Biden urges renewal of expanded premium tax credits amid GOP opposition. President Biden has called on Congress to extend the temporary expansion of tax credits for health care premiums set to expire in 2025. According to a CBO report, not renewing the expanded version of the credits available through the Affordable Care Act (ACA) could lead to 3.8 million people losing insurance and an average 7.9 percent spike in healthcare premiums over the following eight years. The credit was temporarily expanded as part of the American Rescue Plan Act and later by the Inflation Reduction Act. The Republican-led 119th Congress is unlikely to act before the credits expire, with lawmakers already looking at offsets to the cost of making the individual income tax portions of the Tax Cuts and Jobs Act permanent.
Trump's IRS pick raises questions after Employee Retention Credit controversy. President-elect Trump has nominated former Republican congressman Billy Long to lead the IRS. A New York Times article details how Long aggressively marketed the Employee Retention Credit (ERC), despite concerns about widespread fraud and ballooning program costs.
IRS revises digital asset reporting form after pushback. The IRS has removed a controversial item from the draft version of Form 1099-DA, which taxpayers will use to report digital asset sales and exchanges in 2025. As Tax Notes reports (paywall), the revised form eliminates a checkbox section that brokers had criticized as unnecessary and costly. The form had asked filers about “noncovered securities,” which industry stakeholders argued lacked clarity and complicated compliance efforts. The updated form aligns with final regulations issued earlier this year and reflects the evolving regulatory landscape for digital asset reporting.
Hawaii struggles to process backlogged work opportunity tax credit applications. Hawaii is working to clear a backlog of 36,000 applications for the Federal Work Opportunity Tax Credit, a program that encourages businesses to hire workers from marginalized groups. According to Hawaii News Now, state officials cite staffing shortages and outdated technology as the main reasons for the delay. Efforts are underway to modernize systems and streamline the process, but the backlog reflects a nationwide struggle to manage the credit certifications efficiently.
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