It is common for the IRS to waive Failure to File (FTF) and Failure to…
As reported by the Wall Street Journal in this morning’s paper below is a brief synopsis of the proposed tax cuts in the tax bill currently being decided on by Congress:
(1) Two-year extension of current tax rates including 15% capital gains rate
(2) Employee share of payroll taxes will be reduced from 6.2% to 4.2%.
Middle Income Taxpayers
(1) Extension of credit for college students to offset tuition costs
(2) Some 22 million families exempted from the Alternative Minimum Tax
Lower Income Taxpayers
Expansion of $1,000 Child-Tax Credit to more families
(1) Up to 100% expensing of investments including plants and equipment
(2) Extension of credits for research and development
First $5 million of estate exempted, after that a top rate of 35%, down from current 45%.
Unemployment benefits extended for long-term jobless.
The above items were agreed upon at the meeting per the Wall Street Journal article but still must be passed by both the House and the Senate. There may still be some negotiating but it is now probable most will pass in some form.
We will follow up with postings as the bill become final.