Daily Tax Update - April 19, 2013: IRS to Issue Furlough Notices Next Week

THE DAILY TAX UPDATE WILL BE PUBLISHED WHEN CONGRESS RETURNS ON APRIL 23

IRS TO ISSUE FURLOUGH NOTICES NEXT WEEK:  Today, Acting IRS Commissioner Steven Miller announced in an internal memo that the agency would begin issuing furlough notices to employees next week due to the budget sequestration cuts. The first day of the furlough will be May 24 and everyone will be covered.  Additional furlough days were also announced with all “public-facing operations” closing on those dates, including toll-free operations and taxpayer-assistance centers. 

The memo states, “As the effects of federal government budget cuts due to sequestration become a reality, we want to keep the dialogue open regarding next steps. Next week, we plan to issue official furlough notices. . . . For your planning purposes, the first furlough days will be May 24, June 14, July 5, July 22 and August 30, with another two days possible in August or September. All public-facing operations will be closed on these dates, including our toll-free operations and Taxpayer Assistance Centers. Some mission-essential IT and security personnel, who maintain systems and building safety, may need to work on these furlough days, however they will be taking furlough days on alternative dates within those pay periods. Everyone is covered by this furlough, and that means everyone from the Acting Commissioner and executives to managers and employees.”  The memo continues, “There are a number of factors that came into play on our closing date decisions. First, we know what a big financial impact losing a day of pay can mean. We wanted to make sure there is only one furlough day a pay period, and we have also worked to stagger the dates further so that there are some pay periods during the summer with no furlough days. We hope this approach helps with your financial planning.”

TAX BILLS INTRODUCED APRIL 18:

1. [113rd] H.R.1614 : To amend the Internal Revenue Code of 1986 to authorize agricultural producers to establish and contribute to tax-exempt farm risk management accounts.
Sponsor: Rep Crawford, Eric A. "Rick" [AR-1] (introduced 4/18/2013)      Cosponsors (None) 
Committees: House Ways and Means 
Latest Major Action: 4/18/2013 Referred to House committee. Status: Referred to the House Committee on Ways and Means.


2. [113rd] H.R.1618 : To amend the Internal Revenue Code of 1986 to increase the dollar limitation on employer-provided group term life insurance that can be excluded from the gross income of the employee.
Sponsor: Rep Burgess, Michael C. [TX-26] (introduced 4/18/2013)      Cosponsors (None) 
Committees: House Ways and Means 
Latest Major Action: 4/18/2013 Referred to House committee. Status: Referred to the House Committee on Ways and Means.


3. [113rd] H.R.1620 : To amend the Internal Revenue Code of 1986 to allow a credit against income tax for amounts paid by a spouse of a member of the Armed Forces for a new State license or certification required by reason of a permanent change in the duty station of such member to another State.
Sponsor: Rep Cartwright, Matt [PA-17] (introduced 4/18/2013)      Cosponsors(62) 
Committees: House Ways and Means 
Latest Major Action: 4/18/2013 Referred to House committee. Status: Referred to the House Committee on Ways and Means.


4. [113rd] H.R.1621 : To amend the Internal Revenue Code of 1986 to make permanent the 2010 increase in the deduction for start-up expenditures.
Sponsor: Rep Johnson, Henry C. "Hank," Jr. [GA-4] (introduced 4/18/2013)      Cosponsors (31) 
Committees: House Ways and Means 
Latest Major Action: 4/18/2013 Referred to House committee. Status: Referred to the House Committee on Ways and Means.


5. [113rd] H.R.1628 : To amend the Internal Revenue Code of 1986 to provide for reporting and disclosure by State and local public employee retirement pension plans.
Sponsor: Rep Nunes, Devin [CA-22] (introduced 4/18/2013)      Cosponsors(2) 
Committees: House Ways and Means 
Latest Major Action: 4/18/2013 Referred to House committee. Status: Referred to the House Committee on Ways and Means.


6. [113rd] H.R.1629 : To amend the Internal Revenue Code to make permanent qualified school construction bonds and qualified zone academy bonds, to treat qualified zone academy bonds as specified tax credit bonds, and to modify the private business contribution requirement for qualified zone academy bonds.
Sponsor: Rep Rangel, Charles B. [NY-13] (introduced 4/18/2013)      Cosponsors (None) 
Committees: House Ways and Means 
Latest Major Action: 4/18/2013 Referred to House committee. Status: Referred to the House Committee on Ways and Means.


7. [113rd] H.R.1634 : To amend the Internal Revenue Code of 1986 to increase participation in medical flexible spending arrangements.
Sponsor: Rep Boustany, Charles W., Jr. [LA-3] (introduced 4/18/2013)      Cosponsors (3) 
Committees: House Ways and Means 
Latest Major Action: 4/18/2013 Referred to House committee. Status: Referred to the House Committee on Ways and Means.


8. [113rd] H.R.1643 : To amend the Internal Revenue Code of 1986 to allow penalty-free withdrawals from the Federal Thrift Savings Fund to employees who are furloughed as a result of the Federal budget sequester.
Sponsor: Rep Kilmer, Derek [WA-6] (introduced 4/18/2013)      Cosponsors (1) 
Committees: House Ways and Means 
Latest Major Action: 4/18/2013 Referred to House committee. Status: Referred to the House Committee on Ways and Means.


9. [113rd] S.759 : A bill to amend the Internal Revenue Code of 1986 to allow a credit against income tax for amounts paid by a spouse of a member of the Armed Forces for a new State license or certification required by reason of a permanent change in the duty station of such member to another State.
Sponsor: Sen Casey, Robert P., Jr. [PA] (introduced 4/18/2013)      Cosponsors(13) 
Committees: Senate Finance 
Latest Major Action: 4/18/2013 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.