Tax Extenders Bill Passes House

December 18, 2009

H.R. 4213, the “Tax Extenders Act of 2009,” as passed by the House of Representatives on December 9 by a vote of vote of 241-181, would extend a host of expiring tax provisions (including a one-year extension of the IRA rollover provisions) and adopt new provisions to offset the cost of the extenders. These offsets would include new crackdowns to discourage hiding assets overseas and a measure that would prevent certain fund managers from paying tax at capital gain rates on investment management services income received as carried interest in an investment fund. It is highly likely that the Senate ultimately will approve the same list of extenders (although the “pay fors” may not be the same). Checkpoint's Bill Tracker feature, fully updated to reflect the House-passed extenders bill, is an invaluable research aid for those who must know which expiring tax provisions will likely be extended, and whether changes have been made to the provisions.

It is increasingly unlikely the Senate will pass the bill as is before adjourning for the year. The House bill is offset by new taxes on investment fund managers and the share of profits they are allowed to keep as part of their compensation. Beyond the fact that the Senate is engulfed in considerations of health care reform and appropriations, there is little support in the Senate for the House’s taxation of investment fund managers.

Source: RIA Federal Taxes Weekly Alert, December 17, 2009

This text is provided with the understanding that ECFA is not rendering legal, accounting, or other professional advice or service. Professional advice on specific issues should be sought from an accountant, lawyer, or other professional.