CUNA to pursue ‘tax extenders’ during final months of 2018

CUNA will pursue the extension of two expired tax cuts, known as “tax extenders,” during the final months of the 115th Congress. Tax extenders are temporary tax provisions, generally cuts, that have scheduled expiration dates, but are often extended by Congress.

Congress may consider a tax extender package in November and December.

One provision would not treat the discharge of mortgage debt forgiveness as income. This provision was extended retroactively through the end of 2017, so individuals with forgiven mortgage debt wouldn’t have to pay federal taxes on the forgiven debt from 2017.

This provision also eliminates the requirement for most financial institutions (including credit unions) to file an IRS Form 1099-C on a mortgage default involving an individual's primary residence.

If this provision had not been extended, credit unions would have been required to file IRS Form 1099-Cs on certain serviced mortgages, adding to the already high compliance burden on credit unions. 

The second tax provision that needs an extension is one that retroactively made deductible mortgage insurance premiums paid in 2017 as homeowners filed 2017 returns.

in Legislative & Political News