On The Hill

Tax Update (June 10)

Jun 10, 2019 | SHARE  
IRS Modernization   

On Thursday (June 6), House Ways and Means Committee leaders introduced Internal Revenue Service (IRS) legislation that pulls out a disputed provision on the Free File program, which has caused a holdup in the Senate. The new bill otherwise mirrors legislation that previously passed the House this session, H.R. 1957. It is still unnumbered but is being referred to as the Taxpayer First Act. The legislation updates IRS operations and taxpayer rights and includes a provision which creates two new categories of taxpayers whose cases cannot be referred to private debt collectors. Senate Finance Chairman Chuck Grassley (R-IA) appears to be on board with the plan to drop Free File codification, which means the legislation could soon reach the president’s desk[1].


Digital Tax

An international plan to tax corporate profits across borders will apply to more than just technology service providers, a Treasury Department official said today (June 7).

“It will be broad-based, so it’s not going to focus on specific business models,” said Brian Jenn, Treasury’s Deputy International Tax Counsel, at the Organization for Economic Co-operation and Development’s (OECD) International Tax Conference in Washington, DC. Any global solution to taxing multinational companies in the digital economy will need to have a formula as an aspect of its design. The road-map laid out by the OECD may result in altering national tax laws and treaties to form a more multilateral approach for international taxation[2].


Tax Extenders

Despite the hearing in the House Ways and Means Committee this week, House Democrats are still grappling with a tax extenders package. There continues to be a lack of Democratic support for a tax bill that would largely help the business community, along with continued uncertainty related to where appropriations for the extenders will stem from. The Senate has set up working groups to examine the issue further – largely for show – but it appears a package will likely not be completed until Fall.


Members Day Hearing

This week, the House Ways and Means Committee held a members day Hearing. Repealing the state and local tax deduction cap, and extending a tax credit for bio diesel producers was discussed heavily, as was the Alternative Fuel Tax Credit (AFTC).



[1] “IRS bill officially reintroduced without Free File” Politico Pro. 6 June 2019. https://subscriber.politicopro.com/article/2019/06/irs-bill-officially-reintroduced-without-free-file-3378458

[2] “Tax Conference Provides First Look at OECD’s Digitalization Roadmap.” United States Council for International Business. 5 June 2019. https://www.uscib.org/tax-conference-provides-first-look-at-oecds-digitalization-roadmap/


The Week Ahead

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The Week Ahead

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