Daily Tax Update - November 4, 2015: Rep. Kevin Brady Selected to Lead Ways and Means Committee

Rep. Kevin Brady Selected to Lead Ways and Means Committee:  Today the House Republican Steering Committee recommended Rep. Kevin Brady (R-TX) to be chairman of the House Ways and Means Committee.  Rep. Brady will succeed Rep. Paul Ryan (R-WI), who was elected to replace former Rep. John Boehner as Speaker of the House of Representatives last week.  


Partnership Tax Provisions in the Bipartisan Budget Agreement
The Bipartisan Budget Act of 2015, which was signed into law on November 2, represents a compromise between the Obama Administration and Congressional Republicans on raising the debt ceiling.  The deal would raise the debt ceiling until March 15, 2017 (after the next presidential election) and increase authorized federal spending over the next two years by about $80 billion.  Among the provisions that offset the cost of this legislation are two changes to partnership tax provisions.  These provisions (i) will have a significant impact on the way partnerships are audited by replacing the current partnership audit regimes with a single, new regime, and (ii) will narrow the test for partner status by repealing Internal Revenue Code section 704(e)(1).

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