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From the Hill: October 3, 2023

The U.S. government avoided a shutdown when President Biden signed a stop-gap measure for 45 days or November 17. The continuing resolution gives more time for the House and Senate to work through current legislation.
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Lately on the Hill

Here’s a look at recent tax-related happenings on the Hill, which include the averted government shutdown and newly introduced bills and proposals.

  • Top News –
    • Government Shutdown Avoided:
      • Late Saturday night, President Biden signed a bill to avoid a government shutdown, keeping the government funded for another 45 days, or until November 17.
      • The short-term funding bill, also known as the continuing resolution or “CR,” serves to buy more time for both the House and the Senate to finish the legislation at hand.
    • No New Self-Employment Contribution Act Audits:
      • “We’re not starting any new returns in that area right now because we want to see what develops in the courts,” said an IRS official at a September 20 Tax Executives Institute Conference. The official indicated that the agency has pressed pause on new SECA audits. Keep an eye out for more information from FORVIS regarding the matter.
  • New bills and proposals introduced.Here is a roundup of some of the latest tax-related bills and proposals introduced in Congress:
    • The EITC Age Parity Act of 2023, introduced by House Ways and Means Committee member Judy Chu, (D-CA), would modify the age restrictions on earned income tax credit eligibility.
    • The American Workforce Empowerment Act would expand section 529 savings plans to cover apprenticeships and other training that “will help incentivize students to pursue careers in the trades and other high demand industries,” Sens. Roger Marshall, (R-KS), Ted Budd, (R-NC), and Mike Braun, (R-IN), said in a September 26 release.
    • The Stop EV Freeloading Act, introduced by Sen. Deb Fischer, (R-NE), would impose a tax on the sale of electric vehicles and batteries, with the revenue to be put toward the Highway Trust Fund.
    • The American Institute of CPAs has endorsed two bipartisan bills adding accounting as a science, technology, engineering, and mathematics career path. The bipartisan bills, the STEM Education in Accounting Act and the Accounting STEM Pursuit Act of 2023 (H.R. 3541), would allow federal STEM grant funding to be used for K-12 accounting education and to aid long-standing efforts to increase diversity within the accounting workforce.

In Case You Missed It

  • The IRS issued interim final regulations T.D. 9980 and proposed rulemaking REG-106203-23 reduce the cost of PTIN application and renewal from $30.75 to $11.
  • The IRS has released Notice 2023-67, which provides guidance regarding an extension of the replacement period under §1033(e) of the IRC for livestock sold on account of drought in specified counties.
  • The IRS has provided Notice 2023-68 the 2023-2024 special per diem rates for substantiating an employee's ordinary and necessary business expenses incurred while traveling. The special rates apply to transportation industry meal and incidental expenses, the incidental expenses-only deduction, and the list of high-cost localities for the high-low substantiation method.
  • The IRS released Rev. Proc. 2023-35, which expands the scope of previous guidance (Rev. Proc. 2014-45) that describes circumstances in which the IRS will not treat a redemption of shares in a money market fund as part of a wash sale for purposes of section 1091.
  • The IRS issued IR-2023-183 to remind taxpayers who requested extensions to file their 2022 tax returns that they must file by October 16 to avoid a possible late filing penalty.

Related to the IRA and CHIPS Act

  • The IRS released an advance version of Notice 2023-65 providing guidance on a new energy-efficient home credit under section 45L. The provision, as amended by the IRA, allows eligible contractors who construct or substantially reconstruct and rehabilitate qualified new energy-efficient homes a tax credit of up to $5,000 per home.

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.

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