The tax bill remains in limbo in the Senate. The House-passed bipartisan bill that would expand the child tax credit and extend certain business tax breaks is not advancing in the Senate. Some Republican senators find the $78 billion measure too generous to low-income families, reports The New York Times, and passing major legislation in an election year can be especially daunting.
CAMT is in effect, but detailed rules remain absent. The Wall Street Journal reports on the corporate alternative minimum tax (CAMT) of 15 percent. The tax affects companies averaging at least $1 billion in financial statement profits over three years. Over a dozen companies so far report that they owe CAMT for 2023, and, without federal rules, tax planning to avoid the CAMT will be difficult.
IRS management of exempt-organization data is allowing errors, says industry group. The TEGE Exempt Organizations Council, which represents tax-exempt organization practitioners, emailed its members this week about a “huge uptake” in errors with the IRS exempt organizations business master file, reports TaxNotes (paywall). Data fields are increasingly reporting inaccurate codes, which affects exempt organizations’ ability to comply with filing requirements. The Council attributes the problem to insufficient IRS staffing and software conflicts.
Missouri lawmakers advance expansion of K-12 tax credit scholarship program. The bill would expand the state’s K-12 tax credit scholarship program, which provides state tax credits for contributions to approved, non-profit education assistance organizations. Right now, the program is available in charter counties and cities with at least 30,000 residents. The bill would make the program available statewide. The state Senate has approved it in its first iteration and a second version will see a Senate vote this week.
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