On December 19, 2014, President Obama signed into law the Tax Increase Prevention Act of 2014. The Act retroactively extends through 2014 most of the tax provisions that would otherwise have expired at the end of 2013 or during 2014. Passage of the Act removes the uncertainty as to whether certain tax benefits would be available to taxpayers on their 2014 tax returns. However, because the extension provided in the Act only applies through 2014, additional legislative action will be required to extend these provisions for 2015.
On December 19, 2014, U.S. President Obama signed1 into law the Tax Increase Prevention Act of 2014.2 The Act retroactively extends through 2014 most of the tax provisions that would otherwise have expired at the end of 2013 or during 2014.
Passage of the Act removes the uncertainty as to whether certain tax benefits would be available to taxpayers on their 2014 tax returns. However, because the extension provided in the Act only applies through 2014, additional legislative action will be required to extend these provisions for 2015.
The start of the 2014 tax filing season is likely to be delayed while the U.S. Internal Revenue Service (IRS) carries out updates to reflect the changes introduced by the Act.
Tax provisions extended by the Act that may apply to individual taxpayers include the following:
Not all expiring provisions have been extended however. The provisions that have not been extended and therefore expire at the end of 2013 include the following:
2 HR 5771. The text of the Tax Increase Prevention Act 2014 is available on the Thomas Web of the Library of Congress at:.
|For a related story, see “Legislative Update - Senate Passes ‘Tax Extenders’” in KPMG LLP’s TaxNewsFlash-United States (December 17, 2014).|
The following information is not intended to be "written advice concerning one or more Federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230 as the content of this document is issued for general informational purposes only.
The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.
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