Tracking Legislation

Practical and Practice issues for Professionals who practice in the area of taxation. Moral, social and economic issues relating to taxes, including international issues, the U.S. Internal Revenue Code, state tax issues, etc. Not for "tax protestor" issues, which should be posted in the "tax protestor" forum above. The advice or opinion given herein should not be relied on for any purpose whatsoever. Also examines cookie-cutter deals that have no economic substance but exist only to generate losses, as marketed by everybody from solo practitioner tax lawyers to the major accounting firms.
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Joe Dirt
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Tracking Legislation

Postby Joe Dirt » Sat Mar 06, 2010 2:17 am

I hope that I am placing this inquiry in the right section.

IRC section 181 allows for the expensing of qualified television and film production costs. This provision was set to expire on December 31, 2009.

The Tax Extenders Bill of 2009, HR 4213 contained a section 117 which extended the IRC section 181 treatment to expire on December 31, 2010. I tracked this legislation through Ways and Means to its passage by the House of Representatives on December 9, 2009 and its referral to the Senate Committee on FInance.

This legislation to me appeared to be on hold, with no action being seen after its having been received by the Senate Committee on Finance.

Subsequently, I found the same provision, extending the provisions of IRC section 181 to expire on December 31, 2010 in legislation called Hiring Incentives to Restore Employment Act, HR 2847, this time being described as section 545.

The HIRE act recently passed the Senate and is now going back to the House for consideration on amendments. This HIRE act does not contain section 545.

Now, after re-visiting the original Tax Extenders Act of 2009, I see that this act, HR 4213 has been released from the Senate Committee on Finance and is being considered by the entire Senate.

My questions are why did this provision to extend the special expensing rules provided in IRC sec.181 take a "side journey" through the process of passing the HIRE act? Why was the provision omitted from the HIRE act which ultimately passed??

I've tried to become familiar with available resources, particularly THOMAS but find myself somewhat lost and confused with the process.
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Judge Roy Bean
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Re: Tracking Legislation

Postby Judge Roy Bean » Sat Mar 06, 2010 3:23 am

What you're seeing is how sausage is made.
The Honorable Judge Roy Bean
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Re: Tracking Legislation

Postby Niseag » Wed Mar 31, 2010 2:28 am

The HIRE legislation contains one way to spend money and some tax ways to get the money to finance such endeavor and sneak in some not so loved tax provisions, what you are looking for is an expense and something positive for the taxpayers, things like these have to be considered longer (the longer it takes the more money you may donate to the politician promising)

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