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The Online Advisor - January 2000
President Clinton signs tax extension law
On December 17, 1999, President Clinton signed the Tax Relief Extension Act of 1999 into law. The law is a minor one that does little more than extend several expired or expiring tax provisions.
Among the tax relief provisions included in the law:
- Extension of the research and experimentation tax credit through June 30, 2004.
- Extension of the work opportunity tax credit through December 31, 2001.
- Extension of the welfare-to-work tax credit through December 31, 2001.
- Extension through December 31, 2001, of the exclusion from income for employer-provided education assistance.
- Extension through December 31, 2001, of alternative minimum tax relief for taxpayers claiming nonrefundable personal tax credits, such as the child tax credit and education credits.
Among revenue-raising provisions in the bill:
- Modification of the prior-year safe harbor for estimated tax payments made by individuals with annual income in excess of $150,000. For 2000, the prior-year safe harbor percentage increases to 108.6% from the previous 105%.
- Repeal of the installment method of reporting for sales for most accrual basis taxpayers.
For complete details on these changes and other provisions included in the Tax Relief Extension Act of 1999, give us a call.