News Updates

The American Institute of CPAs has sent comments to lawmakers in the House and Senate about the tax proposals in the Biden administration's climate, tax, and spending bill.

Under final regulations recently issued by the IRS and Treasury (T.D. 9963), partnerships electing to adjust the basis of partnership property under Sec. 754 will not have to include a partner's signature on their election statement.

Democrats pushed their election-year economic package to Senate passage Sunday, a hard-fought compromise less ambitious than President Joe Biden’s original domestic vision but one that still meets deep-rooted party goals of slowing global warming, moderating pharmaceutical costs and taxing immense corporations.

One-third of private companies still aren’t fully prepared to switch to the new leases standard.

The IRS admitted that some married taxpayers received erroneous notices for 2021 tax returns.

The IRS is warning tax professionals to be on the lookout for signs of data theft so they can respond quickly on behalf of their clients.

Low-interest federal disaster loans are now available to certain private nonprofit organizations in Nebraska following President Biden’s federal disaster declaration for Public Assistance as a result of severe storms and straight-line winds that occurred May 12, 2022. These low-interest federal disaster loans are available in Antelope, Boone, Burt, Cedar, Cuming, Custer, Dixon, Garfield, Greeley, Holt, Knox, Logan, Pierce, Polk, Sherman, Thurston, Valley, Wayne, Wheeler and York counties.

Nebraska redistricting, special election timing leave thousands in congressional limbo.

Payments made by the second-listed spouse on a joint return for 2021 under certain conditions may not have been properly credited by the Internal Revenue Service.

States are increasingly emboldened about imposing nexus on out-of-state entities, both in sales tax and corporate income tax, according to the latest Bloomberg Tax & Accounting Survey of State Tax Departments.

Senate Majority Leader Chuck Schumer and West Virginia Senator Joe Manchin released the outline of a tax, climate, and health care deal on Wednesday, in what could prove to be a major breakthrough after weeks of negotiations.

A bill has been passed by the Senate that aims to encourage increased domestic production of microchips and other semiconductor materials and devices, in part through a new investment tax credit. The Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Act of 2022 (Senate Substitute Amendment 5135 to H.R. 4346) includes the credit in Section 107 of Division A of the bill. Other divisions and sections of the bill would provide grants and incentives for semiconductor and other scientific research and innovation, as well as for education in the fields of science, technology, engineering, and mathematics (STEM), leading several senators, including its principal sponsor, Sen. Chuck Schumer, D-NY, to refer to it as the "CHIPS and science act."

With 11 current senators who will be term-limited out of office at the end of the year, two who decided not to seek reelection, at least two who have been or will be elected to other offices, and one who died during the fading days of the 2022 legislative session, you find at least 16 new senators who will be taking seats in the legislative chamber next year. That's one-third of the body of 49 senators, and that number and percentage could increase with the results of the Nov. 8 general election, when at least three incumbent senators appear to be facing tough challenges.

The Federal Reserve has announced another large interest rate hike as it battles to rein in soaring prices in the world's largest economy. The U.S. central bank said it would increase its key rate by 0.75 percentage points, targeting a range of 2.25% to 2.5%. The Fed has been raising borrowing costs since March to try to cool the economy and ease price inflation. But fears are rising the moves will tip the U.S. into recession. At a press conference, Federal Reserve Chairman Jerome Powell acknowledged that parts of the economy were slowing, but said the bank was likely to keep raising interest rates in the months ahead despite the risks, pointing to inflation that is running at a 40-year high. "Nothing works in the economy without price stability," he said. "We need to see inflation coming down. . . . That's not something we can avoid doing."

The board's chair, Erica Williams, said the PCAOB is working on updated auditing standards and stricter enforcement and inspections.

The Nebraska Department of Revenue has updated the Nebraska Higher Blend Tax Credit Act Application, Form HBTC-A to include the Schedule II - Nebraska Higher Blend Purchase spreadsheet, and revised application documentation requirements.

Nebraska came in #7 on CNBC’s Top States for Business 2022. The rankings for business measured 10 key categories of competitiveness. Of our neighbors, only Colorado made the top 10. North Carolina came in #1. The importance of workforce availability and training rose in this year's rankings, in addition to childcare capacity and inclusiveness. The cost of living and doing business, strong healthcare, and regulatory profile make Nebraska stand out, with some room to grow in workforce, infrastructure, innovation and access to capital.

Nebraska wrapped up fiscal year 2021-2022 with a record-high $6.35 billion in tax revenues, a 30.1% surplus over previous estimates. While some state legislators see an opportunity for more tax relief, others weigh the benefits of more rainy-day funds. Gov. Ricketts announced that the surplus revenue will boost the state cash reserve fund to $1.69 billion.

As negotiations continue on the fast-approaching reconciliation bill, the AICPA remains active in its advocacy efforts, which includes pushing back on the implementation of a minimum book income tax on corporations. During negotiations, major components of the reconciliation package could change or be dropped altogether from a final package while new provisions could be added. The deadline to pass a reconciliation bill is September 30; with a long August recess scheduled, there is little time to pass a bill and sign it into law. Updates on the reconciliation package and its various components will be forthcoming. Read more about the likely provisions and the profession’s advocacy.

This new feature will further help people needing to make corrections. This development will also assist the IRS with its inventory work on the current backlog of amended returns.