All News

Senate Finance Committee approves Tax Cuts and Jobs Act

by Matthew Person on November 27, 2017

Tax Cuts and Jobs Act Passes House Ways and Means Committee

The Senate Finance Committee recently approved its version of the Tax Cuts and Jobs Act. The bill is now on it’s way to the full Senate for debate and a vote. The Finance committee spent over a week amending the bill, and the final version includes some changes beyond those included in the chairman’s mark released early in November

The Senate is expected to take up the bill after it has fully returned from its Thanksgiving recess.

Here are notable changes in the final version approved by the Committee:

Changes For Individuals

  • Free File Program: The Senate bill would codify and make permanent the IRS’s Free File program.
  • Carried Interests: The Senate bill would impose a three-year holding period requirement before certain partnership interests transferred in connection with the performance of services would qualify for long-term capital gain treatment.
  • Whistleblower Wwards: The Senate bill would provide an above-the-line deduction for attorneys’ fees and court costs paid in connection with any action involving claims under a state false claims act, the SEC whistleblower program, and the Commodity Futures Trading Commission whistleblower program.
  • The bill would also modify Sec. 7623 to expand the definition of collected proceeds eligible for whistleblower awards.

Changes For Businesses

  • Excessive Compensation: Sec. 162(m) limits the deductibility of compensation paid to certain covered employees of publicly traded corporations.The bill includes a transition rule, so that the proposed changes would not apply to any remuneration under a written binding contract that was in effect on Nov. 2, 2017, and that was not later modified in any material respect.
  • Employer-Provided Meals: The Senate bill would disallow an employer’s deduction for expenses associated with meals provided for the convenience of the employer on the employer’s business premises, or provided on or near the employer’s business premises through an employer-operated facility that meets certain requirements. However, the final version of the bill delays this change until tax years starting after 2025.
  • Dividends Received: The Senate bill would also reduce the current 70% dividends-received deduction to 50% and the 80% dividends-received deduction to 65%.
  • Dividends Paid: Under the Senate bill, corporations that pay dividends would be required to report the total amount of dividends paid during the tax year and the first 2½ months of the succeeding year, effective for tax years beginning after 2018. Corporations would not be allowed to deduct dividends paid when computing taxable income.
  • Net Operating Losses: The Senate bill would limit the net operating loss deduction to 80% of taxable income (as determined without regard to the deduction). Net operating losses would be allowed to be carried forward indefinitely, but not carried back (except for certain farming losses). This change would apply to tax years beginning after 2022.
  • Amortization of Research and Experimental Expenditures: The Senate bill would require specified research or experimental expenditures to be capitalized and amortized over a five-year period, effective for amounts paid or incurred in tax years beginning after 2025. Specified research and experimental expenditures attributable to research conducted outside the United States would be amortized over a 15-year period. The bill would also institute a new reporting requirement, for tax years beginning after 2024.
  • Orphan Drug Credit: The Senate bill would reduce the current Sec. 45C 50% orphan drug credit to 27.5% and would institute reporting requirements similar to the required for the Sec. 48C qualifying advanced energy project credit and the Sec. 48D qualifying therapeutic discovery project credit.

Tax Cuts and Jobs Act Passes House Ways and Means Committee

November 14, 2017

Originally released early in November, the Tax Cuts and Jobs Act ( H.R. 1) has now passed the House Ways and Means Committee 24 to 16, and with that vote will be sent to the full House. The bill as marked up by the committee contains many of the changes from the first iteration. Reportedly, […]

Read the full article →

House Republicans released long-awaited tax plan

November 6, 2017

On November 2nd House Republicans released their long awaited tax plan. The framework extends to many different areas of the tax code: two critical areas are tax deductions and credits. These reduce how much taxpayers owe, but they affect various income groups differently. Here’s How could the proposed changes to these policies affect your taxes. […]

Read the full article →

Tax Moves to Make for Next April

October 25, 2017

Big changes are coming to the tax code. While how exactly those changes will take form is still shaping up in Washington, you can take precautionary steps now to get your tax situation ready for the upcoming filing year. The first thing you should do is get all of your records from the previous few […]

Read the full article →

Plans for Tax Reform to Face Key Senate Vote

October 16, 2017

The Republican push for a broad tax overhaul faces a big hurdle this week as senators must approve a budget bill which would clear the way for tax reform to pass the Senate with just GOP support. If at least 50 of the 52 Senate Republicans vote for the budget bill later this week, it […]

Read the full article →

Republicans Unveil Sweeping Changes to America’s Tax Code

September 28, 2017

Big changes are coming to our tax code. Yesterday, Wednesday September 27th, Republicans revealed their proposed changes which include changes to tax brackets, corporate tax rates, and pass-through business tax rates. According to Senate Majority Leader Mitch McConnell “This framework is focused on supporting American jobs, on making taxes fairer and on growing families’ paychecks.” […]

Read the full article →

Louisiana Department of Revenue Grants Filing Extensions to Those Affected by Hurricane Harvey

September 26, 2017

The Louisiana Department of Revenue has released Revenue Information Bulletin No. 17-015 which grants filing extensions to taxpayers whose homes, principal places of business, or critical tax records are located in any of the disaster areas declared by the president as a result of Hurricane Harvey. Affected Parishes For Louisiana Declared disaster areas include the […]

Read the full article →

GOP Days away from Nation’s Biggest Tax Law Rewrite in Years, here are 4 of the Biggest Questions

September 18, 2017

The GOP is closing in on a massive legislative rewrite for taxes which is set to be revealed on September 25th. The Trump administration has thus far kept the details tightly under wraps, and everyone is wondering “Will these changes be tax reform, or tax cuts?”. After the big reveal, bipartisan talks will begin to […]

Read the full article →

Governor Edwards Urges Congress to Ease Restrictions on Benefits to Flood Victims

September 7, 2017

Governor John Bel Edwards has asked Congress to ease a restriction on benefits that victims of floods would receive from the Federal Government to help with rebuilding their homes. In a letter, The Governor told congress that the restriction has caused problems for Louisiana as we have tried to recover from the widespread flooding in […]

Read the full article →