Tax Relief Act of 2005

Summary

Tax Relief Act of 2005 - Amends the Internal Revenue Code to: (1) provide tax incentives in areas affected by Hurricanes Katrina, Rita, and Wilma; (2) extend various expiring tax provisions; (3) revise provisions relating to charitable contributions and charitable organizations; (4) restrict tax shelter activity and increase penalties for underpayment of tax; and (5) revise provisions relating to taxation of foreign income, tax reporting, and accounting methods. Establishes a Gulf Opportunity Zone to provide tax benefits for areas affected by Hurricane Katrina, including bonus depreciation and increased expensing for small business property, additional private activity bond authority, increased funding for low income housing, and a tax credit for the retention of employees in the Hurricane Katrina disaster area. Extends existing tax relief provisions to areas affected by Hurricanes Rita and Wilma, including expanded eligibility for mortgage loans, tax-free use of retirement funds for disaster relief purposes, increased tax deduction for corporate charitable contributions, and tax adjustments for low-income taxpayers. Extends various tax provisions, including: (1) increased expensing for depreciable business property; (2) the tax credit for retirement savings contributions; (3) the tax deduction for higher education expenses; (4) the election to deduct state and local sales taxes in lieu of income taxes; (5) increased exemption amounts for the alternative minimum tax; (6) the tax credit for increasing research activities; (7) the work opportunity and welfare-to-work tax credit; (8) tax deductions for school teacher expenses and for corporate donations of computer equipment for educational purposes; (9) expensing of environmental remediation costs; and (10) the Indian employment tax credit and accelerated depreciation for business property on Indian Reservations. Revises various provisions relating to charitable donations and charitable organizations, including: (1) allowing nonitemizing taxpayers a limited tax deduction for charitable contributions; (2) allowing tax-free distributions from retirement accounts for charitable purposes; (3) restricting participation of tax-exempt organizations in tax shelter activities; (4) modifying recordkeeping requirements for certain charitable organizations; and (5) setting standards for credit counseling organizations. Defines "economic substance" for purposes of evaluating tax shelter transactions. Imposes increased civil and criminal penalties for tax evasion. Revises tax rules for individuals who expatriate to avoid U.S. taxation.

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Documents

6 official files

• Engrossed in Senate (text)

  Engrossed in Senate · EN · 5 December 2005

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• Engrossed in Senate (PDF)

  Engrossed in Senate · EN · 5 December 2005

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• Passed Senate amended

  summary · EN · 18 November 2005

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• Placed on Calendar Senate (text)

  Placed on Calendar Senate · EN · 16 November 2005

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• Placed on Calendar Senate (PDF)

  Placed on Calendar Senate · EN · 16 November 2005

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• Introduced in Senate

  summary · EN · 16 November 2005

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