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US Tax Reform

Brady releases discussion draft of the “Tax Technical and Clerical Corrections Act”

Thomson Reuters Tax & Accounting  

Thomson Reuters Tax & Accounting  

Rep. Kevin Brady (R-TX), outgoing Chairman of the House Ways and Means Committee, has released the “Tax Technical and Clerical Corrections Act,” a discussion draft of technical corrections to the Tax Cuts and Jobs Act (TCJA; P.L. 115-97, 12/22/2017) and other recent legislation. The Joint Committee on Taxation has also provided an explanation of the discussion draft.

Included in the Tax Technical and Clerical Corrections Act are provisions that would correct the applicable recovery period for qualified improvement property, make a number of clarifications with respect to the qualified business income (QBI) deduction, provide that a prepayment of income tax in tax years beginning in 2017 is treated as paid on the last day of the tax year for which it is imposed, clarify a number of issues with respect to the new interest deduction limitation rules under Code Sec. 163(j), and provide that the 80%-of-taxable-income limitation for net operating losses (NOLs) applies to NOLs arising in tax years beginning after Dec. 31, 2017.

Congressional Democrats have generally shown very limited interest in making TCJA fixes, so this package as a standalone measure is seen as unlikely to become law.

The Tax Technical Clerical Corrections Act Discussion Draft

Joint Committee on Taxation, Technical Explanation of the House Ways and Means Committee Chairman’s Discussion Draft of the “Tax Technical and Clerical Corrections Act” (JCX-1-19), January 2, 2019

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