A 568 page report authored by the Joint Committee on Taxation was released to the House Ways and Means Committee on May 6, 2013. The report contains extensive analysis on pretty much the entirety of the Internal Revenue Service Code and offers some recommendations to multiple groups of legislators working on tax reform.
The working group on charitable tax issues is led by Representative Reichert (R-WA) and Representative Lewis (D-GA). This group is charged with considering such topics as the charitable IRA rollover incentive, charitable deductions, unrelated business income of 501(c)(3)’s and much more.
It remains to be seen what will happen with charitable deductions for donations, including those made as planned gifts, but for now most of those deductions and tax protections remain as they were in 2011 and 2012. All of the recommendations and comments made to the working groups from the report can be viewed at the House Ways and Means Committee website at http://waysandmeans.house.gov/taxreform/workinggroups.htm.
Additionally, many states are considering restoring the value of incentives offered to those who make charitable gifts. Many of those incentives were removed or reduced at the state level in 2011 as part of limitations stipulated on how much upper-income taxpayers could claim for itemized deductions. We will continue to monitor these changes and direct your attention to them in the future. For more information about your specific state, please visit your state’s government website.