Legislation

Tax

IRS provides details of tax rebate program

The Internal Revenue Service is advising taxpayers that in most cases they will not have to do anything extra this year to receive the tax rebate payments beginning in May.
Tax

Congress passes stimulus bill, including tax rebate

On Thursday, the House of Representatives passed an economic stimulus bill designed to stave off a recession. The bill passed 380-34, complementing the Senate vote of 81-16 earlier in the day. President Bush has indicated he expects to sign the bill into law next week.For the general public, the highlight of the bill is a tax rebate program that will provide individual taxpayers with a $600 rebate and joint filers with a $1,200 rebate this May. Additional rebates will be issued in the amount of $300 per child.
Tax

Aerospace industry pushes for R&D tax credit extension

The research and development tax credit creates high-paying jobs and should be an important tool in efforts to stimulate the U.S. economy, Aerospace Industries Association President and CEO Marion Blakey said in a Jan. 29 letter to Senate leaders.The tax credit is a proven incentive that helps U.S. companies compete in the global economy by encouraging high technology innovation.
Tax

Partisan bickering leaves tax rebate, economic stimulus in jeopardy

At the end of January, the House voted 385 to 35 to approve an estimated $146 billion stimulus package aimed at countering a slowdown in economic growth. However, one week later, Senate Republicans put the fate of $600-$1,200 rebate checks for more than 100 million Americans in limbo when they blocked the bid by Democrats to add $44 billion in help for the elderly, disabled veterans, the unemployed, and businesses.GOP senators banded together Feb.
Tax

National Taxpayer Advocate asks Congress for Taxpayer Bill of Rights

National Taxpayer Advocate Nina E. Olson has released her annual report to Congress, focusing particular attention on the consequences of changes to the tax code enacted late in the year and the need for a coordinated IRS approach to combat the cash economy portion of the tax gap. Olson also urged Congress to enact a Taxpayer Bill of Rights and to authorize symbolic "apology payments" in egregious cases where taxpayers suffer significant harm as a result of IRS errors.
Tax

Tax relief aimed at easing sub-prime mortgage mess

Amid daily headlines of a worsening housing crisis, debt-burdened homeowners are looking to two pieces of congressional action that could ease the pain.Monday's headlines stated that new home sales fell by 26 percent last year, which is the biggest drop since 1963, the U.S. Department of Commerce says. And last week's headlines said sales of previously owned single-family homes took a dive - the biggest annual drop in 25 years.
Tax

Bush signs AMT fix - millions saved from tax increase

On Wednesday, President Bush signed the House legislation that provides a one-year patch for the Alternative Minimum Tax, keeping an estimated 23 million taxpayers from an unexpected tax increase of approximately $2,000.
Tax

Senate won't yield on AMT legislation - bill goes back to the House

The clock continues to tick on the Alternative Minimum Tax patch as this year comes to a close and weary legislators are anxious to get home to their families. In a late night session on Tuesday, December 18, the Senate voted 48-46 in favor of a House bill that would halt the spread of the AMT to the middle class and increase taxes elsewhere to pay for the amount the Democrats are claiming the government will lose if the AMT is restricted.
Tax

House AMT relief bill passes - political wrangling continues

This week, House Ways and Means Committee Chairman Charles B. Rangel (D-NY) introduced the AMT Relief Act of 2007, new legislation that would provide a one-year fix to the alternative minimum tax (AMT) currently poised to affect an estimated 23 million taxpayers. Congressman Rangel's bill, H.R.4351, passed in the House at 6:45 p.m.
Tax

Lawmakers vow to pass AMT fix before year-end

Late last week the Senate passed legislation to halt the impending increase in the Alternative Minimum Tax, currently poised to affect more than 23 million Americans on their 2007 income tax returns.The Senate legislation is in direct contrast to legislation passed earlier in the House, the large difference between the two factions being the reaction to the philosophical intent of the AMT.
Tax

