Beware Stiff Tax Penalties Buried in New Trade Law
Although President Obama’s signing of the Trade Preferences Extension Act of 2015 on June 29 arrived with much fanfare, the potentially large new penalties imposed by the act on employers that err on their tax returns have received almost no attention.
The trade preferences act provides job training and income support to American workers displaced by globalization and foreign trade. Along with the Trade Promotion Authority Act, which gives the president the authority to negotiate trade agreements, the preferences act was the subject last month of a widely reported on-again, off-again national drama concerning whether Congress would back the president and pass the bills.
Lost in the hoopla, however, was any discussion of Section 806, a provision of the preferences act that had nothing at all to do with foreign trade or globalization, according to Michael Chittenden, a senior associate at Miller & Chevalier, a law firm. Read more on CFO.