Daily Tax Update - February 28, 2014: Rep. Brady Expected to Challenge Rep. Ryan for Next Ways and Means Committee Chairmanship

REP. BRADY EXPECTED TO CHALLENGE REP. RYAN FOR NEXT WAYS AND MEANS CHAIRMANSHIP:  Rep. Kevin Brady (R-TX) has said that he wants to challenge Rep. Paul Ryan (R-WI) for the next chairmanship of the House Ways and Means Committee.  Ryan currently serves as the Chairman of the House Budget Committee while Brady serves as the Chairman of the Joint Economic Committee.  Rep. Dave Camp must relinquish his chairmanship of the committee next year due to term limits.

Brady commented on Ryan saying, “He’s a terrific leader, a good friend.  But the point is, I’m qualified and prepared to lead this committee. At the right time, I’m going to make that case to my colleagues. This is all about the ideas and how we can move tax reform, trade, entitlement reform forward, so it’s good to have a healthy competition.”  Brady added, “I’m going to be in a position to lead this committee.  We’ll see how all of it goes.… Hopefully we’re going to present two good choices.”

SEN. WYDEN PLANS SPRING VOTE ON TAX EXTENDERS:  According to remarks today by a spokesperson for the Senate Finance Committee, new Chairman Sen. Ron Wyden (D-OR) plans to hold a vote on the expiring tax provisions (tax extenders) in the spring.  No specific timetable was given.

MISCELLANEOUS GUIDANCE RELEASED:
Revenue Procedure 2014-17 modifies the procedures in Rev. Proc. 2012-20, 2012-14 I.R.B. 700, and Rev. Proc. 2011-14, 2011-4 I.R.B. 330, regarding certain changes in method of accounting for dispositions of tangible depreciable property.

This revenue procedure supersedes Rev. Proc. 2012-20 and provides the procedures by which a taxpayer may obtain the automatic consent of the Commissioner of Internal Revenue to change to the methods of accounting provided in §§ 1.167(a)-4 and 1.168(i)-7 of the Income Tax Regulations, §§ 1.167(a)-4T, 1.168(i)-1T, 1.168(i)-7T, and 1.168(i)-8T of the temporary regulations, and §§ 1.168(i)-1, 1.168(i)-7, and 1.168(i)-8 of the proposed regulations.

This revenue procedure also modifies Rev. Proc. 2011-14 and allows a late partial disposition election under Prop. Reg. § 1.168(i)-8 or a revocation of a general asset account election under § 1.168(i)-1T or Prop. Reg. § 1.168(i)-1 to be treated as a change in method of accounting for a limited period of time.  Finally, this revenue procedure modifies section 6.01 of the APPENDIX of Rev. Proc. 2011-14 to waive a scope limitation in certain circumstances.

Revenue Procedure 2014-23 provides guidance with respect to the United States and area median gross income figures that are to be used by issuers of qualified mortgage bonds, as defined in § 143(a) of the Internal Revenue Code, and issuers of mortgage credit certificates, as defined in § 25(c), in computing the housing cost/income ratio described in § 143(f)(5).

TAX BILLS INTRODUCED FEBRUARY 27TH: 

1. [113rd] H.R.4104 : To amend the Internal Revenue Code of 1986 to make permanent the 7.5 percent threshold for the medical expense deduction for people 65 or older. Sponsor: Rep Negrete McLeod, Gloria [CA-35] (introduced 2/27/2014)      Cosponsors (None) Committees: House Ways and Means Latest Major Action: 2/27/2014 Referred to House committee. Status: Referred to the House Committee on Ways and Means.


2. [113rd] H.R.4110 : To amend the Internal Revenue Code of 1986 to provide a tax credit to encourage private employers to hire veterans, to amend title 38, United States Code, to clarify the reasonable efforts an employer may make under the Uniformed Services Employment and Reemployment Rights Act with respect to hiring veterans, and for other purposes. Sponsor: Rep Jackson Lee, Sheila [TX-18] (introduced 2/27/2014)      Cosponsors (7) Committees: House Ways and Means; House Veterans' Affairs Latest Major Action: 2/27/2014 Referred to House committee. Status: Referred to the Committee on Ways and Means, and in addition to the Committee on Veterans' Affairs, 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.


3. [113rd] H.R.4114 : To amend the Internal Revenue Code of 1986 to provide a credit for property certified by the Environmental Protection Agency under the WaterSense program. Sponsor: Rep McNerney, Jerry [CA-9] (introduced 2/27/2014)      Cosponsors (1) Committees: House Ways and Means Latest Major Action: 2/27/2014 Referred to House committee. Status: Referred to the House Committee on Ways and Means.


4. [113rd] H.R.4117 : To amend the Internal Revenue Code of 1986 to expand the earned income tax credit. Sponsor: Rep Rangel, Charles B. [NY-13] (introduced 2/27/2014)      Cosponsors (None) Committees: House Ways and Means Latest Major Action: 2/27/2014 Referred to House committee. Status: Referred to the House Committee on Ways and Means.


5. [113rd] S.2050 : A bill to amend the Internal Revenue Code of 1986 to increase the national limitation amount for qualified highway or surface freight transfer facility bonds. Sponsor: Sen Kirk, Mark Steven [IL] (introduced 2/27/2014)      Cosponsors (None) Committees: Senate Finance Latest Major Action: 2/27/2014 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.


6. [113rd] S.2059 : A bill to amend the Internal Revenue Code of 1986 to allow a credit for the purchase of heating and cooling equipment which meets the Energy Star program requirements and is used in certain high-cost energy communities, and for other purposes. Sponsor: Sen Begich, Mark [AK] (introduced 2/27/2014)      Cosponsors (None) Committees: Senate Finance Latest Major Action: 2/27/2014 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.


7. [113rd] S.2066 : A bill to amend title 18, United States Code, to prohibit the intentional discrimination of a person or organization by an employee of the Internal Revenue Service. Sponsor: Sen Cruz, Ted [TX] (introduced 2/27/2014)      Cosponsors (1) Latest Major Action: 2/27/2014 Introduced in the Senate. Read the first time. Placed on Senate Legislative Calendar under Read the First Time.


8. [113rd] S.2069 : A bill to amend the Internal Revenue Code of 1986 to expand and modify the credit for employee health insurance expenses of small employers. Sponsor: Sen Begich, Mark [AK] (introduced 2/27/2014)      Cosponsors (6) Committees: Senate Finance Latest Major Action: 2/27/2014 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.


9. [113rd] S.2073 : A bill to amend title 18, United States Code, to prohibit the intentional discrimination of a person or organization by an employee of the Internal Revenue Service. Sponsor: Sen Cruz, Ted [TX] (introduced 2/27/2014)      Cosponsors (None) Committees: Senate Judiciary Latest Major Action: 2/27/2014 Referred to Senate committee. Status: Read twice and referred to the Committee on the Judiciary.