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Trade bill heading to White House includes tax provisions

Trade bill to White House includes tax provisions

A trade bill, passed yesterday by the House and passed earlier in the week by the Senate, is headed to the White House for action by the president.


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H.R. 1295, the Trade Preferences Extension Act of 2015, addresses a number of expiring trade items, and it also includes a number of tax-related provisions as revenue offsets, such as:

  • Significant increases (in many cases, doubling or tripling) in penalties for failure to file correct information returns under section 6721
  • Significant increases (in many cases, doubling or tripling) in penalties for failure to furnish correct payee statements under section 6722
  • Modifications to the due dates of some corporate estimated tax payments due in 2020
  • A requirement that taxpayers claiming the American Opportunity, Hope Scholarship, and Lifetime Learning education credits or deductions for Qualified Tuition and related expenses to receive a statement provided by the educational institution regarding qualified expenses in order to claim the tax benefits
  • A new provision excluding taxpayers taking advantage of the section 911 exclusions from claiming a refundable child tax credit

In addition, the bill included an extension through 2019 of the section 35 health coverage credit provided for recipients of a trade readjustment allowance and made various modifications to the program, largely related to coordination with the Affordable Care Act.

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