Key Takeaways
- Tax Bill
- Transfer Pricing
- IRS
- Intellectual Property
- Opportunity Zones
- Social Security
- What Day is it?
Tax Bill
Senate Dems Can’t Overcome Republican Filibuster of Tax Package - Doug Sword, Tax Notes($). "Senate Republicans easily quashed the year’s biggest tax package six months and a day after the House overwhelmingly passed the $79 billion assortment of business and individual tax breaks."
Senate GOP blocks bipartisan bill to expand child tax credit - Tobias Burns, The Hill:
The 48-44 vote on a procedural motion on the Tax Relief for American Families and Workers Act of 2024 (H.R. 7024) fell well short of the 60 required to end a filibuster and begin debate on the bill on the Senate floor. The drama may not be over, however, because Senate Majority Leader Charles E. Schumer, D-N.Y., flipped his vote to “no” at the last minute — a tactic that would allow him to bring the bill back to the floor for another vote later in the year.
Transfer Pricing
Coca-Cola, IRS Enter $2.7B Tax Bill In Transfer Pricing Dispute - Dylan Moroses, Law360($). "Coca-Cola and the IRS submitted tax liability calculations totaling $2.73 billion to the U.S. Tax Court, reflecting the latest step in the company's long-running transfer pricing dispute over the agency's reallocation of the company's foreign affiliate income."
Senate Panel OKs Maintaining IRS Funding At $12.3B - Asha Glover, Law360($). "The Internal Revenue Service would receive $12.3 billion for the third straight year under legislation sent Thursday by the Senate Appropriations Committee to the full chamber for consideration."
Senate Bill Would Keep IRS Funding Flat - Cady Stanton, Tax Notes($). "Senate appropriators approved a bill that would hold funding for the IRS flat for fiscal 2025, setting up a battle with their House counterparts over numbers and policy riders for the agency."
IRS Cybersecurity Leaves Taxpayer Data Vulnerable, Watchdog Says - Erin Schilling, Bloomberg($):
The Treasury Inspector General for Tax Administration found that taxpayer data could be vulnerable to inappropriate or undetected disclosure because the IRS has yet to meet the cybersecurity standards outlined in a 2014 federal modernization law.
IRS Scrutiny of Political Nonprofits Appears to Be Lacking - Alexander Rifaat, Tax Notes($). "The number of IRS investigations into the compliance of tax-exempt political organizations remain low as those groups grow in prominence."
Intellectual Property
Airbnb's $1.3B Bill From IRS Overvalues IP, Tax Court Told - Natalie Olivo, Law360($):
The Internal Revenue Service erred in increasing Airbnb's income by approximately $4.2 billion for intellectual property rights the company licensed to Ireland-based Airbnb International Unlimited Co. in 2013, the rental company said Tuesday in a Tax Court petition. These income adjustments resulted in a $1.3 billion tax bill, plus a 40% gross valuation misstatement penalty amounting to $573 million, according to the petition.
Opportunity Zones
Trump Cites Opportunity Zones as a Triumph. Their Success Is Middling - Lydia DePillis, The New York Times:
...
Birmingham and the rest of Alabama are a window into how money has and hasn’t soaked into the ground designated as opportunity zones over the past six years. Congress is taking a closer look as it considers extending the incentive, which expires in 2026 along with most of the 2017 tax law.
Social Security
Trump pitches repealing tax on Social Security benefits - Caitlin Reilly, The Roll Call:
...
The proposal, which was absent from the 2024 GOP platform released earlier this month, arrives on the heels of Trump’s promise to exempt tip income from taxes as well. Trump first floated his tip tax idea in Nevada, home to a large number of service industry workers and a key swing state in November.
What Day is it?
Another day, another fun tasty treat. Happy National Ice Cream Sandwich Day!
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