Cryptocurrency and Virtual Currency
In 2021, the IRS’s Fraud Enforcement Office enlisted trained professionals to form a team known as “Operation Hidden Treasure.” The team is focused on tracing cryptocurrency transactions to identify taxpayers who are omitting cryptocurrency related income from their income tax returns. Cryptocurrency account holders who are not in compliance should seek assistance from tax advisors who understand taxation of virtual currency and ensure records are in order.
2022 Standard Mileage Rate
The 2022 standard mileage rate has increased to 58.5 cents per mile for business uses and 18 cents per mile for medical and moving uses. It remains at 14 cents per mile for charitable uses. For purposes of computing the allowance under an FAVR plan, the standard automobile cost may not exceed $56,100 including trucks and vans. The updated rates are effective for deductible transportation expenses paid or incurred on or after January 1, 2022, and for mileage allowances or reimbursements paid to, or transportation expenses paid or incurred by, an employee or a charitable volunteer on or after January 1, 2022.
Build Back Better Act
Schumer said in a December 20, 2021, "Dear Colleague" letter that senators "should be aware that the Senate will, in fact, consider the Build Back Better Act, very early in the new year so that every Member of this body has the opportunity to make their position known on the Senate floor, not just on television."
With a 50-50 split between the Republican and Democratic caucuses in the Senate, Democrats can’t afford even one dissenting vote among their ranks as it is expected that no Republicans will vote in favor of the bill.
Following the return from a recess for the holiday season, Manchin has said that there have been no further negotiations regarding Build Back Better and he is holding firm on a number of positions, including maintaining that certain provisions, such as the recently expired expanded child tax credit that would have been renewed for one year under the House version of H.R. 5376, not have an artificial sunset for budget calculation reasons when they are likely to be continually extended. Such a change would threaten the ability for the bill to be considered fully paid for by the tax provisions.
No further timetable has been put forth as to when, or if, a vote on Build Back Better may occur.
Special Rule for Discharges of Certain Student Loan Debt
The American Rescue Plan Act, 2021 (ARP Act) (P.L. 117-2) provides an exclusion from gross income for the discharge of any part of a student loan in 2021 through 2025. A student loan for this purpose generally include loans provided for post-secondary educational expenses, whether the loan was provided through the educational institution or directly to the borrower. Such loans must have been made, insured, or guaranteed by the United States, or an instrumentality or agency thereof, a State, territory, or possession of the United States, or the District of Columbia, or any political subdivision thereof, or an eligible educational institution. Additionally, certain private education loans and loans made by certain educational organizations qualify for this special rule.