No Changes Anticipated in Tax Extenders Package

By George L. Yaksick, Jr., Washington Staff Writer

As Congress prepares to address the alternative minimum tax legislation needed for this upcoming tax season, a number of other lesser-known tax provisions are facing an expiration date as well. Most observers expect Congress to combine the AMT legislation and a bill extending the expiring provisions into one piece of legislation called an "extenders package."

Taxpayers should not expect any changes to the package of extenders Congress is expected to pass soon, a staff person with the Joint Committee on Taxation told a lawyers' conference in Washington, D.C. on November 29, 2007. The extenders are likely to be renewed for one year without significant changes in their provisions.

"It is much easier to move things as they already are in the law," said the staff person, speaking anonumously on his own behalf and not on behalf of the Joint Committee on Taxation. The House has already passed a package of extenders offset by other tax increases. The Senate is expected to take up its tax extenders package, along with the AMT patch, in early December.

The extenders package includes many popular tax breaks, including the state and local sales tax deduction, the higher education tuition deduction and the teacher's classroom expense deduction. These and many other temporary tax breaks will expire at the end of 2007 unless Congress extends them.

The temporary incentive for tax-free IRA distributions to charities is one extender that some have urged should be changed, the staff person noted. The Pension Protection Act of 2006 (PPA) placed limitations on the incentive concerning donor advised funds and supporting organizations. However, the staff person predicted that Congress will not change the incentive in the extenders package.

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Congress Begins Work on Temporary AMT Patch, Extenders Bill

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Posted December 11, 2007.