House Passes Small Business Expensing, Form 1040 EZ Expansion; Congressional Efforts on ETI Repeal and Extenders Stall Until September

The House on July 21, 2004 unanimously passed the Tax Simplification for America’s Job Creators Bill of 2004 (HR 4840). The bill would extend for two years the Code Sec. 179 $100,000 expensing limit, that will otherwise fall to $25,000 after 2005. The bill also extends the increased phase out limit under Code Sec. 179, includes software as Code Sec. 179 property, and indexes for inflation the $5 million gross receipts test requirement for using the cash method of accounting.

The House on July 21, 2004, also passed by voice vote the Tax Simplification for Americans Bill of 2004 (HR 4841). The bill would double to $100,000 the taxable income limit for use of Form 1040 EZ, index the limit for inflation, and change the “Head of Household” filing status to “Single Head of Household” as a clarification.

Congress ran out of time before its August recess to get a conference committee started on the American Jobs Creation Bill of 2004 (HR 4520), which is focused on ETI repeal and a large variety of business tax breaks. It also failed in a last minute effort to pass legislation that would extend some tax breaks scheduled to expire at the end of 2004, including at a minimum: the expanded 10% tax bracket; accelerated marriage penalty relief in the standard deduction and 15% tax bracket; and the child tax credit increase. Congressional leadership promised to return to both matters in September.

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Wolters Kluwer Tax and Accounting

Wolters Kluwer Tax and Accounting is a leading provider of software solutions and local expertise that helps tax, accounting, and audit professionals research and navigate complex regulations, comply with legislation, manage their businesses and advise clients with speed, accuracy and efficiency. Wolters Kluwer Tax and Accounting is part of Wolters Kluwer N.V. (AEX: WKL), a global leader in information services and solutions for professionals in the health, tax and accounting, risk and compliance, finance and legal sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services. Wolters Kluwer reported 2016 annual revenues of €4.3 billion. The company, headquartered in Alphen aan den Rijn, the Netherlands, serves customers in over 180 countries, maintains operations in over 40 countries and employs 19,000 people worldwide. Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1 American Depositary Receipt program. The ADRs are traded on the over-the-counter market in the U.S. (WTKWY).

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