Overnight Finance: Administration opposes House IRS bills

FREEDOM CAUCUS OPEN TO SPENDING BILLS SANS BUDGET: The chairman of the House Freedom Caucus said the group does not plan to halt the House GOP’s appropriations process this year, despite fierce opposition to the overall spending levels being considered.

Rep. Jim Jordan (R-Ohio) said the caucus is open to moving some spending bills without passing a budget resolution. He said he would consider each bill individually, even if the appropriations measures abide by the $1.07 trillion spending caps set in a deal between President Obama and former Speaker John Boehner (R-Ohio) last fall.

{mosads}”Many of our members have supported a number of appropriations bills, particularly those dealing with our military,” Jordan said during a C-SPAN “Newsmakers” interview.

That position gives GOP leaders the chance to make some headway in the appropriations process after a brutal fight over the budget. The Hill’s Sarah Ferris tell us how: http://bit.ly/1S6iOJV.

ADMINISTRATION OPPOSES HOUSE IRS BILLS: The Obama administration opposes four bills concerning the Internal Revenue Service that the House plans to vote on this week, the Office of Management and Budget said Monday.

The administration explicitly issued a veto threat for one of the bills, which would repeal the IRS’s ability to spend the user fees it collects without authorization from Congress. OMB said the bill would further reduce the agency’s resources at a time when it is already severely underfunded.

“The IRS needs more resources, not fewer, to deter tax cheats, serve honest taxpayers, and protect taxpayer data,” OMB said: http://bit.ly/1WbNqLm.

SENATE PANEL SET TO MOVE ON TAX BILLS: The Senate Finance Committee is scheduled to vote Wednesday on two bills aimed at protecting taxpayers.

One of the bills, which is focused on preventing identity theft and tax refund fraud, was originally set to be considered in September. The other bill is new and includes provisions on other topics aimed at helping taxpayers. The Hill’s Naomi Jagoda tells us how the committee finally got an agreement: http://bit.ly/1Vyn2MJ.

FORMER TREASURY OFFICIALS BASH INVERSION RULES: A group of former Treasury Department officials are urging Treasury Secretary Jack Lew to rethink new rules cracking down on corporate inversions.

In a new letter out Monday, a group of 18 Treasury officials spanning six presidential administrations urged the current secretary to scrap the new regulations.

“Concerns about retaining business headquarters in the United States are well-intentioned, but this unprecedented regulatory fix by your department is not the answer,” they wrote. “It will likely make matters worse.”

The group, which is almost exclusively Republican, argued that instead of writing rules to make it harder for American companies to move headquarters for tax savings, the Obama administration should be looking to take steps to lower taxes for all companies in the United States. The Hill’s Peter Schroeder breaks it down: http://bit.ly/1So03AA.

HAPPY MONDAY and welcome to Overnight Finance, where we’re hoping tax season comes to a simple and un-infuriating end for all of our loyal readers. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.

Tonight’s highlights include the path ahead for tax reform, a warning from Speaker Ryan on Iran sanctions, a pulse-check for the housing market, some IRS bills (no, not for you) and a strong way to end the filing season.

See something I missed? Let me know at slane@digital-staging.thehill.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://www.digital-staging.thehill.com/signup/48.

ON TAP TOMORROW:

• Hillary Clinton addresses North America’s Building Trades Unions’ 2016 Legislative Conference at 11:30 a.m.
• Senate Banking Committee: Hearing to examine understanding the role of sanctions under the Iran Deal, 10 a.m. http://1.usa.gov/22Agr3s
• Senate Energy and Natural Resources: An oversight hearing to examine challenges and opportunities for oil and gas development in different price environments, 10 a.m. http://1.usa.gov/1VqwWzV
• Senate Appropriations Subcommittee on Transportation, Housing and Urban Development: Markup of the Transportation, Housing and Urban Development, and Related Agencies Appropriations Act for Fiscal Year 2017, 10:30 a.m. http://1.usa.gov/1SfTdwX
• Senate Appropriations Subcommittee on Commerce, Justice, Science, and Related Agencies: Business meeting to mark up proposed legislation making appropriations for fiscal year 2017 for commerce, justice, science, and related agencies, 2:30 p.m. http://1.usa.gov/20IMqz9
• House Ways and Means Oversight Subcommittee: Hearing on Tax Filing Season, 10 a.m. http://1.usa.gov/1YygX0N
• House Judiciary Committee Executive Overreach Task Force: Hearing entitled “Executive Overreach in Domestic Affairs Part II IRS Abuse Welfare Reform and Other Issues,” 2 p.m. http://1.usa.gov/1RZhSad
• House Financial Services Committee Task Force on Terrorism Financing: Hearing entitled “Preventing Cultural Genocide: Countering the Plunder and Sale of Priceless Cultural Antiquities by ISIS,” 10 a.m. http://1.usa.gov/23CzkJ0

RYAN CALLS ON OBAMA TO RULE OUT IRAN SANCTIONS WORKAROUNDS: House Speaker Paul Ryan (R-Wis.) demanded that President Obama rule out any way for Iran to slide past sanctions by accessing the U.S. dollar.

