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Sen. Joe Manchin (D-WV) has reportedly laid down new red lines for the Democrats’ multi-trillion reconciliation bill, this time making demands regarding the expanded child tax credit provision. Mr. Manchin has told the White House that the child tax credit must have an "established work" requirement and a family income limit in the $60,000 range if Democrats want his vote for the package. He has previously called for work requirements for the child tax credit, in addition to “means testing” to place a cap on the income of people who can receive benefits under the program.

 

The Hill

The IRS' Office of Chief Counsel is spelling out new requirements for information from companies submitting claims for research credit tax refunds to prove they’re valid. In a recent Chief Counsel memorandum, the agency said it wants more detailed information about all the business components for which the research credit claims relate for that year, and for each business component, companies will need to identify all the research activities they’ve performed and name the individuals who performed each research activity, along with the information each individual sought to discover. The claims will also need to detail the total qualified employee wage expenses, total qualified supply expenses, and total qualified contract research expenses for the claim year. The Chief Counsel memorandum came in response to questions from IRS officials in the Large Business & International division and the Small Business/Self-Employed division about what information taxpayers should provide with their claims for refunds or tax credits, what format they should use, and how the statute of limitations applies. 

 

Accounting Today

Uncomfortably high inflation will grip the U.S. economy well into 2022, as constrained supply chains keep upward pressure on prices and, increasingly, curb output, according to economists surveyed this month by the Wall Street Journal. Economists on average see inflation at 5.25% in December, just slightly less than the rate that has prevailed since June. Assuming a similar level in October and November, that would mark the longest inflation has been above 5% since early 1991. “It’s a perfect storm: supply-chain bottlenecks, tight labor markets, ultra-easy monetary and fiscal policies,” said Michael Moran, chief economist at Daiwa Capital Markets America. Consumer-price inflation will drop to 3.4% by June of next year, then 2.6% by the end of 2022, according to respondents’ average estimates. Economists slashed growth forecasts this year, to an average 3.1% annualized in the third quarter from 7% in the July survey. They also lowered projected fourth-quarter growth to 4.8% from 5.4%.

 

Wall Street Journal

Describing climate change as a systemic risk to the financial system, the White House has published a report outlining its strategy for new rules that could affect investment disclosures, insurance policies and home loans. The report outlines administration goals, including forcing financial firms to more directly address the risks of climate change, creating new protections for savings and pension plans and making climate change more a factor in federal budgeting and procurement. Among the measures highlighted by the report was a proposal by the Labor Department on Wednesday to reverse a Trump administration rule that would have made it harder for workplace 401(k) plans to offer investments based on environmental, social and governance, or ESG, metrics. The report, ordered by President Biden, largely summarizes initiatives already under way by U.S. financial regulators and ties them into a set of core goals. The administration is attempting to show progress in fighting climate change before Mr. Biden heads to the United Nations Climate Change Conference in Glasgow from October 31st to November 12th.

 

Wall Street Journal

In its broad effort to reduce the use of crypto currencies in the payment of ransomware demands, the U.S. Treasury has said that the crypto community is responsible for making sure they do not directly or indirectly help facilitate deals that are prohibited by U.S. sanctions. In new guidance released Friday, the Treasury said: "The virtual currency industry, including technology companies, exchangers, administrators, miners, wallet providers, and users, plays an increasingly critical role in preventing sanctioned persons from exploiting virtual currencies to evade sanctions and undermine U.S. foreign policy and national security interest." 

 

Reuters

Chinese regulators have approved Goldman Sachs' application to take full ownership of a key local unit, another step in China’s gradual opening of its financial system to major players from the U.S. and elsewhere. Goldman in December 2020 sought approval to increase its stake in a domestic Chinese business that it has co-owned since 2004. The New York-based bank said Sunday that China’s financial markets regulator, the China Securities Regulatory Commission, had given its assent. A wholly owned subsidiary will house most of the bank’s operations in China, including investment-banking functions such as merger advice and securities underwriting, and other business lines including trading and wealth management.

 

Wall Street Journal

China's ZTE Corp. in 2017 agreed to the oversight of an independent monitor when it pleaded guilty to Justice Department charges of illegally exporting sensitive U.S. technologies to Iran. Now, that monitor, James Stanton, is seeking to extend his own term beyond its expiration in March and threatening the Chinese telecommunications company if it refuses to accede. After previously certifying Shenzhen-based ZTE’s compliance with the settlement agreement on an annual basis, Mr. Stanton in June pushed for the extension, saying he had evidence that the company violated the terms of its probation, without providing further details. ZTE has argued that there is no legal basis for extending Mr. Stanton’s monitorship past the current probationary period, and prosecutors have chosen not to dispute the company’s position. Such a decision would normally fall to prosecutors, with the company granted the right to respond.

 

Wall Street Journal

EY has released its 2021 Empathy in Business Survey, tracking how empathy affects leaders, employees and innovation in the workplace. The survey of more than 1,000 Americans who are employed reveals that many have left a previous job because their boss wasn't empathetic to their struggles at work (54%) or in their personal lives (49%). Eighty-nine percent of employees agree that empathy leads to better leadership, enabling  trust among employees and leaders. A lack of empathy in the workplace has caused many employees to leave their jobs. Over half (58%) of employees have previously left a job because they didn't feel valued by their boss, and nearly half (48%) have left a job because they didn't feel like they belonged. The difficulty of connecting with colleagues has resulted in more than a third (37%) of employees leaving their organization. "As a result of the COVID-19 pandemic, leaders are working to establish business transformation models to adapt in the new normal," said Steve Payne, EY Americas Vice Chair – Consulting. "Our research finds that empathy is not only a nice-to-have, but the glue and accelerant for business transformation in the next era of business. Empathy's ability to create a culture of trust and innovation is unmatched, and this previously overlooked trait must be at the forefront of businesses across all industries."

 

PR Newswire