Weekly Report from Washington, D.C.

President Trump released his fiscal year (FY) 2019 budget proposal. The Treasury Department proposed repealing nearly 300 tax regulations. The Acting IRS Commissioner indicated Code Sec. 199A guidance would be posted this summer.

White House

President Trump released his FY 2019 budget proposal, requesting 11.1 billion in base funding for the IRS, but proposing $15 billion to enforce tax collection over a span of 10 years. The IRS received $11.2 billion in base funding in 2017.

Congress

House. The House Ways and Means Committee held a hearing examining President Trump’s fiscal year (FY) 2019 budget proposal. Treasury Secretary Mnuchin told lawmakers a new withholding calculator will be released next week.

Senate. The Senate Finance Committee (SFC) held a hearing examining President Trump’s FY 2019 budget proposal. Treasury Secretary Mnuchin told lawmakers that IRS guidance on carried interest is expected in two weeks.

The leaders of the SFC cautioned against additional IRS budget cuts proposed in Trump’s FY 2019 budget proposal.

Treasury

The Treasury Department proposed to repeal 298 regulations it deemed duplicative and obsolete. The Treasury Department also proposed to amend another 79 regulations to reflect the repeal (TDNR SM-0287).

IRS

Passthroughs. The IRS will likely issue guidance on new Code Sec. 199A this summer, Acting IRS Commissioner Dave Kautter told officials of the National Society of Accountants (NSA). The NSA posted the news on its blog.

NTA. National Taxpayer Advocate Nina Olson cautioned that the IRS is unprepared for taxpayer’s questions about the new tax law. Olson noted that the Service has already experienced confusion about issues related to the new law.

TACs. The IRS reminded taxpayers that Taxpayer Assistance Centers are by appointment only (IR-2018-29).

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

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