Daily Tax Update - November 14, 2013: Boehner and Camp Hold Informational Meeting on Tax Reform

BOEHNER AND CAMP HOLD INFORMATIONAL MEETING ON TAX REFORM:  Today, House Speaker John Boehner and Ways and Means Chairman Dave Camp met to discuss the outlook for tax reform.  Boehner said that the leadership doesn’t want to delay Camp from introducing a bill soon.  Boehner said, "No, look, we have these periodic meetings with the chairman [Camp] about the issue of tax reform.  We believe that tax reform would be good for our economy, would help produce more jobs -- and frankly, at higher wages."  Boehner added, “And so this is an informational meeting, to kind of see where they are. That's not the purpose of the meeting."

On the Senate side, Finance Chairman Max Baucus postponed a closed-door meeting today to discuss tax reform discussion drafts.  The meeting has been rescheduled for November 19.  A spokesperson for Baucus said, “Sen. Baucus wants to take some additional time to talk to members and hear the concerns expressed by some before deciding on a path forward.”

On the issue of tax reform, a spokesman for ranking member Orrin Hatch said today, “There’s a bipartisan desire to fix America’s broken tax code, but there’s also a partisan desire by some to raise taxes under the guise of so-called tax reform in the budget conference negotiations that are currently taking place.”  Hatch’s spokesperson added, “In the spirit of trying to ensure tax reform does not get bogged down in this partisan morass and after discussions with his Republican colleagues on the Finance Committee, Sen. Hatch communicated to Chairman Baucus that he believes the most prudent path would be to hold off on releasing these discussion drafts until after the budget conference concludes. He appreciates the Chairman considering this by delaying today’s member meeting.”

PRESIDENT OFFERS “ADMINISTRATIVE FIX” FOR HEALTH CARE ACT:  Today, President Obama offered a one-year fix for those people who lost health insurance coverage under the Affordable Care Act.  The President said that anyone who lost health care insurance coverage has up to a year to renew their old policies.  The President said, “Already, people who have plans that predate the Affordable Care Act can keep those plans if they haven’t changed.  That was already in the law.  That's what's called a grandfather clause.  It was included in the law.  Today, we're going to extend that principle both to people whose plans have changed since the law took effect, and to people who bought plans since the law took effect. So state insurance commissioners still have the power to decide what plans can and can’t be sold in their states.  But the bottom line is, insurers can extend current plans that would otherwise be canceled into 2014, and Americans whose plans have been canceled can choose to re-enroll in the same kind of plan.”

U.S. SIGNS FATCA AGREEMENT WITH FRANCE:  Today, the Treasury Department announced that the United States and France have signed an intergovernmental agreement that will require banks in France to report tax information about U.S. account holders directly to the French government.

Notice 2013-75 provides guidance as to the corporate bond weighted average interest rate and the permissible range of interest rates specified under § 412(b)(5)(B)(ii)(II) of the Internal Revenue Code as in effect for plan years beginning before 2008.  It also provides guidance on the corporate bond monthly yield curve (and the corresponding spot segment rates), and the 24-month average segment rates under § 430(h)(2).  In addition, this notice provides guidance as to the interest rate on 30-year Treasury securities under § 417(e)(3)(A)(ii)(II) as in effect for plan years beginning before 2008, the 30-year Treasury weighted average rate under § 431(c)(6)(E)(ii)(I), and the minimum present value segment rates under § 417(e)(3)(D) as in effect for plan years beginning after 2007.  The rates in this notice reflect certain changes implemented by the Moving Ahead for Progress in the 21st Century Act, Public Law 112-141 (MAP-21).