AI Safeguards, Electric Trucks, and the CARES Act
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Tax Policy/News:
The Internal Revenue Service (IRS) issued a warning as part of its Dirty Dozen campaign, cautioning businesses against fraudulent and aggressive promoters offering questionable claims for the Employee Retention Credit (ERC).
These misleading claims, which often lead unsuspecting entities to wrongly claim the ERC, could result in severe penalties, interest, and even criminal prosecution.
The IRS highlights ongoing efforts to counteract aggressive marketing around the ERC, emphasizing its compliance work, which has already surpassed $1 billion since last fall.
Businesses are urged to carefully review ERC guidelines before submitting claims and to consider withdrawing any erroneous submissions. The IRS provides warning signs for potentially incorrect ERC claims, aiming to help businesses avoid compliance issues.
Additionally, the IRS offers resources for businesses potentially misled by false claims, stressing the importance of consulting trusted tax professionals and utilizing IRS materials for accurate information on ERC eligibility.
The Internal Revenue Service's Criminal Investigation (CI) has revealed that over the past four years since the enactment of the CARES Act in response to the COVID-19 pandemic, they have investigated 1,644 cases of tax and money laundering fraud related to COVID, amounting to a potential $8.9 billion in fraud.
A significant portion of this investigation activity, more than half, has occurred in the last year alone. These cases encompass various criminal activities such as fraudulently obtained loans and payments intended for American workers and small businesses under the CARES Act.
As of February 29, 795 individuals have been indicted, with 373 sentenced to an average of 34 months in federal prison, reflecting CI's high 98.5% conviction rate.
The IRS Commissioner emphasized CI's crucial role in safeguarding against fraud in pandemic-era programs and emphasized the necessity of adequate funding for the agency to effectively carry out its duties.
Looking forward, CI's efforts will be supported by increased funding through the Inflation Reduction Act to enhance fraud protection, taxpayer service, and IRS transformation efforts.
Recent examples of prosecutions highlight the severity of the fraud, such as a Long Island man sentenced to 10 years for a significant COVID-19 loan fraud scheme. CI urges the public to report any known or suspected fraud related to the CARES Act, underlining their commitment to combating financial crimes.
Economic News/Policy:
March 29: Powell: ‘No reason’ to think economy is close to recession
Federal Reserve Chair Jerome Powell expressed confidence on Friday that the U.S. economy is not on the brink of a recession, citing strong growth and favorable economic conditions.
Despite initial concerns about a potential recession at the end of 2022, the economy has shown resilience, with inflation declining significantly without causing a major downturn.
The labor market has remained robust, with continued job growth and a low unemployment rate.
The Fed has maintained its baseline interest rate unchanged, signaling a cautious approach and emphasizing the need for further positive economic indicators before considering rate cuts.
While acknowledging the uncertainty ahead, Powell remains optimistic about the gradual reduction of inflation despite recent slight upticks in inflation indicators, indicating that the Federal Reserve remains vigilant in its efforts to stabilize the economy.
Technology:
March 28: US requiring new AI safeguards for government use, transparency
The White House announced on Thursday that federal agencies using artificial intelligence (AI) are mandated to implement "concrete safeguards" by December 1 to protect the rights and safety of Americans.
These safeguards include monitoring, assessing, and testing the impacts of AI on the public, mitigating risks of algorithmic discrimination, and ensuring transparency in government AI usage.
Agencies must conduct risk assessments, establish operational and governance metrics, and provide detailed public disclosures regarding AI usage.
President Joe Biden's executive order in October further requires developers of AI systems with potential risks to national security or public safety to share safety test results with the government before public release.
Specific measures are outlined to address concerns such as facial recognition use in air travel, requiring human oversight in healthcare AI applications, and releasing inventories of AI use cases by government agencies.
Additionally, the White House plans to hire 100 AI professionals to facilitate safe AI use and is considering regulations to monitor foreign access to U.S. data centers for AI training purposes.
Energy and Environmental Policy/News:
March 29: Biden administration issues rule likely to push US heavy-duty truck fleet toward EVs
The Biden administration has finalized a rule aimed at increasing the proportion of electric trucks in the U.S. truck fleet, with projections suggesting over 20% of the heaviest trucks could be electric by 2040.
The rule sets pollution limits for truck manufacturers, incentivizing the adoption of electric and lower-emission technologies like hybrids without explicitly mandating a shift to electric vehicles.
The Environmental Protection Agency's (EPA) rule is expected to significantly reduce greenhouse gas emissions and other pollutants, benefiting public health, especially in communities near freight truck routes.
While truck manufacturers express concerns about infrastructure and market demand for electric trucks, some Republican lawmakers aim to challenge the rule, and oil industry groups threaten legal action.
Environmental organizations welcome the updated standards but argue for even more ambitious measures to reduce truck emissions and protect public health.
ICYMI:
March 26: Nearly a third of employed Americans under 30 used ChatGPT for work: Poll
A recent Pew Research poll indicates that more employed Americans, particularly those aged 18 to 29, have utilized the artificial intelligence tool ChatGPT for work tasks compared to last year.
The survey found a significant increase in ChatGPT usage among younger adults, with 31 percent of those aged 18 to 29 reporting usage, up from 12 percent last year.
Overall, the proportion of employed Americans using ChatGPT for work tasks has doubled in the past year, reaching 20 percent in February, up from 8 percent in March.
However, despite its growing popularity, most Americans have not used ChatGPT, with only 23 percent reporting usage.
The tool's rising popularity has also raised concerns about misinformation, with 38 percent of respondents expressing distrust in ChatGPT regarding information about the 2024 presidential election.
For Fun:
March 29: Does your dog understand when you say ‘fetch the ball’? A new study in Hungary says yes
A study conducted in Hungary and published in the science journal "Current Biology" has found evidence suggesting that dogs possess referential understanding of language.
Beyond responding to commands like "roll over," dogs can learn to associate words with specific objects, indicating a deeper grasp of language than previously thought.
Researchers used non-invasive EEG procedures to measure brain activity in 18 dogs, finding distinct brain patterns when dogs were shown objects that matched or differed from words spoken by their owners.
While some experts remain skeptical, the study suggests that dogs may possess an innate ability to understand language, challenging previous assumptions about their cognitive abilities.