Key Takeaways
- Trump Speech
- Tax Legislation
- IRS Firings
- Energy Tax Credits
- Debt Ceiling
- Tariffs
- Previously Taxed Income
- In the Courts
- Dentists and Oreos
Trump Speech
White House Official Explains Trump’s ‘100 Percent Expensing’ – Alexander Rifaat, Tax Notes ($):
The official, speaking on the condition of anonymity, said Trump’s allusion to cutting taxes on “domestic production and all manufacturing” in his March 4 address to a joint session of Congress was an indication he was referring to bonus depreciation on property rather than expensing on investments in areas such as research and development.
Tax Legislation
Smith Sets Memorial Day Deadline, Airs Additions for Tax Bill – Doug Sword, Tax Notes ($):
House Ways and Means Committee Chair Jason Smith, R-Mo., asserted that it would be the House’s budget resolution, adopted February 25, that includes a $4.5 trillion allocation to extend the tax provisions of the Tax Cuts and Jobs Act that would take the congressional lead. Smith dismissed the chances of the Senate’s adopted $342 billion resolution on border security and defense gaining traction in the House.
Smith wants tax bill on Trump's desk by Memorial Day – Benjamin Guggenheim, Politico. “House Ways and Means Chair Jason Smith said Wednesday that House Republicans are aiming to deliver a party-line budget bill with tax cuts to President Donald Trump’s desk by Memorial Day.”
Thune: Senate GOP isn’t unified yet on tactic to get around cost of tax cut extensions – Jordain Carney, Politico:
Senate Majority Leader John Thune (R-S.D.) said in a brief interview that it remained to be seen if Republicans will use what’s known as a current policy baseline to extend Trump’s tax cuts permanently. The gambit would make it appear as if the extension costs nothing, letting Senate Republicans sidestep a politically tough conversation about how to pay for them.
IRS Firings
Slashing IRS Staff Leaves Opening for Tax Cheats, Slow Returns – Michael Rapoport, Erin Schilling, and Lauren Vella, Bloomberg ($):
It also would leave the Internal Revenue Service with its smallest workforce since at least the 1960s, according to official IRS data.
House Dems Warn IRS Cuts May Slow Refunds, Hurt Service – Asha Glover, Law360 ($):
…
The group also asked whether the agency has conducted any analysis to assess the potential revenue loss reduced enforcement could cause and what steps the agency will take to ensure that IRS staffing levels are sufficient to provide reliable customer service.
Democrats Probe IRS on Impact of Firings – Benjamin Valdez, Tax Notes ($). “More than 130 Democrats are urging acting IRS Commissioner Melanie Krause to explain how the recent terminations of thousands of employees will affect compliance work and taxpayer services.”
Energy Tax Credits
Utility operators go to bat for IRA tax credits – Nico Portuondo, E&E News by Politico:
The House Energy and Commerce hearing on artificial intelligence power was intended, at least partially, as a forum for Republicans to make their case why the country needs more “baseload” energy — which primarily means coal, natural gas and nuclear generation — to meet a projected surge in demand from power-hungry AI data centers.
Companies swarm Capitol Hill to save energy tax credits – Kelsey Brugger, E&E Daily:
Led by the nonprofit group Ceres, the advocacy push comes as House tax writers prepare to hash out exactly how Republicans will pay to extend the expiring 2017 tax cuts — a major part of President Donald Trump’s campaign promise.
Debt Ceiling
Key House Republican Warns May Debt-Ceiling Breach Possible – Erik Wasson, Bloomberg ($):
The market-rattling date hinges largely on tax revenue — and, if the US collects less than expected this tax season, the borrowing limit could be just over two months away, said Representative Jason Smith, the chairman of the House’s tax-writing committee.
Tariffs
Trump Delays Mexico, Canada Tariffs on Autos for A Month – Dylan Moroses, Law360 ($). “President Donald Trump announced Wednesday that auto vehicles and parts imported from Canada and Mexico will get a one-month reprieve from the 25% tariffs he instituted earlier this week, according to a statement read by White House Press Secretary Karoline Leavitt.”
DOGE
Republicans Warn Musk DOGE Cuts at Risk Without Congress – Billy House, Emily Birnbaum, and Erik Wasson, Bloomberg ($):
In a series of meetings Wednesday with Musk, House and Senate Republicans sought to impress upon the billionaire that Congress has a central role in enacting controversial spending cuts that don’t run the risk of being overturned in court.
Previously Taxed Income
IRS Previously Taxed Income Rules Called Too Complex, Flawed – James Munson, Bloomberg ($):
The Alliance for Competitive Taxation, the US Chamber of Commerce, and the Tax Executives Institute called on the IRS to make changes to proposed PTEP regulations in submissions made under a public consultation.
In the Courts
U.S. Asks for Argument Time in Catholic Charities Tax Case – Christoper Jardine, Tax Notes ($). “The United States has asked the Supreme Court to let it participate in oral arguments in a case challenging Wisconsin’s denial of an unemployment insurance tax exemption to a Catholic charity.”
NY Estate's Bid to Deduct $7M Settlement Denied By 2nd Circ. – Kat Lucero, Law 360 ($). “A New York estate's $6.5 million settlement liability cannot be deducted because the liability does not decrease the value of trust assets within the estate, nor can it be classified as a tax-deductible administrative expense from the gross estate, the Second Circuit ruled.”
Ex-Girlfriend Of $36M Crypto Schemer Admits Hiding Profits – Anna Scott Farrell, Law360 ($). “The ex-girlfriend of a cryptocurrency founder who evaded taxes on a $36 million hacking scheme admitted to hiding profits from the IRS and participating in the ploy by heading shell companies and paying Los Angeles sheriff's deputies to target his enemies, according to the U.S. Department of Justice.”
Claimed Church Leader Ruled to Owe $1.3M In Taxes – Anna Scott Farrell, Law360 ($). “A claimed church leader owes $1.3 million in tax debt after he was caught selling tax avoidance schemes, a Washington federal judge ruled Wednesday, rejecting his request for more time to mount a challenge and describing him as uncooperative.”
Corporate AMT Regs Could Be Improper Delegation, Advisers Say – Chandra Wallace, Tax Notes ($). “The Supreme Court is set to hear a challenge to regulations that delegate congressional authority to a private entity, and its decision could affect implementation of the corporate alternative minimum tax.”
What Day is it?
Today is National Dentist Day. In a cruel twist of fate, it is also National Oreo Day. Make sure you brush!
