U.S. Rep. Blaine Luetkemeyer sent a letter with 40 colleagues to House and Senate leadership urging them to remove the first-in first-out (FIFO) provision from the final tax reform legislation that comes out of Conference.

“In a bill designed to simplify the code and unburden Americans, the Senate FIFO provision eliminates options for individuals and puts the government in charge of when and what securities retirees and other investors can sell,” Luetkemeyer said. “People have the right to make their own decisions when dealing with their money and retirement plans.”

As the letter states, “It has long been a feature of our tax system that taxpayers are able to control the timing of their gains and losses by choosing which lots to sell. Taxpayers who have multiple lots of the same security can specifically identify which shares they want sold when calculating capital gains taxes.” The letter goes on to state, “Taking away the choice would complicate planning, earning compensation, retirement, and giving for millions of American investors and employees and it would not result in meaningful simplification.”