Possible new changes for tax expenditures

The Federal Accounting Standards Advisory Board is proposing changes in how the federal government accounts for tax expenditures.
FASAB chairman D. Scott Showalter said Friday the board is seeking input on the proposed Statement of Federal Financial Accounting Standards, Tax Expenditures: Management’s Discussion and Analysis and Disclosure Requirements.

Generally, tax expenditures are provisions in the tax law available to subsets of taxpayers who engage in certain kinds of activities, face special circumstances, or otherwise meet specified criteria. The government uses tax expenditures to stimulate behavior that will accomplish public policy goals, such as facilitating homeownership, reducing the cost of borrowing for state and local governments, encouraging higher education, and promoting domestic energy production.

Courtesy of AccountingToday

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