Senate Approves Permanent Tax Exemption For Holocaust Victims | AccountingWEB

Senate Approves Permanent Tax Exemption For Holocaust Victims

Provided courtesy of CCH

The Senate last week approved, by unanimous consent, a measure to repeal the sunset of an exclusion from federal income tax for restitution received by Holocaust victims. The Holocaust Restitution Tax Fairness Bill (Sen 2577) makes permanent the provision originally included in the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) (P.L. 107-16).

The House approved similar legislation (HR 4823) by voice vote on June 4 (TAXDAY, 2002/06/05, C.1). The legislation can now move to President Bush's desk for his expected signature.

Shaw's Comments

The federal government should not receive a financial windfall from Holocaust payments, the House bill's sponsor, House Ways and Means Social Security Subcommittee Chairman E. Clay Shaw, Jr. (R-Fla.), stated in a November 21 press release. Sunsetting the EGTRRA tax cuts creates uncertainty in tax planning for Holocaust survivors and their families, he added.

There will be an estimated 88,000 Holocaust survivors in 2010 when the tax cut would have sunset, according to Shaw. Exempting Holocaust payments will cost $3 million in federal tax revenues for 2012, according to the Joint Committee on Taxation.

Wait, there's more!
There's always more at AccountingWEB. We're an active community of financial professionals and journalists who strive to bring you valuable content every day. If you'd like, let us know your interests and we'll send you a few articles every week either in taxation, practice excellence, or just our most popular stories from that week. It's free to sign up and to be a part of our community.
Premium content is currently locked

Editor's Choice

WHAT KIND OF FIRM ARE YOU?
As part of our continued effort to provide valuable resources and insight to our subscribers, we're conducting this brief survey to learn more about your personal experiences in the accounting profession. We will be giving away five $50 Amazon gift cards, and a $250 Amazon gift card to one lucky participant.
This is strictly for internal use and data will not be sold
or shared with any third parties.