The recent Supreme Court decision has the potential to shake up the way tax laws are administered. Howard Gleckman from TPC dives into the implications of the High Court’s ruling in Loper Bright Enterprises v. Raimondo, which challenges the long-standing Chevron U.S.A., Inc. v. NRDC precedent. This decision overturns the notion that federal agencies should be deferred to when interpreting ambiguous statutes. With the rejection of the Chevron doctrine as "fundamentally misguided" and "unworkable," there could be significant implications for the Treasury and the IRS in issuing new regulations.
Key Updates in the Tax Field:
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Tax Administration Simplification Act:
- Rep. Darin LaHood (R-IL) has proposed legislation to streamline tax filing and payment procedures.
- The bill aims to extend the mailbox rule to electronically submitted documents and tax payments.
- Newly-formed small businesses may opt to be treated as an S Corporation on their initial tax filing.
- Estimated tax payment deadlines would be revised to quarterly intervals for consistency.
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IRS Reminder on Marijuana Tax Laws:
- The IRS reiterates that marijuana is classified as a Schedule I controlled substance until further federal rule changes.
- Section 280E of the Internal Revenue Code limits deductions and credits for businesses involved in illegal marijuana trafficking.
- Despite potential reclassification by the DEA, some taxpayers are filing amended returns prematurely.
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State Cannabis Tax Updates:
- Maryland’s cannabis tax revenue for Q1 2024 saw a marginal increase from Q4 2023.
- A 9% sales tax applies to recreational cannabis products in Maryland, while medical purchases are exempt.
- California’s Digital Tax Proposal:
- California Senate passed a bill to tax tech giants for data collection to support the news industry.
- Companies like Amazon, Meta, and Google would pay a "data extraction mitigation fee."
- Revenue generated would be offered as a tax credit to news organizations employing full-time journalists.
As we prepare to celebrate Independence Day, The Daily Deduction newsletter will resume on Monday, July 8. For the latest updates on tax news, subscribe to the Tax Policy Center’s Daily Deduction to have it delivered to your inbox on weekdays at 8:00 am. Stay informed and engaged with the latest developments in the tax landscape.
