The IRS-reform bill, almost universally backed by business, is certain to become law. The Senate passed the measure by a 96-2 margin July 9 after it had been approved 402 to 8 by the House in late June. The measure now goes to President Clinton, who has said hell sign it.
Among other things, the bill would set up a private-sector board of directors for IRS that would include business executives, professors, and state tax administrators. It also shortens the capital-gains holding period from 18 months to 12 months, permits taxpayers to net out tax liability interest, renames Most Favored Nation (MFN) trading status normal trade relations, and includes a variety of new rights for taxpayers.
Small business, especially, pushed for passage of the bill.
For years, small business taxpayers dealing with the IRS have had to contend with overly aggressive and, at times, abusive treatment at the hands of the IRS, said Martin Regalia, chief economist at the U.S. Chamber of Commerce. This bill will help to inject some balance.