Key Provisions of the IRS Restructuring and Reform Act of 1998 Research Paper

Open, View, and/or
Download this Document

Total Length: 624 words ( 2 double-spaced pages)

Total Sources: 2

Page 1 of 2

Tax Letter

The IRS Restructuring and Reform Act of 1998: Summary of the Key Provisions

Just the other day, on July 22, his Excellency the President signed into law the above mentioned Act. In basic terms, the Act brings fourth significant changes in not only the management but also the oversight of the IRS. This letter will focus on the Acts' key provisions.

Capital Gains Holding Period

Previously, non-corporate tax payers' capital gains have been exposed to a three-tier structure -- with one of these distinct levels recommending a 28% mid-term rate for capital assets held for 12 consecutive months (but for less than 18 months). This new Act does away with this particular mid-term rate and replaces it with a maximum rate of 20% for gains raked in by non-corporate taxpayers from the sale of some capital assets held for 12 consecutive months (and beyond). It is important to note that before the enactment of this Act, the 20% rate has only been applied to assets held for 18 months and beyond.

Stuck Writing Your "Key Provisions of the IRS Restructuring and Reform Act of 1998" Research Paper?

View All Our Example Key Provisions of the IRS Restructuring and Reform Act of 1998 Research Paper

Have A Custom Example Essay Written



b). Joint Income Tax Returns

Under this Act, a spouse will find it easier to set up innocent spouse status. An innocent spouse could be defined as that spouse who at the time of signing the joint return is unaware that the tax attributable to the other spouse suffers an understatement. As per the provisions of the Act, it will be possible for a spouse to be relieved of a tax deficiency liability if the said person can establish that they:

Filed a joint return with an understatement of taxes owed; the understatement must result from erroneous items of the spouse; and the person applying for innocent spouse relief must not have known about the errors caused by the other spouse. (United States General Accounting Office, 1999, p. 14)

In that regard, therefore, the spouse does not need to….....

Show More ⇣

     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"Key Provisions Of The IRS Restructuring And Reform Act Of 1998" (2014, May 25) Retrieved June 4, 2026, from
https://www.aceyourpaper.com/essays/key-provisions-irs-restructuring-reform-189427

Latest MLA Format (8th edition)

Copy Reference
"Key Provisions Of The IRS Restructuring And Reform Act Of 1998" 25 May 2014. Web.4 June. 2026. <
https://www.aceyourpaper.com/essays/key-provisions-irs-restructuring-reform-189427>

Latest Chicago Format (16th edition)

Copy Reference
"Key Provisions Of The IRS Restructuring And Reform Act Of 1998", 25 May 2014, Accessed.4 June. 2026,
https://www.aceyourpaper.com/essays/key-provisions-irs-restructuring-reform-189427
   

Open, View, and/or
Download this Document
order custom essay example