Keeping an Eye on the status of Tax Extenders for 2016

CMS Brian Kelly, in Washington DC

As we are quickly approaching 2016, we at CMS are keeping a watchful eye on Congress as they negotiate over tax extenders, the dozens of expiring and already expired tax breaks, including Work Opportunity Tax Credits – http://www.finance.senate.gov/.

Will the Internal Revenue Service commissioner John Koskinen have to issue another warning that tax season could be delayed next year unless Congress acts?

Typically, lawmakers end up deciding to extend all credits for another year and put off for another year the more difficult job of deciding which ones should be axed.

Earlier this year, Congress tried to get ahead of the December deadline, but still couldn’t agree. In July, the Senate Finance Committee passed a tax extenders bill, but it has been languishing ever since in the Senate. The House, for its part, took up some individual extender items, voting to make some of the tax breaks permanent, such as the research tax credit.

Sen. Orrin Hatch, R-Utah, the chairman of the Senate Finance Committee, sounded a cautiously hopeful note Monday, telling reporters, according to The Wall Street Journal, “I think we’ll get it done,” but then he added, “There’s no guarantee we’re going to get it. I’m working hard to do it and we’ll see what happens.”

All in all, there are hundreds of thousands of taxpayers and billions in tax money depending on the decisions that Congress makes in the next few weeks. Chances are, though, most lawmakers will end up putting off those decisions until after next year’s elections.

We are watching this situation closely, and will keep you informed of any news or changes as they become available. For any immediate questions regarding Work Opportunity Tax Credits, please call or email Brian Kelly directly @ bkelly@cmswotc.com or 1-800-517-9099.

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