Key Takeaways
- Tax Legislation Potpourri
- Energy Credit Cliff
- Prime Time for Tax Shelters?
- Reporting for E-commerce Platforms
- In the Courts
- Opening Day!
Tax Legislation Potpourri
Ways and Means Committee Advances Five Bipartisan Tax Bills – Katie Lobosco, Tax Notes ($):
The House Ways and Means Committee has advanced five separate tax bills that would address disaster relief, settlements for sexual assault survivors, a deduction for educators, the IRS whistleblower program, and taxpayer services.
House Tax Panel Advances IRS Overhaul Bills – Asha Glover, Law 360 ($):
The committee voted 43-0 to approve the Taxpayer Experience Improvement Act, H.R. 7971, to advance the House floor. In addition to establishing a dashboard for timing updates, the bill would expand callback technology, online accounts and electronic access to information about returns and refunds, according to the Joint Committee on Taxation's summary of the proposal.
IRS Whistleblower Protection Bill Approved by Ways and Means – Tyrah Burris, Tax Notes ($):
IRS Whistleblower Program Bill Advanced by House Panel – Chris Cioffi, Bloomberg ($):
The legislation was one of five bipartisan tax-related bills that the committee advanced during the proceeding. The whistleblower legislation (H.R. 7959) would provide for an expansion in the US Tax Court’s ability to review IRS whistleblower award determinations, and also would generally allow whistleblowers to proceed anonymously before the court. It has been largely cheered on by the community of attorneys and other whistleblower advocates.
IRS Energy Tax Credit Rule Withstands Challenge From Democrats – Erin Schilling, Bloomberg ($):
The Treasury Department and IRS last August tightened the beginning-of-construction rules for wind and solar projects to qualify for the clean electricity production and investment tax credits created by the Democrats’ 2022 tax-and-climate law. President Donald Trump ordered Treasury to revise the construction rules to appease House conservative holdouts during negotiations to pass the GOP’s 2025 huge tax package.
IRS Rule on Solar, Wind Energy Construction Survives Senate Vote – Cady Stanton, Tax Notes ($):
The Senate voted 47-53 on March 25 against advancing a Congressional Review Act resolution (S.J. Res. 107) from Finance Committee member Catherine Cortez Masto, D-Nev., that would challenge an IRS notice on construction start dates for wind and energy tax credit phaseouts.
Energy Credit Cliff
Tax-Credit Cliff Sparks M&A Rush For Clean Energy – Keith Goldberg, Law 360 ($):
Projects that begin construction after July 4 or are placed in service after 2027 will no longer be eligible for the clean electricity production and investment tax credits under Internal Revenue Code Sections 45Y and 48E. Attorneys working in the clean energy space told Law360 that mergers and acquisitions have taken off since the start of the year, spurred by the industrywide rush to ensure projects have the necessary equipment and funding to beat the clock.
Schumer Says Democrats Will Try to Restore Clean Energy Tax Credits – Lisa Friedman, New York Times:
The party would also seek to strip the oil, gas and coal companies of more than $18 billion in new tax incentives enacted in Mr. Trump’s sweeping tax measure, he added.
Unless Democrats win veto-proof majorities in both chambers of Congress, which would require landslide victories nationwide this fall, such motions are not likely to become law.
Related: Eide Bailly Energy Incentives Services.
Prime Time for Tax Shelters?
There’s Never Been a Better Time to Play the Tax Shelter Game – Erin Schilling & Michael J. Bologna, Bloomberg ($):
A financial adviser catering to entrepreneurs and other wealthy people, Socha is keyed into tax strategies that could help them save money. But he’s constantly dodging arrangements that are either bad deals or flat-out sketchy.
…
Today, headcount at the IRS is down roughly 25% since President Donald Trump returned to the White House. Republicans in Congress have clawed back billions of dollars earmarked for the IRS to improve enforcement. And the Justice Department has dissolved its specialized Tax Division responsible for civil tax litigation and criminal tax enforcement, shifting its functions to other areas.
A Treasury official said the IRS will remain tough on tax crime. And former IRS Commissioner Chuck Rettig said a big investment in AI could help the agency. But some former tax enforcement personnel said the time is ripe for those willing to test the government’s ability to prosecute tax scams.
Reporting for E-commerce Platforms
IRS Rules for Venmo, CashApp Users Clear White House Review – Erin Slowey, Bloomberg ($):
The White House Office of Information and Regulatory Affairs Wednesday finished its review of the proposed rules (RIN: 1545-BR73), titled “Increase in threshold for requiring information reporting with respect to certain payees.”
The 2025 GOP tax-and-spending law requires e-commerce platforms like Venmo, PayPal Holdings Inc., and eBay Inc. to send 1099-K tax forms to users with more than $20,000 in transactions and a number that exceeds 200. The law increased the $600-per-transaction threshold set by a 2021 law, which sparked backlash from Democrats, Republicans, and a lobbying push by the companies.
In the Courts
Eleventh Circuit Upholds Tax Court’s Easement Valuations – Kristen A. Parillo, Tax Notes ($). “The Tax Court didn’t err in concluding that two partnerships grossly overvalued their conservation easement donations, according to the Eleventh Circuit.”
Appeals Court Affirms Tax Court’s $37 Million Easement Reduction – James Matheson, Bloomberg ($). “The US Tax Court properly cut down most of the $37 million in charitable contributions deductions taken for conservation easements claimed by two partnerships, the US Court of Appeals for the Eleventh Circuit held Wednesday.”
Small-Biz Owners Can't Unfreeze Corp. Transparency Act Case – Natalie Olivo, Law 360 ($). “A Texas federal judge declined to unpause a challenge to the Corporate Transparency Act brought by two small-business owners who the U.S. government argued would have moot claims after the U.S. Treasury Department finalizes new regulations.”
Amazon Worker's Settlement Is Taxable, Tax Court Says – Anna Scott Farrell, Law 360 ($). “A former Amazon.com worker who received a settlement from the company after injuring her back on the job owes taxes on the deal, the U.S. Tax Court said Wednesday, finding the company had paid to settle a wrongful termination claim, not to address her injury.”
Uber Accused of Tax Fraud From Use of Unscreened Drivers – Trevor Sikes, Tax Notes ($). “Uber filed fraudulent tax forms after its lax screening process permitted applicants to use other people’s personal information to become drivers for the service, according to a newly filed class action lawsuit.”
What Day is it?
My favorite day of the year is finally here, it’s Major League Baseball’s Opening Day!! Join me and Fenway in celebrating this best day of the year. Go Red Sox!
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