March Comes In Like A Lion With Another Short-Term Funding Bill
A short-term funding bill is ready for the President’s signature. The House and Senate each passed the measure, and President Biden is expected to sign it before tonight’s expiration of funding for four federal agencies. The legislation extends government funding deadlines of March 1 for the first four agencies and March 8 for the remaining eight agencies to March 8 and March 22, respectively.
Senate Finance Committee’s Sen. Mike Crapo taps the brakes on House-passed tax bill. The panel’s top Republican does not want his GOP colleagues to approve the $79 billion House-passed tax bill too quickly. TaxNotes reports he wants concerns about the legislation—especially those surrounding the expanded child tax credit—to be heard before moving forward. The Senate will have to move quickly if it wants to attach the legislation to a year-end spending bill this month.
The IRS has launched a new effort to close the tax gap for high-income filers. Inflation Reduction Act funding is being used to support the non-filer mailings initiative. The agency is sending letters this week on over 125,000 cases where tax returns have not been filed since 2017. Over 25,000 of those cases involve those with over $1 million in income, and a further 100,000 involve people with incomes between $400,000 and $1 million between 2017 and 2021. In these cases, the IRS received third-party information (forms W-2 and 1099s, for example) indicating these people received such income but failed to file a tax return.
In the UK: emergency budget plans would ease “non-dom” tax rules. Finance Minister Jeremy Hunt has drawn up plans to repeal or reduce Britain’s tax rules affecting non-domiciled residents. The contingency plan would go into effect if the government needs to raise billions of pounds to offset promised tax cuts. The plan could raise as much as £3.6 billion ($4.54 billion) annually.
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