Congress returned to Washington today, and may consider certain tax-related items and other pressing matters before it leaves at the end of September 2016. Congress is currently scheduled to return after the November 8th election for a possible “lame duck” session.
Among the items that Congress may attempt to address in the next few weeks could include legislation in the following areas:
Another issue being promoted by certain House Republicans is a bill for the impeachment of the IRS Commissioner John Koskinen.
While the Senate Finance and House Ways and Means committees may consider a number of tax-related items during the September session, it is likely that final resolution of most the items will be delayed until Congress is scheduled to return in November after the election. Other tax matters that could be considered during a post-election congressional session include tax technical corrections and a number of “tax extenders” (certain expiring tax preference items).
Possible tax technical corrections could be considered to clarify a number of recent tax laws, including the Protecting Americans from Tax Hikes Act of 2015 (PATH Act) and the Consolidated Appropriations Act, 2016. Among the technical corrections being considered are provisions that would clarify:
Also, clerical changes to the partnership audit rules might be considered.
The PATH Act (enacted at the end of 2015) included measures that made permanent a number of the tax extenders—including the research credit and the rules for expensing of depreciable property under section 179. The PATH Act further extended certain expired provisions retroactively from the beginning of 2015 through 2019. However, there were certain tax extenders that were only temporarily extended (generally from January 1, 2014, through December 31, 2016) by the PATH Act. These items now expire at the end of this year, including:
In addition, the PATH Act reinstated a 10% credit for the purchase of electric motorcycles in 2015 and 2016. The credit, which is capped at $2,500 per qualifying vehicle, was in place prior to 2014, but was allowed to expire on December 31, 2013. The provision applies only to two-wheel, not three-wheel, electric vehicles.
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