On The Hill

The Senate concluded its pro forma session Thursday (Apr. 16) without reaching an agreement on an interim emergency spending package. The next chance for a deal will be Monday, April 20, when the Senate convenes pro forma session at 2:00 pm. Majority Leader Mitch McConnell (R-KY) has indicated future pro forma session dates are as follows: April 20, 23, 27, and 30.

 

House Rules Committee Chairman Jim McGovern (D-MA) will recommend the House adopt a rule change allowing members to vote by proxy during an emergency. Speaker Nancy Pelosi (D-CA) seems supportive of such a change, but has given no indication on when a vote on the rule change would take place.

 

 

 

The Congressional Budget Office (CBO) and Joint Committee on Taxation (JCT) released their preliminary estimate of the budgetary effects of the CARES Act yesterday (Apr. 16). They estimate the act will increase federal deficits by around $1.8 trillion over the next decade, including: $988 billion increase in mandatory outlays; $446 billion decrease in revenues; and $326 billion increase in discretionary outlays, stemming from emergency supplemental appropriations.

 

To view the full CBO report, click here.

 

 

 

The Internal Revenue Service (IRS) has made numerous changes to its normal procedures to account for the office closures and filing date extensions necessitated by the ongoing pandemic. This week, the agency announced it will be accepting certain business tax forms via fax as mail service is currently suspended.^[1]

 

Starting Friday (Apr. 17), businesses will be able to submit Form 1139 (net operating loss deductions) and Form 1045 (minimum tax credit refunds) by faxing them to 844-249-6236.

 

To view IRS FAQs on the new procedures, click here.

 

 

 

On Thursday (Apr. 16), Rep. Denver Riggleman (R-VA) introduced H.R. 6513, ‘The Opportunity Zone Extension Act.’ The bill would extend OZ provisions included in the Tax Cuts and Jobs Act of 2017 (TCJA) from 2026 to 2030, as well as provide additional investment opportunities in the program.

 

“It is an important lever to bring new businesses and investment to rural areas, like my district. Extending this program will allow companies additional time to invest in qualifying communities and expand a program that creates jobs for many Americans,” Riggleman said.

 

“During these challenging times, we need to use every tool available and help rural economies thrive. This bill will expand an essential program that benefits my constituents,” Riggleman added.^[2]

 

Riggleman is joined on the legislation by Representatives Guy Reschenthaler (R-PA); Scott Tipton (R-CO); Tim Burchett (R-TN); Bryan Steil (R-WI); and Drew Ferguson (R-GA).

 

 

 

On Friday (Apr. 17), the IRS released guidance for businesses to claim the tax depreciation benefit included in the CARES Act. The change will allow businesses, including restaurants, retailers, and others previously left out of the benefit due to a TCJA drafting error, to write off the cost of qualified renovations to rented space. Republicans have attempted to fix this error for years.^[3]

 

 

 

KPMG TaxWatch held a webinar on the impact of COVID-19 on the infrastructure industry on Thursday (Apr. 16). Discussion topics included: tax provisions included CARES, valuation and credit, and asset management. To view presentation slides, click here.

 

The IRS has launched two online portals to help individuals receive their economic impact payments. Individuals can enter their bank information to receive their checks via direct deposit, a method the IRS is hoping to utilize to expedite payments. Visit the IRS’ Coronavirus Tax Relief and Economic Impact Payments webpage for more information.

 

Please visit CHCG’s website for additional coronavirus resources.

 

 

 

^[1]Lorenzo, Aaron “With mail suspended, IRS sets up fax lines for business tax breaks” Politico Pro, 13 Apr 2020

 

^[2]“Congressman Denver Riggleman Introduces The Opportunity Zone Extension Act”

 

^[3]Lorenzo, Aaron “IRS releases rules for ‘retail glitch’ fix” Politco Pro, 17 Apr 2020