Thursday, August 11, 2022
The Inflation Reduction Act of 2022, which is a 755-page bill that tackles tax, climate, and health care, passed the Senate on Sunday. It will soon be up for vote in the House, where it is anticipated to pass.
The $700 billion package has many asking, what does this mean for the Estate Tax?
At this time, there are no changes to federal transfer taxes, gift taxes, estate taxes, or generation-skipping transfer taxes. However, with additional funding for the IRS, it is likely that the impact will be indirect, with an increase in enforcement in the form of audits and estate and gift tax returns will increase.
Bloomberg Tax Services prepared a summary, citing the big items as:
- A 15% corporate alternative minimum tax
- A 1% excise tax on stock buybacks
- Numerous environmental and green energy tax credits
For more information:
See Matthew Eskrine “The Tax Impact of The Inflation Reduction Act” Forbes, August 4, 2022.