Congress Unlikely to Act on Technical Corrections until after November Elections
Posted on Jun 26, 2018 in Individual Taxation, News
Congress appears unlikely to pass a technical corrections bill for the Tax Cuts and Jobs Act prior to the November elections. Senate Majority Whip John Cornyn stated that the corrections are not imminent, and as an indication of further delay, Kevin Brady, Chair of the House Ways and Means Committee, has stated that any technical corrections will be affected by the guidance released by...
House Budget Would Extend Individual TJCA Provisions
Posted on Jun 20, 2018 in Individual Taxation, News
On June 19, 2018, the House Budget Committee released a 10-year budget plan that, if passed, would provide a vehicle to extend the individual tax provisions enacted under the TJCA past their current expiration date in 2025 through the budget reconciliation process. To help reduce the cost of extending the cuts, the budget plan requires committees to submit legislation to reduce the...
Legislation for Phase 2 of Tax Reform Expected in August
Posted on Jun 18, 2018 in News
House Ways and Means Committee Chair Kevin Brady indicated that Republicans hope to have a proposal for healthcare and additional tax changes by August. While the contents of the bill remain uncertain, potential topics include: permanent individual income tax provisions, retirement savings, the treatment of capital gains, and employer incentives for helping to pay back student loan...
Congressman States that the TCJA will not be Amended, Despite EU Criticism
Posted on Jun 7, 2018 in International Tax, News
Rep. Peter Roskam, a Republican member of the House Ways and Means Committee, stated at a conference that, despite criticism from EU officials, Congress does not intend to amend the Tax Cuts and Jobs Act (TJCA). Some EU officials have been particularly critical of the foreign-derived intangible income provision, arguing that the provision essentially acts as an export subsidy which...
The Upcoming FAA Authorization May Not Contain Any Technical Corrections to the Tax Legislation
Posted on May 16, 2018 in News, Tax Accounting
House Ways and Means Chairman Kevin Brady has indicated that the upcoming Federal Aviation Administration (“FAA”) reauthorization bill is unlikely to contain additional technical corrections to the 2017 tax bill, despite containing a tax title. Congress had previously passed, in the 2018 Consolidated Appropriations Act, a technical correction to fix a provision that encouraged farmers...
Resignation of Treasury Official Expected to Result in Guidance Delays
Treasury Deputy Assistant Secretary of Tax Policy Dana Trier stepped down from his position on February 23. Trier’s role focused on developing guidance on various aspects of the new tax reform law, including the partnership and international tax provisions. Practitioners have expressed concern that his departure will result in delays in issuing regulations, which could result in...Treasury Considering Treatment of Foreign Taxes Under Transition Tax
Under the new Tax Act, U.S. shareholders are charged a one-time tax on deferred foreign earnings of their foreign subsidiaries; these earnings and profits are measured as of November 2 if the amount is greater than on December 31. Taxpayers have brought to Treasury’s attention that the use of the November 2 date can result in an overstatement of earnings because foreign taxes...Eighteen Guidance Priorities and New Projects Released in Second Quarter Update to Priority Guidance Plan
Posted on Feb 12, 2018 in International Tax, News
The second quarter update to the 2017-2018 Priority Guidance Plan was released by the Treasury and IRS this past Wednesday. It sets forth eighteen priorities for guidance on tax issues stemming from the Tax Act, including for new sections 965 and 163(j), and other international sections. The update also contains projects that are hoped to be completed through June 30, 2018. These...
“Permanent Tax Cuts of Americans Act” Introduced by the House
Posted on Jan 31, 2018 in Individual Taxation, News
This past Monday, Republican House Representative Rodney Davis introduced H.R. 4886, to make the individual provisions of the newly enacted tax law permanent. Under this bill, subtitles A and B of the tax law, which lower the individual tax rates, would be extended past their 2025 sunset dates with the goal to “provide future tax relief for individual taxpayers”. Read the Bill here:...
CRS Report Analyzes 2017 Federal Tax System In Anticipation of Tax Bill Changes
Posted on Jan 9, 2018 in Individual Taxation, Insurance Tax, International Tax, News, Pass-through Taxation
The Congressional Research Service (CRS) published Report 7-5700 on December 26, 2017, which provides an overview of the federal tax system as in effect through 2017. The report notes that the new tax bill, H.R. 1, will generate broad changes for individuals (personal exemptions; standard deduction) and businesses (different tax rate for pass-through business income; territorial tax...
California Proposes Bill to Permit Donations Instead of State Taxes as Challenge to New Federal Tax Bill
Posted on Jan 5, 2018 in News, State and Local Tax
The California legislature has introduced a bill that permits residents to donate to a state “public purpose” fund and receive a dollar-for-dollar tax credit on their returns. This donation is intended to be deductible for federal tax purposes as a means of circumventing the new $10,000 cap on state/local tax deductions included in the recently passed tax bill. White House economic...
Title: Tax Bill Passes in House
Posted on Dec 20, 2017 in News
House Republicans voted to pass the Senate’s revised version of the Tax Cuts and Jobs Acts today. Read More: House sends sweeping GOP tax bill to Trump’s desk
Tax Bill Passes in Senate Wednesday Morning, House Expected to Vote (Again) Later Today
Posted on Dec 20, 2017 in News
Senate Republicans voted to pass a revised version of the Tax Cuts and Jobs Acts early Wednesday morning. The House voted yesterday in favor of the legislation, however several minor provisions of the bill did not comply with Senate rules and had to be removed. The House is expected to vote on the revised version of the bill sometime today. Read More: Senate passes sweeping GOP tax...
House Passes Revised Bill; Senate to Vote as Early as Tonight
Posted on Dec 19, 2017 in News
The House has passed the Tax Cuts and Jobs Act, as revised by the Conference Committee, along party lines. The bill will now go to the Senate, who may vote as early as this evening. Should the bill pass both houses, it will be sent to President Trump to sign into law. Read more: House Passes Final Tax Bill; Senate Votes Next on Republican Plan
Congress to Begin Voting on the Tax Cuts and Jobs Act Today
Posted on Dec 19, 2017 in Uncategorized
With the Conference Agreement finalized, the Agreement must be approved by both the House and Senate, and once approved, it will head to President Trump for his signature. The House is expected to vote later today, and the Senate will vote soon afterwards, either today or tomorrow. Read more: Tax Voting Starts Tuesday