The Senate is back in session this week. One of the most important items is the vote on the Senate’s version of 2017 tax reform. As background, the House has already passed its 2017 tax reform bill. The Senate’s version was approved by the Senate Finance Committee prior to Thanksgiving Break. Now, it’s up to the full Senate to pass its tax reform bill, and if it does, then both the House and the Senate versions will be taken up by a joint House/Senate committee to craft a compromise bill that both the House and the Senate will vote on again.The attached chart shows the significant differences in the House and Senate version when it comes to employee welfare and fringe benefit plans. In general, the House version would end the tax-free nature of tuition reimbursement plans and adoption assistance programs effective for 2018. Employers could still reimburse tutition and adoption expenses, but such reimbursements would be treated as taxable wages starting in 2018. The House bill originally would have ended dependent care flexible spending account plans as of 2018 as well, but in the revised version passed by the House dependent care flexible spending account plans now remain untouched until 2023. The Senate version of tax reform is much kinder to employee welfare and fringe benefit plans. The only change that would be made by the Senate bill would be to repeal the tax-free nature of bicycle commuting expenses. Stay tuned as the Senate is expected to take up the Senate tax reform bill this week, with a vote likely toward the end of this week.
While we are pleased to have you contact us by telephone, surface mail, electronic mail, or by facsimile transmission, contacting Kilpatrick Townsend & Stockton LLP or any of its attorneys does not create an attorney-client relationship. The formation of an attorney-client relationship requires consideration of multiple factors, including possible conflicts of interest. An attorney-client relationship is formed only when both you and the Firm have agreed to proceed with a defined engagement.
DO NOT CONVEY TO US ANY INFORMATION YOU REGARD AS CONFIDENTIAL UNTIL A FORMAL CLIENT-ATTORNEY RELATIONSHIP HAS BEEN ESTABLISHED.
If you do convey information, you recognize that we may review and disclose the information, and you agree that even if you regard the information as highly confidential and even if it is transmitted in a good faith effort to retain us, such a review does not preclude us from representing another client directly adverse to you, even in a matter where that information could be used against you.