Header graphic for print
Tax Law Roundup current law developments in U.S. taxation

Tag Archives: tax reform

Partnership Audit Reform Marches Forward

Posted in General, Litigation/Controversy, Partnership/LLC, Passthrough Entity, Tax reform

As part of the current Bipartisan Budget Act of 2015, sweeping changes to the partnership audit rules could be imminent.  The new rules would greatly simplify the IRS procedures for auditing partnerships and likely increase the audit rate of partnerships.  The new rules would replace the current “TEFRA” and “Electing Large Partnership” rules with a… Continue Reading

The House Joins the Senate Finance Committee in Proposing FIRPTA Reform

Posted in International, Legislative, Real Estate

FIRPTA real estate tax reform continues its momentum with the recent release of bill text for H.R. 2128, the latest House bill introduced by Kevin Brady (R-Texas) and J Crowley (D-NY). In connection with the filing of the bill, Brady stated that H.R. 2128 is similar to the changes approved by the Senate Finance Committee and… Continue Reading

Rep. Camp Tax Reform – Top 10 Real Estate Considerations

Posted in General, Partnership/LLC, Passthrough Entity, Real Estate, REITs, Tax reform

Last week Rep. Camp (R-MI), Chair of the House Ways and Means Committee, announced a comprehensive tax reform discussion draft as part of his efforts to reduce top corporate tax rates to 25% and provide individual brackets at 10%, 25%, and for many, 35% (after adding a 10% surtax for non-domestic production income of high-income… Continue Reading

Senate Finance Reveals Energy Tax Reform

Posted in Energy, General, Legislative

Today the Senate Finance Committee announced their proposal to streamline the energy tax rules in their latest installment of the Sen. Baucus tax reform proposals.  The staff discussion draft focuses on streamlining energy tax incentives so they are more predictable and technology-neutral.  Under current law, there are 42 different energy tax incentives, including more than… Continue Reading

SFC Tax Reform Cost Recovery and Accounting Proposal – Impact on Real Estate Industry

Posted in Real Estate, Tax reform

Yesterday the Democrat-controlled Senate Finance Committee released the third part of a series of tax reform proposals that has the potential to have a significant negative impact on the real estate industry.  While the reform proposal has some beneficial simplification concepts, those pale in comparison to the negative effects the revenue raisers could have on… Continue Reading

Part III – Senate Finance Reform of Cost Recovery and Accounting Rules

Posted in Deductions, General, Real Estate, Tax reform

Part III of the Sen. Baucus proposed tax reform proposes dramatic changes to the Cost Recovery and Accounting Rules.  The Senate Finance Committee proposes to make the cost recovery and accounting rules simpler, fairer, and lessen burdensome on small businesses.  Perhaps more notably, these reforms would raise significant revenue to finance a lowering of corporate… Continue Reading

Baucus Proposes Reforms to Administration of Tax Code

Posted in Legislative, Procedure, Tax reform

In the second part of the new Senate Finance Committee tax reform proposals, Sen. Baucus introduced proposals to combat tax fraud and make filing simpler and more efficient.  An overview is below.  For details see the detailed summary and proposed legislative text.   Tax Filing Reforms Improve the information return filing process by (1) not… Continue Reading

Sen. Baucus Reveals International Tax Reform Draft

Posted in General, International, Legislative, Real Estate, REITs

Today Sen. Baucus of the Senate Finance Committee released a discussion draft for international tax reform.  The proposal is the first in a series on how to reform international tax rules with more drafts expected later this week.  This action by the Senate is in contrast to the recently expected delays by the House.  Feedback… Continue Reading

Senate Leaders Call For “Blank Slate” Approach to Tax Reform – Senators Have July 26 Deadline to Justify Tax Breaks

Posted in Legislative, Tax reform

Senate Finance Committee Chairman Max Baucus (D-Mont.) and Ranking Member Orrin Hatch (R-Utah) today proposed a “blank-slate” approach as a legislative starting point for tax reform and called on Senate colleagues to provide proposals by July 26 for tax expenditures to add back and improve in a reformed tax code.  The press release stressed that… Continue Reading

Senate issues 8th Tax Reform Paper: Types of Income and Business Entities

Posted in Compensation, Debt vs. Equity, Financial Products, Legislative, REITs, S corporation, Tax reform

The Senate Finance Committee issued its 8th tax reform paper, discussing the tax treatment types of income (e.g., ordinary, wages, capital gains) and business entities (e.g., C corporations, pass-throughs, RICs, and REITs).  The report also addresses the disparate treatment between debt and equity and financial product reform.  For pdf version click here.  This follows the… Continue Reading

