Congress has passed, and the President signed into law on June 29, 2015, the Trade Preferences Extension Act of 2015. While the bill primarily dealt with non-tax issues, a number of tax provisions were included in the bill, primarily as “offsets” to pay for the cost of other provisions.
Tax related provisions included in the bill are:
- An increase in the required corporate estimated tax payments for large corporations (assets of at least $1 Billion) will be increased by 8% for the payment due in July, August or September of 2020, with the following installment reduced to 92% of the amount otherwise due (Act Sec. 803)
- Taxpayers claiming the American Opportunity Tax Credit, Hope Scholarship Credit, Lifetime Learning Credit, and the deduction for tuition and fees will be required to have a valid Form 1098-T from their educational institution. The provision is effective for all tax years beginning after the date of enactment. (Act Sec. 804)
- Relief would be granted to educational institutions unable to obtain TINs to issue the above statements if they certify they properly requested the TINs from the students (Act Sec. 805)
- Penalties for failing to file information returns and/or provide them to payees would be increased, effecting for filings required after December 31, 2015 (Act Sec. 806)
- Taxpayers who claim a foreign earned income exclusion would not longer be eligible to receive the refundable portion of the child tax credit for the year. This is effective for tax years beginning after December 31, 2014 (Act Sec. 807)
- The health care coverage tax credit under IRC §35 would be restored to the law and extended through 2019. This provisions is effective for tax years beginning after December 31, 2013. (Act. Sec. 407)