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Saturday October 25, 2014

Washington News

Washington Hotline

House and Senate Tax Extenders Hearings

Both House Ways and Means Chairman Dave Camp (R-MI) and Senate Finance Committee Chairman Ron Wyden (D-OR) have pledged to hold April hearings on the IRA charitable rollover and other tax extenders.

Chairman Wyden stated that he hopes to publish the Senate list of tax extenders on March 31. He and Ranking Member Orrin Hatch (R-UT) are developing the approved list of tax extenders.

Wyden noted that he thinks a bipartisan effort is important. Referring to Hatch, he stated, "We have been working very well together, and I'm going to let you wait until we have an official statement."

Wyden plans to hold the hearing and markup of the tax extenders bill within the next month. It appears that Senate Finance Committee members will be able to offer amendments, but they will also have to include tax increases or offsets for those amendments.

Chairman Camp sent a memo to the Ways and Means Committee members on March 24. He indicated that there will be April hearings on tax extenders. Part of the goal of the hearings will be to determine which extenders should be made permanent.

Camp noted in his memo, "I have long believed that many expiring tax policies have broad bipartisan support and, sooner or later (usually later) get extended." He suggested that these short extensions were not "the way to legislate" and confused the revenue debate.

Camp plans to discuss the future of each extender. In his 979 page comprehensive tax reform discussion bill submitted in February, extenders fell into three categories: extenders Camp proposes to make permanent, extenders that will be allowed to sunset or would be repealed and extenders that may or may not be extended.

First, the Camp draft repealed 37 former tax extenders. These included many energy incentives, the schools supplies deductions for teachers and gifts of food inventory.

Second, nine extenders made the approved list. These include the research and development credit, the basis adjustment for charitable gifts of appreciated property from a Subchapter S corporation and the charitable conservation easements.

Third, there were 11 extenders that were not addressed. It is possible that some of these extenders could be added to the approved list if revenue offsets were available.

Editor's Note: If there are hearings in both the House and Senate during April, it is possible that there could be a tax extenders bill by mid-year. However, if the process becomes delayed past mid-year, then it is quite possible that the tax extenders bill will be passed in November after the election. The Senate bill is anticipated to cover all of years 2014 and 2015. The duration of the House bill is not known at the date of this publication.

Published March 28, 2014
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