Daily Tax Update - October 31, 2013: IRS Reminds Tax Return Preparers to Renew PTINS

IRS Reminds Tax Return Preparers to Renew PTIN:  Today, the IRS reminded federal tax return preparers that they must renew their Preparer Tax Identification Numbers (PTINs) for 2014.  All current PTINs will expire on December 31, 2013.  According to the IRS, “Anyone who, for compensation, prepares or helps prepare any federal return or claim for refund must have a valid PTIN from the IRS.  The PTIN must be used as the identifying number on returns prepared.”

The IRS added, “For those who already have a 2013 PTIN, the renewal process can be completed online and only takes a few moments.  The renewal fee is $63.  If you can’t remember your user ID and password, there are online tools to assist you.  Preparers can get started at www.irs.gov/ptin.  If you are registering for the first time, the PTIN application fee is $64.25 and the process may also be completed online.”

Baucus to Release Tax Reform Discussion Drafts Soon:  Today, Senate Finance Committee Chairman Max Baucus said that he plans to release tax reform discussion drafts within the next two weeks.

Today, Treasury Secretary Jack Lew said that tax reform plans being considered by lawmakers "share much in common" with the White House's approach.  Lew said, “There is no reason why we cannot start with the substantial policy areas that we agree on and come together to find common ground.”

Miscellaneous Guidance:

Notice 2013-71 modifying the "use or lose" rule for health flexible spending arrangements.

Revenue Procedure 2013-35 provides details about these annual adjustments.

Cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2014 via:  IRS Announces 2014 Pension Plan Limitations

Tax Bills Introduced October 30:

1. [113rd] H.R.3391 : To amend the Internal Revenue Code of 1986 to exclude from gross income payments under the Indian Health Service Loan Repayment Program and certain amounts received under the Indian Health Professions Scholarships Program.
Sponsor: Rep Valadao, David G. [CA-21] (introduced 10/30/2013)      Cosponsors (16) 
Committees: House Ways and Means 
Latest Major Action: 10/30/2013 Referred to House committee. Status: Referred to the House Committee on Ways and Means.


2. [113rd] H.R.3393 : To amend the Internal Revenue Code of 1986 to consolidate certain tax benefits for educational expenses, and for other purposes.
Sponsor: Rep Black, Diane [TN-6] (introduced 10/30/2013)      Cosponsors (1) 
Committees: House Ways and Means 
Latest Major Action: 10/30/2013 Referred to House committee. Status: Referred to the House Committee on Ways and Means.


3. [113rd] H.R.3394 : To amend the Internal Revenue Code of 1986 to make the work opportunity tax credit permanent.
Sponsor: Rep Brownley, Julia [CA-26] (introduced 10/30/2013)      Cosponsors (None) 
Committees: House Ways and Means 
Latest Major Action: 10/30/2013 Referred to House committee. Status: Referred to the House Committee on Ways and Means.


4. [113rd] H.R.3395 : To amend the Internal Revenue Code of 1986 to extend the work opportunity credit for hiring veterans, and for other purposes.
Sponsor: Rep Brownley, Julia [CA-26] (introduced 10/30/2013)      Cosponsors (None) 
Committees: House Ways and Means 
Latest Major Action: 10/30/2013 Referred to House committee. Status: Referred to the House Committee on Ways and Means.


5. [113rd] H.R.3419 : To amend the Internal Revenue Code of 1986 to exempt certain small businesses from the employer health insurance mandate and to modify the definition of full-time employee for purposes of such mandate.
Sponsor: Rep Kingston, Jack [GA-1] (introduced 10/30/2013)      Cosponsors (None) 
Committees: House Ways and Means 
Latest Major Action: 10/30/2013 Referred to House committee. Status: Referred to the House Committee on Ways and Means.


6. [113rd] H.R.3422 : To amend the Internal Revenue Code of 1986 to allow a credit for veteran first-time homebuyers and for adaptive housing and mobility improvements for disabled veterans, and for other purposes.
Sponsor: Rep Langevin, James R. [RI-2] (introduced 10/30/2013)      Cosponsors (2) 
Committees: House Ways and Means 
Latest Major Action: 10/30/2013 Referred to House committee. Status: Referred to the House Committee on Ways and Means.


7. [113rd] H.R.3424 : To amend the Internal Revenue Code of 1986 to allow a credit against income tax for facilities using a qualified methane conversion technology to provide transportation fuels and chemicals.
Sponsor: Rep Larson, John B. [CT-1] (introduced 10/30/2013)      Cosponsors (None) 
Committees: House Ways and Means 
Latest Major Action: 10/30/2013 Referred to House committee. Status: Referred to the House Committee on Ways and Means.


8. [113rd] H.R.3428 : To amend the Internal Revenue Code of 1986 to allow an increased credit for development and to extend and simplify the credit for increasing research.
Sponsor: Rep McKinley, David B. [WV-1] (introduced 10/30/2013)      Cosponsors (1) 
Committees: House Ways and Means 
Latest Major Action: 10/30/2013 Referred to House committee. Status: Referred to the House Committee on Ways and Means.


9. [113rd] H.R.3430 : To amend the Internal Revenue Code of 1986 to encourage hiring unemployed individuals.
Sponsor: Rep McNerney, Jerry [CA-9] (introduced 10/30/2013)      Cosponsors (2) 
Committees: House Ways and Means 
Latest Major Action: 10/30/2013 Referred to House committee. Status: Referred to the House Committee on Ways and Means.


10. [113rd] H.R.3437 : To amend the Internal Revenue Code of 1986 to consolidate, with modifications, the Hope Scholarship Credit, the Lifetime Learning Credit, and the American Opportunity Tax Credit, and for other purposes.
Sponsor: Rep Schwartz, Allyson Y. [PA-13] (introduced 10/30/2013)      Cosponsors (None) 
Committees: House Ways and Means; House Education and the Workforce 
Latest Major Action: 10/30/2013 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.


11. [113rd] H.R.3439 : To amend the Internal Revenue Code of 1986 to provide for the permanent application of the new markets tax credit for the redevelopment of communities impacted by realignment or closure of military installations.
Sponsor: Rep Thompson, Mike [CA-5] (introduced 10/30/2013)      Cosponsors (1) 
Committees: House Ways and Means 
Latest Major Action: 10/30/2013 Referred to House committee. Status: Referred to the House Committee on Ways and Means.


12. [113rd] H.R.3445 : To amend the Internal Revenue Code of 1986 to disallow deductions for the payment of compensatory and punitive damages to a government, and for other purposes.
Sponsor: Rep Welch, Peter [VT] (introduced 10/30/2013)      Cosponsors (1) 
Committees: House Ways and Means 
Latest Major Action: 10/30/2013 Referred to House committee. Status: Referred to the House Committee on Ways and Means.


13. [113rd] S.1616 : A bill to amend the Internal Revenue Code of 1986 to provide for simplification, to reduce the number of tax brackets, and for other purposes.
Sponsor: Sen Lee, Mike [UT] (introduced 10/30/2013)      Cosponsors (None) 
Committees: Senate Finance 
Latest Major Action: 10/30/2013 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.


14. [113rd] S.1624 : A bill to amend the Internal Revenue Code of 1986 to extend the work opportunity credit for hiring veterans, and for other purposes.
Sponsor: Sen Blumenthal, Richard [CT] (introduced 10/30/2013)      Cosponsors (4) 
Committees: Senate Finance 
Latest Major Action: 10/30/2013 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.