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For these full stories plus the latest tax news, visit
journalofaccountancy.com and thetaxadviser.com.
Congress enacts tax and climate bill
The Inflation Reduction Act, P.L. 117-169, passed
Congress and was signed into law, containing a new
corporate minimum tax, a stock buyback excise tax, and
many new and expanded clean energy incentives.

April 2022 to include the 11 examples Guidance on clean vehicle tax credit
in the MTC updates to the Statement The IRS provided immediate guidance on a provi-
of Information, as Examples 6 through sion of the Inflation Reduction Act requiring a car’s
16 of N.Y. Comp. Codes R. & Regs. or truck’s final assembly to have occurred in North
tit. 20, §1-2.10(i), which collectively America for purposes of claiming the Sec. 30D credit,
address P.L. 86-272 for New York as extended and modified by the act.
purposes. As of this writing, this
regulation is in draft; it cannot yet be CHIPS and Science Act with semiconductor
relied upon as the state’s position. The tax credit passes Congress
added language is verbatim from the For eligible taxpayers, the credit is 25% of qualified
Statement of Information; accordingly, investments in any advanced semiconductor manufactur-
significant changes are not expected to ing facility.
be incorporated into a final version.
Similar to California, New York Guide released for tax pros’ information
has a factor-presence nexus threshold, security plan
asserting nexus for any business whose A sample template is included in this publication by the
annual sales exceed $1 million (N.Y. IRS and the Security Summit, helping tax and financial
Tax Law §209(1)(b)). New York also firms comply with the federally mandated safeguards rule.
has certain other thresholds that could
be applicable for certain businesses, National taxpayer advocate appeals IRS
particularly regarding credit cards and response on scanning tech
other financial products. In a memo to IRS Commissioner Charles Rettig,
National Taxpayer Advocate Erin Collins escalated her
KEY TAKEAWAYS earlier directive that the Service implement barcode
Expansion of nexus: The equat- reading of paper returns and after what she deemed the
ing of internet activity to physical IRS’s inadequate response.
presence could push additional
states to enact factor-presence nexus Regulations streamline partnership basis
thresholds to provide additional elections
clarity to taxpayers. The MTC’s State- Final regulations allow an election to adjust the basis of
ment of Information language further partnership property under Sec. 754 without having to
narrows the scope and applicability include a partner’s signature on the election statement.
of P.L. 86-272, which was already
reduced as more and more businesses Some balance-due notices on joint returns
move away from exclusively selling issued in error, IRS says
tangible personal property. While Generally, these erroneous CP14 notices involved
only two states have made active steps payments made by a spouse who was the second-listed
thus far toward adopting the updated taxpayer on the return.
Statement of Information since it was

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