Tax News & Views Energy Credits with a Queso Starter

Energy Credits

Delayed Tax Credit Rules Stall Renewable Fuel Investment Deals - Erin Schilling, Bloomberg Tax ($):

Renewable fuel producers say the lack of rules for a new clean-fuel tax credit is stifling demand to the point of threatening plant shutdowns and delaying climate-friendly investments.

Trade associations and lawmakers have pleaded with the Treasury Department to release the rules for the 45Z clean fuel production credit, which bases the value of the tax breaks on a fuel’s carbon intensity score, rather than a specific type of fuel. The rules will include the different factors producers should consider when calculating carbon intensity.

Tax Credit Rules Seen as Boost to EV Charging Infrastructure - Erin Schilling, Bloomberg Tax ($):

New rules on a tax credit tied to electric vehicles could beef up investments in charging stations, a much-needed component for widespread adoption of EVs.

The IRS and Treasury Department proposed rules Wednesday for the alternative fuel vehicle refueling property tax credit, detailing eligibility requirements for EV charging stations and other clean fuel infrastructure.

TCJA

Yellen Says Full TCJA Extension Is Too Costly – Benjamin Valdez, Tax Notes ($). “A full extension of former President Trump’s tax law should be off the table, but some provisions could be kept for middle-income taxpayers, according to Treasury Secretary Janet Yellen.”

Transfer Pricing

Lawyers Fear IRS Overreach with Transfer Pricing Penalty Focus – Caleb Harshberger, Bloomberg Tax ($):

An IRS push to assess more transfer pricing penalties has sparked concerns among taxpayers that the agency is able to penalize any position it disagrees with—and even solid supporting documentation isn’t enough to eliminate the risk.

Historically, taxpayers that provided documentation supporting their transfer pricing positions—or how they determine the value of intercompany transactions— rarely faced penalties for underpaying taxes.

Tax Administration

IRS Needs to Take Additional Actions to Prepare for New Information Reporting Requirements – GAO:

Employers, banks, and other third-parties file "information returns" with the IRS detailing your income and other factors that can affect your tax bill. Mismatches between this data and what you report on your taxes can indicate errors or fraud.

Recent changes to reporting requirements—including new rules for reporting cryptocurrency—could allow IRS to collect billions of dollars more in taxes. But IRS could better prepare to implement these changes. For example, IRS could evaluate its communications efforts to ensure tax professionals get timely and easy-to-understand information about the changes.

IRS

IRS warns of ‘mills’ taking advantage of taxpayers with Offer in Compromise program – IRS:

The Internal Revenue Service reminds taxpayers to beware of promoters claiming their services are necessary to resolve unpaid taxes owed to the IRS while charging excessive fees, often with no results.

These unscrupulous “mills” use aggressive marketing to make false claims of guaranteed settlements for “pennies-on-the-dollar,” or will say there’s a limited window of time to resolve tax debts through the IRS Offer in Compromise (OIC) program.

IRS to Review Crypto Reporting Outreach Strategy – Benjamin Valdez, Tax Notes ($). “The IRS agreed to refine its communications to tax professionals and industry stakeholders on upcoming digital asset reporting requirements, according to a government watchdog.”

Tax Court

Senate Tees Up Vote on Tax Court Nominee – Asha Glover, Law 360 ($):

The U.S. Senate set the stage Thursday to proceed with a vote on one of President Joe Biden's picks to fill an open seat on the U.S. Tax Court.

The Senate voted 76-15 in favor of limiting debate and proceeding to a vote on confirming Rose E. Jenkins, an attorney in the Internal Revenue Service's Office of Associate Chief Counsel, to a 15-year term as a judge on the Tax Court.

In the Courts

H&R Block Again Asks 8th Circ. To Remove ALJs In Ad Suit – Anna Scott Farrell, Law 360 ($). “H&R Block asked the Eighth Circuit to reconsider its denial of the company's request to stop administrative law judges from presiding over its coming false-advertising hearing before the Federal Trade Commission, saying the court's one-sentence ruling lacked any explanation despite the significant constitutional issues involved.”

Clinic Chain Says Microcaptive Tax Ruling ‘Has No Basis in Fact’ – Tristan Navera, Bloomberg Tax ($). “The US Tax Court applied the wrong standards and overstepped its bounds when it determined that the microcaptive insurer of a Texas medical business was illegitimate, the company told the US Court of Appeals for the Fifth Circuit.”

Texas Firm Agrees to Dismiss Wrongful Levy Claims Against IRS – John Woolley, Bloomberg Tax ($). “A Texas business owner, who sued the US for wrongfully liquidating his interest in his company by levying its only asset to satisfy his partner’s tax debt, agreed to voluntarily dismiss all of his claims against the government.”

Ch. 7 Trustee Urges Justices to Uphold Return of Taxes – Anna Scott Farrell, Law 360 ($). “The bankruptcy trustee of a defunct Utah transportation company warned the U.S. Supreme Court on Thursday that overturning a decision forcing the IRS to return tax payments made by company directors to cover their personal debts would encourage shareholder fraud.”

What day is it?

Finally, the best day of the year, its National Queso Day!

Tax News & Views Energy Credits with a Queso Starter

We're Here to Help

Trina Pinneau