Weekly Report from Washington, D.C.

During the week of May 29, the House Appropriations Financial Services and General Government Subcommittee approved a government budget bill calling for increased IRS funding. The IRS issued guidance on income tax withholding requirements and provided various tips to taxpayers. TIGTA noted that programming errors and deficiencies resulted in erroneous processing of some of IRS’s Health Coverage Tax Credit (HCTC) claims.

Congress

The House Appropriations Financial Services and General Government Subcommittee approved an IRS budget bill by voice vote in a May 24 markup (TAXDAY, 2018/05/29, C.1).

The Joint Committee on Taxation (JCT) issued estimates of federal tax expenditures for fiscal years 2017 through 2021 (TAXDAY, 2018/05/30, C.1).

The House will approve a “phase two” tax reform package before November, House leadership has predicted (TAXDAY, 2018/06/01, C.1).

Treasury

Programming errors and deficiencies have resulted in erroneous processing of some Health Coverage Tax Credit (HCTC) claims, according to a report by the Treasury Inspector General for Tax Administration (TIGTA) (Ref. No. 2018-40-035), (TAXDAY, 2018/05/29, T.1).

IRS

Special Tax Benefits. The IRS highlighted special tax benefits for Armed Forces (TAXDAY, 2018/05/29, I.3).

Phishing Scams. The IRS warned tax practitioners to beware of phishing emails posing as state accounting and professional associations (IR-2018-125; TAXDAY, 2018/05/29, I.2).

“Paycheck Checkup”. The IRS has urged two-income families and those working multiple jobs to complete a “paycheck checkup” using the Withholding Calculator tool to verify they are having the right amount of tax withheld from their paychecks (IR-2018-124; TAXDAY, 2018/05/29, I.1).

Summer Jobs. The IRS provided tips for teenage taxpayers starting a summer job (TAXDAY, 2018/05/30, I.11).

Comments. The IRS requested comments on various forms, procedures and regulations (TAXDAY, 2018/05/30, I.10).

Form 1099-R Reporting. The IRS clarified income tax withholding requirements and Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., for IRA payments made to a state’s unclaimed property fund (Rev. Rul. 2018-17; TAXDAY, 2018/05/30, I.9).

Payment Options. The IRS highlighted several payment options for taxpayers who have filed their tax returns but have not yet paid taxes owed in full (IR-2018-128; TAXDAY, 2018/05/30, I.8).

Reference Prices. The IRS has provided the applicable reference price for qualified natural gas production from qualified marginal wells during tax years beginning in 2017 for determining the marginal well production credit (MWC) (Notice 2018-52; TAXDAY, 2018/05/30, I.6).

Depletion Rates. The IRS has announced the applicable percentage under Code Sec. 613A to be used in determining percentage depletion for marginal properties for the 2018 calendar year (Notice 2018-51; TAXDAY, 2018/05/30, I.5).

Inflation Adjustment Factors. The IRS published the inflation adjustment factors and reference prices to be used in computing the renewable electricity production credit for calendar year 2018 (Notice 2018-50; TAXDAY, 2018/05/30, I.4).

Enhanced Oil Recovery Credit. The IRS has issued the inflation adjustment factor for use in determining the enhanced oil recovery credit under Code Sec. 43 (Notice 2018-49; TAXDAY, 2018/05/30, I.3).

Standard Mileage Rates. The IRS has updated Notice 2018-3, I.R.B. 2018-2, 130, to reflect changes in connection with standard mileage rates for miscellaneous itemized deductions (IR-2018-127, Notice 2018-42; TAXDAY, 2018/05/30, I.2).

Wrongful Levy Claims. The IRS reminded taxpayers that the Tax Cuts and Jobs Act of 2017 (P.L. 115-97) extended the time limit for filing an administrative claim and for bringing a suit for wrongful levy from nine months to two years (IR-2018-126; TAXDAY, 2018/05/30, I.1).

Home Owners. The IRS provided tips for taxpayers selling a home (TAXDAY, 2018/05/31, I.4).

Procedural Update. Procedures in the Internal Revenue Manual (IRM) related to redemption of real property after sale were updated (TAXDAY, 2018/05/31, I.3).

Frozen Refunds. A taxpayer was not subject to a penalty under Code Sec. 6676 when the IRS froze the taxpayer’s refunds because the Service never paid a refund (FAA 20182101F; TAXDAY, 2018/05/31, I.2).

Proposed Regulations. The IRS has proposed regulations that would change the rules for determining whether a person must file information returns electronically (NPRM REG-102951-16; TAXDAY, 2018/05/31, I.1)

Filing Extensions. Taxpayers were reminded of the fast approaching extension-filing October 15 deadline (TAXDAY, 2018/06/01, I.3).

Impersonation Scams. The IRS warned taxpayers to remain vigilant against phishing emails and telephone scams especially at a time when those who had recently filed returns could be waiting for a response from the Service (IR-2018-129, FS-2018-12; TAXDAY, 2018/06/01, I.2).

Per Diem Rates. The IRS released a listing of maximum travel per diem allowances for travel in foreign areas effective as of June 1, 2018 (TAXDAY, 2018/06/01, I.2).

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CCHTaxGroup

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