“Instead of helping the regime get richer, the administration should hold it accountable for its continued ballistic missile tests, egregious human rights violations and support for terrorism,” said Ryan in a statement: http://bit.ly/1NxQzOV.

REPS PUSH FOR ANTI-ENERGY TAX MEASURES: A group of House members is pushing for expedited floor consideration of two resolutions that oppose taxes targeting the oil and gas industry.

“We must send a clear message to the American public that we stand opposed to policies that will senselessly drive up energy prices for American families and businesses, harm our economy, and drive American jobs overseas,” Rep. Charles Boustany (R-La.) and 55 of his colleagues said in a letter to Speaker Paul Ryan (R-Wis.) and House Majority Leader Kevin McCarthy (R-Calif.).

One of the resolutions, introduced by Boustany, would express the sense of Congress that a new tax should not be placed on oil. President Obama’s budget released earlier this year proposes a $10.25 tax on each barrel of oil: http://bit.ly/1SVwN1s.

LAWMAKERS CHARGE AHEAD WITH TAX REFORM TALKS: Negotiators are pushing ahead with tax reform talks in hopes of reaching a deal by the end of the year even though Senate Majority Leader Mitch McConnell (R-Ky.) has made clear he’s opposed to the effort.
Their optimism is fueled by the renewed commitment of Ways and Means Committee Chairman Kevin Brady (R-Texas), who is giving the talks fresh attention following the conclusion of his tough primary race. He hired a new chief tax counsel, Barbara Angus, in January, and is expected to ramp up negotiations in the weeks ahead.

Brady and Speaker Paul Ryan (R-Wis.), who has given the green light to pursue a deal, are seen as the keys to getting an agreement in 2016. Congressional sources say the next two months will show just how serious they are. The Hill’s Alexander Bolton fills us in: http://bit.ly/1qCwVMh.

GOP BLAST IRS OVER IMMIGRANT RETURNS: Comments from Internal Revenue Service Commissioner John Koskinen on how the agency handles the tax returns of illegal immigrants are drawing outrage from conservative lawmakers.
It is the latest in a string of complaints that congressional Republicans have leveled against the agency.

The issue in this instance concerns illegal immigrants who use other people’s social security numbers (SSNs) to get jobs and then file their taxes with their IRS-issued Individual Taxpayer Identification Numbers (ITINs).

Although the tax returns contain false W-2 information, the IRS continues to process them, and the agency does not notify the people whose SSNs were used. Naomi Jagoda explains: http://bit.ly/26blJar.

HOMEBUILDER CONFIDENCE HOLDS IN APRIL: Homebuilder confidence held steady in April as the single-family housing market recovers at a gradual pace.

Sentiment in the market for newly built single-family homes was unchanged at 58 this month, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) released on Monday.

“Builder confidence has held firm at 58 for three consecutive months, showing that the single-family housing sector continues to recover at a slow but consistent pace,” said NAHB Chairman Ed Brady, a homebuilder and developer from Bloomington, Ill. The Hill’s Vicki Needham tell us why: http://bit.ly/1U37vTY.

THOUSANDS BACK WARREN PUSH FOR TAX TRANSPARENCY: Thousands of people have signed petitions in support of Sen. Elizabeth Warren’s (D-Mass.) recent actions on tax filing and the Panama Papers.

The petitions were set up by Credo Action, a network of about 4 million activists.

As of Monday morning, more than 65,000 people had signed a Credo petition to urge Congress to support legislation Warren introduced last week that aims to simplify and reduce the cost of filing taxes.

The bill would instruct the Internal Revenue Service to develop its own free online tax-preparation service, and it would prohibit the agency from entering into agreements with tax-prep companies that restrict its ability to provide the free services: http://bit.ly/1SVxtDW.

NIGHTCAP: Here’s a recipe for a bitter drink to help wash down your tax-filing woes.

Write us with tips, suggestions and news: slane@digital-staging.thehill.com, vneedham@digital-staging.thehill.com; pschroeder@digital-staging.thehill.com, and njagoda@digital-staging.thehill.com. Follow us on Twitter: @SylvanLane,  @VickofTheHill; @PeteSchroeder; and @NJagoda.