Legislative Activity
Tax Extenders Bill Stalls in Senate, Timing Now Unclear
On May 15, the Senate was unable to garner the 60 votes needed to end debate on tax extenders legislation. The bill, which would provide a two-year extension for certain tax extenders that expired on January 1, stalled as a result of Republican concerns over the amendment process. Senate Finance Committee Chairman Ron Wyden (D-OR) suggested that the Senate may take up the bill again on Tuesday, May 20. However, Chairman Wyden also indicated that Republicans must provide a list of amendments they intend to offer before the Senate will take up the bill.
Senator Levin to Introduce Anti-inversion Bill
Last week, Senator Carl Levin (D-MI) announced that he plans to introduce anti-inversion legislation on Tuesday, May 20. According to Senator Levin, the bill will be similar to a proposal in the Obama Administration’s FY2015 Budget Proposal, which calls for raising the required foreign ownership of stock to 50 percent for corporate inversions. Senator Levin has also indicated that his proposal may have a two-year sunset provision, which would allow Congress additional time to address corporate tax inversions when implementing comprehensive tax reform.
According to a spokesperson for Representative Sandy Levin (D-MI), Ranking Member of the House Ways and Means Committee, he plans to introduce a companion anti-inversion bill in the House on the same day that Senator Levin introduces his legislation in the Senate.
Regulatory Activity
IRS Updates FATCA FAQs
On May 13, the Internal Revenue Service (IRS) again updated its list of Foreign Account Tax Compliance Act (FATCA) FAQs. Specifically, the IRS provided guidance on how trustees of trustee-documented trusts should register to participate in FATCA, indicating that these trusts should use the same procedures used by sponsors to register sponsored entities.
