Below are Brownstein\u2019s top five areas where members are most likely to focus during Thursday\u2019s Ways and Means Committee hearing:<\/p>\n
- \n
- 1099-K reporting guidelines. Commissioner Werfel was initially invited to testify before the committee in December 2023, after all Republicans on the Ways and Means Committee wrote\u00a0a letter<\/a>\u00a0demanding his testimony on the agency\u2019s apparent unilateral reinterpretation of the lowered 1099-K reporting threshold included in the American Rescue Plan Act (ARPA,\u00a0Pub. L. 117-2<\/a>). Under the ARPA provision, the reporting threshold for Form 1099-K, covering third-party settlement organization transactions, was reduced from $20,000 (and at least 200 transactions) to $600 (with no minimum number of transactions) beginning in 2022. The reduction was criticized for sowing confusion and potentially creating compliance issues, especially for taxpayers who engaged in only occasional covered transactions. In December 2022, the Internal Revenue Service (IRS) extended the effective date for the lower threshold by one year. Then, in November 2023, weeks before the delayed ARPA provision was set to go into effect, the IRS announced a further delay of the reporting threshold for calendar year 2023. More surprisingly, the agency announced that for 2024 the IRS would implement the ARPA provision at a $5,000 threshold. The delay was intended to \u201creduce the potential confusion\u201d from the issuance of an estimated 44 million Forms 1099-K, but no explanation was offered for the $5,000 threshold. Ways and Means Committee Republicans responded that the delay was indicative of the agency\u2019s lack of preparedness to implement ARPA requirements and questioned the agency\u2019s authority for the delay as well as the 2024 threshold that is not consistent with the statute.<\/li>\n<\/ol>\n
[\/et_pb_text][et_pb_divider color=”#397389″ divider_style=”dotted” disabled_on=”off|off|off” _builder_version=”4.19.5″ _module_preset=”default” custom_margin=”||14px|||” custom_padding=”10px||2px|||” global_colors_info=”{}”][\/et_pb_divider][et_pb_button button_url=”https:\/\/comms.bhfs.com\/rv\/ff00c10fddc0254e2f3d8b983c428a9d206a2d00″ url_new_window=”on” button_text=”Stay Informed – 1099-K Reporting Guidelines, IRS Direct File Pilot Program, Employee Retention Tax Credit Administration, Security of Sensitive Taxpayer Information, IRA Funding and Enforcement Initiatives, and More. Click Here!” admin_label=”Read More Button” _builder_version=”4.24.0″ _module_preset=”default” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″][\/et_pb_button][et_pb_divider color=”#397389″ divider_style=”dotted” disabled_on=”off|off|off” _builder_version=”4.19.5″ _module_preset=”default” custom_margin=”||14px|||” custom_padding=”10px||2px|||” global_colors_info=”{}”][\/et_pb_divider][et_pb_text admin_label=”2″ _builder_version=”4.24.0″ text_font=”||||||||” text_font_size=”16px” background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n
Tax Package Update:<\/strong> Senators Continue Negotiations: Members of the Senate Finance Committee continue to review and discuss the provisions of the Tax Relief for American Families and Workers Act of 2024 (H.R. 7024<\/a>), including what modifications to make to the bill, if any. As of this writing, the bill continues to await action, with Senate Republicans focused on finding a viable path for the processing of the bill as well as options to address specific concerns. In addition, the Senate has been occupied with the national security supplemental, with a broader funding and border-security package being voted down last week. With the supplemental funding-only measure being passed early Tuesday by a vote of 70-29, the Senate has begun its Presidents\u2019 Day recess, likely pushing further negotiations on the tax package until late February.<\/div>\n[\/et_pb_text][et_pb_divider color=”#397389″ divider_style=”dotted” disabled_on=”off|off|off” _builder_version=”4.19.5″ _module_preset=”default” custom_margin=”||14px|||” custom_padding=”10px||2px|||” global_colors_info=”{}”][\/et_pb_divider][et_pb_button button_url=”https:\/\/comms.bhfs.com\/rv\/ff00c10fddc0254e2f3d8b983c428a9d206a2d00″ url_new_window=”on” button_text=”Stay Informed – 1099-K Reporting Guidelines, IRS Direct File Pilot Program, Employee Retention Tax Credit Administration, Security of Sensitive Taxpayer Information, IRA Funding and Enforcement Initiatives, and More. Click Here!” admin_label=”Read More Button” _builder_version=”4.24.0″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_button][et_pb_divider color=”#397389″ divider_style=”dotted” disabled_on=”off|off|off” _builder_version=”4.19.5″ _module_preset=”default” custom_margin=”||14px|||” custom_padding=”10px||2px|||” global_colors_info=”{}”][\/et_pb_divider][et_pb_text admin_label=”3″ _builder_version=”4.24.0″ text_font=”||||||||” text_font_size=”16px” background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n
