On July 31, President Obama signed into law H.R. 3236, the “Surface Transportation and Veterans Health Care Choice Improvement Act of 2015,”. The bill includes tax provisions which:
- Require lenders to report more information on outstanding mortgages, including the origination date, the amount of outstanding principal, and the property's address;
- Clarify that the 6-year statute of limitations applies in cases where any overstatement of basis results in a substantial (25% or more) omission of income;
- Require large estates (i.e., those required to file an estate tax return) to provide IRS with the value of property included in the gross estate, to ensure consistent reporting for income and estate tax purposes. Any underpayment of tax due to the understatement of basis under this provision would be subject to a 20% accuracy-related penalty;
- Adjust tax-filing deadlines for partnerships, S corporations, and C corporations. A partnership and an S corporation are required to file by March 15 following the close of the calendar year (or for a fiscal year taxpayer, on or before the 15th day of the third month following the close of its fiscal year), and a C corporation is required to file by April 15 (or three and a half months after the close of its tax year). The provision also provide C corporations with an automatic six-month extension of the applicable filing date. In the case of calendar year C corporations, the automatic extension is up to five months (September 15) until tax years beginning after Dec. 31, 2025, at which time the extension is up to six months (October 15). For C corporations with tax years ending on June 30, the current law filing date (September 15) remains in effect until tax years beginning after Dec. 31, 2025, and is extended to October 15 thereafter; Read More.
- Extend for an additional four years (i.e., through Dec. 31, 2025) the provision allowing employers to transfer excess defined benefit plan assets to retiree medical accounts and group-term life insurance; and
- Lower taxes on liquefied natural gas (LNG) (from 24.2¢ to 14.1¢ per gallon) and liquefied petroleum gas (from 18.3¢ to 13.2¢ per gallon).
- Exempt veterans enrolled in health care provided by the VA or TRICARE from being counted as part of the 50 full-time employee threshold.
Provide that otherwise eligible veterans are not disqualified from contributing to an health savings accounts (HSAs) on a pre-tax basis merely for receiving medical care under any laws administered by the VA for a service-connected disability.
The Joint Committee on Taxation has indicated that these tax provisions would bring in $3.75 billion net over ten years (with the two provisions dealing with veterans costing $1.2 billion and the other offsets providing $4.95 billion in revenue.).
The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.