Legislative update: House passes budget agreement, containing tax provisions

House passes budget agreement, tax provisions

The House on October 28, passed the “budget agreement”—a bill that suspends the limit on public debt (the “debt ceiling”) through March 15, 2017, and increases defense and discretionary spending for fiscal years 2016 and 2017 above the levels set by the Budget Control Act of 2011. Revenue offsets in the budget agreement (the “Bipartisan Budget Act of 2015”) include two partnership tax provisions:

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  • Changes to the rules for partnership audits and adjustments
  • Amendments to Code sections 704(e) and 761(b) relating to the determination of who is a partner in a partnership

The agreement also includes changes to pension funding, including amending section 430(h)(3) of the Code (relating to mortality tables).  For more details, read TaxNewsFlash-United States

The bill has been sent to the Senate for its consideration. When the Senate would take up the budget agreement is not certain, with some reports indicating that a vote could be expected early next week, possibly by Tuesday, November 3.

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