Tax book 98: Table of Contents

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The 1998 Tax Provisions:
Internet Tax Freeze, Expiring Provisions, Technical Corrections, and Other Tax Provisions

October 1998

Congressional leaders passed and sent to the President October 21 an omnibus appropriations bill (H.R. 4328) that includes a $9.2 billion, 9-year tax package that extends several expiring tax provisions, most notably the research and experimentation tax credit, through June of next year. It also contained a three-year freeze on new taxes on Internet access and e-commerce.

Deloitte & Touche LLP and Tax News & Views have written a detailed summary of the key tax provisions in this massive bill from the last days of the 105th Congress.

Introduction

1. Extension of Expiring Provisions

A. Tax Provisions

Research and Experimentation Tax Credit

Work Opportunity Tax Credit

Welfare-to-Work Credit

Deduction for Contributions of Appreciated Stock to Private Foundations

Exceptions under Subpart F Rules for Certain Active Financing Income

B. Trade Provisions

Extension of Generalized System of Preferences

Extensions of Trade Adjustment Assistance

2. Revenue Offsets

Deductible Liquidating RICs and REITs

Restrict Specified Liability Loss 10-Year Net Operating Loss Carryback Rules

Clarify and Expand Math Error Procedures

Vaccines against Rotavirus Gastroenteritis Now Taxable

Treatment of Certain Prizes

3. Other Provisions

A. Individual Provisions

Alternative Minimum Tax Relief

Estimated Tax Safe Harbor for Individuals

B. Farmers and the Self-Employed

Acceleration of Self-Employed Health Insurance Deduction

Permanent Extension of Income Averaging for Farmers

Production Flexibility Contract Payments to Farmers

Net Operating Loss Carryback for Farmers

C. Other Tax Issues

Increase in Private Activity Bond Volume Cap

Treasury Study on Depreciation

State Election to Exempt Student Employees from Social Security

Disclosure of Return Information in Connection with Certain Student Loans

4. Internet Tax Moratorium

5. Tax Technical Corrections

A. Technical Corrections to the Internal Revenue Service Restructuring and Reform Act of 1998

Burden of Proof

Relief for Innocent Spouses

Interest Netting

Capital Gains Holding Period

B. Technical Corrections to the Taxpayer Relief Act of 1997

Treatment of Interest on Qualified Education Loans

Capital Gain Distributions of Charitable Remainder Trusts

Gift Revaluations after Expiration of Statute of Limitations

Treatment of Certain Corporate Distributions

Treatment of Net Operating Losses Arising from Certain Eligible Losses

C. Technical Corrections to the 1984 Act

Casualty Loss Deduction

D. Perfecting Amendments Related to Withholding from Social Security Benefits and Other Federal Payments

Tax News & Views is produced by the Financial Counseling Specialists and the Legislative & Regulatory Services Group at Deloitte & Touche LLP.

The 1998 Tax Provisions: Internet Tax Freeze, Expiring Provisions, Technical Corrections, and Other Tax Provisions

Table of Contents

The 1998 Tax Provisions:
Internet Tax Freeze, Expiring Provisions, Technical Corrections, and Other Tax Provisions