[et_pb_section fb_built=”1″ _builder_version=”3.22″ global_colors_info=”{}”][et_pb_row _builder_version=”3.25″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_button button_url=”https:\/\/familyenterpriseusa.com\/2022-annual-family-business-survey\/” button_text=”Do You Have 5 Minutes To Help Your Multi-Generational Business?” button_alignment=”center” disabled_on=”on|on|on” admin_label=”Call to Action Button” _builder_version=”4.14.8″ _module_preset=”default” custom_button=”on” disabled=”on” global_colors_info=”{}”][\/et_pb_button][et_pb_divider _builder_version=”4.10.1″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_divider][et_pb_text admin_label=”Content” _builder_version=”4.14.9″ text_font=”||||||||” text_font_size=”16px” background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”]<\/p>\n
House Speaker Nancy Pelosi (D-CA) said during Democrats\u2019 issue retreat last week in Philadelphia that the House would soon advance a separate COVID-19 supplemental package and that only half of the spending would be offset. Even though the White House request was reduced to $15.6 billion in the omnibus language, Pelosi has since indicated Congress may need to provide more funding. She said last week that the Biden administration\u2019s request \u201cwas a good start,\u201d but that \u201cit wasn\u2019t everything. So we would have needed to do more anyway. And we will.\u201d<\/p>\n
A push to pass even more COVID-19 funding is likely to meet Republican opposition\u2014something that Democratic leadership has reportedly acknowledged behind closed doors. Sen. Richard Shelby (R-AL), the Senate Appropriations Committee ranking member, suggested as much last week when he said, \u201cI don\u2019t even know if they need any more\u201d COVID-19 spending, adding that if Democrats \u201cshow they really needed the money, we ought to do it, but there\u2019s a lot of ambiguity and vagueness.\u201d Republicans have requested the Biden administration make clear the extent of unused COVID-19 relief funds already approved by Congress, but the administration has thus far only provided \u201cstaff briefings.\u201d<\/p>\n
Tax Writers Eye Extenders.<\/strong>\u00a0Some congressional tax committee members had originally hoped to include\u00a0 language extending a number of expired tax provisions in the $1.5 trillion omnibus package. These were ultimately left out. Known as \u201cextenders,\u201d these provisions generally move toward the end of a calendar year.<\/p>\n Rep. Richard Neal (D-MA), chair of the House Ways and Means Committee, said last week he thinks Congress will pass legislation this year to extend a number of tax credits that expired at the end of last year. That could occur during the lame-duck session\u2014the time between the November midterm elections and the swearing in of the new Congress.<\/p>\n How many tax provisions will be included in a year-end package, however, remains undecided. Neal said recently that the research and development tax credit and renewable energy tax credits could be included.<\/p>\n According to the Joint Committee on Taxation (JCT), which released a\u00a0report<\/a>\u00a0in January 2022 listing all expiring federal tax provisions, 40 tax provisions expired in 2021.<\/p>\n Gig Tax Reporting Threshold Bill Introduced.\u00a0<\/strong>A bicameral group of Democrats introduced legislation today that would increase the de minimis exception for when third-party settlement organizations must issue a Form 1099-K. The American Rescue Plan Act, passed in 2021, required third-party settlement organizations to issue Form 1099-K to taxpayers who have over $600 in transactions with no transaction threshold, down from the previous threshold of $20,000 and 200 transactions. \u00a0<\/p>\n This bill, known as the Cut Red Tape for Online Sales Act, would raise the reporting threshold from $600 to $5,000 on third-party transactions. The bill would also require plain language notices to payees regarding Form 1099-K. The IRS Form 1099-K tracks income received through third-party payment methods, such as credit cards, PayPal and other payment settlement services. The provision will impact gig workers as well as other independent contractors who are compensated using third-party payment methods.<\/p>\n The bill is an attempt to lower the reporting threshold, while excluding non-business transactions, such as the cost of selling used goods online.<\/p>\n The bill was introduced by Sens. Maggie Hassan (D-NH) and Kyrsten Sinema (D-AZ) in the Senate and Reps. Chris Pappas (D-NH) and Cindy Axne (D-IA) and would apply retroactively to cover 2022.<\/p>\n Pascrell Calls for Stepped-Up Basis Rulemaking.<\/strong>\u00a0Rep. Bill Pascrell (D-NJ), who chairs the House Ways and Means Subcommittee on Oversight, sent a\u00a0letter<\/a>\u00a0to Treasury Secretary Janet Yellen last week highlighting the \u201cgaps in federal law and failures to enforce aspects of current law\u201d related to tax-free stepped-up basis on appropriated assets taxpayers inherit upon the death of another taxpayer.