Tax Bill

Treasury Proposes To Strike Nearly 300 Tax Regulations

From Forbes.com

The U.S. Department of the Treasury has proposed the repeal of nearly 300 tax regulations that are "unnecessary, duplicative or obsolete and force taxpayers to navigate needlessly complex or confusing rules." Tax Regulations are issued by the Internal Revenue Service (IRS) and provide the official interpretation of the Tax Code.

The proposal is a follow-up to an Executive Order issued by President Trump on April 21, 2017, charging the Treasury with reviewing certain tax regulations to ensure that the tax system is "simple, fair, efficient, and pro-growth." The April order did not attempt to tackle an overhaul of the entire Tax Regs system but rather targeted all significant tax regulations issued on or after January 1, 2016. [...]

Nearly a year later, Treasury proposes to eliminate 298 tax regulations, which, according to Secretary Mnuchin "serve no useful purpose to taxpayers." Those regulations fall into three categories:

  • Regulations interpreting provisions of the Code that have been repealed;
  • Regulations interpreting provisions that have been significantly revised and the existing regulations do not account for these revisions; and
  • Regulations that are no longer applicable.

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The Changes that the new Tax Reform will have on Payroll Management

From Bloomberg News

Employers and employees no longer would be able to claim some deductions and income tax rates would range from 10 percent to 37 percent across seven brackets for individuals, a draft bill reconciling the House and Senate tax bills in a conference report released Dec. 17 said.

The reconciliation bill’s seven tax brackets have rates of 10, 12, 22, 24, 32, 35, and 37 percent, compared with the U.S. federal tax brackets currently in effect with rates of 10, 15, 25, 28, 33, 35, and 39.6 percent.

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