When will lawmakers revive expired tax breaks? Sometime next month.
A series of provisions lapsed after 2013, including the deduction for state sales taxes in lieu of income taxes, direct distributions of up to $100,000 from IRAs to charity, higher ceilings on expensing assets, bonus depreciation and the R&D tax credit. The House wants to make some breaks permanent, including expensing, bonus depreciation and the R&D credit, while the Senate opted for two-year extensions. The House plan is gaining steam, since many Democrats back those business breaks.
Will the start of the tax filing season be delayed? Yes, thanks to Congress. Lawmakers had all year to reinstate the tax provisions that expired last Dec. 31 but never found the time to work out a deal. Although talks on the subject have begun, an agreement in Dec. won’t give IRS enough time to program and test its computers. Thus, as in several previous years, the filing season won’t open for many in mid-Jan