The Senate Finance Committee has released a new set of discussion options from the Joint Committee on Taxation for closing the $345 billion annual tax gap:
The Joint Committee report makes five new recommendations for improved information reporting:
- Impose basis reporting requirements for publicly-traded securities.
- Reporting requirements for real estate taxes.
- Provide reporting for proceeds of auction sales.
- Improved third-party information reporting relating to the mortgage interest deduction.
- Reporting requirements for individuals with an interest in offshore bank accounts and offshore trusts.
The report also makes three proposals to enhance tax administration:
- Modify the determination of amounts subject to self-employment tax for partners and S corporations shareholders in personal service businesses.
- Denial of deductions and credits with respect to untimely returns of nonresident aliens and foreign corporations.
- Compliance with earnings stripping provision.
To comment on the proposals, email here by December 1, 2006.
The Joint Committee’s original reports on closing the tax gap are:
- Options to Improve Tax Compliance and Reform Tax Expenditures (JCS-02-05) (1/27/05)
- Download Additional Options to Improve Tax Compliance (8/3/06)