Senate Finance Issues Economic and Community Development Tax Reform Paper

Posted in Legislative, Tax reform

The Senate Finance Committee issued a tax reform option paper on Economic and Community Development.  This is their sixth tax reform option paper.  An outline of the reform options are as follows: 1.         HOUSING A.        Gradually repeal the mortgage interest deduction B.        Limit the mortgage interest deduction C.        Convert the mortgage interest deduction to an… Continue Reading

Senate Finance Issues International Tax Reform Paper

Posted in General, International, Legislative, Tax reform

The Senate Finance Committee issued a tax reform option paper on international competitiveness.  This marks their fifth tax reform option paper.  An outline of the reform options are as follows:     REFORM OPTIONS  I. BASE EROSION AND DEFERRAL 1. Tighten anti-base-erosion rules and reform the treatment of non-subpart F earnings 2. Strengthen the subpart F rules 3. Repeal… Continue Reading

Max and Dave Launch Tax Reform Website to Solicit Comments

Posted in Legislative, Tax reform

Senate Finance Committee Chairman Max Baucus (D-Mont.) and House Ways and Means Chairman Dave Camp (R-Mich.) teamed up to launch TaxReform.gov, a new website dedicated to obtaining input from the American public on tax reform.  The website is developed in partnership with the Joint Committee on Taxation, and will serve as a platform for the… Continue Reading

Senate Finance Issues Second Paper on Tax Reform – Business Investment and Innovation

Posted in General, Legislative, Tax reform

The Senate Finance Committee had quickly issued its second paper on tax reform called “Business Investment and Innovation.”  This is part of a broader project being led by Sen. Baucus on tax reform and follows on the heels of the prior paper on simplification.  The paper discusses options for reforming the rules regarding business investment,… Continue Reading

Tax Reform Moves Forward – Sen. Baucus Jumps into the Ring

Posted in Tax reform

Senate Finance Committee Chairman Max Baucus (D-Mont.) and Ranking Member Orrin Hatch (R-Utah) have launched a process for the Senate Finance Committee to develop tax reform proposals.  The committee’s website reports that over the next several months, the committee will convene weekly to discuss a series of topics and collect feedback from members on a… Continue Reading

President Obama Proposes Major FIRPTA Reform in Rebuild America Partnership

Posted in International, Legislative, Real Estate

Today President Obama released major proposals to encourage private investment in US infrastructure as part of a proposed Rebuild America Partnership.  For international investors, the most significant aspect is to reform the FIRPTA rules that tax gains of non-US investors in US real estate.  FIRPTA reform has been the subject of much discussion in recent… Continue Reading

Rep. Camp Introduces Small Business/Pass-through Tax Reform

Posted in Legislative, Partnership/LLC, Passthrough Entity, S corporation, Tax reform

Rep. Camp (R-MI), Chair of the House Ways and Means Committee, introduced a discussion draft of tax reform proposals for small business, mostly addressing pass-through entity taxation.  Rep. Levin (D-MI) issued a statement noting that many of the Camp proposals have bi-partisan support.  The proposal also includes two alternative reform proposals for partnerships and S… Continue Reading

Ways and Means Releases Discussion Draft of Financial Product Tax Reform

Posted in Financial Products, General, Legislative, Tax reform

  On January 24 the chair of the House Ways & Means Committee released proposals to reform the taxation of financial products.  The reforms include: Mark-to-market taxation for speculative financial investments.  Specifically the draft would require taxpayers engaged in speculative financial activity—but not business hedging against common risks—to mark certain financial derivative products to fair… Continue Reading

CBO Report Examines Shifting of Tax Base To Pass-through Entities

Posted in Corporate, Legislative, Partnership/LLC, Passthrough Entity, S corporation

A new Congressional Budget Office Report shows a shifting of business structures to using pass-through entities, subjecting the income only to the individual income tax (as compared to the corporate income tax).  The report notes that the shift has reduced federal revenues but has probably promoted overall investment and a more efficient allocation of resources.  The… Continue Reading

JCT Publishes Cross Border Taxation Summary

Posted in Corporations: International, International, Legislative

In advance of a September 8 Senate Finance Committee hearing, the Joint Committee on Taxation released a report summarizing U.S. tax treatment of cross-border income and related tax issues.  The report includes a 25-page summary of existing tax rules applicable to inbound and outbound investment and a discussion of key issues such as the perceived need… Continue Reading

Gang of Six Outlines Deficit Reduction Plan

Posted in Legislative

The Senate’s bi-partisan “Gang of Six” outlined a new deficit reduction plan that has White House support and creates optimism that there may be a legislative solution to the stalemate on raising the debt ceiling.  The plan would lower individual and corporate tax rates and eliminate the alternative minimum tax and adopt a territorial system… Continue Reading