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1 1 (April 1, 2020)

handle is hein.crs/govcryx0001 and id is 1 raw text is: Researh Sevice Technical Corrections to Tax Reform Updated April 1, 2020 For some in Congress, technical corrections to the 2017 tax revision (commonly known as the Tax Cuts and Jobs Act, or TCJA; P.L. 115-97) have been a legislative priority. It is not always clear, however, what is strictly a technical correction. This Insight highlights provisions that have been widely discussed as technical corrections to the 2017 tax revision, starting with provisions in former Ways and Means Committee Chairman Kevin Brady's 2019 technical corrections discussion draft. It then highlights other fixes to the 2017 tax revision that might be considered, even if those fixes might fall outside the scope of what would be considered by most to be a technical correction. Since this Insight was first published on October 9, 2019, six of the provisions discussed have been addressed in recently enacted legislation. These changes are noted below. For some, there is an understanding that technical corrections are provisions that are generally noncontroversial changes to the text of already enacted tax legislation to ensure that the law as enacted is consistent with Congress's original intent. What some might consider a true technical correction would also not affect revenue. However, there is no formal definition of a technical correction. The Technical Corrections Discussion Draft On January 2, 2019, Representative Brady released the Tax Technical and Clerical Corrections Act Discussion Draft. The preamble notes that technical corrections are needed to properly reflect the original Congressional intent of provisions that were included in P.L. 115-97 (as well as other legislation). The discussion draft includes technical corrections that had been developed as of the January 2, 2019, release date, but acknowledges additional technical corrections may be identified in the future. The Joint Committee on Taxation (JCT) also released a technical explanation of the discussion draft. Representative Brady's discussion draft would address some of the technical corrections that have garnered widespread media attention. The discussion draft would have made technical changes to the kiddie tax to address concerns about the taxation of certain military survivors' benefits post-P.L. 115-97. This issue was addressed in the Setting Every Community Up for Retirement Enhancement (SECURE) Act, enacted as Division 0 of P.L. 116- 94, which reversed the treatment in P.L. 115-97. Representative Brady's discussion draft also would have made a technical correction to the applicable recovery period for certain real property (the so-called retail glitch). Without a technical correction, Congressional Research Service https://crsreports.congress.gov IN11175 Prepared for MNembers and

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