Daily Tax Update - November 21, 2013: Treasury, IRS Release Update to 2013-2014 Priority Guidance Plan

THE DAILY TAX UPDATE WILL BE PUBLISHED ON A PERIODIC BASIS UNTIL CONGRESS RETURNS DECEMBER 3

TREASURY, IRS RELEASE UPDATE TO 2013-2014 PRIORITY GUIDANCE PLAN:  The Treasury Department and the IRS have released the first quarter update to the 2013-2014 Priority Guidance Plan.  Treasury and the IRS said, “The plan represents projects we intend to work on actively during the plan year and does not place any deadline on completion of projects.  Projects on the 2013-2014 plan will provide guidance on a variety of issues important to individuals and businesses, including international taxation, health care, and implementation of legislative changes.”  Treasury and the IRS also stated, “The first quarter update to the 2013-2014 plan reflects 5 additional projects that have become priorities and/or guidance we have published during the period from July 16, 2013 through September 30, 2013 of the plan year.  We intend to update and republish the 2013-2014 plan during the plan year.”

The plan can be accessed via:  2013-2014_pgp_1st_quarter_update (2)1.pdf 

BAUCUS RELEASES DISCUSSION DRAFT ON COST RECOVERY AND ACCOUNTING:  Today, Senate Finance Committee Chairman Max Buacus released a staff discussion draft on cost recovery and tax accounting rules.  Feedback on the cost recovery and tax accounting rules discussion draft is requested by January 17, 2014.

The discussion draft offers proposals to:

  • “Replace current rules with a system that better approximates economic depreciation based on estimates from the Congressional Budget Office. 
  • Reduce the number of major depreciation rates from more than 40 to 5.
  • Eliminate the need for businesses to depreciate each of their assets separately.  Permanently increase Section 179 expensing to $1 million and expand the definition of qualifying expenses.”

An overview of the cost recovery and accounting discussion draft can be found here, and a one-pager on the draft can be found here.

The full staff discussion draft in legislative language can be found here.