Friday, December 22, 2017
Grassley Statement on President Trump Signing Historic Tax Reform Legislation into Law
“The President’s signature on this historic tax reform legislation means more money in the pockets of hardworking Iowans.”
WASHINGTON – U.S. Sen. Chuck Grassley of Iowa, a senior member and former chairman of the Senate Finance Committee, which has jurisdiction over tax policy, voted for landmark tax reform legislation, which was signed into law this morning by President Trump.
“President Trump deserves credit for not only running on a promise to reform the tax code, but keeping his word to Americans and signing this historic accomplishment into law. Tax reform makes good on a years-long promise to deliver significant tax relief to Americans from every walk of life and income level. For millions of Americans that relief will begin in February when they begin to see the benefits of lower across-the-board income tax rates in their paychecks,” Grassley said. “The President’s signature on this historic tax reform legislation means more money in the pockets of hardworking Iowans. Americans will also see increased wages and more jobs created here and brought back to our shores from overseas. We’re already seeing tax reform improve the lives of millions of Americans. Major U.S. companies are making significant commitments to invest millions of dollars back into their domestic operations, increase wages, give bonuses to the men and women on the front lines of their organizations and donate millions more to charitable organizations throughout the nation.”
Grassley successfully included taxpayer rights and corporate accountability measures in the tax reform legislation. Details of those two provisions are below. Grassley also helped protect the wind energy production tax credit, which he originally authored, and the student loan interest deduction. The wind energy production tax credit was modified in the House-passed version and the student loan interest deduction was eliminated.
As chairman of the Senate Finance Committee, Grassley previously led through Congress $2 trillion in bipartisan tax relief, leaving more money in workers’ pockets, reducing tax rates across the board and spurring economic growth and activity. Congress later made permanent the vast majority of the Grassley-led measures with significant bipartisan support.
Grassley-led provisions include:
To increase the time period in which taxpayers may seek to have proceeds from the sale of wrongfully levied property returned to them.
The IRS is authorized to levy on property to satisfy a tax debt in certain instances. While the IRS is authorized to return property at any time, it is only authorized to return the monetary proceeds from a sale for up to nine months from the date of the levy. Similarly, if a third party believes the property levied or seized belongs to him/her and not the person against whom the tax is assessed, the third party generally only has nine months from the time of the levy to bring an administrative wrongful-levy action to seek the return of monetary proceeds. In many cases the nine month period is insufficient for individuals and third parties to discover a wrongful or mistaken levy and seek to remedy it. Consistent with section 202 of S. 1793, the Taxpayer Bill of Rights Enhancement Act of 2017, this amendment would extend from nine months to two years the time period that individuals and third parties have to seek the return of proceeds on the sale of wrongfully levied property.
Government Settlement Transparency Act.
This amendment, consistent with S. 803, Government Settlement Transparency Act, would expand provisions relating to the nondeductibility of fines and penalties to prohibit a tax deduction for any amount paid or incurred to, or at the direction of, any governmental entity relating to the violation of any law or the investigation or inquiry into a potential violation of law. The bill exempts from such prohibition: (1) restitution or amounts paid to come into compliance with any law that was violated or otherwise involved in the investigation or inquiry, (2) amounts paid pursuant to a court order in a suit in which the governmental entity was not a party, and (3) amounts paid or incurred as taxes due.
Charles E. Grassley
Senate Committee on the Judiciary
Des Moines Office
721 Federal Building
210 Walnut Street
Des Moines, IA 50309