Tax & Accounting Blog

Congress Allows Numerous Temporary Provisions to Expire at the End of 2011

ONESOURCE, Tax Information Reporting, Trust Tax March 1, 2012

Congress allowed numerous temporary provisions to expire at the end of 2011. But, note that Congress may retroactively reinstate some or all of these rules. Below are some of the provisions that expired.

  • Reduced alternative minimum tax (AMT) exemption amounts.  Absent another AMT patch, the AMT exemption amounts for tax years beginning after 2011 revert to the significantly lower permanent amounts of $33,750 for unmarried taxpayers, $45,000 for joint filers and $22,500 for married taxpayers filing separately.
  • Last year, RIC dividends designated as interest-related dividends and short-term capital gains dividends were generally not taxable when received by a nonresident alien individual or foreign corporation and were not subject to the withholding tax imposed on nonresident alien individuals and foreign corporations. This exemption does not apply for tax years beginning after December 21, 2011.
  • In 2011, taxpayers who were age 70½ or older could make qualified charitable distributions (QCDs) to a charity from an Individual Retirement Account (IRA) of up to $100,000. This provision expired on December 31, 2011.
  • The election for itemizers to deduct state and local general sales taxes under Code Section 164(b)(5) in lieu of state and local income taxes expired on December 31, 2011.
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