Weekly Report from Washington

According to this week’s report, Congress remains in recess, but tax reform discussions continue between lawmakers and the White House. And, the IRS is keeping a close watch on the tax reform efforts.

Congress Report

According to discussions between Congress and the Trump administration, the carried-interest tax break may remain for some (TAXDAY, 2017/08/22, C.1).

Treasury Report

Regulatory Agenda. Meanwhile, the Treasury released its semiannual regulatory agenda. The agenda lists rules that are in the proposed and final stages and long-term actions (TAXDAY, 2017/08/24, T.1).

IRS Report

Reverse Like-Kind Exchange. The IRS will not follow the holding in G.H. Bartell, Jr., Est., 147 TC —, No. 5, Dec. 60,669. Therefore, the IRS will continue to litigate whether an exchange facilitator may be treated as the replacement property’s owner regardless of whether it has the benefits and burdens of ownership for transactions outside the scope of the deferred exchange regulations (AOD-2017-6; TAXDAY, 2017/08/25, I.2).

Special Use Valuation. The 2017 average annual effective interest rates on new loans under the Farm Credit System has been issued by the IRS. These rates are used in computing the special use value of farm real property for which an election is made under Code Sec. 2032A (Rev. Rul. 2017-16; TAXDAY, 2017/08/25, I.4). A recent Tax Court case discussed how to value property for estate tax purposes Kollsman Est., TCM

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E-service Accounts/EFINs. Hackers are targeting tax professionals. As a result, the IRS is warning tax professionals to: (1) protect access to their IRS e-services account and (2) safeguard their Electronic Filing Identification Number (EFIN) from thieves (IR-2017-132; TAXDAY, 2017/08/23, I.1).

Tax Reform

According to Mary Beth Murphy, commissioner IRS Small Business Self Employed Division, the IRS is closely watching for any congressional tax reform developments on Capitol Hill. This was reported during her keynote address at a 2017 IRS Nationwide Tax Forum (TAXDAY, 2017/08/23, I.2).

Disaster Relief

Taxpayers in parts of West Virginia may qualify for tax relief from the IRS (WV-2017-02, TAXDAY, 2017/08/23, I.3). These taxpayers were victims of severe storms, flooding, landslides and mudslides that began on July 28, 2017.

In addition, the president has determined that certain areas within the following states are eligible for assistance from the federal government under the Disaster Relief and Emergency Assistance Act due to a variety of natural disasters during various periods during 2017:

Arkansas (FEMA-4318-DR);

Michigan (FEMA-4326-DR);

Missouri (FEMA-4317-DR);

Nebraska (FEMA-4325-DR);

New Hampshire (FEMA-4329-DR);

New York (FEMA-4322-DR);

North Dakota (FEMA-4323-DR);

Oklahoma (FEMA-4324-DR);

Oregon (FEMA-4328-DR);

Tennessee (FEMA-4320-DR); and

Wyoming (FEMA-4327-DR)  (TAXDAY, 2017/08/22, I.2).

Livestock. As a result of continuing drought, the IRS has provided a one-year extension of the replacement period for farmers and ranchers in North Dakota who previously were forced to sell livestock (ND-2017-001; TAXDAY, 2017/08/21, I.3).

By Jessica Jeane, George Jones, and George L. Yaksick, Jr., Wolters Kluwer News Staff

 

 

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CCHTaxGroup

All stories by: CCHTaxGroup