Daily Tax Update - January 14, 2013: Omnibus Appropriations Bill Would Cut IRS Funding by $526 Million

OMNIBUS APPROPRIATIONS BILL WOULD CUT IRS FUNDING BY $526 MILLION:  The $1.012 trillion omnibus spending measure agreed upon by the House and Senate Appropriations Committee chairmen would provide $11.3 billion for the Internal Revenue Service, which is $526 million below the fiscal year 2013 enacted level.  According to the summary, “Within this amount, $92 million in IRS funding is set aside to improve taxpayer services and address refund fraud, identity theft, and overseas compliance. The bill includes no additional funding for ObamaCare.  To help curb potential illegal and unethical activities at the IRS, the bill prohibits funds to target groups for regulatory scrutiny based on their ideological beliefs or to target citizens for exercising their First Amendment rights. The legislation also requires extensive reporting on IRS spending, training, and bonuses, and prohibits funding for inappropriate videos.”  The House is expected to pass the omnibus bill tomorrow and Senate passage is expected this weekend.

Today, the House approved a short-term spending bill funding the government through Saturday, which will prevent a government shutdown and allow time for action on the omnibus package.  The Senate is expected to pass the short-term bill tonight.

House Appropriations Chairman Hal Rogers said, “This is a very, very short-term continuing resolution to keep the government open and operating until January 18th.”   Ranking member Rep. Nita Lowey added, “This clean, three-day CR will guarantee no lapse in funding while the legislative gears turn.  It contains no policy provisions or other extraneous material. I support its quick passage."

TAX BILLS INTRODUCED JANUARY 13TH:

1. [113rd] H.R.3856 : Homeowners Debt Relief Extension Act of 2014 Sponsor: Rep Foster, Bill [IL-11] (introduced 1/13/2014)      Cosponsors (None) Committees: House Ways and Means Latest Major Action: 1/13/2014 Referred to House committee. Status: Referred to the House Committee on Ways and Means.


2. [113rd] H.R.3861 : To amend the Internal Revenue Code of 1986 to increase the deduction for business start-up expenditures from $5,000 to $10,000. Sponsor: Rep Shea-Porter, Carol [NH-1] (introduced 1/13/2014)      Cosponsors (2) Committees: House Ways and Means Latest Major Action: 1/13/2014 Referred to House committee. Status: Referred to the House Committee on Ways and Means.