Latest news with #H.R.517

Politico

Disaster relief done — what next?

Presented by WELL, LOOK AT THAT: It wasn't exactly a unicorn, but something relatively uncommon happened last week — Congress enacted a narrow, uncontroversial tax provision. With good reason, too: The Senate cleared a bipartisan measure, H.R. 517 (119), by unanimous consent Thursday that would offer quicker relief from tax filing deadlines for those affected by natural disasters, in large part in response to the deadly flooding in Texas. In essence, the measure empowers the IRS to offer filing relief to taxpayers in areas where a state has declared an emergency. Until now, the agency could delay filing deadlines only for disasters declared by the federal government, which can take longer to materialize. Sen. Catherine Cortez Masto (D-Nev.), one of the measure's sponsors, noted that only one county in Texas had received a federal declaration as of Thursday, while a state emergency had been proclaimed in more than 20 counties. The House had passed the measure unanimously in March, so the Senate's action last week sends it to President Donald Trump's desk. 'This bill will allow those impacted by a natural disaster to have certainty that tax filing deadlines will be extended earlier in the process, and sometimes before the disaster occurs, so they can focus on their safety,' said Mark Koziel, the president of the American Institute of CPAs. MORE ON THAT in a second, but first — welcome to a special Bastille Day version of Weekly Tax. Not with a bang, but with a…: Today marks 160 years since an English mountaineer named Edward Whymper led the first successful ascent of the Matterhorn, the Alps peak along the border of Italy and Switzerland. (The descent, meanwhile, was far less successful.) Help us reach new heights. Send your best tips and feedback. Email: bbecker@ bfaler@ and teckert@ You can also reach us on X at @berniebecker3, @tobyeckert, @brian_faler, @POLITICOPro and @Morning_Tax. Want to receive this newsletter every weekday? Subscribe to POLITICO Pro. You'll also receive daily policy news and other intelligence you need to act on the day's biggest stories. LOOKING AHEAD: Outside events clearly prompted the quick congressional action on the natural disaster filing bill. But it's worth noting that's far from the only measure of its kind that lawmakers have looked at this year. In fact, Senate Finance Chair Mike Crapo (R-Idaho) and Sen. Ron Wyden of Oregon, the top Democrat on the tax-writing panel, released draft legislation early this year that would make broad reforms in tax administration. Across the way, the House Ways and Means Committee has cleared a string of other proposals aimed at making life easier for taxpayers. All of that prompted some speculation that the two parties might be able to work together on sweeping tax administration legislation this year or next. We'll see about that. This Congress might only be about a quarter over, but it's unclear whether the bruised feelings over the GOP megabill will subside enough for any real bipartisan tax action in the coming months. Some key Republicans have talked up areas for potential cooperation on taxes. But there's also some chatter within the GOP about doing another partisan budget reconciliation measure — or maybe two — while they have full control, which likely wouldn't help the chances for a bipartisan tax package. NOT SO FAST! A nonprofit group is trying to stop a proposed settlement that would give churches an official OK to wade into political activity. Americans United for Separation of Church and State announced Friday that it had asked a federal court to allow it to defend what's known as the Johnson Amendment, which bars certain tax-exempt groups from endorsing candidates and other types of politicking. The group is seeking to intervene after the IRS and religious groups challenging the Johnson Amendment reached a settlement, as part of which the agency said that the decadeslong ban on weighing in on political campaigns didn't apply to churches. Essentially, the IRS also noted that it was just coming clean on a longstanding unwritten rule — that it had rarely enforced the Johnson Amendment when it came to religious groups. In many ways, that's more broadly true of how the agency has handled the ban on political activity for nonprofits. But AU, the separation of church and state group, argued that the Johnson Amendment 'protects the integrity of both our elections and nonprofit organizations, including houses of worship.' 'The Trump administration's radical reinterpretation of the Johnson Amendment is a flagrant, self-serving attack on church-state separation that threatens our democracy by favoring houses of worship over other nonprofits and inserting them into partisan politics,' added the group's president, Rachel Laser. Advocates for nonprofits have long worked to preserve the Johnson Amendment, making it a top lobbying priority for both the 2017 Trump tax cuts and the most recent megabill. Those groups argue that allowing churches and other nonprofits more leeway to be political will erode the nonpartisan mission of most organizations and how they're viewed by the public at-large. DOWN GOES THE DST: Brussels has prepared to ditch plans for a digital tax to help ease trade negotiations with the U.S., as our Gregorio Sorgi noted Friday. At least that was the plan: The European Commission's list of upcoming taxes isn't scheduled to be released until Wednesday, and the report about Brussels dropping its DST came before Trump threatened to bump up tariffs on the EU to 30 percent. In return, European leaders threatened their own 'proportionate countermeasures,' leaving the path forward decidedly unclear. But taking a step back: The EU's willingness to scrap its digital tax would be just the latest example of the U.S. getting its way without having to rely on Section 899, the so-called revenge tax that was dropped from the GOP megabill over concerns that it would impede foreign investment. (Worth noting: Brussels is also considering a broader tax on big companies that would also hit tech titans affected by a DST.) Canada discarded its digital tax a couple weeks ago, just hours before payments were due, as part of its trade negotiations with the U.S. And Treasury Secretary Scott Bessent's agreement with the G7 to stop parts of the global tax deal from applying to the U.S. — most notably an undertaxed profits rule that allowed other countries to tax American companies that didn't meet minimum tax thresholds — paved the way for Republicans to drop Section 899 from the megabill. Next question, though: What's the broader impact of that G7 agreement on a global tax pact where around 140 countries signed on to the framework? Top officials at the Organization for Economic Cooperation and Development, which led negotiations on the agreement, have argued that the side deal strengthens the overall pact. But Mindy Herzfeld of Tax Notes isn't so sure, arguing that other countries might now seek their own carve-outs from the global tax deal, even if none of them has the same clout as the U.S. 'It remains uncertain whether the exceptionalism of the United States will hold at a time when its broader withdrawal from multilateral commitments has weakened the dollar and confidence in its systems,' Herzfeld wrote. Around the World Bloomberg: 'UK Wealth Tax Given 'Zero Chance' Amid Cash Crunch for Reeves.' Reuters: 'German upper house of parliament approves $54 billion corporate tax relief package.' Reuters, again: 'Ferrari Chair John Elkann settles inheritance tax dispute in Italy.' Around the Nation WEWS: 'Ohio GOP plans to override Gov. DeWine school vetoes in order to provide property tax relief.' KTOO: 'Bill requiring car rental apps to collect Alaska taxes avoids second veto.' Washington State Standard: 'Megabill's elimination of tax credits for clean energy projects could cost WA $8.7 billion.' Also Worth Your Time Wall Street Journal: 'Investors Get New Breaks on Capital-Gains Taxes in Trump Law.' Bloomberg: 'Trump Tax Law Quietly Takes Aim at Popular Perk: Office Snacks.' Tax Notes: 'Oversight of IRS AI and Data Analytics Faces Setback.' Did you know? Mountains in California, Colorado and Nevada have all been named after the Matterhorn.