Tax News & Views

 INSIGHTS FROM OUR NATIONAL TAX OFFICE

DECEMBER 22, 2015 
Tax Extenders and More Signed into Law
 
On Friday afternoon, Dec. 18, President Obama signed into law the Consolidated Appropriations Act, 2016, which provides funding for the various operations and agencies of the government through September 30, 2016. The Appropriations Act also contained the Protecting Americans from Tax Hikes Act (PATH Act), the tax extenders legislation.  

The tax extender PATH Act legislation provided the greatest amount of general tax changes, but the Appropriations Act also contains certain specialized tax provisions important to individuals and business owners. Find out more about each of these pieces of legislation by clicking on the links below.

Tax Extenders
The PATH Act is the legislative vehicle for passing what has become known as the "tax extenders," those 50-60 various tax provisions that have lapsed, only to be extended, many times again. However, this time around, several of the tax extender provisions gained permanent status, rather than the usual two-year extension period. 

In addition, many other special provisions were affected, including:
  • Family Tax Relief Credits
  • Program Integrity for certain tax-related items
  • Real estate investment trusts
  • IRS administration reforms
  • U.S. Tax Court access and administration
Click here to read more about what's in the tax extender legislation. 

Appropriations Act
While the Appropriations Act is primarily about funding the U.S. government, a number of provisions related to tax issues had a central role in the Congressional discussions leading up to the presentation of the appropriations legislation to the President for signature, including a delay in implementing certain Affordable Care Act (ACA) health insurance provisions and a one year moratorium on the payment of the ACA health insurance provider fee. Other tax, or tax related items included:
  • A five-year extension on the availability of wind and solar credits (subject to a credit rate phase-out schedule)
  • A modification to the production tax credit calculations for small refiners
Click here to read more about the tax implications of the Appropriations Act. 

Eide Bailly's National Tax Office serves as a resource for clients to help analyze complex tax issues related to business decisions. Our professionals are committed to helping clients stay informed about tax news, developments and trends through various specialty areas, including cost segregation studies, wealth transfer, state and local taxation, international tax, IRS controversy and procedures, R&D tax incentives, tax-exempt organizations, tax legislation, accounting methods and pass-through entities.

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This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Eide Bailly LLP and the author do not assume responsibility for any individual's reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique before recommending the technique to a client or implementing it on the client's behalf. To request reprints of this publication, send a written request to RequestReprints@eidebailly.com. © 2015 Eide Bailly LLP.