Seven Ways On How To Prepare For Income Tax Act Pdf With Latest Amendments – Income Tax Act Pdf With Latest Amendments
Wednesday, December 19, 2018
Recently proposed legislation would accommodate taxpayers who fabricated an acclamation beneath Internal Revenue Code (Code) Area 965(h) to pay the alteration tax over eight years through chapter payments the adeptness to affirmation a acquittance or acclaim of any overpayment with account to such amounts.
If enacted, taxpayers would be able to affirmation a acquittance or acclaim on an overpayment with account to their aboriginal chapter acquittal beneath Code Area 965(h).
On November 26, 2018, House Ways and cy Committee Chair Kevin Brady, R-Texas, alien the Retirement, Aculation and Other Tax Abatement Act of 2018 and the Taxpayer Aboriginal Act of 2018 (H.R. 88), which was after revised on December 17, 2018 (the Bill). The Bill is a ample tax amalgamation that includes ertive tax extenders, retirement aculation proposals, Internal Revenue Service (IRS) advance legislation and several abstruse corrections to the Tax Cuts and Jobs Act (P.L. 115-97).
Included in the Bill is a accouterment that, if enacted, would acquiesce taxpayers to affirmation a acclaim or acquittance of any overpayment with account to an chapter acquittal of the taxpayer’s alteration tax beneath Code Area 965. In particular, area 14103 of the Bill apology Code Area 965(h) by introducing new Code Sections 965(h)(7) and 965(h)(8), which accommodate that the IRS may acclaim or acquittance any “excess remittance” in the aforementioned address as an overpayment of tax, but after interest. An “excess remittance” about agency a acquittal (including an estimated payment) that exceeds the sum of (1) a taxpayer’s US federal ets tax accountability after attention to Code Area 965 and after attention to any ets or answer attributable to any allotment accustomed from a deferred adopted ets corporation, additional (2) the sum of all installments with which the due date has ped.
In addition, the Bill absolutely provides that any overpayments of the alteration tax payable in installments beneath Code Area 965(h) shall not be accustomed adjoin the actual contributed installments (by accouterment that the aboriginal book of Code Area 6403 shall not apply).
If enacted, these amendments would be attendant to the able date of Code Area 965 (i.e., December 22, 2017), acceptation that taxpayers that fabricated an overpayment with account to their aboriginal chapter acquittal may be able to affirmation a acquittance on such overpayment, or administer the overpayment to their 2018 estimated tax payments.
The admittance of this accouterment in the Bill is in acknowledgment to PMTA 2018-016, which reaffirmed and provided a absolute ay of the IRS’s position originally set alternating in beforehand 2017 Q&A guidance. This abstruse advice espouses the appearance that taxpayers authoritative a Code Area 965(h) acclamation cannot use any overpayments of 2017 tax liabilities as a acclaim for 2018 estimated tax payments and such amounts cannot be refunded unless and until the overpayment bulk exceeds the abounding eight years of chapter payments. In contempo 2018 Q&A guidance, the IRS reaffirmed their position in PMTA 2018-016 by extending this appearance to taxpayers that fabricated a area 965(h) acclamation for the 2018 tax year and that accomplish an overpayment of their 2018 tax liability. Having said that, the 2018 Q&A advice offers some abatement insofar as taxpayers that fabricated a area 965(h) acclamation for the 2017 tax year may affirmation a acquittance or acclaim with account to any overpayment of their 2018 tax liability.
Although the House Rules Committee voted to accelerate the Bill to the attic of the House of Representatives on November 28, 2018, the House has delayed a vote on the Bill due to above President George H.W. Bush’s casual on November 30, 2018. In addition, Senate Democrats accept casting agnosticism on whether an acceding can be accomplished on the Bill, authoritative both the timing and likelihood of the Bill actuality allowable into law unclear.
Practice Point: The addition of the Bill signals belief, at atomic amid some ociates of Congress, that the IRS’s position in the Q&A advice and its acknowledged estimation in PMTA 2018-016 conflicts with Congress’s absorbed in acceptance cessation of the acquittal of the alteration tax. It charcoal to be apparent whether the Bill will p, or whether this accurate accouterment will be allowable in consecutive legislation. We will abide to chase this development and accommodate updates in the future.