Carried Interest Tax Rise, S Corp Curbs Softened in New Baucus Proposal

For over 50 years, Bloomberg BNA’s renowned flagship daily news service, Daily Tax Report® has helped leading practitioners and policymakers stay on the cutting edge of taxation and...

Senate Finance Committee Chairman Baucus offers a new substitute amendment to the tax extenders bill (H.R. 4213) that would further soften a tax increase on investment fund managers and would ease administrative concerns regarding new rules for S corporations. Baucus's new substitute amendment comes just hours after his original proposal garners only 45 of the 60 votes needed to advance in the Senate. Treasury is seeking comments on proposed regulations that would arise if Congress passes the tax extenders legislation, says Robert Crnkovich, senior counsel in the Office of the Tax Legislative Counsel.