Trade bill heading to White House includes tax provisions

Trade bill to White House includes tax provisions

A trade bill, passed yesterday by the House and passed earlier in the week by the Senate, is headed to the White House for action by the president.

Related content

H.R. 1295, the Trade Preferences Extension Act of 2015, addresses a number of expiring trade items, and it also includes a number of tax-related provisions as revenue offsets, such as:

  • Significant increases (in many cases, doubling or tripling) in penalties for failure to file correct information returns under section 6721
  • Significant increases (in many cases, doubling or tripling) in penalties for failure to furnish correct payee statements under section 6722
  • Modifications to the due dates of some corporate estimated tax payments due in 2020
  • A requirement that taxpayers claiming the American Opportunity, Hope Scholarship, and Lifetime Learning education credits or deductions for Qualified Tuition and related expenses to receive a statement provided by the educational institution regarding qualified expenses in order to claim the tax benefits
  • A new provision excluding taxpayers taking advantage of the section 911 exclusions from claiming a refundable child tax credit

In addition, the bill included an extension through 2019 of the section 35 health coverage credit provided for recipients of a trade readjustment allowance and made various modifications to the program, largely related to coordination with the Affordable Care Act.

© 2016 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Request for proposal

 

Submit

KPMG's new digital platform

KPMG's new digital platform