Retirement group testifies on automatic IRA legislation

On Thursday, November 8, 2007, Mark Iwry and David C. John, representing The Retirement Security Project (RSP), testified before the House Education and Labor Committee's Subcommittee on Health, Employment, Labor & Pensions, in support of the Automatic IRA proposal to dramatically expand retirement saving. The Automatic IRA Act of 2007 (H.R. 2167), introduced in the House by Reps. Richard E. Neal (D-MA) and Phil English (R-PA), makes it easy for employees not covered by a 401(k) or other employer plan to save in IRAs through automatic payroll deposit.
Tax

AICPA supports uniform state withholding bill

The American Institute of Certified Public Accountants has endorsed legislation that would create a uniform national standard for state withholding of nonresident income tax, claiming that the legislation would be especially helpful to small businesses, as well as larger businesses.The bill, H.R.
Tax

Ways and Means AMT fix expected to die in Senate

Last week, the House Ways and Means Committee authored legislation that would protect millions of taxpayers from paying the Alternative Minimum Tax for 2007. The bill is to be funded by raising taxes in other areas so that the net effect of the legislation will be revenue neutral.
Tax

Supreme Court to determine state taxability of muni bonds

The United States Supreme Court is listening to arguments regarding the issue of whether interest earned on municipal bonds issued in one state should be exempt from income tax in another state.Current law in most states is that earnings on municipal bonds are tax-free in the home-state, but earnings on munis purchased out-of-state are subject to taxation in the home state.
Tax

Ways and Means passes AMT fix, Treasury not pleased

By a vote of 22-13, the House Ways and Means Committee passed legislation that would provide a patch to the Alternative Minimum Tax for the 2007 tax year. The Temporary Tax Relief Act of 2007 provides an offset to the funds that would be generated by the AMT by raising revenue in a number of areas.The TTRA would set AMT exemption amounts at $42,350 for single and head of household taxpayers, down from $42,500 in 2006, and $66,250 for married taxpayers filing jointly and surviving widow(er)s (and half that amount for married taxpayers filing separately), up from $62,550 in 2006.
Technology

Legislative leaders back 7-year extension on Internet tax ban

Leaders in the U.S. House will support extending a moratorium on taxing Internet services for another seven years, according to a leadership aide.The House had earlier approved a four-year extension, but last week, the U.S. Senate approved a seven-year extension, surprising some observers.A Democratic leadership aide told Bloomberg News that a House vote on the issue could come as early as Tuesday.
Tax

New taxes, deduction limitations to replace AMT revenue

The House Ways and Means Committee estimates that the cost of permanent repeal of the Alternative Minimum Tax (AMT) will be $795 billion over ten years, and while there is widespread agreement that the AMT should be repealed, few in Congress believe that it will be possible to make up for the lost revenue through cuts in spending.
Tax

Rangel proposes business tax changes, LIFO repeal

Business tax changes in the legislation introduced on October 24th by House Ways Committee Chairman Charles Rangel (D-NY) are designed to be revenue neutral as required by House rules, and the provision to reduce the top corporate income tax rate from 35 to 30.5 percent is offset in the bill by the repeal of the last-in, first-out (LIFO) method of accounting for inventory and changes in or the elimination of other tax breaks.Although the Senate attempted unsuccessfully to repeal the use of LIFO by oil companies in 2005 in an effort to respond to critics of the government's treatment of the
Tax

No repeal of AMT this year - one-year fix proposed

Tax legislation introduced by House Ways and Means Chairman Charles Rangel on Thursday provides a one-year extension of current Alternative Minimum Tax (AMT) relief for 2007, with a permanent repeal beyond that, but passage of the complete bill in either 2007 or 2008 is considered unlikely. Failure to enact a temporary fix will cause 21 million more taxpayers to "fall into" the AMT, Treasury Secretary Henry Paulson told Congress in a letter earlier in the week.

Pending legislation could allow bankrupts to discharge some mortgage amounts

In an effort to prevent a predicted siege of foreclosures, Representatives Brad Miller (D-NC) and Linda Sánchez (D-CA) have introduced legislation that would repeal the mortgage exception in the bankruptcy code, allowing a judge to change the priority value of primary residence mortgages or alter interest rates.Called the Emergency Home Ownership and Mortgage Equity Protection Act (H.R.

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