CCH Weekly Report from Washington

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CCH Weekly Report from Washington, D.C.

During the week of May 14, President Obama urged passage of legislation that would jump-start small business investment, while Ways and Means Committee Chairman Dave Camp discussed the agenda for the committee for the rest of 2012 and two senators introduced a bill that would crack down on anyone who renounces their United States citizenship in order to avoid paying taxes. The IRS released final regulations on the Health Insurance Premium Tax Credit and the June AFRs.

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CCH Weekly Report from Washington, D.C.

The House passed legislation that provides a substitute to the automatic cuts set for January 2 that are mandated by the Budget Control Act of 2011 (P.L. 112-25) and includes a provision that raises revenue through tighter controls on refundable child tax credits. The Senate rejected a student loan bill that would have held certain S corporations liable for payroll taxes. Meanwhile, the IRS issued final, temporary and proposed regulations relating to the treatment of up-front payments made under certain notional principal contracts (NPCs) for U.S. federal income tax purposes.

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CCH Weekly Report from Washington, D.C.

While Congress was on a week-long recess, the IRS released guidance during the week of April 30 addressing prepaid mortgage insurance premiums, low-income housing purchase price and basis procedures and the delayed effective date of proposed debt instrument regulations. The IRS is also accepting applications for matching grants for low-income taxpayer clinics and 2013 Community Volunteer Income Tax Assistance (VITA).

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CCH Weekly Report from Washington, D.C.

A bill introduced in the Senate during the week of April 23 would make S corporations with three or fewer employees liable for payroll taxes, Congressional hearings were held on the treatment of state and local governments, improving return preparation and business tax incentives. Meanwhile, the IRS released a number of pieces of guidance, including proposed regulations on the disclosure of return information and local lodging expenses and final regulation on gain recognized on the receipt of a distribution of property from a foreign corporation.

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CCH Weekly Report from Washington, D.C.

Despite a veto threat from President Obama, the House on April 19 passed a measure that would provide a 20-percent tax cut to small businesses. A day earlier, lawmakers passed another extension of highway funding and fuel taxes. The Senate, meanwhile, rejected a bill that would have levied a minimum 30-percent tax rate on the adjusted gross incomes of households earning more than $1 million annually. The IRS issued proposed regulations that would provide additional examples of program-related investments (PRIs) that a tax-exempt private foundation may make.

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CCH Weekly Report from Washington, D.C.

As Congress continued its two-week recess, the IRS issued the corporate bond weighted average interest rate, a reminder regarding telephone excise tax refunds and guidance on the economic substance doctrine and its related penalties. In addition, Financial Crimes Enforcement Network (FinCEN) guidance addresses the new currency transaction report (CTR) and suspicious activity report (SAR).

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CCH Weekly Report from Washington, D.C.

Before adjourning for a two-week recess, the House and Senate passed, and the president signed, legislation that temporarily extends federal highway spending and fuel taxes. The House also approved the Concurrent Resolution on the Budget for Fiscal Year 2013, which is expected to die in the Senate. The Senate, meanwhile, defeated a bill that would have repealed billions of dollars in tax breaks for the five largest oil and gas producers. IRS Deputy Commissioner Steven Miller, Service and Enforcement, stated the Service will remain focused on the large corporate sector in the future, but will aim to expend less time and fewer resources on examining compliant taxpayers.

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CCH Weekly Report from Washington, D.C.

House Republicans released the GOP budget for fiscal year 2013, which calls for reforming the tax code and eliminating special interest loopholes, while simultaneously lowering tax rates and extending the Bush-era tax cuts. Legislation was also introduced to grant small businesses a 20-percent tax cut and eliminate subsidies for big oil companies. In addition, a Senate Finance subcommittee held a hearing on tax fraud through identity theft. The IRS, meanwhile, announced it will enter into voluntary closing agreements (VCAs) with issuers of qualified student loan bonds that were unable to establish which bond issues the student loans were properly allocable to as purpose investments and that, as a result, could not establish that the bond issues involved were not issues of arbitrage bonds.

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CCH Weekly Report from Washington, D.C.

During the week of March 12, the Senate passed a $109-billion transportation funding measure. The legislation contains a number of tax-related provisions. In remarks to the Economic Club of New York, Treasury Secretary Geithner pointed out the need for tax reform. The IRS, in the meantime, released several pieces of guidance, including an Audit Techniques Guide that addresses Interest Charge Domestic International Sales Corporations, an LB&I directive indicating it will cease audits of repair versus capitalization issues for tax years beginning before January 1, 2012, and certain return preparer test results.

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