CCH Weekly Report from Washington

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CCH Weekly Report from Washington, D.C.

The president signed a measure on August 10 that shifts the timing of corporation estimated tax payments in 2017 for corporations with $1 billion or more in assets. Meanwhile, during the week of August 13, the IRS issued the September applicable federal rates (AFRs), as well as guidance on the 25-year average segment rates that are applied to adjust the otherwise applicable 24-month average segment rates that are used to compute the funding target and other items under Code Sec. 430 and section 303 of the Employment Retirement Income Security Act of 1974 (ERISA).

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CCH Weekly Report from Washington, D.C.

With lawmakers on their August recess, the Congressional Budget Office (CBO) issued a report indicating that the federal budget deficit for the first 10 months of fiscal year (FY) 2012 will be lower than the corresponding period in 2011, largely due to higher tax revenue from corporations and individuals. In addition, Senate Finance Committee ranking member Orrin G. Hatch, R-Utah, asked the IRS to keep politics out of any decision to issue rules on the tax treatment of nonprofits. Meanwhile, a Treasury Inspector General for Tax Administration (TIGTA) report said that IRS supervisors urged employees to ignore potential fraud in a program that reviews and verifies applications for Individual Taxpayer Identification Numbers (ITINs).

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CCH Weekly Report from Washington, D.C.

During the week of July 16, the House Ways and Means Committee held a hearing on tax reform and the Senate took up but failed to pass a bill that would have ended tax breaks for companies that send jobs overseas. The IRS issued a number of pieces of guidance, including the August AFRs and guidance on EITC due diligence, tribal development bonds and outbound asset reorganizations.

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CCH Weekly Report from Washington, D.C.

President Obama reiterated his call for a one-year extension of the Bush-era tax cuts for those earning under $250,000 per year, as Republicans continue to insist on a one-year extension for all taxpayers, including the wealthy. The Senate failed to advance a $28.5-billion small business tax break measure that would provide a one-year extension of 100-percent bonus depreciation and a tax credit for new hires. The IRS, meanwhile, confirmed its plans to develop a public database of registered tax return preparers.

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CCH Weekly Report from Washington, D.C.

With Congress on recess, the president signed into law legislation that reauthorizes the fuel and ticket excise taxes that support the Highway Trust Fund through the end of fiscal year 2014 and extends for one year, until July 1, 2013, the current interest rate of 3.4 percent on all new, subsidized Federal Direct Stafford Loans for undergraduate students.

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CCH Weekly Report from Washington, D.C.

Legislation to extend federal fuel excise taxes, make pension program changes and raise cigarette taxes passed Congress on June 29 as part of a two-year reauthorization of federal highway programs. Congress approved the conference report to the Surface Transportation Extension Act of 2012 (HR 4348 ) and President Obama is expected to sign the measure, which was completed following weeks of negotiations between House and Senate lawmakers from both political parties (TAXDAY, 2012/07/02, C.1 ).

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CCH Weekly Report from Washington, D.C.

During the week of June 18, Senate Finance Committee Chairman Max Baucus indicated that he is willing to consider a temporary extension of the Bush-era tax cuts. He also called for tax reform to increase access to education and to simplify claims for related tax credits. House Democrats introduced a bill that would extend 100-percent bonus depreciation.

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