CBO scores the Inflation Reduction Act

The Congressional Budget Office (CBO) has estimated that the Inflation Reduction Act would cut federal spending by $14.5 billion and raise $87 billion in revenue, reducing government deficits by nearly $102 billion over 10 years. The figures are a yearly average based on the bill’s projected impact from 2022 through 2031, the CBO said. The […]

Inflation Reduction Act moves forward

The Inflation Reduction Act has taken an important step in becoming law. Sen. Kyrsten Sinema (D-AZ) has indicated that she is “ready to move forward” on the bill with one key tax-related revision: removal of the provision that would impose new taxes on carried interest. She also indicated that tweaks have been made to the […]

Heavy Highway Use Tax Return Due Soon

As truckers roll down the road, a tax deadline is rolling up fast on them. Aug. 31 is the due date for the owners of most heavy highway vehicles to file their annual IRS Form 2290 (Heavy Highway Vehicle Use Tax Return). This tax applies to vehicles with a taxable gross weight of at least […]

Will the Inflation Reduction Act deliver?

Can the proposed Inflation Reduction Act deliver much-needed economic relief? In spite of some estimates from Congress, another research group is doubtful. The Penn Wharton Budget Model research tool quantifies the economic impact of government policies. It estimates that the bill would cut federal deficits by $248 billion over 10 years but have little impact […]

Deadline Extended

The IRS has extended the deadlines for amending a retirement plan or individual retirement arrangement to reflect recent legislation, including the SECURE Act and the CARES Act. The extended amendment deadline is Dec. 31, 2025, for 1) an IRA or 2) a qualified retirement plan or 403(b) plan (including a collectively bargained plan) that isn’t […]

Storm filing relief

Storm victims in federally declared disaster areas of Kentucky are now eligible for tax filing relief. The IRS has announced that for filing deadlines after July 26, 2022, affected individuals and businesses have until Nov. 15, 2022, to file and pay any tax due. The Nov. 15 deadline also applies to quarterly estimated tax payments […]

What’s in the Inflation Reduction Act part 2

A provision in the proposed Inflation Reduction Act would boost the payroll tax credit for increasing research activities. Currently, a qualified small business (QSB) may elect to take part of the research credit as a payroll tax credit against its employer FICA tax liability. A QSB must have gross receipts of less than $5 million […]

What’s in the Inflation Reduction Act

One provision of the proposed Inflation Reduction Act would close the “carried interest loophole.” Currently, partners aren’t taxed when a profit’s interest is issued, but when the income is realized by the partnership. At that point, the income usually is taxed at the maximum long-term capital gains rate of 23.8% (compared with a top income-tax […]

ACA’s penalty is decreasing in 2023

The Affordable Care Act’s (ACA’s) affordability percentage for employers to avoid a shared responsibility payment (penalty) is decreasing in 2023. The ACA’s employer-shared responsibility provision requires applicable large employers to offer minimum essential coverage that’s “affordable” and that provides “minimum value” to full-time employees or potentially make an employer-shared responsibility payment to the IRS. Health […]

IRS Funding proposed

A proposal to appropriate $80 billion over 10 years to the IRS is back on the table as part of the Inflation Reduction Act. (It was originally included in the Build Back Better bill.) The funds would be available to the IRS through Sept. 30, 2031, across four areas of the agency. First, nearly $3.2 […]