A bill to repeal the contemporaneous recordkeeping requirements added by the Tax Reform Act of 1984, and for other purposes.

Summary

Amends the Internal Revenue Code to repeal the requirement that contemporaneous records be kept to substantiate deductions for certain travel expenses, including automobile expenses, business entertainment expenses, and expenses for gifts. Repeals the requirement that tax return preparers inform the taxpayer of such recordkeeping requirements. Repeals the special negligence penalty for failure to have written confirmation from the taxpayer that records exist. Repeals any regulations issued by the Secretary of the Treasury to implement the contemporaneous recordkeeping requirements. Provides that there must be sufficient written evidence substantiating the taxpayer's own statement as to such business deductions. Excludes from the recordkeeping requirements any qualified nonpersonal use vehicle. Defines "qualified nonpersonal use vehicle" as any vehicle which, by reason of its nature, is not likely to be used more than a de minimis amount for personal purposes. Provides that an employer may elect to not withhold any tax with respect to any vehicle fringe benefit provided to an employee if the employee is notified that the employer is making such election. Requires the vehicle fringe benefit to be included on the employee's withholding statement. Reduces the amount of the limitation on the investment tax credit for an automobile from $1,000 to $675. Reduces the annual depreciation deductions that are allowed for an automobile to: (1) $3,600 depreciation in the first year (currently the limit is $4,000); and (2) $5,400 depreciation in any subsequent year. (Currently the limit is $6,000.) Provides for a one-year deferral of the annual inflation adjustment of these limits. Requires the Secretary of the Treasury to prescribe regulations by October 1, 1985, to carry out these provisions.

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Documents

4 official files

• Public Law (PDF)

  Public Law · EN · 25 May 1985

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• Conference report filed in House

  summary · EN · 7 May 1985

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• Passed Senate amended

  summary · EN · 3 April 1985

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• Introduced in House

  summary · EN · 2 April 1985

  Open at official source

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