CCH Weekly Report from Washington

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CCH Weekly Report from Washington, D.C.

With the Senate failing to approve two bills designed to avert the sequester, $85 billion in across-the-board budget cuts took effect on March 1. President Obama blamed GOP lawmakers for allowing the sequestration to take place, while a spokesman for House Speaker John Boehner, R-Ohio, said Boehner was calling on the president to produce a sequestration replacement bill that can pass the Senate. House Ways and Means Committee Chairman Dave Camp, R-Mich., meanwhile, said the committee plans to pass comprehensive tax reform by the end of 2013. The IRS has released guidance on deficiency reserves with respect to life insurance contracts, as well as final regulations relating to reduced estimated income tax payments for qualified individuals with small business income for any tax year beginning in 2009.

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CCH Weekly Report from Washington, D.C.

As the March 1 deadline approaches, lawmakers are still attempting to find common ground on necessary budget cuts to avoid an across-the-board sequestration. House Speaker John Boehner, R-Ohio, ignored calls to end the House’s week-long recess to work on averting the $85 billion in budget cuts, while Sen. Charles E. Schumer, D-N.Y., was confident that his party’s plan to avoid sequester would garner Republican support and prevent drastic spending cuts in defense and federal programs. A new bipartisan plan was unveiled by the former co-chairs of President Obama’s Bipartisan National Commission on Fiscal Responsibility and Reform, that would reduce the federal debt by $2.4 trillion over 10 years. The IRS, meanwhile, released revised tables for the March 2013 applicable federal rates (AFRs), as well as FAQs addressing merchant cards.

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CCH Weekly Report from Washington, D.C.

In his State of the Union Address, President Obama called on Congress to make basic decisions about the federal budget, saying that he favors a tax code that prohibits the wealthy from escaping taxation, eliminates tax incentives for companies that export jobs and creates employment opportunities in the U.S. However, House Ways and Means Committee Chairman Dave Camp, R-Mich., said the president’s call for higher taxes is anything but tax reform.

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CCH Weekly Report from Washington, D.C.

House lawmakers approved the Require Presidential Leadership and No Deficit (Require a PLAN) Bill (HR 444 ) on February 6, after defeating an amendment to the legislation that would implement the Simpson-Bowles deficit-reduction plan calling for a mix of spending cuts, health care and Social Security reforms and new tax revenues

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CCH Weekly Report from Washington, D.C.

House Ways and Means Chairman Dave Camp, R-Mich., released draft legislation to change the taxation of financial instruments as part of his effort to pass comprehensive tax reform in 2013. House lawmakers approved legislation that would raise the federal borrowing limit through May 19. Meanwhile, Senate Majority Leader Harry Reid, D-Nev., laid out the Senate legislative priorities for the 113th Congress. The IRS Exempt Organizations (EO) Division released its annual report on fiscal year (FY) 2012 on January 25 while the Department of Justice (DOJ) filed a motion asking the U.S. District Court for the District of Columbia to suspend its injunction halting the IRS’s regulation of tax return preparers either pending resolution of an appeal or for 14 days to allow the government to seek relief from the Court of Appeals.

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CCH Weekly Report from Washington, D.C.

House Ways and Means Committee ranking member Sander M. Levin, D-Mich., said comprehensive tax reform should not be part of the continuing debate over sequestration budget cuts or the debt ceiling. The Treasury and IRS released much-anticipated final regulations under the Foreign Account Tax Compliance Act (FATCA) (enacted as part of the Hiring Incentives to Restore Employment (HIRE) Act of 2010 (P.L. 111-147 )).

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CCH Weekly Report from Washington, D.C.

In a quiet week at the White House and Congress, President Obama nominated Jack Lew to be Treasury Secretary and Senate Republicans named new members of the Senate Finance Committee. The IRS, meanwhile, released the official 2013 tax rate tables, along with some inflation-adjusted items, and the corporate bond weighted average interest rate and announced that the 2013 filing season would begin for some taxpayers on January 30.

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