest-paid employees."


“Senators also amended a section expanding student loan forgiveness that would cost $44 million, according to the JCT. The Senate version also would lower the annual income full phaseout threshold for the $1,400 rebate checks from $100,000 to $80,000 for single filers and from $200,000 to $160,000 for married couples filing jointly.”

Wealth Tax Act Would Double IRS Enforcement Budget—And Other Details From Sen. Warren’s Bill – Peter J Reilly, Forbes.

“The bill calls for a 30% audit rate on individuals and trusts covered by the tax. Given that there is a three year statute, that comes close to auditing every return. Of course the real project will be finding the people that are not filing that should. If the bill passes IRS will be getting an extra $100 billion for fiscal years 2022 through 2032. I read that to be eleven years which means $9.09 billion per year, but if it is ten years that would make it $10 billion.”

SBA Substantially Increases PPP Loan Amount Eligibility For New Schedule C Borrowers – Brian Thompson, Forbes. “If you’re a sole proprietor or owner of a very small business, how you calculate the amount you can borrow through the Paycheck Protection Program (PPP) just got a lot better.”

Arkansas Excludes Forgiven PPP Loans From Income Tax – Lauren Loricchio, Tax Notes. “The act conforms the state to the federal tax treatment of forgiven PPP loans and other COVID-19 relief under the Consolidated Appropriations Act, 2021, (P.L. 116-260). That bill, enacted December 27, 2020, clarified that expenses paid for with PPP loans that are later forgiven are deductible.”


Will states be able to extend their tax filing seasons? – George Spencer, Journal of Accountancy. “While many state taxpayers are hoping for more time to file their returns, budget shortfalls in some states may prevent extensions beyond June 30 this year even if the IRS pushes back the federal deadline as it did last year”


IRS Updates FAQ on Virtual Currency Regarding Taxpayers Who Only Purchased Virtual Currency for Cash in 2020 – Ed Zollars, Current Federal Tax Developments. “IRS Updates FAQ on Virtual Currency Regarding Taxpayers Who Only Purchased Virtual Currency for Cash in 2020.”

Biden administration 'evaluating and discussing' position on Trump tax returns – Naomi Jagoda, The Hill. “The Biden administration on Wednesday said that it still needs more time to determine how it plans to handle House Democrats’ request for former President Trump’s tax returns.”

IRS Division Preparing Secure Messaging System – Fred Stokeld, Tax Notes. “The IRS Tax-Exempt and Government Entities Division is preparing to roll out a new system for communicating with taxpayers that is designed to protect taxpayer data.”


Only Republican to vote for police reform bill 'accidentally pressed the wrong ... button' – Joseph Choi, The Hill.

“Rep. Lance Gooden (Texas), the only House Republican to vote for the George Floyd Justice in Policing Act, reportedly said in a now-deleted post on Twitter that he had pressed the wrong button by accident.

“I accidentally pressed the wrong voting button and realized it too late,” Gooden wrote in the tweet, according to The Washington Post. “I have changed the official record to reflect my opposition to the partisan George Floyd Policing Act.”

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