Treasury Department Analysis Finds Favorable Return on Investment of IRA Funding:<\/strong> On Feb. 6, the Department of the Treasury and the Internal Revenue Service (IRS) released\u00a0an analysis<\/a>\u00a0providing an updated evaluation of the revenue estimates and return-on-investment (ROI) of IRS funding allocated by the Inflation Reduction Act (IRA). The analysis found that the IRA\u2019s IRS funding, as enacted, would increase revenue by roughly $561 billion over the next 10 years, and that renewing IRA funding when it runs out would yield estimated revenues of $851 billion. Furthermore, the paper found that a $20 billion rescission of IRA\u2019s IRS enforcement funding, which was first informally agreed to by President Biden and former House Speaker Kevin McCarthy (R-CA) to take place over two years, and then was accelerated to a one-year rescission in a topline spending deal negotiated by current House Speaker Mike Johnson (R-LA), would reduce revenues by over $100 billion. The analysis highlights the Treasury Department\u2019s desire to continue funding the IRS, saying that IRS budget cuts in the 2010s dramatically decreased audit rates on the wealthiest individuals and corporations, and that enforcement funding has enabled the agency to hold wealthy taxpayers accountable.<\/p>\n
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Gomez to Rejoin House Ways and Means Committee:<\/strong> Rep. Jimmy Gomez (D-CA) rejoined the House Ways and Means Committee on Feb. 2, replacing Rep. Brian Higgins (D-NY) after his retirement. The House Democratic Caucus voted to unanimously approve Gomez rejoining the committee. In a\u00a0press release<\/a>, Gomez said that he would especially focus on \u201cissues of affordable child care and housing costs \u2026.\u201d Gomez was previously on the committee during the 117th Congress when Democrats last controlled the House.<\/p>\n
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The need for fact-based reporting of issues important to multi generational businesses<\/a> and protecting a lifetime of savings<\/a> has never been greater. Now more than ever, multi generational businesses<\/a> and family businesses<\/a> are under fire. That’s why Family Enterprise USA<\/a> is passionately working to increase the awareness of issues important to generationally-owned family businesses<\/a> built on hard work, while continuing to strengthen our presence on Capitol Hill. The issues we fight for or against with Congress in Washington DC include high income tax rates<\/a>, possible elimination of valuation discounts, increase in capital gains tax<\/a>, enactment of a wealth tax<\/a>, and the continued burden of the gift tax<\/a>, estate tax<\/a> and generation skipping tax<\/a>.<\/p>\n
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Internal Revenue Service (IRS) Commissioner Daniel Werfel will return to Capitol Hill on Thursday to testify before the House Ways and Means Committee. What topics will generate discussion\u2014and criticism? Below are Brownstein\u2019s top five areas where members are most likely to focus during Thursday\u2019s Ways and Means Committee hearing: 1099-K reporting guidelines. Commissioner Werfel was […]<\/p>\n","protected":false},"author":2,"featured_media":10481,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","content-type":"","footnotes":""},"categories":[43,48,78,76,36],"tags":[],"class_list":["post-10476","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-estate-taxes","category-family-businesses","category-in-the-news","category-income-taxes","category-taxes"],"acf":[],"_links":{"self":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/10476","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10476"}],"version-history":[{"count":5,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/10476\/revisions"}],"predecessor-version":[{"id":10484,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/10476\/revisions\/10484"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/media\/10481"}],"wp:attachment":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10476"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10476"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10476"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}