<\/p>\n
Short-Term CR to Avert a Government Shutdown Likely in September<\/em><\/p>\n With only 11 legislative days left before the Sept. 30 fiscal year deadline, Congress is unlikely to pass anything other than a short-term continuing resolution (CR). The House Appropriations Committee approved 10 of the annual appropriations bills, though the full chamber has voted to pass only one of the bills (Military Construction-Veterans Affairs). The Senate Appropriations Committee has approved all 12 annual appropriations bills, though none of these bills has advanced through the full Senate. Additionally, there is a $115 billion difference between the two chambers\u2019 appropriations bills, which will need to be addressed in a final deal.<\/p>\n The best we can hope for by Sept. 30 is a short-term CR that goes through the end of November or early December. This will give Congress much-needed time to strike a potential deal. The chances of a shutdown after the expiration of a short-term CR are much higher.<\/p>\n Year-End Tax Package<\/em><\/p>\n Lawmakers on both sides of the aisle have been working toward a tax deal for over a year. With key provisions of the Tax Cuts and Jobs Act of 2017 either having expired or soon expiring, lawmakers are eager to strike a deal. However, a potential package hinges on whether Democrats and Republicans can agree to an extension and expansion of the child tax credit (CTC) to balance the extension of several business-related provisions, with a focus on the research and development (R&D) amortization deduction, bonus depreciation, and the net business interest deduction:<\/p>\n These three provisions were included in the Republican Ways and Means Committee\u2019s comprehensive tax package (H.R. 3936<\/a>,\u00a0H.R. 3937<\/a>\u00a0and\u00a0H.R. 3938<\/a>). While two of the three provisions have bipartisan support, Democrats in both chambers have indicated that they also want support for working families in any legislation that addresses expired business provisions\u2014most likely an expansion of the CTC.<\/p>\n Ways and Means Committee Chairman Jason Smith (R-MO) is a strong advocate for extending the increased CTC enacted in TCJA, and he previously introduced legislation to make permanent the $2,000 per-child credit amount. Democrats would like to see the credit restored to levels enacted under the Democrats\u2019 2021 Reconciliation bill, the American Rescue Plan Act (ARPA), which increased the value of the credit for $3,600 for children age 5 and under and $3,000 for children age 6 and over. That credit was also available in monthly installments. A possible CTC deal would need to find the middle ground between the Democratic and Republican proposals. It would also likely have to be paired with some form of a continuation of work requirements under current law\u2014a stipulation that Sen. Joe Manchin (D-WV) insisted on throughout negotiations over a potential CTC provision in the Democrats\u2019 Fiscal Year 2022 reconciliation bill, the Inflation Reduction Act.<\/p>\n In addition to these priorities, U.S. auto dealers may finally see some success in their ongoing effort to seek broad relief for an elective deferral of last-in, first-out (LIFO) accounting provisions. Last year, on Dec. 23, the Senate passed the\u00a0Supply Chain Disruptions Relief Act<\/a>, a bill led by Sen. Sherrod Brown (D-OH) that would allow auto dealers to wait until 2025 to replace their inventory. However, the bill was unable to pass the House due to procedural rules concerning the origination of tax bills. With broad bipartisan support, this provision could also be included in a year-end tax package.<\/p>\n Additionally, a solution on 1099-K reporting may also be included. The reporting threshold for third-party payment platforms to issue a Form 1099-K decreased from $20,000 and 200 transactions to $600 in 2023\u2014this change was enacted pursuant to ARPA. While the change was intended to increase the number of transactions subject to reporting, it attracted criticism from certain lawmakers who argued the lower threshold imposes an undue administrative burden. Negotiations are ongoing on what an appropriate threshold might be<\/p>\n For more information on the ongoing negotiations into both a potential year-end tax bill and the IRS\u2019s budget, the Brownstein National Tax Policy Group recently recorded a podcast where members of the Tax Team shared their insights into the topography of the tax landscape. The podcast is available\u00a0here<\/a>.<\/p>\n <\/p>\n Lawmakers Prepare for IRS Funding Fight.<\/strong>\u00a0Lawmakers returned to Capitol Hill on Sept. 5 after a monthlong congressional recess with an eye on the 12 Fiscal Year 2024 appropriations bills that must pass before Oct. 1 to avoid a government shutdown, in the absence of a continuing resolution (CR). Many of the appropriations bills, especially those advanced by the Republican-controlled House Appropriations Committee, contain clawbacks to either funding for the IRS contained within the Inflation Reduction Act (IRA,\u00a0Pub. L. 117-169<\/a>) or to the IRS\u2019s annual enforcement and operations support budget appropriated every fiscal year. These appropriations bills are set up for a collision course with Senate Democrats\u2019 appropriations bills, which keeps funding for the agency flat.<\/p>\n Although President Biden and House Speaker Kevin McCarthy (R-CA) have informally agreed to a $10 billion IRS-IRA funding clawback for Fiscal Year 2024, many Republican appropriations bills exceed this amount.