Key Takeaways
- Taxes in the Election
- PTET
- Tackling the Tax Gap
- Bonus Repayment
- Retirement Savings Guidance
- Foreign Trust Reporting
- M&A
- What Day is it?
Taxes in the Election
Election Outcome, Tight Calendar Create Hurdles for Any Tax Bill - Cady Stanton and Doug Sword, Tax Notes($):
Congress has been out on its preelection recess for more than a month and won’t go back in session until November 12. Its appetite for a tax extenders package will likely be driven by the election’s outcomes.
PTET
Passthrough Entity Taxes Eyed as SALT Cap Expiration Date Nears - Andrea Muse, Tax Notes($):
The taxes have been enacted in more than 30 states as a workaround to the cap by allowing passthroughs to elect to pay the tax on their owners’ income. The owners get a tax credit and can take a federal deduction for the tax paid at the entity level.
Contact Eide Bailly for Pass-Through Entity Consulting
Tax Gap
4 Ways Congress Could Try To Close The Tax Gap - Asha Glover, Law360($):
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According to an Oct. 10 report by the Internal Revenue Service, that total federal gross tax gap estimated for the 2022 tax year marked a $12 billion decrease from 2021. The IRS estimates that $90 billion of the 2022 gap will eventually be paid, either late and voluntarily or collected through IRS administrative and enforcement activities, according to the report.
Bonus Repayment
Tax Treatment of Employer-Paid Clawbacks on IRS Radar - Kristen A. Parillo, Tax Notes($):
According to Stephen B. Tackney of KPMG LLP, the situation arises when a company hires an executive who is required to repay a bonus or other incentive to their former employer when they leave. Some companies want to make those payments to the former employer on their new employee’s behalf, he said.
Retirement Savings Guidance
IRS Weighing Options for SECURE 2.0 Plan Update Requirements - Caitlin Mullaney, Tax Notes($):
Since passage of SECURE 2.0, enacted as part of the Consolidated Appropriations Act, 2023, Treasury and the IRS have released a flood of guidance addressing a variety of the provisions, such as catch-up contributions, long-term part-time employees, inadvertent benefit overpayments, qualified student loan payment matches, and required minimum distributions
Contact Eide Bailly's Wealth Transition Services
Foreign Trust Reporting
IRS Working on Final Foreign Trust Reporting Regs, Official Says - Sarah Paez, Tax Notes($). "The IRS is working to integrate the hundreds of comments it received on the proposed foreign trust and gift reporting regulations into its final regs, according to an official."
M&A
Treasury Official Previews M&A Details For Corp. AMT Rules - Dylan Moroses, Law360($). "U.S. rulemakers plan to further address how the country's corporate alternative minimum tax applies to transactions including spinoffs and deals that involve a member of a tax consolidated group, a U.S. Treasury Department official said Thursday."
IRS Targets Next Year for New Built-In Gains and Losses Proposal - Erin Schilling, Bloomberg Tax($):
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The 2019 proposal on built-in gains and losses under Section 382 limited how much of the losses generated by the target company in a merger can be used by an acquiring company. The aim is to avoid “loss trafficking”—using acquisitions of loss-laden companies to improperly shrink an acquiring company’s tax liabilities. The 2019 proposed rules were less favorable to taxpayers than a 2003 notice that previously guided this area.
What Day is it?
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