The one, big, beautiful benefits legal alert
Posted on May 15, 2025
The House’s new tax legislation titled the “The One, Big, Beautiful Bill” covers a number of potential changes to US benefits items, including: Increasing child care credits for certain employers and making paid family and medical leave tax credits permanent. Allowing on-site health clinics to be fully HSA-compliant, as well as a number of other changes to HSAs. Amending the Section 162(m) and Section 4960 taxes on “excess” compensation paid to executives. Read the full legal alert here.
Continue Reading
Legal Alert: House tax bill proposes changes to information reporting rules
Posted on May 15, 2025
On May 14, 2025, the House Ways and Means Committee approved the “One, Big, Beautiful Bill,” containing the tax provisions destined for the budget reconciliation package. Several of the bill’s provisions would affect information reporting and withholding requirements. As expected, the bill would reinstate the de minimis threshold for Form 1099-K reporting by third party settlement organizations to the $20,000 and 200 transaction levels that existed prior to the 2021 amendments to section 6050W. Consistent with H.R. 7024, as passed by the House in 2024, the information reporting threshold for...
Continue Reading
Legal Alert: House confirms favorable modifications to three key business tax provisions
Posted on May 14, 2025
On May 12, 2025, the Republicans on the House Committee on Ways and Means released a draft bill showing their tax plan for the budget reconciliation legislation. The legislation will likely undergo significant changes as it works its way through the broader House membership and Senate. Among the myriad of new and revised provisions, the bill contains favorable updates to three key business tax provisions from 2017’s Tax Cuts and Jobs Act (TCJA). More specifically, the bill as currently drafted includes an extension of 100% bonus depreciation, a return to full, immediate expensing for...
Continue Reading
Legal Alert: Inflation Reduction Act imposes a nondeductible 1% excise tax on certain corporate stock buybacks
Posted on Aug 23, 2022
On August 16, 2022, President Biden signed the Inflation Reduction Act of 2022 (the IRA) into law. Among the provisions of the IRA is a nondeductible 1% excise tax on the repurchase of corporate stock (the Buyback Tax). The Buyback Tax is directly levied on repurchasing corporations, which means that corporations that currently have, or are considering, the adoption of stock buyback programs will need to include the Buyback Tax in the evaluation of the costs of any such program. Not all stock buybacks are covered by the tax, and there are a number of exceptions that may apply to limit the...
Continue Reading
Legal Alert: Signed, sealed, delivered – Biden signs Inflation Reduction Act enacting “new” corporate minimum tax
Posted on Aug 17, 2022
On August 16, 2022, President Biden signed the Inflation Reduction Act of 2022 (the IRA) into law. Among the most notable IRA provisions is a 15% corporate alternative minimum tax on corporations with book profits exceeding $1 billion effective for taxable years beginning after December 31, 2022 (the AMT). Originally a provision of the now-defunct Build Back Better Act, the AMT was revived by Senators Chuck Schumer and Joe Manchin earlier this month. The AMT managed to survive the budget reconciliation process, including a “vote-a-rama” in the Senate (i.e., a procedure in which Senators...
Continue Reading
Legal Alert: Inflation Reduction Act of 2022 signed into law – A summary of the energy tax provisions
Posted on Aug 16, 2022
The Inflation Reduction Act of 2022 (the Act) was signed into law on August 16, 2022, and includes about $370 billon for American energy security and climate change. Those changes include very substantial extensions, expansions and modifications of the tax credits for renewable and alternative energy development. In one of the best-kept secrets in Washington, Senators Manchin and Schumer surprisingly introduced the Act on July 27, 2022. The Senate and House passed the Act on August 7 and August 12, respectively. Although many of the provisions of the Act are similar to...
Continue Reading
Legal Alert: Inflation Reduction Act of 2022 – The energy tax provisions you need to know about
Posted on Aug 4, 2022
The Inflation Reduction Act of 2022 (the Act) runs 725 pages and includes numerous energy tax provisions aimed at enhancing US. energy security. The Act, if enacted, would extend and expand the renewable and alternative energy tax credits, shift to technology neutral credits in 2025, provide for US energy component manufacturing credits and modify the rules for electric vehicle tax credits. Buckle up as we breakdown the 300 plus pages of energy tax related provisions in our legal alert here.
Continue Reading
Legal Alert: Inflation Reduction Act targets carried interests
Posted on Jul 30, 2022
On July 27, US Senators Joe Manchin and Chuck Schumer announced proposed legislation referred to as the Inflation Reduction Act of 2022 (the Act). The proposed legislation includes changes that would expand the scope of IRC section 1061, which generally imposes limits on tax benefits available to carried interests and other compensatory partnership interest arrangements. Read the full legal alert here.
