House, Senate Plan Final Action on Tax, Spending Bills


The following article is provided courtesy of CCH, Inc.


The House plans to consider a few tax measures before its target adjournment on Dec. 15. The Senate is expected to quickly follow suit and wrap up the 106th Congress.

Although a far cry from the Certified Development Company Program Improvements Bill of 2000 (HR 2614), the $240 billion, tax-cut package the GOP had hoped to push through, lawmakers view the current tax measures as popular enough to pass and allow Congress to finish its legislative business for the year. The two bills under consideration include reinstatement of the installment method of accounting for accrual method taxpayers and tax breaks to help revitalize poor communities.

The Installment Tax Correction Bill of 2000 (HR 3594) would repeal amendments to the Internal Revenue Code made by the Ticket to Work and Work Incentives Improvement Act of 1999 (PubLNo 106-170), which repealed the use of the installment method of accounting for accrual method taxpayers and modified the pledge rules of installment obligations. HR 3594 was introduced by House Ways and Means Committee member Wally Herger, D-Cal, and is estimated to cost $2 billion over 10 years.

In addition, Congress is expected to pass the conference report to the Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Bill, 2001 (HR 4577), which is expected to contain a $25 billion, 10-year measure to encourage renewal of economically distressed communities. The bill also is expected to contain a two-year extension of tax- favored medical savings accounts, according to Senate Majority Leader Trent Lott, R-Miss.

The community renewal provisions of the budget deal are expected to provide for 40 urban and rural renewal communities within which taxpayers would be eligible for a capital gains tax exclusion on the sale of businesses or business assets and other tax incentives. In addition, the proposal would designate nine new empowerment zones and provide a $1,500 tax credit on the first $10,000 in business earnings. The bill is based on the Community Renewal and New Markets Bill of 2000 (HR 4923), which passed the House on July 25 (TAXDAY, 2000/07/26, C.2) and was included in HR 2614. However, both HR 4923 and HR 2614 became bogged down in the Senate and never reached the Senate floor.

You may like these other stories...

Truckers and other owners of heavy highway vehicles take note: Your next federal highway use tax return is due on September 2.The September 2 due date, which was pushed back two days because the normal August 31 deadline...
The head of the IRS has a message for taxpayers and tax preparers who have endured long wait times while on the phone with the tax agency: Call your member of Congress.During his keynote speech at the 69th Annual Meeting of...
Regulators struggle with conflicts in credit ratings and auditsThe Public Company Accounting Oversight Board (PCAOB), which was created by the Sarbanes-Oxley Act in 2002, released its third annual report on audits of...

Already a member? log in here.

Upcoming CPE Webinars

Aug 26
This webcast will include discussions of recently issued, commonly-applicable Accounting Standards Updates for non-public, non-governmental entities.
Aug 28
Excel spreadsheets are often akin to the American Wild West, where users can input anything they want into any worksheet cell. Excel's Data Validation feature allows you to restrict user inputs to selected choices, but there are many nuances to the feature that often trip users up.
Sep 9
In this session we'll discuss the types of technologies and their uses in a small accounting firm office.
Sep 11
This webcast will include discussions of commonly-applicable Clarified Auditing Standards for audits of non-public, non-governmental entities.