Tax News & Views Overturning EV Credit Regs but with Kittens

Trina Pinneau
July 10, 2024

Key Takeaways

  • Efforts to overturn EV tax credit regulations
  • Battle over tax cuts
  • Scam warning
  • Loans from foreign trusts
  • In the courts
  • National kitten day!

EV Tax Credit Regulations

Effort to Overturn Biden EV Tax Credit Rules Heads to GOP House – Samantha Handler, Bloomberg Tax ($).

Ways and Means Republicans advanced measures Tuesday to overturn Treasury Department regulations on electric vehicle tax credits and several that would beef up penalties for universities the GOP says aren’t protecting Jewish students.

The tax panel voted along party lines to send a resolution to the full House that would nix electric vehicle tax credit rules that give automakers an extra two years to shore up battery minerals considered difficult to trace to their origin. The rules, implementing part of the Democrats’ 2022 tax-and-climate law, prompted bipartisan criticism and Sens. Joe Manchin (I-W.Va.) and Sherrod Brown (D-Ohio) are part of the effort to overturn them in the Senate.


The resolution now heads to the full House, and is expected to pass with at least some Democratic support... President Joe Biden will likely veto it.

Measures Advance to Penalize Universities, Overturn EV Credit Regs – Cady Stanton, Tax Notes ($).

"House GOP taxwriters moved on a handful of their party’s priorities in advancing tax-related measures on the exempt status of colleges and universities, the use of section 529 account savings plans, and a resolution to overturn Treasury regulations on clean vehicle credits."


Tax Cuts Negotiations

IRS Funding At Stake In 2025 Tax Cut Negotiations – Asha Glover, Law 360 ($).

Lawmakers are girding for battle over the soon-to-expire individual tax cuts in the 2017 tax law, and IRS funding will be central to the debate at a time when the agency may be in need of additional resources due to changes in law.

Lawmakers have already dedicated a significant amount of time this year to the debate over the extension of the Tax Cuts and Jobs Act provisions set to expire in 2025. Republican members of the House Ways and Means Committee in April announced plans to form 10 teams to study key provisions of the 2017 tax overhaul aiming to set priorities for legislative action next year.


Flips of Passthroughs Into C Corps Could Be Costly as TCJA Lapses – Doug Sword, Tax Notes ($).

The Congressional Budget Office is trying to figure out the timing and cost to the federal treasury of the expected wave of passthrough conversions into C corporations if section 199A expires as scheduled at the end of next year.

The CBO estimates that a full extension of Tax Cuts and Jobs Act provisions past their December 31, 2025, expiration would cost $4.6 trillion over 10 years. But there are also costs to not extending the 2017 tax code overhaul as passthrough businesses convert to a lower-taxed business form.


Scam Warning

New, evolving scams threaten tax professionals; Security Summit warns extra attention needed on trending threats that could affect businesses, clients – IRS.

The Internal Revenue Service and the Security Summit renewed a warning today to tax professionals to be on the lookout for a variety of new and evolving schemes aimed at stealing business and taxpayer information.

Identity thieves are taking numerous approaches to steal sensitive information from tax professionals. This includes posing as new clients; using phishing emails to trick people into sharing Central Authorization File information as well elaborate schemes involving calling and texting. Tax professionals need to be on the lookout to avoid falling prey to these attacks, which threaten not just their clients but their businesses.


Loans from Foreign Trusts

New Rules Address Loans to U.S. Persons From Foreign Trusts – Carrie Brandon Elliot, Tax Notes ($).

"Published May 8, new proposed regs (REG-124850-08) provide guidance on information reporting of transactions with foreign trusts, receipt of large foreign gifts, loans from foreign trusts, and uses of foreign trust property. The regs also contain proposed amendments to the rules governing foreign trusts that have one or more U.S. beneficiaries. The proposed regs affect U.S. persons that own or transact with foreign trusts, or that receive large gifts or bequests from foreign persons. Public comments must be received by July 8."


In the Courts

ND Justices Affirm Sales Tax On Oilfield Equipment – Sanjay Talwani, Law 360 ($).

An oil and gas production company in North Dakota was correctly denied refunds on sales taxes paid on certain oilfield equipment because the gear's function in the process was outside the scope of a statutory exemption, the state Supreme Court affirmed.

In a decision Friday, the North Dakota Supreme Court rejected an appeal by Equinor Energy LP, which argued that the state tax commissioner misapplied the law in denying refunds in sales taxes paid from 2013 to 2016. The justices affirmed a district court decision that the purchases of the equipment — separators used to isolate oil, gas and water — were not exempt from sales tax because the exemption applies only to gear installed downstream from a well site.


Man Gets Five Years for Theft From Employer, Filing False Taxes – DOJ (Defendant name omitted).

An individual was sentenced to five years in prison and ordered to pay more than $3 million in restitution and fines for defrauding his former employer and filing false income taxes, the Justice Department said July 5.

The government said the defendant lied and deceived others for his own benefit from the outset of his former employment through the entirety of the court proceedings. the Defendant spent years lying to his employer while stealing money and then, simultaneously, providing false information on his tax returns, according to the announcement.

Ohio man pleads guilty to filing false tax returns and wire fraud – IRS (Defendant name omitted).

An Ohio man, was sentenced to 30 months in prison by U.S. District Judge James G. Carr, after pleading guilty to filing false tax returns and wire fraud that defrauded educational and government entities. He was also fined $797,151.38 and ordered to pay restitution to the following: U.S. Department of Education, $14,760; Notre Dame Academy, $13,450; St. John’s Jesuit High School, $30,000; and the U.S. Department of Agriculture, $223,575.69.

The defendant pleaded guilty to the offenses in court on March 1, 2024, where he admitted to filing false tax returns with the IRS by underreporting taxable income of nearly $880,000 earned as owner of a convenience store and a restaurant in Toledo from 2012-2018. Prior to sentencing, the defendant paid all taxes and penalties owed to the IRS resulting from his tax offenses.


What day is it?

It’s National Kitten Day! "Surprisingly Americans seem to like cats and kittens best: According to the American Humane Society, 95.6 million cats were owned, while 83.3 million households owned a dog."

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About the Author(s)

Trina Pinneau photo

Trina Pinneau

Senior Manager
Trina has more than 10 years of public accounting experience providing tax consulting services and analyzing complex tax situations. She has spent the majority of her time in the credits and incentives space with a focus on energy credits and excise taxes. Trina also has experience in tax controversy and accounting methods. In joining Eide Bailly's National Tax Office Trina is focusing her efforts on energy efficiency incentives while being a resource for the excise and tax controversy team.

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.