One more try at an enhanced child tax credit… Axios reports the White House and some Senate Democrats will push again for enhanced child tax credits this year. They hope Republicans will accept them in return for Democrats’ support of renewing expired subsidies for corporate research.
Senate Finance releases bipartisan retirement savings bill. The panel formally released its version of a large package of retirement savings incentives. The measure reflects agreements reached by Democrats and Republicans last June and is similar, but not identical, at a version approved by the House earlier this year. The bill increases incentives for employers to offer retirement plans to workers but also would allow future retirees to defer taking required distributions from retirement plans. It also got a new name: Enhancing American Retirement Now (EARN) Act.
And another call for tax increases on the wealthy. Treasury Secretary Janet Yellen last week called for higher tax rates on the rich and companies to help pay for social spending. Sounds like a new push for the tax elements of Biden’s doomed Build Back Better plan.
Meanwhile, the IRS will refund late penalties for some 2019 and 2020 tax filers. About 1.6 million filers missed deadlines for 2019 and 2020 federal income tax refunds. The IRS announced they’ll get automatic refunds of late-filing penalties as part of a new pandemic relief program. Filers must submit returns for 2019 and 2029 by Sept. 30 to avoid the penalties, on average about $750 per return, or $1.2 billion in total.
In other Treasury news… The department sanctioned Iran’s intelligence ministry and its top intelligence official on Friday, alleging they engaged in cyber-enabled activities against the United States and its allies. Iran allegedly launched a cyber attack on Albania in July.
Pennsylvania Appellate Court rules for out-of-state sellers using Amazon in tax case. Tax Notes reports (paywall) the court found the Pennsylvania Department of Revenue did not establish out-of-state sellers using Fulfillment by Amazon had enough contact with the state to require them to collect and remit sales tax or pay personal income tax. Once Amazon warehouses their merchandise, the sellers have effectively given up control, the judge concluded.
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