Presidents FY 2012 Budget Proposal

The Joint Committee on Taxation has just released its description of the new revenue proposals in the President's FY2012 budget.  According to Software Finance and Tax Executives Council President Mark Nebergall the proposal contains provisions with respect to cost sharing arrangments which should be carefully monitored. 

 

Washington - DOR Tax Avoidance Transactions Draft Rule

The Washington Department of Revenue recently released its public draft rule implementing Sections 201 through 203 of 2ESSB 6143 (ch. 23, 1st Sp. Sess, Laws 2010), effective May 1, 2010. 

The current draft incorporates comments on the Februray 2011 draft which were received from the DOR's stakeholder group.  The draft narrows the range of transactions potentially subject to a tax avoidance analysis. It also clarifies when the analysis may be applied retroactively, as well as provides safe harbor provisions.

It is expected that the DOR will begin the formal rulemaking process shortly.  During the formal rulemaking process there will be additional opportunities to provide comments on the rule.

Comments on the draft rule can be addressed to Kate Adams at KateA@DOR.WA.GOV

2011 Tax Reform Bill

As reported by  Software Finance and Tax Executives Council President Mark Nebergall, the legislative text of the tax reform bill recently filed by Senators Wyden (D-OR) and Coats (R-IN) is now available.  The bill is entitled the “Bipartisan Tax Fairness and Simplification Act of 2011,” S. 727.  

According to Nebergall, the bill will likley not be reported out of Committee, but will serve as a point of discussion in the tax reform debate

R&D Tax Credit

In a report issued today by the U.S Treasury Department, the Administration promotes making the R&D tax credit permanent as one of the tools for its investment in supporting U.S. competitiveness  According to the proposal, enhancement of the R&D tax credit will result in more than $100B in domestic private sector research over the next 10 years, while adding more than 1 million research workers in the U.S. 

This is a step in the right direction by the Obama Administration to support U.S. investment.  See the report and share your thoughts on whether the R&D tax credit extension will achieve its intended purpose.