The LA Times’ Evan Halper wrote a piece on Monday, ‘Group fights plan to fine tax cheats‘, regarding a tax refund penalty provision buried in Senator Lois Wolk’s otherwise worthy tax relief bill SBX8 32. The focus of concern in this bill is a controversial penalty on misclaimed refunds. Whether or not one agrees with the policy of a refund penalty, it is important that controversial policies stay out of a federal tax conformity bill. The conformity bill, over 100 pages, must have consensus or its demise is certain.
Typically, controversial provisions are passed outside the conformity bill process, which is why items like the Health Savings Account and the Research and Development Credit conformities have not been included in past omnibus conformity bills.