Daily Tax Update - July 13, 2016: IRS Issues Regulations on Contractors Used in Summons

IRS Issues Regulations on Contractors Used in Summons:  Yesterday, the IRS issued final regulations clarifying that persons with whom the IRS contracts for services described in section 6103(n) may be included as persons designated to receive summoned books, papers, records, or other data, and may participate in the interview of a summoned witness while in the presence of the IRS employee.  These contractors may include third-parties such as attorneys, economists, engineers, and accountants.  The regulations finalize temporary and proposed regulations issued on June 18, 2014.

Senators Introduce Bill Extending Carbon Capture Credit:  Today, Senators Heidi Heitkamp (D-ND) and Sheldon Whitehouse (D-RI) introduced a bill to incentivize the use of carbon capture, utilization, and storage technologies and processes by extending the section 45Q credit.  The bill would also lower the threshold for annual tons of CO2 that an eligible industrial facility must capture to claim the credit from 500,000 tons per year to 100,000 tons per year.  A similar bill was introduced in the House on February 25.  For prior coverage of the House bill, click here.

Ways and Means Marks Up Air Travel Excise Tax Bill:  Today, the House Ways and Means Committee marked up H.R. 3608 that would clarify how air transportation excise taxes would apply to privately owned aircraft.  This bill would exempt most payments for plane management and maintenance from the excise tax.