Daily Tax Update - May 6, 2013: Joint Tax Committee Releases Tax Reform Working Group Report

JOINT COMMITTEE RELEASES TAX REFORM WORKING GROUP REPORT:  Today, the Joint Committee on Taxation released a 568-page report on the House Ways and Means Committee Tax Reform Working Groups.  Parts One and Two of the document provide a description of present law.  Part Three summarizes selected tax reform proposals.  Part Four summarizes the feedback received by the various working groups.

House Ways and Means Committee Chairman Dave Camp and Ranking Member Sander Levin released the following statement:  "Over the past two-plus months the Joint Committee on Taxation has worked tirelessly alongside Ways and Means Committee Members of the 11 Tax Reform Working Groups.  The release of today’s report reflects the hard work of Members and staff.  This document provides an important and comprehensive overview of the tax code, an overview of some of the most commonly referenced previous tax reform proposals and summarizes the views of more than 1,300 submissions offered to the Ways and Means Committee by key stakeholders.  The Committee will dig into its details over the coming weeks.”

Revenue Procedure 2013-26 provides rules by which the IRS will allow a taxpayer to use a simplified proportional method of accounting for original issue discount (OID) on pools of credit card receivables under section 1272(a)(6).  The proportional method is intended to reduce administrative burdens and controversy for taxpayers and the IRS.