WASHINGTON, D.C. — Today, the U.S. House of Representatives passed H.R. 88, the Retirement, Savings, and Other Tax Relief Act of 2018, which included language from Congressman LaHood’s legislation, H.R. 5342 – the Improving Assistance for Taxpayers Act. Rep. LaHood’s legislation would bolster protections for taxpayers and better address systemic issues within the IRS by requiring the Internal Revenue Service (IRS) to respond promptly to Taxpayer Assistance Directives (TAD) issued by the Taxpayer Advocate Service (TAS). As a whole, this bipartisan legislation provides necessary reforms to the IRS, makes time-sensitive technical corrections to the Tax Cuts and Jobs Act, and outlines a long-term path forward for the biodiesel and short-line rail tax credits, which will support agriculture producers in central and west central Illinois.
“Over the past year, Americans have seen the positive results of pro-growth tax reform, which has reinvigorated our economy and put more money in the pockets of hard-working Americans. Passage of this legislation today builds upon those results to further strengthen our nation’s tax code,” stated Rep. LaHood. “Additionally, as we continue to work to make sure we have an IRS that works more effectively for the taxpayer, my legislation included with this bill will issue directives to systematic problems within the IRS, so taxpayers have a system that is more efficient and accountable to them.
“Furthermore, this legislation takes important steps to extend tax credits that support our local farmers and communities in central and west-central Illinois, expands retirement savings opportunities for employees, and provides relief to taxpayers affected by the recent disasters. I was pleased to work alongside Chairman Brady and my colleagues on the Ways and Means Committee to see this legislation passed and urge the Senate to work quickly, so we can continue to provide results for the American taxpayers.”
Highlights of the Retirement, Savings, and Other Tax Relief Act
Tax Credit Extensions
• This legislation makes permanent the short-line rail tax credit and outlines a long-term extension and path forward for the biodiesel tax credit, both of which support local and rural communities in central and west-central Illinois.
IRS Reform
• In addition to language from Rep. LaHood’s legislation, this bill would require the IRS to submit to Congress a comprehensive customer service strategy and codifies the existing Free File program, so taxpayers continue to have access to basic and fillable forms.
Retirement and Savings Provisions
• This legislation would expand opportunities for employees to invest in employer-offered 401k plans and remove age limits for individuals looking to make traditional IRA contributions.
Innovation
• This legislation makes it easier for entrepreneurs to start businesses by extending current deductions of start-up expenses from $5,000 to $20,000, enabling small business owners to acquire the necessary resources to remain competitive.
