News

Tax break on repatriated foreign earnings may spur R&D

A new academic study suggests that the provisions in the Tax Cuts and Jobs Act encouraging companies to repatriate their foreign earnings back to the U.S. at a reduced tax rate could lead to more spending on research and development.

The study looked at an earlier corporate tax holiday in 2004 from the American Jobs Creation Act, which led to a wave of stock buybacks and corporate dividends rather than the number of jobs originally envisioned. However, the study found that the law did produce more spending on research and development. The study…

Read full article here

 

News

Federal Spending Bill Includes Tax Provisions

The Consolidated Appropriations Act, 2018, H.R. 1625, which is the $1.3 trillion spending bill that Congress passed on Friday, contains a few tax-related provisions, including funding for the IRS and technical corrections to various recent pieces of tax legislation.

It also amends the centralized partnership audit regime and changes the Sec. 199A deduction for farmers who sell grain to agricultural cooperatives. The bill passed the House of Representatives on Thursday by a 256–167 vote. It passed the Senate early Friday on a 65–32 vote. President…

Read full article here

 

News

Senators Ask IRS To Issue Guidance On R&D Tax Credit

Law360, New York (July 20, 2016, 8:15 PM EDT) — A trio of senators on Tuesday asked the Internal Revenue Service and the U.S. Department of the Treasury to “use common sense” in administering new provisions of a law that expands access to a research and development tax credit to startups and small businesses.

In a letter to IRS and Treasury officials, U.S. Senators Chris Coons, D-Del., Pat Roberts, R-Kan., and Chuck Schumer, D-N.Y., called on the IRS to “carefully issue” guidance to ensure the smooth and effective implementation of so-called R&D credits for startup companies…

Read full article here

 

News

Protecting American From Tax Hikes Act of 2015

Just before recessing for the holidays, the House and Senate passed the Protecting Americans from Tax Hikes (PATH) Act of 2015. The Act does considerably more than the typical tax extenders legislation seen in prior years. It makes permanent over 20 key tax provisions, including the research tax credit, enhancedCode Sec. 179 expensing and the American Opportunity Tax Credit. It also extends other provisions, including bonus depreciation, for five years; and revives many others for two years. In addition, many extenders have been enhanced; and numerous other provisions that impact tax administration, “family tax relief,” real estate investment trusts and more were made part of the final bill. Further, the Act imposes a two-year moratorium on the PPACA medical device excise tax. The House passed the Act on December 17 by a vote of 318 to 109; the Senate approved the Act along with a Fiscal Year 2016 omnibus spending measure on December 18 by a vote of 65 to 33. President Obama signed the legislation on December 18.

A new “Tax Briefing: Protecting Americans From Tax Hikes Act off 2015” is now available, designed to bring you up to speed, in summary style, on all tax provisions within this new law. For a review of this latest Tax Briefing, click here.

Read full article here