tax Archive
Keeping Child Tax Credit Fully Refundable Is Critical to Low-Income Families
September 10, 2021
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TweetShareSharePin0 Shares As Congress debates whether to extend the major, but temporary, changes to the Child Tax Credit (CTC) it adopted earlier this year, a crucial question is whether it should keep the credit fully refundable. A new Tax Policy Center analysis finds that, for low-income families, full refundability is a key element of the
Applying the Penalty Approval Provision to a Conservation Easement Case
September 10, 2021
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TweetShareSharePin0 Shares In Oconee Landing Property LLC et al v. Commissioner, Dk. No. 11814-19 the Tax Court entered a very substantive order granting partial summary judgment to the IRS on the issue of penalty approval. If the Court still designated orders, I suspect it would have designated this one. The IRS in this case uses
Was The Senate’s Heated Crypto Tax Reporting Debate Much Ado About Nothing?
September 10, 2021
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TweetShareSharePin0 Shares When Congress debates major legislation, the public often focuses on a single narrow issue—one frequently irrelevant to the main point of the bill. It happened when the Senate debated the $1 trillion infrastructure measure last month: Many paid outsized attention to tax reporting for cryptocurrency, a proposal that would have funded less than
A Second Bite at the Innocent Spouse Apple
September 9, 2021
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TweetShareSharePin0 Shares We regularly have clients who come into the Tax Clinic at the Legal Services Center of Harvard Law School who received a determination in the past that they did not qualify for innocent spouse relief. These individuals may have what looks to us like a good case, but we struggle to get them
Treasury Minimum Tax Argument Relies on Narrow Interpretation of Rules
September 8, 2021
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TweetShareSharePin0 Shares Tuesday, the U.S. Treasury Department released a blog authored by Treasury officials Itai Grinberg and Rebecca Kysar. Though the blog purports to make a case for President Biden’s proposal to increase the current minimum tax on foreign profits of U.S. companies, its arguments rely on a very narrow interpretation of current law and
Guidance issued on 2021 wage reporting of qualified sick and family leave
September 8, 2021
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TweetShareSharePin0 Shares The IRS on Tuesday detailed how employers must report qualified sick leave wages and qualified family leave wages for leave provided to employees in 2021. Under Notice 2021-53, employers are required to report the qualified leave wages on either box 14 of a 2021 Form W-2, Wage and Tax Statement, or on a
An Expanded Child Tax Credit Would Reduce Poverty to Below 10 Percent in Nearly All States
September 8, 2021
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TweetShareSharePin0 Shares The American Rescue Plan’s (ARP) expanded Child Tax Credit (CTC) would reduce child poverty in a typical year below 10 percent in 47 states – if it is extended beyond 2021. Absent an extension, child poverty in a typical year would be below 10 percent in just 13 states. A new study by
Complications from Extensions and Unprocessible Returns
September 8, 2021
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TweetShareSharePin0 Shares Bob Probasco returns today with an important alert on overpayment interest. Christine A few months ago, Bob Kamman flagged a number of surprising phenomena he’d observed recently, one of which related to refunds for 2020 tax returns. Normally, when the IRS issues a refund within 45 days of when you filed your return,
Response to Ireland Consultation on OECD International Tax Proposals
September 8, 2021
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TweetShareSharePin0 Shares Introduction Tax Foundation welcomes the opportunity to respond to the public consultation on the OECD International Tax Proposals. Tax Foundation is a nonprofit think tank based in Washington, D.C., and our mission is to improve lives through tax policies that lead to greater economic growth and opportunity. We use the four principles of
Wyden Tax Proposals & Reconciliation
September 7, 2021
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TweetShareSharePin0 Shares Congressional lawmakers are putting together a reconciliation bill to enact much of President Biden’s Build Back Better agenda. Many lawmakers, however, want to make their own mark on the legislation. Senate Finance Committee Chair Ron Wyden (D-OR) has released his own proposals on a variety of tax issues that differ in some important