<\/p>\n Pascrell encouraged the Treasury Department and IRS to \u201ctake targeted actions to limit or even eliminate strategies that wealthy individuals and families use to exploit the stepped-up basis loophole.\u201d He described one common estate planning strategy in which taxpayers transfer assets to an irrevocable grantor trust while still alive. This strategy allows the property to be excluded from the grantor\u2019s gross estate at death, thereby avoiding the estate tax.<\/p>\n Pascrell ultimately asked the administration to \u201cpromulgate regulations clarifying that the phrase \u2018bequest, devise, or inheritance\u2019 in Code section 1014(b)(1) does not apply to the termination of grantor trust status upon the grantor\u2019s death or to the transfer of an irrevocable grantor trust\u2019s property upon a grantor\u2019s death.\u201d<\/p>\n As the Build Back Better Act stalls in Congress, Democratic members are seeking to accomplish their agenda through the regulatory front.<\/p>\n [\/et_pb_text][et_pb_text disabled_on=”off|off|off” admin_label=”Credit” _builder_version=”4.14.9″ text_font=”||||||||” text_font_size=”16px” background_size=”initial” background_position=”top_left” background_repeat=”repeat” link_option_url=”https:\/\/comms.bhfs.com\/rv\/ff008d054a07361cb4a154495f40a44c2300abdc” link_option_url_new_window=”on” global_colors_info=”{}”]<\/p>\n [\/et_pb_text][et_pb_divider _builder_version=”4.10.1″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_divider][et_pb_button button_url=”https:\/\/familyenterpriseusa.com\/2022-annual-family-business-survey\/” button_text=”Have Your Voice Heard in Congress. Please Take Action Today!!!” button_alignment=”center” disabled_on=”on|on|on” admin_label=”Call to Action Button” _builder_version=”4.14.8″ _module_preset=”default” custom_button=”on” disabled=”on” global_colors_info=”{}”][\/et_pb_button][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”3.25″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”FEUSA Statement” _builder_version=”4.8.2″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” link_option_url=”https:\/\/familyenterpriseusa.com\/donate-2\/” global_colors_info=”{}”]<\/p>\n Family Enterprise USA<\/a> advocates for American Family business. We help family businesses communicate their challenges and contributions to American economic freedom to Legislators. We represent all American family businesses; not just specific industries and provide research to enhance the opportunity for success. We help family businesses continue to establish their unique business legacy. Family Enterprise USA is a 501(c)(3) non-profit organization.. Family foundations can donate.<\/a><\/p>\n [\/et_pb_text][et_pb_button button_url=”https:\/\/familyenterpriseusa.com\/donate-2\/” button_text=”Are you an FEUSA Member? If not, get in on the movement today!” button_alignment=”center” admin_label=”Call to Action Button” _builder_version=”4.9.3″ _module_preset=”default” custom_button=”on” global_colors_info=”{}”][\/et_pb_button][et_pb_video src=”https:\/\/www.youtube.com\/watch?v=CNmxhUJVNxs” _builder_version=”4.14.9″ _module_preset=”default” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″][\/et_pb_video][et_pb_text admin_label=”Hash tags & Tags” _builder_version=”4.9.10″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n @FamilyEnterpriseUSA @PolicyAndTaxationGroup @DitchTheEstateTax #FamilyBusiness #Business #SmallBiz #EstateTax #Deathtax #CapitalGainsTax #StepUpInBasis #Taxes #gifttax #Generationskippingtax #InheritanceTax #repealestatetax #promotefamilybusinesses #taxLegislation #AdvocatingForFamilyBusinesses #incometax #Generationallyowned #Multigenerationalbusiness<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" Tax provisions were not the only items missing from the omnibus last week. Congress had to remove COVID-19 relief funding from the $1.5 trillion \u201comnibus\u201d appropriations package that passed both chambers last week. The funds, which would have replenished depleted pandemic programs, were abruptly removed shortly before passage due to opposition over how the spending […]<\/p>\n","protected":false},"author":2,"featured_media":4310,"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":[83,78,36],"tags":[],"class_list":["post-5024","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-covid-19","category-in-the-news","category-taxes"],"acf":[],"_links":{"self":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/5024","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=5024"}],"version-history":[{"count":4,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/5024\/revisions"}],"predecessor-version":[{"id":5030,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/5024\/revisions\/5030"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/media\/4310"}],"wp:attachment":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5024"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5024"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5024"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Read the FULL “COVID Relief Package in Flux” update from Brownstein Hyatt Farber Schreck.<\/strong><\/h3>\n
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