Let’s Reconcile Our Differences! Prepare for a Budget Reconciliation Bill With Likely Tax Changes

The stage is set for Democrats to attempt to advance their reconciliation legislative package, which is expected to include significant corporate and individual tax changes that will fund the Biden administration’s policy priorities. These may include corporate and international tax reform, tax fairness for high-income individuals, an increase in the IRS tax enforcement budget, and a carbon polluter import fee. While most tax changes have been proposed to take effect in 2022, it’s possible that an increased capital gains rate would take effect in 2021.  

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Practical Guidance Updates

Featuring the latest updates from your Practical Guidance account.  

• Tax Key Legal Developments Tracker (Federal)
  Stay informed on new developments.
  • Business Entities
    Treasury released temporary regulations under I.R.C. Sections 3131, 3132, and 3134, added by sections 9641 and 9651 of the American Rescue Plan Act of 2021. These temporary regulations authorize the assessment of any erroneous refund of the tax credits paid under I.R.C. Sections 3131 and 3132 (including any increases in those credits under I.R.C. Sections 3133 and 3134). 86 Fed. Reg. 50,637 (Sept. 10, 2021).
  • Individual Income Tax
    IRS announces the special per diem rates effective October 1, 2021, which taxpayers may use to substantiate the amount of expenses for lodging, meals, and incidental expenses when traveling away from home. This notice provides the special transportation industry rate, the rate for the incidental expenses only deduction, and the rates and list of high-cost localities for purposes of the high-low substantiation method. I.R.S. Notice 2021-52.
• Document alerts allow you to stay current on legal developments that affect your practice. Find out how to set up your document alerts.

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