Two federal district courts in Texas have blocked enforcement of the Department of Labor’s (DOL’s) fiduciary-only rule. The rule’s September 23 effective date was enjoined (blocked) by the Texas Eastern District Court on July 26, and then one day later stayed (stopped) by the Texas Northern District Court. NAIFA and several of its chapters are among the plaintiffs in the Northern District court case.

On August 1, the Senate failed to invoke cloture (cut off debate) on HR 7024, the House-passed tax bill that would, among other things, cut off employee retention tax credit (ERTC) claims, and provide better depreciation and business interest tax rules. The failed 48 to 44 cloture vote makes it ever more unlikely that the bill—which passed the House on January 31 by an overwhelming 357 to 70 vote—can be enacted into law this year.

Congress has left Washington for an extended (lawmakers do not return until September 9) summer recess. NAIFA members are visiting with their Representatives and Senators at home.

When Congress returns to Washington on September 9, lawmakers will have less than three weeks to fund the government (and consider any other pre-election pending legislation). Plus, Representatives and Senators will be focused on the November 5 election, when partisan control of the House, Senate, and Presidency are all in play. So, most Washington insiders believe that Congress will punt on most, if not all, major decisions, leading to a fraught post-election lame-duck session.

President Biden withdrew from his campaign for reelection, and Democrats have chosen Vice President Harris to replace him. She tapped Minnesota Gov. Tim Walz as the ticket’s vice-presidential candidate. The GOP candidate is former President Donald Trump. His running mate is Ohio Sen. J.D. Vance. Both tickets’ policy positions are still evolving, but a fair amount is already known about their stances on taxes, health care (insurance) and other issues of key concern to NAIFA members.

On August 8, the Internal Revenue Service (IRS) announced it will again process 2021 Employee Retention Tax Credit (ERTC) claims. It says it has resolved many claims issues, so far resulting in 28,000 denials and many valid claim payments.

On July 25, the Internal Revenue Service (IRS) announced five new warning signs that it will deny employee retention tax credit (ERTC) claims. The agency is urging businesses with pending ERTC claims to review those claims in light of the 12 warning signs (five new ones added to the seven already announced) in order to avoid penalties, interest charges and/or audits.

On July 24, Treasury and the Internal Revenue Service (IRS) released a final regulation on calculating minimum required distributions (MRDs) under the rules in SECURE 1.0. The regulation also contains guidance that is subject to notice and comment on SECURE 2.0 MRD rules.

On July 25, Senate Finance Committee Chair Sen. Ron Wyden (D-OR), along with five colleagues, introduced legislation that would impose criminal penalties on “rogue” health insurance advisors who make changes to individuals’ Affordable Care Act (ACA) health insurance without the insureds’ knowledge or consent. The Insurance Fraud Accountability Act would impose fines on brokers who negligently provide incorrect enrollment information, and criminal liability if the provision of incorrect information is “knowingly and willfully false or fraudulent.”

Business interests that oppose the Federal Trade Commission’s (FTC’s) rule that imposes an almost complete ban on noncompete agreements are urging the courts to block the rule. The rule is scheduled to take effect September 4, but a court ruling on it is expected before the end of August.

On July 10, the House Education and Workforce Committee approved a Congressional Review Act (CRA) resolution to block the Department of Labor’s (DOL’s) new fiduciary-only rule. The CRA resolution, H.J.Res.142, would “disapprove the rule submitted by the Department of Labor relating to “Retirement Security by Rule: Definition of an Investment Advice Fiduciary (89 Fed. Reg. 32122 (April 25, 2024)), and such rule shall have no force or effect.”

The Supreme Court decision to overturn the Chevron Doctrine—a 40+-year-old rule that required courts to defer to federal agencies’ “reasonable” interpretations of “ambiguous” statutes—may mean that a sea change in regulatory activity—and possibly legislation—is likely.

A federal district court in Texas has stayed a Department of Health and Human Services’ (HHS’) Centers for Medicare and Medicaid Services (CMS) rule that sets a fixed administrative fee and consequently prevents payment to health insurance agents and brokers for advice recommending certain managed care plans. In Am. For Beneficiary Choice v. HHS and Council for Medicare Choice v. HHS, the court found that the plaintiffs demonstrated a substantial likelihood that they would prevail on the merits. The merits include plaintiffs’ claims that the rule would “upend the regulatory status quo, dramatically limiting administrative fees that Congress did not intend” for CMS to regulate.

In Moore v. United States, the Supreme Court (SCOTUS) sidestepped the question of whether it is constitutional to tax unrealized income—but four opinions (two concurring and two dissenting) suggest that at least four of the current SCOTUS justices might in another case find it is unconstitutional to tax income until it is realized.

Both House and Senate tax writers continue their preparations for the 2025 tax bill. More potential targets for revenue-raising tax provisions have emerged.

Last month Republican lawmakers introduced motions to block the new rule raising the salary threshold for the white-collar exemption to the Fair Labor Standards Act (FLSA) overtime (OT) rule. Rep. Tim Walberg (R-MI) introduced the Congressional Review Act (CRA) motion in the House; Sen. Mike Braun (R-IN) introduced it in the Senate.

On June 20, the Internal Revenue Service (IRS) said the 1.4 million pending employee retention tax credit (ERTC) claims are getting continued heightened scrutiny, with “the vast majority” of them showing risk of being improper. The agency announced it had completed a detailed review of the pending claims in order to protect taxpayers and small businesses, and said it resulted in plans to deny tens of thousands of improper high-risk ERTC claims. Now, the IRS has started a new round of processing lower-risk claims to help eligible taxpayers.

On July 9, the House Ways & Means Committee approved legislation, H.R.8915, to expand the kinds of education-related expenses that can be paid tax-free from a 529 plan. Among the bill’s provisions is one that would allow NAIFA members to use 529 funds for professional certifications or programs connected with obtaining a postsecondary credential, including those required to obtain a state license.

On June 20, the Internal Revenue Service (IRS) issued Notice 2024-55, guidance on when there is an exception from the ten percent penalty tax for early withdrawals from retirement savings plans. The guidance focuses on emergency personal expenses and victims of domestic abuse.

A Texas district court has ruled that a challenge to the Federal Trade Commission’s (FTC’s) almost total ban of noncompete agreements will likely succeed, and as a result has issued a limited preliminary injunction for the plaintiffs only, blocking the rule’s September 4 effective date. The court rejected the plaintiff’s request that the injunction apply nationwide.