Tax Headlines


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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IRS Issues Guidance on Certain Outbound Asset Reorganizations (Notice 2012-39)

The IRS has issued guidance under Code Sec. 367(d) , to be followed by and incorporated into regulations, with respect to certain transfers of intangible property by a domestic corporation to a foreign corporation in an exchange described in Code Sec. 361(a) or (b) . Code Sec. 367(a) usually applies to the transfer of property by a U.S. person to a foreign corporation in certain types of exchanges, while if a U.S. person transfers intangible property in an exchange under Code Sec. 351 or 361 , Code Sec. 367(d) applies.

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Tax Court Lacked Jurisdiction over Individual’s Petition; Notice of Determination Not Issued (Thompson, CA-9)

The Tax Court lacked jurisdiction over an individual’s petition to review an IRS collection action. The individual failed to demonstrate that the IRS’s collection division issued either a final notice of intent to levy or a notice of filing of federal tax lien for the tax years at issue. Therefore, the individual would not have had occasion to file a request for a Collection Due Process (CDP) hearing and the IRS’s Appeals office would not have had any reason to hold such a hearing or to issue a notice of determination. The individual’s argument that an IRS Appeals office letter denying his offer-in-compromise was a notice of determination was rejected.

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House Votes to Repeal Healthcare Reform Law

House lawmakers on July 11 voted 244 to 185 to repeal the entire Patient Protection and Affordable Care Act (PPACA) (P.L. 111-148 ), but the move was mostly symbolic as the Senate is unlikely to take up the measure. The referendum on President Obama’s signature policy piece marks the 30th time the House has attempted to strike down all or part of the massive health care reform legislation since it was signed into law in 2010.

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North Dakota ~ Property Tax: Urban Renewal Law Constitutional, Tax Applied Uniformly

The North Dakota Urban Renewal Law (Act), allowing in part for the use of North Dakota property taxes for blighted areas, was found constitutional because, among other reasons, the property tax assessed was uniform on the same class of property, and the Act only authorized the diversion of tax increment funds to a municipality to pay for renewal projects.

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