Congress has passed a short-term highway funding bill with revenue-raising and tax cut provisions that will do the following:
- Adjust the annual return filing deadlines starting with the 2017 filing season
- Limit the basis of inherited assets
- Expand mortgage reporting
- Provide a six-year statute of limitations for basis understatements
- Extend pension asset transfers to retiree health and life insurance accounts
- Lower the excise tax rates for liquefied natural gas and liquid petroleum gas (propane)
- Remove employees with certain government health coverage from Affordable Care Act employer coverage requirements
- Provide that medical care from a service-connected disability doesn't affect health savings account eligibility
Many of these tax changes are important to the firm and its clients, and the bill will quickly be signed into law by the president. The short-term extension of highway funding also leaves open the possibility that House Republicans will try use the next extension in October as a vehicle for international tax reform.
Tax Legislative Update 2015-05 includes details on all the tax provisions and an outlook for international reform. It has been distributed to the Tax Hot Topics email list but should also be shared directly with interested clients.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
