Saturday, March 13, 2021

Congress Finalizes COVID-19 Legislation With Health, Tax, and Retirement Changes | Groom Law

On March 10, 2021, the House of Representatives passed the version of the American Rescue Plan Act (H.R. 1319, the “Act”) previously passed by the Senate on March 6. President Biden is expected to sign the legislation on Friday.

The Act provides that, for an insured or self-funded plan, the employer applies for the tax credit. For a multiemployer plan, the plan applies for the tax credit. The original legislation reported out of the Ways and Means and Education and Labor Committees had provided that the tax credit would be claimed by the employer for self-insured coverage and the insurer for insured coverage.

Publisher: JD Supra
Twitter: @jdsupra
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Wyden Energy Tax Proposal for Biden Infrastructure Bill | Tax Foundation

Wyden introduced the Clean Energy for America Act in 2019.

A second advantage is simplification , such as reducing the total number of provisions. But perhaps more importantly, the bill would end several tax extenders . These provisions are technically temporary, but Congress has to renew them each year. The uncertainty associated with extenders means individuals and corporations can’t plan their investment strategies as well, so moving to only a few tax subsidy programs that are stable would be an improvement.

Publisher: Tax Foundation
Date: 2021-03-11T16:00:21-05:00
Twitter: @taxfoundation
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When is the Amount of the Employee Retention Credit Subject to Tax?

The CARES Act created a lot of new acronyms for taxpayers to memorize, including the CARES Act itself, which is also an acronym. Among these are PPP (paycheck protection program), EPTD (employer payroll tax deferral), and ERC (employee retention credit). This article focuses on the ERC, and, in particular, the taxation of the ERC.

Yes and no. The ERC is not includible in gross income, but it is subject to expense disallowance rules, which effectively make it taxable. See Notice 2020-21 , Q&As 60-61; IRS FAQs 85 & 86 . For example, if an employer received $200,000 in ERCs, then it would be required to reduce its deductible wage expenses, including qualified health plan expenses, by $200,000, thus subjecting it to tax on an extra $200,000 of income (or causing less of a loss if it was in a net loss position).

Twitter: @tax
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May I Have a Deduction, Please? | Dickinson Wright - JDSupra

Recently released final regulations under section 162(f) of the Internal Revenue Code of 1986, as amended (the “Code”), make it a necessity to properly draft settlement agreements and court orders between a taxpayer and the government (federal, state or local or any of their agencies) to put the taxpayer in the best tax position possible.

Government Payments may consist of fines, penalties, restitution, remediation and other damages paid as a result of SEC, EPA, and Stark and False Claims Act violations just to name a few.  The general rule is that no portion of a Government Payment may be deducted by a taxpayer.  Fortunately, there is the proverbial exception.

Publisher: JD Supra
Twitter: @jdsupra
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Department of the Treasury, Internal Revenue Service: Tax on Excess Tax-Exempt Organization

GAO reviewed the Department of the Treasury, Internal Revenue Service's (IRS) new rule entitled "Tax on Excess Tax-Exempt Organization Executive Compensation." GAO found that the final rule (1) sets forth final regulations under section 4960 of the Internal Revenue Code, 26 U.S.C.

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The Honorable Richard Neal
Chairman
The Honorable Kevin Brady
Republican Leader
Committee on Ways and Means
House of Representatives

According to IRS, the final rule sets forth final regulations under section 4960 of the Internal Revenue Code, 26 U.S.C. § 4960, which imposes an excise tax on remuneration in excess of $1,000,000 and any excess parachute payment paid by an applicable tax-exempt organization to any covered employee. IRS stated the final rule affects certain tax-exempt organizations and certain entities that are treated as related to those organizations.

Author: U S Government Accountability Office
Twitter: @USGAO
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Regulation Is Key to Wide Adoption of Cryptocurrencies | Treasury & Risk

The winner of the 2020 Gold Alexander Hamilton Award in Financial Risk Management is ... eBay. Congratulations!

Publisher: Treasury & Risk
Date: 2021-03-10
Author: Bernice Napach
Twitter: @TreasuryandRisk
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Fullerton Repeals Ordinance Allowing Cannabis Stores; La Habra and Costa Mesa Push Forward With

Fullerton City Council decided to repeal an ordinance allowing cannabis storefronts, mere months after the body first approved the law.

Concerns over buffer zones have been circulating since the ordinance was first drafted. Some residents have also voiced fears about how legal marijuana would affect the Fullerton community if storefronts were permitted.

"I hope that our citizens and our families and our children in this community take precedence over an unknown amount of money that we might make," Maureen Flynn-Becerra, a Fullerton resident, told the council at a meeting in February.

Publisher: Voice of OC
Date: 2021-03-13T07:01:51-08:00
Twitter: @voiceofoc
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West Virginia Senate Considers Digital Advertising Tax - Lexology
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