Lately on the Hill
The Hill is expected to be quiet for the next month as Congress hits the road campaigning for midterm elections. In the meantime, we’ll keep you updated on regulatory and legislative news.
- The IRS is working on providing guidance for various tax provisions in the Inflation Reduction Act (IRA). The first step is asking the public for comments on different aspects of extensions and enhancements of energy tax benefits in the IRA. Comments are due by November 4, 2022.
- Here is a list of the areas the IRS is looking for input on:
- Notice 2022-46 requests comments on credits for clean vehicles.
- Notice 2022-47 requests comments on energy security tax credits for manufacturing.
- Notice 2022-48 requests comments on incentive provisions for improving the energy efficiency of residential and commercial buildings.
- Notice 2022-49 requests comments on certain energy generation incentives.
- Notice 2022-50 requests comments on elective payment of applicable credits and transfer of certain credits.
- Notice 2022-51 requests comments on prevailing wage, apprenticeship, domestic content, and energy communities’ requirements.
- The U.S. Department of the Treasury (the Treasury) is prioritizing portions of the IRA that Congress set deadlines on, beginning with early 2023. The agency is also focusing on guidance on the wage and apprenticeship requirements, which will go into effect 60 days after initial guidance is published.
- Here is a list of the areas the IRS is looking for input on:
- Bills introduced to prevent IRS overreach. In response to the $80 billion in funding provided to the IRS in the IRA, legislation has been introduced in the House and Senate to put guardrails on how the IRS spends this new funding (or completely take back the money).
- Sen. Roger Marshall introduced the Preventing Frivolous Actions by IRS Agents Act, which would compensate Americans who were incorrectly subjected to failed IRS audits or legal actions.
- Marshall also introduced a second bill that would require the IRS to sell its $700,000 stockpile of firearm ammunition.
- In the House, Rep. Adrian Smith introduced the Family and Small Business Taxpayer Protection Act, which would repeal the IRS enforcement funding in the IRA.
IN CASE YOU MISSED IT
- Victims of Hurricane Ian in South Carolina and North Carolina now have until February 15, 2023 to file various individual and business tax returns and make certain tax payments.
- The IRS is extending for another year (through January 10, 2024) the transition period during which taxpayers are provided 45 days to perfect a research credit claim for refund prior to IRS’ final determination on the claim.
- The IRS is proposing to increase enrollment and renewal user fees for enrolled actuaries from $250 to $680.
- The IRS issued final regulations with guidance on the average income test for purposes of the low-income housing credit. These rules affect owners of low-income housing projects, tenants in those projects, and state or local housing credit agencies that monitor compliance with the requirements for low-income housing credits.
- The U.S. Supreme Court agreed to hear a case on whether a communication involving both legal and tax advice is protected by attorney-client privilege when obtaining or providing legal advice was one of the significant purposes behind the communication. The case involves a law firm that did not comply with grand jury subpoenas for documents involving a client’s tax documents.
- The Financial Stability Oversight Council, made up of leaders from federal financial agencies, released a report identifying vulnerabilities in the crypto ecosystem and making recommendations on regulatory gaps and enforcement needs.
This newsletter features developing content that is subject to change at any time. It does not constitute legal or tax advice. Consult your professional advisors prior to acting on the information set forth herein.