Alerts

House Passes the Tax Extenders Act of 2009

December 21, 2009

On December 9, 2009, the U.S. House of Representatives passed H.R. 4213, the Tax Extenders Act of 2009 (the “Bill”), by a vote of 241 to 181. In addition to extending various tax relief provisions, the Bill includes revenue generating provisions which: (1) increase withholding and reporting obligations on payments made to certain non-U.S. persons, including investment funds, (2) subject certain gross payments to non-U.S. persons made on specified notional principal contracts to a 30% withholding tax, and (3) tax at ordinary income rates, instead of capital gains rates, income earned on “incentive allocations” or “carried interest” by partners providing investment management services to certain partnerships.