Weekly Report from Washington, D.C.

Congress was on its holiday break. The IRS announced that the income tax filing season will open for individuals on January 29. The IRS also issued its annual revisions to the general procedures for ruling requests, technical memoranda (TAM), determination letters, and user fees, as well as areas on which the Service will not rule. The Service also issued guidance on electing out of the centralized partnership audit regime.

Congress

Senate Finance Committee (SFC) Chair Orrin Hatch, R-Utah, announced that he will not seek re-election after his current term in Congress ends.

IRS

Filing Season

The IRS announced that the individual income tax filing season will open on Monday, January 29, 2018. The Service reminded taxpayers that it cannot, by law, issue refunds to taxpayers claiming the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) before late February (IR-2018-1).

Rulings

The IRS explained how it provides advice to taxpayers in the form of letter rulings, closing agreements, determination letters and information letters, and orally on issues under the jurisdiction of the various offices of the Associate Chief Counsel (Rev. Proc. 2018-1). The IRS also revised the list of areas for which letter rulings or determination letters will not be issued (Rev. Proc. 2018-3).

Employee Plans

The IRS updated its procedures for employee plans (EP) to obtain guidance on issues under Tax Exempt and Government Entities Division (TE/GE) Employee Plans Rulings and Agreements Office (Rev. Proc. 2018-4).

Exempt Organizations

The IRS updated procedures for applying for, and issuing determination letters on, tax-exempt status (Rev. Proc. 2018-5).

Partnership

The IRS released final regulations for electing out of the centralized partnership audit regime. The final regulations make a number of clarifications to proposed regulations issued June 14, 2017 (T.D. 9829).

Withholding

The IRS suspended withholding obligations for dispositions of certain publicly traded partnership interests pending further guidance (Notice 2018-8).

International

The IRS issued preliminary guidance for computing the new “transition tax” on the untaxed foreign earnings of foreign subsidiaries of U.S. companies (Notice 2018-7).

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

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CCHTaxGroup

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