Legislative Activity

Tax-Writers to Scrutinize Obama’s Budget

With President Obama set to release his FY 2017 Budget Proposal on the morning of Tuesday, February 9, House and Senate tax-writers this week have scheduled numerous hearings to review the tax and revenue portions of the Budget. The proposals – at least some of which are sure to be controversial – are unlikely to receive a warm welcome in Congress. In fact, President Obama has already unveiled one such proposal that has already resulted in pushback: a $10 per barrel tax on oil, which could result in a significant increase in the cost of gas. While the Administration would use part of the revenue to help fund transportation projects, many Congressional leadership have already indicated that the proposal is “dead on arrival.”

See below for further detail on this week’s Congressional review of the forthcoming Budget Proposal, including hearings with both Treasury Secretary Jack Lew and Internal Revenue Service (IRS) Commissioner John Koskinen.

This Week’s Hearings:

  • Wednesday, February 10: The Senate Finance Committee will hold a series of hearings titled “Revenue Proposals in the Administration’s Fiscal Year 2017 Budget.” The witnesses will include:
    • The Honorable Jacob J. Lew, Secretary of The Treasury, United States Department of the Treasury; and
    • The Honorable John Koskinen, Commissioner, Internal Revenue Service
  • Thursday, February 11: The House Ways and Means Committee will hold a hearing to discuss the President’s FY 2017 Budget Proposal. The witness will be:
    • The Honorable Jacob J. Lew, Secretary of The Treasury, United States Department of the Treasury
  • Thursday, February 11: The House Appropriations Subcommittee on Financial Services and General Government will hold a hearing to discuss the IRS’s budget.
  • Thursday, February 11: The House Oversight and Government Reform Committee will hold a hearing titled “IRS: Reviewing its Legal Obligations, Document Preservation, and Data Security.”

Regulatory Activity

IRS to Hold Meeting on Transfers of Property to Foreign Corporations

On Monday, February 8, the IRS will hold a meeting on the proposed regulations relating to certain transfers of property by U.S. persons to foreign corporations. The proposed regulations affect U.S. persons that transfer certain property, including foreign goodwill and going concern value, to foreign corporations in non-recognition transactions described in section 367 of the Internal Revenue Code. The proposed regulations also combine portions of the existing regulations under section 367(a) into a single regulation.