Ways & Means Passes Two Tax Bills

The Housing Assistance Tax Act of 2008 (H.R. 5720) passed yesterday by a vote of 35-5:

• Assistance for Home Buyers and Home Owners
  • First-time home buyer credit of 10% of purchase price (up to $7,500), repayable over 15 years.  Phases out at AGI of $70,000 single/$110,000 joint.
  • Additional standard deduction (up to $350/$700 joint) for real property taxes for 2008 only.
• Assistance for Low-Income Housing
  • Temporary increase in low-income tax credit.
  • Low-income tax credit simplification.
  • Tax-exempt housing bond simplification.
• Other Housing Provisions
  • Temporary increase in mortgage revenue bonds.
  • Eliminate costs imposed on housing programs by the AMT.
  • Municipal bonds guaranteed by Federal home loan banks eligible for treatment as taxexempt bonds.
  • Protection of taxpayer Social Security numbers in real estate transactions.
  • Encouraging the rehabilitation of government-leased buildings.
• REIT Reforms
• Revenue Provisions
  • Basis reporting by brokers on sales of stock.
  • Delay implementation of worldwide allocation of interest.
• Press Release
• Legislative Documents

The Taxpayer Assistance and Simplification Act of 2008 (H.R. 5719) passed yesterday by a vote of 23-17:

• Eliminate the special requirements for individuals to keep detailed records of calls made on employer-provided cell phones.
• Delay for one year the imposition of a three-percent withholding requirement on government payments for goods and services made after December 31, 2010.
• Stops federal contractors from using foreign subsidiaries to evade Social Security and other employment taxes.
• Make the administrators of state and local government programs liable for paying the employment taxes on amounts paid by government programs to in-home care workers provided to elderly and disabled persons.
• Repeal the IRS’s authority to use private debt collection companies to collect Federal taxes.
• Prohibit the misuse of Department of the Treasury names and symbols in misleading websites and "phishing" schemes.
• Protect low-income taxpayers by prohibiting IRS debt indicators for predatory refund anticipation loans, allowing IRS employees to refer taxpayers to qualified low-income taxpayer clinics, and authorizing funding for Volunteer Income Tax Assistance ("VITA") programs.
• Require the IRS to notify taxpayers if it suspects theft of a taxpayer`s identity.
• Press Release
• Legislative Documents