Tax Collection Responsibility Act of 2007

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The Tax Collection Responsibility Act of 2007 (H.R.3056) was a bill in the 110th Congress "to amend the Internal Revenue Code of 1986 to repeal the authority of the Internal Revenue Service to use private debt collection companies, to delay implementation of withholding taxes on government contractors, to revise the tax rules on expatriation, and for other purposes.” (Official title)[1]

Contents

Current status


Bill summary

  • Abolishes laws that allow the IRS to hire private companies for the purpose of collecting taxes (Sec. 2[a]).[1]
  • Provides that contracts made before July 18, 2007 may be retained, but cannot be renewed (Sec. 2[c]).[1]
  • Moves the enactment date of the requirement that all levels of government withhold 3% of the payment of all contracts from January 1, 2010 to Jan 1, 2011 (Sec. 3).[1]
  • Establishes that all property of an expatriate, with the exceptions of deferred compensation items, specified tax deferred accounts, and interest in a nongrantor trust, will be treated as having been sold on the day before the expatriation for its fair market value with any gain exceeding $600,000 classified as taxable income (Sec. 5 [a]).[1]
  • Permits a deferment of this tax until the due date of the tax return if adequate security is provided (Sec. 5 [a]).[1]
  • Provides that the payer of certain deferred compensation items to expatriates withhold 30 percent of the payment for tax purposes (Sec. 5 [a]).[1]
  • Provides that 30 percent of the payment of nongrantor trusts to expatriates be withheld for tax purposes (Sec. 5 [a]).[1]
  • Imposes a tax on gifts or bequests received by a United States citizen or resident from an expatriate, applicable to the extent that the gift or bequest exceeds $10,000 (Sec. 5 [b]).[1]
  • Repeals a period of suspension of interest and penalties for taxpayers who have underpaid their taxes but have not been notified of their underpayment by the IRS (Sec. 6).[1]
  • Increases penalties for failing to file correct tax information returns (Sec. 7).[1]

Key votes

Before voting on passage of the bill, the House considered a motion by Rep. Kenny Hulshof (R-Mo.) to recommit the bill with instructions to add an amendment that would have permanently repealed the estate tax.[2] The motion was defeated by a vote of 212-196.


Same for all scorecards:

Scored vote

Scorecard: Club For Growth 2007 House Scorecard

Org. position: {{{Vote position 1}}}

Description:

"Vote on a motion that would permanently repeal the Death Tax. The pro-growth vote was "yea" because the Death Tax whose extremely high rates inhibit economic growth. Failed 196-212."

(Original scorecard available at: http://www.clubforgrowth.org/2008/05/the_2007_congressional_scoreca.php)

Scored vote

Scorecard: AFSCME 2007 House Scorecard

Org. position: Nay

Description:

"The House rejected a motion to recommit the Tax Collection Responsibility Act (H.R. 3056) and add to it a repeal of the federal estate tax, which would provide an expensive tax break for the wealthy and undermine funding for education, health care, public safety, and other vital public services."

(Original scorecard available at: http://www.afscme.org/legislation-politics/19812.cfm)

The House then proceeded to vote on passage and the bill passed by a vote of 232-173.


Same for all scorecards:

Scored vote

Scorecard: AFSCME 2007 House Scorecard

Org. position: Aye

Description:

"The House approved the Tax Collection Respon-sibility Act of 2007 (H.R. 3056), which would ban the federal government from contracting out to private (non-IRS) tax collection agencies."

(Original scorecard available at: http://www.afscme.org/legislation-politics/19812.cfm)

The bill was referred to the Senate Committee on Finance but was never voted on by the Senate.[2]

Supporters

  • Information Technology Association of America
  • National Treasury Employees Union

Articles and resources

See also

References

  1. 1.00 1.01 1.02 1.03 1.04 1.05 1.06 1.07 1.08 1.09 1.10 Project Vote Smart’s info page on Tax Collection Responsibility Act of 2007(H.R.3056).
  2. 2.0 2.1 THOMAS page on H.R. 3056.
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