<\/p>\n Below are the House appropriations bills containing IRS clawbacks:<\/p>\n Financial Services and General Government (FSGG) Bill<\/u>: The House\u00a0FSGG spending bill<\/a>\u00a0would freeze spending for taxpayer services and operations support at FY2023 amounts, while proposing a significant $1.2 billion (22%) cut to tax enforcement. The bill would restore funding to the business-systems modernization account, providing $150 million to supplement the $4.75 billion in funding allocated for this task by the IRA. Additionally, the proposed House FSGG bill would rescind approximately $10.2 billion of the supplemental funding provided to the IRS by the IRA. The bill proposes repealing $6.1 billion of the funding allocated specifically for enforcement and $4.1 billion of the funding allocated for operations support. The bill also includes a provision to prevent the IRS from using any funding to develop or provide taxpayers with a \u201cfree, public electronic return-filing service option\u201d without prior approval from both the House and Senate Appropriations committees and tax-writing committees.<\/p>\n In contrast, the Senate Appropriations Committee reported its\u00a0FSGG bill<\/a>\u00a0favorably on July 13 by a unanimous 29-0 vote. The bill would hold IRS spending levels flat at approximately FY2023 amounts and would rescind $10 billion in enforcement from IRA-provided IRS funds\u2014the same amount agreed to by Biden and McCarthy.<\/p>\n Transportation, Housing and Urban Development and Related Agencies (THUD) Bill<\/u>: The House\u00a0THUD spending bill<\/a>\u00a0would rescind about $25 billion of the IRA\u2019s unobligated tax-enforcement funding.<\/p>\n Commerce, Justice, Science and Related Agencies (CJS) Bill<\/u>: The House Appropriations CJS Subcommittee\u2019s\u00a0spending bill<\/a>\u00a0would rescind about $12.9 billion and $9.1 billion from the IRA\u2019s unobligated tax-enforcement and operations-support funding for the IRS, respectively.<\/p>\n Labor, Health and Human Services, Education and Related Agencies (LHHS) Bill<\/u>: The House Appropriations LHHS Subcommittee\u2019s\u00a0spending bill<\/a>\u00a0would rescind about $9.8 billion of the IRA\u2019s unobligated operations-support funding for the IRS.<\/p>\n Democratic Lawmakers Accuse Tax Preparers of Fighting Direct e-File While Advocacy Group Begins Messaging Campaign.<\/strong>\u00a0Sen. Elizabeth Warren (D-MA) and Rep. Katie Porter (D-CA) sent\u00a0letters<\/a>\u00a0to tax-preparation companies and industry trade groups on Aug. 23 requesting information on their efforts to lobby the government against the creation of an IRS-operated Direct e-File option. The lawmakers addressed the four letters to the heads of Intuit, H&R Block, the Free File Alliance and the American Coalition for Taxpayer Rights. Much of the information sought is publicly available. The letters accused the recipients of launching a \u201clobbying campaign aimed at protecting [their] ability to gouge taxpayers and preventing the creation of a free and simple system for taxpayers to file their taxes.\u201d The recipients of the letter acknowledge that they are exercising their First Amendment rights.<\/p>\n Free File Alliance Executive Director Tim Hugo responded to the letter on Aug. 25. Hugo noted that a simple and free system for taxpayers to file their taxes already exists via the Free File program. Hugo also pointed to a recommendation included in a recent Electronic Tax Administration Advisory Committee\u00a0report<\/a>\u00a0that offered support for expanding existing free-file programs before investing agency funds into the creation of a new IRS-operated system. An Intuit spokesperson also issued a response on behalf of the company, arguing that the Direct e-File effort \u201cis a solution in search of a problem, and that solution will unnecessarily cost taxpayers billions of dollars.\u201d<\/p>\n On Aug. 14, the Coalition for Free and Fair Filing (CFFF) hosted a\u00a0webinar<\/a>\u00a0with Sen. Warren and Rep. Porter, along with Rep. Don Beyer (D-VA), to highlight support for the 2024 Direct e-File Pilot. The members spoke in support of the organization\u2019s efforts, criticizing paid preparers and tax-preparation software companies for their opposition to the IRS\u2019s development of the platform. Warren and Porter shared sentiments reflected in their earlier letters, and all three members disparaged the Free File program for not providing reliable services for low-income Americans.<\/p>\n Over the past two decades, the Free File Program has helped file over 70 million free federal and state income tax returns, in addition to what individual companies provide as a pro bono service. Additionally, the IRS Volunteer Income Tax Assistance program serves low-income individuals that have earnings below a certain threshold<\/p>\n [\/et_pb_text][et_pb_divider color=”#397389″ divider_weight=”2px” disabled_on=”off|off|off” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_divider][et_pb_text disabled_on=”off|off|off” admin_label=”Brownstein Hyatt Farber Schreck Logo & About” _builder_version=”4.20.2″ text_font=”||||||||” text_font_size=”16px” background_size=”initial” background_position=”top_left” background_repeat=”repeat” link_option_url=”https:\/\/www.bhfs.com\/” link_option_url_new_window=”on” border_color_all=”#FFFFFF” border_style_all=”none” global_module=”6751″ global_colors_info=”{}”]<\/p>\n About Brownstein Hyatt Farber Schreck [\/et_pb_text][et_pb_divider color=”#397389″ divider_weight=”2px” disabled_on=”off|off|off” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_divider][et_pb_text disabled_on=”off|off|off” admin_label=”Become a member text” _builder_version=”4.21.0″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” link_option_url=”https:\/\/familyenterpriseusa.com\/donate-2\/” global_module=”5822″ global_colors_info=”{}”]<\/p>\n As we prepare for what promises to be a pivotal year for America, we’re asking you to consider becoming a member.