Legislative Activity

Ways and Means Committee to Hold First Hearing on Tax Extenders; Finance Committee Passes Tax Extenders Bill

On Tuesday, April 8, the House Ways and Means Committee will hold its first hearing on tax extenders to consider those expired provisions that should be made permanent or provided long-term extensions.  This will likely be one in a series of hearings on extenders and more broadly on tax reform, as Chairman Dave Camp (R-MI) plans to go “policy by policy to determine which extenders should be made permanent.”  In announcing that he will not seek reelection, Chairman Camp indicated that he plans to “redouble” his efforts to pass comprehensive tax reform before the end of his term.

On the Senate side, on Thursday, April 3, the Senate Finance Committee held a markup of the EXPIRE Act, which passed out of Committee by a voice vote.

This Week’s Hearings:

  • Monday, April 7: The House Appropriations Committee will hold a budget hearing on the Internal Revenue Service.
  • Tuesday, April 8:  The House Ways and Means Committee will hold a hearing on tax reform titled, “The Benefits of Permanent Tax Policy for America’s Job Creators.”
  • Tuesday, April 8:  The Finance Committee will hold a hearing titled, “Protecting Taxpayers from Incompetent and Unethical Return Preparers.”
  • Tuesday, April 8:  The Senate Budget Committee will hold a hearing titled, “Supporting Broad-Based Economic Growth and Fiscal Responsibility through a Fairer Tax Code.”
  • Wednesday, April 8:  The House Small Business Committee will hold a hearing titled, “The Biggest Tax Problems for Small Businesses.”

Regulatory Activity

FATCA IGA Agreements in Substance to be Treated as Agreements in Effect

On Wednesday, April 2, the Internal Revenue Service (IRS) and the Treasury Department announced that they would treat those jurisdictions that have reached agreements in substance on the terms of an intergovernmental agreement (IGA) with the United States as having an IGA in effect through the end of 2014.  Generally, for withholding not to apply, the final FATCA regulations will require withholding agents to verify the status of foreign financial institutions (FFIs) as of July 1.  However, according to the announcement, FFIs in those jurisdictions treated as having an IGA in effect through December 31, will be permitted to register on the FATCA website consistent with that IGA status.