Daily Tax Update - April 18, 2013: Camp Announces Hearing on Tax Reform and Residential Real Estate

WAYS AND MEANS HEARING ANNOUNCED ON TAX REFORM AND RESIDENTIAL REAL ESTATE:  On April 25, the House Ways and Means Committee will hold a hearing on Federal tax provisions that affect residential real estate.

In announcing this hearing, Chairman Dave Camp said, “As we continue to work toward comprehensive tax reform that makes the Code simpler and fairer so that more jobs with better pay are created, it is important to do a top to bottom review of the Code.  Homeownership is an integral part of the American Dream, and the tax code has long provided a variety of incentives to make it easier for families to buy and own a home. Before considering any proposal, the Committee must better understand how tax reform might affect the housing sector and this hearing is an opportunity to hear directly from both academic experts and industry stakeholders.”

FINANCE RELEASES THIRD TAX REFORM OPTIONS PAPER:  Today, the Senate Finance Committee released its third in a series of options papers on tax reform.  The report is titled, “Family, Education and Opportunities.”

MISCELLANEOUS GUIDANCE RELEASED:
Notice 2013-17 addresses circumstances in which an Employee Stock Option Plan (ESOP) that satisfied the diversification requirements of § 401(a)(28)(B)(i) by allowing distribution of a portion of a participant’s account has become subject to the diversification requirements of § 401(a)(35).

Revenue Ruling 2013-11 provides various prescribed rates for federal income tax purposes including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted federal long-term rate, the adjusted federal long-term tax-exempt rate. These rates are determined as prescribed by § 1274. The rates are published monthly for purposes of sections 42, 382, 412, 1288, 1274, 7520, 7872, and various other sections of the Internal Revenue Code.

TAX BILLS INTRODUCED APRIL 17:

1. [113rd] H.R.1597 : To amend the Internal Revenue Code of 1986 to provide a credit to individuals for legal expenses paid with respect to establishing guardianship of a disabled individual.
Sponsor: Rep Deutch, Theodore E. [FL-21] (introduced 4/17/2013)      Cosponsors (None) 
Committees: House Ways and Means 
Latest Major Action: 4/17/2013 Referred to House committee. Status: Referred to the House Committee on Ways and Means.


2. [113rd] H.R.1602 : To amend the Internal Revenue Code of 1986 to allow Indian tribes to transfer the credit for electricity produced from renewable resources.
Sponsor: Rep Grijalva, Raul M. [AZ-3] (introduced 4/17/2013)      Cosponsors (None) 
Committees: House Ways and Means 
Latest Major Action: 4/17/2013 Referred to House committee. Status: Referred to the House Committee on Ways and Means.


3. [113rd] S.749 : A bill to amend the Internal Revenue Code of 1986 to permanently extend the 15-year recovery period for qualified leasehold improvement property, qualified restaurant property, and qualified retail improvement property.
Sponsor: Sen Casey, Robert P., Jr. [PA] (introduced 4/17/2013)      Cosponsors(13) 
Committees: Senate Finance 
Latest Major Action: 4/17/2013 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.