Congress Passes Pacific Trade Legislation with Tax Provisions

Congress, on June 24, 2015, passed the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (HR 2146). The legislation permits penalty-free withdrawals from qualified retirement plans for certain federal law enforcement officers, federal firefighters, customs and border protection officers, and air traffic controllers

Congress, on June 25, 2015, passed the Trade Preferences Extension Act of 2015 (HR 1295). The legislation includes a provision retroactively extending the Health Coverage Tax Credit from 2014 through 2019. It prohibits taxpayers claiming a foreign earned income exclusion or foreign housing cost exclusion from also claiming the refundable child tax credit. Penalties for certain information returns would be increased. Only taxpayers with a Form 1098-T would be able to claim certain education deductions and credits. The legislation also imposes penalties on educational institutions that fail to provide information returns with accurate taxpayer identification numbers. A temporary acceleration of corporate estimated tax payments is also included.

The President is expected to sign both pieces of legislation.

AUTHOR

Wolters Kluwer Tax and Accounting

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