Tax News & Views, published by the Deloitte Tax LLP Tax Policy Services Group in Washington, D.C., provides a compact, reader-friendly perspective on the latest corporate tax developments coming out of Congress, the Internal Revenue Service, the Department of the Treasury and the federal courts. May 9, 2006 - Special Edition
House and Senate Announce Agreement on $70 Billion Tax Cut Reconciliation Package
· Conferees Announce Agreement on $70 Billion Tax Cut Reconciliation Package – Ending months of gridlock, House and Senate conferees on May 9 reached a compromise agreement on a five-year, $70 billion tax cut reconciliation bill authorized by last year’s budget resolution.
The agreement is good news for upper-income individuals. For 2006, it shields 15 million individual taxpayers from tax increases threatened by the expiration of temporary alternative minimum tax (AMT) relief after 2005. It extends lower rates for capital gains and dividend income through 2010 so that they will now expire with most of the rest of President Bush’s tax cuts. And it creates potentially significant benefits to higher income individuals who will be permitted to convert traditional IRAs to Roth IRAs starting in 2010.
In addition to extending, and enhancing, temporary AMT relief for one year, the agreement extends, through 2008, two expiring provisions under the anti-deferral rules of subpart F. These are the exception to current income inclusion for active financing and insurance income and the look-through rules for payments between related controlled foreign corporations.
May 5, 2006
Reconciliation Bill Remains Stalled, Despite Reported Agreement
· Reconciliation Bill Remains Stalled, Despite Reported Agreement – House and Senate conferees reportedly have reached an agreement in principle on the major provisions of a $70 billion reconciliation tax cut bill; but further action on the legislation remains stalled due to disagreements over a planned second tax relief package that would move without reconciliation protection.
· Senate Estate Tax Repeal Vote Likely Delayed Until June – Because of a crowded legislative agenda, a Senate floor vote on estate tax repeal, which Majority Leader Bill Frist, R-Tenn., had promised for this month, is likely to be delayed until June, according to Finance Committee member Jon Kyl, R-Ariz.
· Interim Guidance Addresses Subpart F Treatment of Income From International Operation and Leasing of Ships, Aircraft – Treasury and the Internal Revenue Service released two notices concerning the subpart F treatment of income related to the operation and leasing of aircraft and vessels as necessitated by the American Jobs Creation Act of 2004.
April 28, 2006
Conferees Moving Toward Reconciliation Bill Compromise, but Final Deal Remains Elusive
April 7, 2006
Plans Fizzle for Pre-Recess Reconciliation Agreement
March 31, 2006
Corporate Tax Reform Window Closing Fast, Thomas Tells Tax Execs
March 24, 2006
Tax Reconciliation and Pension Conferences Set to Resume After a Slow Start
March 17, 2006
Everson Considers Public Disclosure of Corporate Return Information as Lawmakers Ponder ‘Tax Gap’ Remedies
March 10, 2006
As Thomas Announces Retirement, Colleagues Eye Ways & Means Top Spot
February 17, 2006
Frist Insists on Capital Gains and Dividends Tax Relief in Final Tax Cut Reconciliation Bill
February 6, 2006 - Special Edition
President Proposes 10-Year, $1.7 Trillion Tax Cut; $2.3 Billion in ‘Loophole’ Closing Revenue Raisers
January 18, 2006 - Special Edition
Lawmakers, President Mapping Out Tax Agenda as New Legislative Session Begins
January 13, 2006
IRS Removes Significant Book-Tax Difference Category of Reportable Transactions
December 16, 2005
Congress Approves Hurricane Tax Relief, Includes Technical Corrections and Assorted Extenders
December 9, 2005
House Passes Four Tax Cut Bills in Two Days; Stage Set for Contentious Negotiations with Senate
December 6, 2005 - Special Edition
Congress Faces Heavy Workload in December, as Members Eye the Exits
November 18, 2005
Senate Passes $60 Billion Tax Cut Reconciliation Bill; House Bill Action Postponed
November 16, 2005 - Special Edition
Finance, Ways & Means Approve Tax Cut Reconciliation Bills; Questions About Dividend, AMT Relief Remain
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