<\/p>\n 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 [\/et_pb_text][et_pb_button button_url=”https:\/\/familyenterpriseusa.com\/donate\/” button_text=”Become a Family Enterprise USA Member” button_alignment=”center” disabled_on=”off|off|off” admin_label=”Become FEUSA member button” _builder_version=”4.21.0″ _module_preset=”default” custom_button=”on” global_module=”6503″ global_colors_info=”{}”][\/et_pb_button][et_pb_divider color=”#397389″ divider_style=”dotted” divider_weight=”2px” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_divider][et_pb_video_slider disabled_on=”off|off|off” admin_label=”Video Slider Family Business Stories 1″ _builder_version=”4.19.1″ _module_preset=”default” global_colors_info=”{}” global_module=”5963″ theme_builder_area=”post_content”][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=3k9d1tFz5AU&t=22s” _builder_version=”4.19.1″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=kG0lDKbmJxg” _builder_version=”4.19.1″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=HFK8SG1VSco” _builder_version=”4.19.1″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=Z15BqbFOYck” _builder_version=”4.19.1″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=bsn5xYrxhJg” _builder_version=”4.19.1″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=PL3K3rK7ioA&t=5s” _builder_version=”4.19.1″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=CpXRbRBhPKc” _builder_version=”4.19.1″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content” show_image_overlay=”off”][\/et_pb_video_slider_item][\/et_pb_video_slider][et_pb_text disabled_on=”off|off|off” admin_label=”FEUSA Statement” _builder_version=”4.21.0″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” link_option_url=”https:\/\/familyenterpriseusa.com\/donate-2\/” global_module=”5910″ saved_tabs=”all” global_colors_info=”{}”]<\/p>\n Family Enterprise USA<\/a> promotes generationally<\/a> owned family business<\/a> creation, growth, viability, and sustainability by advocating for family businesses<\/a> and their lifetime of savings with Congress<\/a> in Washington DC.\u00a0 Since 2007, Family Enterprise USA<\/a> has represented and celebrated\u00a0all sizes, professions and industries of family-owned enterprises and multi-generational<\/a> employers. It is a bi-partisan 501.c3 organization.\u00a0Family foundations can donate.<\/a><\/p>\n [\/et_pb_text][et_pb_text disabled_on=”off|off|off” admin_label=”Hash tags & Tags” _builder_version=”4.21.0″ _module_preset=”default” global_module=”6498″ global_colors_info=”{}”]<\/p>\n #incometax #taxseason #federaltaxpolicy #taxation #EstateTax #Deathtax #wealthtax #taxLegislation #CongressionalCaucus #CapitalGainsTax #incometaxrates #incometaxseason #taxrefund #taxreturn #incometaxreturn #gifttax #Generationskippingtax #InheritanceTax #repealestatetax #FamilyBusiness #promotefamilybusinesses #familyowned #supportlocalbusiness #womeninbusiness #AdvocatingForFamilyBusinesses #Generationallyowned #Multigenerationalbusiness\u00a0 @FamilyEnterpriseUSA @PolicyAndTaxationGroup @DitchTheEstateTax #FamilyEnterpriseUSA #PolicyAndTaxationGroup #DitchTheEstateTax<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" 28th Time\u2019s the Charm? For 27 years in a row Congress has failed to pass its 12 spending bills by the Sept. 30 deadline. Will this year bring more of the same? Or will the streak finally be broken? Short-Term CR to Avert a Government Shutdown Likely in September With only 11 legislative […]<\/p>\n","protected":false},"author":2,"featured_media":8986,"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":[43,78,76,36],"tags":[],"class_list":["post-8984","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-estate-taxes","category-in-the-news","category-income-taxes","category-taxes"],"acf":[],"_links":{"self":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/8984","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=8984"}],"version-history":[{"count":3,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/8984\/revisions"}],"predecessor-version":[{"id":8989,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/8984\/revisions\/8989"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/media\/8986"}],"wp:attachment":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8984"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8984"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8984"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
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Legislative Lowdown<\/h3>\n
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<\/strong>Brownstein Hyatt Farber Schreck is a unique law firm. Walk into any of our offices and you\u2019ll immediately recognize a different type of energy. Complacency doesn\u2019t have a place here. Flexibility and inspiration do.\u00a0Our culture and enthusiasm allow our attorneys, policy consultants and legal staff to stay ahead of our clients\u2019 needs and provide them with the resources they require to meet their business objectives.<\/p>\nWe hope you’ve enjoyed this article. While you’re here, we have a small favor to ask…<\/em><\/h4>\n
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