Daily Tax Update - April 15, 2011: House Passes FY 2012 Budget Resolution

HOUSE PASSES “PATH TO PROSPERITY” BUDGET PLAN:  Today, by a vote of 235-193, the House passed the Budget Committee’s fiscal year 2012 budget resolution, the "Path to Prosperity."  The blueprint cuts $6.2 trillion in government spending over the next decade compared to the President’s budget and reduces deficits by $4.4 trillion compared to the President’s budget over the next decade.

  • On the issue of taxes, the budget resolution eliminates roughly $800 billion in tax increases imposed by the President’s health care law and prevents the $1.5 trillion tax increase called for in the President’s budget.  The budget blueprint calls for a simpler, less burdensome tax code for households and small businesses and lowers tax rates for individuals, businesses and families, sets top rates for individuals and businesses at 25 percent, and improves incentives for growth, savings, and investment.
  • Additional information can be accessed here.   

MISCELLANEOUS GUIDANCE RELEASED:
Notice 2011-39 invites public comment on recommendations for items that should be included on the 2011-2012 Guidance Priority List. The Treasury Department's Office of Tax Policy and the Service use the Guidance Priority List each year to identify and prioritize the tax issues that should be addressed through regulations, revenue rulings, revenue procedures, notices, and other published administrative guidance.  

Revenue Procedure 2011-30 provides a safe harbor under section 118(a) of the Internal Revenue Code for certain awards received by corporate taxpayers under the following Department of Energy programs:  Clean Coal Power Initiative ‑ Round 3, Carbon Capture and Sequestration from Industrial Sources and Innovative Concepts for Beneficial CO2 Use, and FutureGen 2.0.

TAX BILLS INTRODUCED APRIL 14TH:
1. [112nd] H.R.1533: To amend the Internal Revenue Code of 1986 to exempt certain shipping from the harbor maintenance tax.
Sponsor: Rep Tiberi, Patrick J. [OH-12] (introduced 4/14/2011)      Cosponsors (2)
Committees: House Ways and Means
Latest Major Action: 4/14/2011 Referred to House committee. Status: Referred to the House Committee on Ways and Means.
 
2. [112nd] H.R.1534: To amend the Internal Revenue Code of 1986 to encourage retirement savings by modifying requirements with respect to employer-established IRAs, and for other purposes.
Sponsor: Rep Kind, Ron [WI-3] (introduced 4/14/2011)      Cosponsors (1)
Committees: House Ways and Means; House Education and the Workforce
Latest Major Action: 4/14/2011 Referred to House committee. Status: Referred to the Committee on Ways and Means, and in addition to the Committee on Education and the Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
 
3. [112nd] H.R.1538: To amend the Internal Revenue Code of 1986 to permit the Secretary of the Treasury to disclose certain return information related to identity theft, and for other purposes.
Sponsor: Rep Petri, Thomas E. [WI-6] (introduced 4/14/2011)      Cosponsors (7)
Committees: House Ways and Means
Latest Major Action: 4/14/2011 Referred to House committee. Status: Referred to the House Committee on Ways and Means.
 
4. [112nd] H.R.1541: To amend the Internal Revenue Code of 1986 to allow taxpayers to make contributions to the Federal Government on their income tax returns.
Sponsor: Rep Campbell, John [CA-48] (introduced 4/14/2011)      Cosponsors (19)
Committees: House Ways and Means
Latest Major Action: 4/14/2011 Referred to House committee. Status: Referred to the House Committee on Ways and Means.
 
5. [112nd] H.R.1542: To amend the Internal Revenue Code of 1986 to provide tax incentives for the establishment of supermarkets in certain underserved areas.
Sponsor: Rep Cohen, Steve [TN-9] (introduced 4/14/2011)      Cosponsors (7)
Committees: House Ways and Means
Latest Major Action: 4/14/2011 Referred to House committee. Status: Referred to the House Committee on Ways and Means.
 
6. [112nd] H.R.1549: To amend the Internal Revenue Code of 1986 to repeal the unearned income medicare contribution.
Sponsor: Rep Grimm, Michael G. [NY-13] (introduced 4/14/2011)      Cosponsors (None)
Committees: House Ways and Means
Latest Major Action: 4/14/2011 Referred to House committee. Status: Referred to the House Committee on Ways and Means.
 
7. [112nd] S.820: A bill to repeal the current Internal Revenue Code and replace it with a flat tax, thereby guaranteeing economic growth and greater fairness for all Americans.
Sponsor: Sen Shelby, Richard C. [AL] (introduced 4/14/2011)      Cosponsors (None)
Committees: Senate Finance
Latest Major Action: 4/14/2011 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.
 
8. [112nd] S.822: A bill to amend the Internal Revenue Code of 1986 to require all wage withholding returns to be filed electronically.
Sponsor: Sen Coburn, Tom [OK] (introduced 4/14/2011)      Cosponsors (1)
Committees: Senate Finance
Latest Major Action: 4/14/2011 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.
 
9. [112nd] S.825: A bill to amend the Internal Revenue Code of 1986 to permanently extend and modify the research tax credit, and for other purposes.
Sponsor: Sen Coons, Christopher A. [DE] (introduced 4/14/2011)      Cosponsors (None)
Committees: Senate Finance
Latest Major Action: 4/14/2011 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.
 
10. [112nd] S.836: A bill to amend the Internal Revenue Code of 1986 to provide special depreciation and amortization rules for highway and related property subject to long-term leases, and for other purposes.
Sponsor: Sen Bingaman, Jeff [NM] (introduced 4/14/2011)      Cosponsors (1)
Committees: Senate Finance
Latest Major Action: 4/14/2011 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.
 
11. [112nd] S.845: A bill to amend the Internal Revenue Code of 1986 to provide for the logical flow of return information between partnerships, corporations, trusts, estates, and individuals to better enable each party to submit timely, accurate returns and reduce the need for extended and amended returns, to provide for modified due dates by regulation, and to conform the automatic corporate extension period to longstanding regulatory rule.
Sponsor: Sen Enzi, Michael B. [WY] (introduced 4/14/2011)      Cosponsors (1)
Committees: Senate Finance
Latest Major Action: 4/14/2011 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.

INTERNAL REVENUE SERVICE - CIRCULAR 230 DISCLOSURE:
As provided for in Treasury regulations, advice (if any) relating to federal taxes that is contained in this communication (including attachments) is not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any plan or arrangement addressed herein.

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