Continue Reading
Legal Alert: Back from the dead – Corporate minimum tax resurfaces at eleventh hour in Inflation Reduction Act of 2022
Posted on Jul 29, 2022
On July 27, 2022, the Senate announced agreement on a reconciliation package entitled the Inflation Reduction Act of 2022 (the IRA), the artist formerly known as the Build Back Better Act (the BBBA). Although months ago the $2 trillion BBBA was declared dead, Senators Joe Manchin and Chuck Schumer introduced the skinnied-down $739 billion proposal Wednesday, with its submission to the Senate Parliamentarian Wednesday evening and floor debate hopeful for next week. Among many revenue raisers, the IRA includes the 15% corporate minimum tax, prescription drug pricing reform, increased IRS tax...
Continue Reading
Legal Alert: A welcome clean energy surprise – Inflation Reduction Act includes energy tax extensions and expansions
Posted on Jul 29, 2022
In a surprising turn of events, late on July 27, 2022, Senators Manchin (D-WV) and Schumer (D-NY) released the Inflation Reduction Act of 2022. The Act, which runs 725 pages, includes numerous energy tax provisions aimed at enhancing US energy security. Tax pay-fors in the bill include a corporate minimum tax and an increase in the tax rate on carried interest. A summary of the bill was also released. Read the energy tax highlights of the Act in our legal alert.
Continue Reading
Legal Alert: Biden’s second (attempted) bite at the private equity apple – Key 2023 Green Book proposals impacting private equity funds and their investors
Posted on Apr 1, 2022
On March 28, 2022, the Biden Administration released the 2023 Fiscal Year Budget (the Budget) followed by the release of the Treasury’s Green Book, which provides explanations of the Biden Administration’s revenue proposals. Of the numerous tax proposals, several are of critical importance to private equity funds, their sponsors and investors. At the core of the Biden Administration’s proposals is “ensuring that the wealthiest Americans and the biggest corporations begin to pay their fair share.”1 A brief summary of certain key tax proposals impacting the private equity fund universe is...
Continue Reading
Legal Alert: Billionaires, BEAT, and Basis-Shifting – 2023 Green Book proposes tax changes affecting corporations, partnerships and individuals
Posted on Mar 31, 2022
On March 28, 2022, the Biden Administration released the 2023 Fiscal Year Budget (the 2023 Budget). It is important to note that the Budget assumes the Build Back Better Act (the BBBA) will be enacted as passed by the House on November 19, 2021 (other than Section 137601 of the BBBA, which would increase the cap on the federal tax deduction for state and local income and real estate taxes (the SALT cap)). The 2023 Budget contains proposals that would be in addition to those included in the BBBA. Highlights of the BBBA are covered in prior alerts located here and here. Among many other items,...
Continue Reading
Treasury Green Book includes Pillar II undertaxed payments rule (UTPR), corporate tax increase rate
Posted on Mar 29, 2022
On March 28, the Biden Administration released the 2023 Fiscal Year Budget, followed by the release of the Treasury’s Green Book, which provides explanations of the Biden Administration’s revenue proposals. Among the proposals is the adoption of the OECD’s Pillar II undertaxed payments rule (UTPR) in lieu of the Base Erosion Anti-Abuse Tax (BEAT). The UTPR denies a deduction or requires an equivalent adjustment to the extent the income of a constituent entity under the scope of Pillar II’s global minimum tax is taxed under the 15% tax rate threshold. The proposal would repeal BEAT and...
Continue Reading
Legal Alert: IRS provides additional guidance on cost of removal, salvage and normalization
Posted on Oct 20, 2021
In PLR 202141001 (July 15, 2021) the IRS expanded upon the guidance it provided in PLR 202033002 (Aug. 14, 2020) regarding the proper ratemaking treatment of cost of removal (COR) and salvage under the normalization rules. As explained in our alert, the IRS: Reaffirmed that COR is not subject to the normalization rules, but salvage must be normalized. The computation of the reversal of the excess tax reserve created by the rate Tax Cuts and Jobs Act (TCJA)1 by taking into account the COR component of depreciation is inconsistent with the normalization rules. Conversely, the computation of...
Continue Reading
Legal Alert: Significant, Proposed Limitations on IRA Investments Included in House Legislation
Posted on Oct 5, 2021
On September 27, 2021, the Build Back Better budget reconciliation legislation was introduced in the House of Representatives (the Legislation), which includes numerous revenue raisers and other tax-related changes. While many of these proposals have garnered much attention (increases in individual and corporate rates, among others), limitations on investments that can be held by individual retirement accounts (IRAs) could, if enacted, have a significant impact as well. Read the full legal alert here.
Continue Reading