Treasury Secretary Steven Mnuchin defended the IRS’s position on the deductibility of prepaid 2018 property taxes before lawmakers on January 30. In addition, the IRS issued more guidance on the centralized partnership audit regime. The Service also released additional guidance on withholding.
House lawmakers heard renewed calls for regulation of unenrolled preparers at a January 30 hearing on tax administration. A bill proposed by House Democrats would authorize the agency to regulate unenrolled preparers.
Mnuchin defended the IRS’s position on the deductibility of prepaid 2018 property taxes on 2017 tax returns while testifying before lawmakers on January 30. He did not signal any change in the IRS’s position.
Partnerships. The IRS supplemented proposed regulations implementing the centralized partnership audit regime. The new proposed rules address how and when partnerships and their partners adjust tax attributes to take into account certain partnership adjustments (NPRM REG-118067-17; TAXDAY, 2018/02/02, I.1).
Withholding. The IRS has extended, from February 15 to February 28, 2018, the effective period for 2017 Form W-4s that employees furnish to their employer to claim exemption from withholding. Further, employees claiming exemption from withholding for 2018 can temporarily use the 2017 Form W-4 until 30 days after the 2018 Form W-4 is released (Notice 2018-14).
Passport Certification. National Taxpayer Advocate Nina Olson directed the IRS not to certify some delinquent taxpayers to the U.S. State Department for passport revocation or denial. Generally, these are individuals with open Taxpayer Advocate Service (TAS) cases.
Filing Season. The IRS has started accepting and processing 2017 federal individual income tax returns. The deadline to submit 2017 individual income tax returns and pay any taxes due is Tuesday, April 17, 2018 (IR-2018-14).
Retirement Plans. The IRS has posted Listings of Required Modifications (LRMs) for pre-approved defined contribution plans. The LRMs contain model plan language for laws effective during the third remedial amendment cycle, and reflects qualification requirements and guidance in the 2017 Cumulative List.
By George L. Yaksick, Jr., Wolters Kluwer News Staff