Insights & Developments

It is still not certain that a one-year extension of $31 billion in expired tax cuts will need to go through conference committee to pass, House Ways and Means Committee Chairman Levin says.

The Senate passes, 62-36, a one-year extension of $31 billion in popular tax breaks with a permanent codification of the economic substance doctrine and new penalties on firms using transactions structured for no purpose other than tax avoidance.  

The Senate votes 66-34 to cut off debate on a one-year extension of $31 billion in temporary tax breaks, as well as longer-term extensions of unemployment insurance benefits and tax credits to help unemployed individuals keep their health insurance.

The Senate will consider the addition of a new 50 percent tax on executive bonuses in excess of $400,000 as part of the tax extenders legislation (H.R. 4213) set for a final vote today.

IRS says it is extending the time for submission of comments on its recent proposal for mandatory reporting of uncertain tax positions on business taxpayers' returns, adding that such reporting will not be required for 2009 returns filed in 2010. 

The House passes, 217-201, legislation that includes $17.6 billion in tax cuts aimed at encouraging businesses to hire new workers. Several changes are made to the measure (H.R. 2847), including some technical changes designed to improve the administration of the hiring tax incentives while ensuring the measure conforms to the House's pay-as-you-go rules.

IRS Commissioner Shulman tells Congress the service is extending, until June 1, the current moratorium on collection enforcement actions for tax shelter penalties assessed under tax code Section 6707A, as lawmakers continue to work to even out those penalties.

Senate Finance Committee Chairman Baucus says legislation (H.R. 4213) to extend $31 billion in expired tax cuts will be paid for by codifying the economic substance doctrine and denying paper mills a biofuels tax credit for their use of a fuel known as black liquor.