President Trump signed an Executive Order directing federal agencies to consider expanding health reimbursement arrangements (HRAs), among other measures. The Treasury Inspector General for Tax Administration (TIGTA) reported that the cost of replacing the IRS’s aged information hardware would be nearly $460 million. The IRS proposed to ease the requirements for making a Section 754 election. In addition, the IRS announced changes to the corporate transactions issues it would address in letter rulings.
President Trump signed an executive order (EO) on October 12 entitled Promoting Healthcare Choice and Competition across the United States. The EO, directs federal agencies to consider proposing regulations or revising guidance to expand employers’ ability to offer health reimbursement arrangements (HRAs).
House. Legislation to create an additional, new charitable contributions deduction for taxpayers who do not itemize was introduced in the House. The proposal would retain the current itemized charitable deduction, would permit above-the-line deductions for nonitemizers’ charitable contributions.
Senate. Legislation to enhance the Child Tax Credit and Earned Income Tax Credit was introduced in the Senate. The proposal would make the Child Tax Credit refundable for all families starting at the first dollar earned.
Information Technology. TIGTA reported that the IRS’s percentage of aged information technology hardware increased from 40 percent at the beginning of fiscal year (FY) 2013 to 64 percent at the beginning of FY 2017. According to TIGTA, replacement costs for the aged hardware are estimated to be nearly $460 million.
Partnerships. The IRS released proposed regulations that would eliminate the signature requirement for making a Section 754 election. Taxpayers may rely on the proposed regulations. Read more about the proposed rules here.
Letter Rulings. The IRS announced changes to the corporate transactions issues for which it will provide letter rulings. The changes impact rulings on worthless stock loss, Section 355 distributions, and more. Read more about the proposed changes here.
Defined Benefit Plans. The IRS updated its defined benefit plan procedures for changing funding methods, and for revoking an election related to interest rates. The revised procedures are effective January 1, 2018, but taxpayers may elect to apply them for earlier requests. Read more about the new procedures here.
Want to learn more about Section 754 Elections? CCH CPELink can help. Just click here.
By Jessica Jeane, George Jones and George L. Yaksick, Jr.