Daily Tax Update - July 11, 2013: Sen. Baucus Denies Revenue Neutrality Agreement for Tax Reform Bill

THE DAILY TAX UPDATE WILL BE PUBLISHED WHEN CONGRESS RETURNS JULY 16

Sen. Baucus Denies Revenue Neutrality Agreement for Tax Reform Bill:  Today, Senate Finance Committee Chairman Max Baucus said that he has not agreed that the tax reform bill the committee crafts will be revenue neutral.  Baucus said, “There was no agreement.”  Yesterday, ranking Finance member Orrin Hatch said that it was his understanding that the tax reform bill they craft would be revenue neutral.

House to Vote Next Week on Delaying Healthcare Act Insurance Mandates:  House Speaker John Boehner said that the House would vote next week on legislation to delay implementation of the Affordable Care Act requirements for businesses and individuals.  Boehner said, “Next week the House will vote to delay both the employer mandate and the individual mandate.  I believe that it's unfair to protect big businesses from Obamacare but not individuals and families.”

Miscellaneous Guidance Released:
Notice 2013-49 provides updated static mortality tables to be used by defined benefit pension plans for purposes of satisfying certain funding and benefit requirements under the Internal Revenue Code (Code) and the Employee Retirement Income Security Act of 1974 (ERISA).  These tables apply for purposes of calculations for valuation dates occurring during calendar years 2014 and 2015. The notice also includes a modified unisex version of the mortality tables for use in determining the minimum present value for distributions with annuity starting dates that occur during stability periods beginning in calendar years 2014 and 2015.  The notice also requests comments regarding the publication of mortality tables for future years.

Notice 2013-47 amplifies the relief provided by Notice 2013-39 and Notice 2013-40.  Those Notices provided temporary relief from certain limitations on low-income housing projects financed with tax-exempt bonds under §142(d) and LIHTCs under §42, respectively, to permit such projects to house individuals displaced by severe storms and tornadoes occurring in Oklahoma between May 18 and May 27, 2013.  Following the release of those Notices, FEMA extended the period during which the disasters occurred to June 2, 2013, and added flooding to the list of disasters covered.  This Notice makes the same changes to Notices 2013-39 and 2013-40.