Weekly Report from Washington, D.C.

During the week of June 4, Senate Republican leadership canceled most of the chamber’s August recess this year. The IRS issued guidance barring the use of partnership-related transactions for avoiding gains. TIGTA noted that the IRS continues to consolidate tax processing centers.

Congress

Senate Republican leadership has canceled the chamber’s August recess this year. At this time, it remains unclear whether the Senate will take up the anticipated House measure this summer that would, among other things, make permanent certain individual tax cuts, (TAXDAY, 2018/06/06, C.1).

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

Treasury

The IRS continues to consolidate tax processing centers, according to a report by the Treasury Inspector General for Tax Administration (TIGTA) (Ref. No. 2018-40-038), (TAXDAY, 2018/06/05, T.1).

IRS

Corporate Partner’s Stock Acquisition. The IRS issued final regulations that bar corporate partners from using partnership-related transactions to avoid gains, (T.D. 9833; TAXDAY, 2018/06/08, I.1).

Scams. The IRS warned taxpayers to remain vigilant against scammers who take advantage of the generosity of those who want to help victims of major disasters, (IR-2018-132; TAXDAY, 2018/06/08, I.2).

Relief for Late Filers. The IRS has urged late-return-filers, who did not avail a filing extension, to file their returns no later than June 14 to avoid a higher late-payment penalty, (IR-2018-133; TAXDAY, 2018/06/08, I.3).

Comments Requested. The IRS requested comments on Form 1127, Application for Extension of Time for Payment of Tax Due to Undue Hardship, and guidance regarding regulations issued on charitable trusts, (TAXDAY, 2018/06/08, I.4).

Payment Options. The IRS outlined easy payment options taxpayers could use to pay taxes owed, (TAXDAY, 2018/06/08, I.5).

TAP. Taxpayer Advocacy Panels (TAPs) scheduled open meetings, (TAXDAY, 2018/06/07, I.1).

ETAAC. The IRS’s Electronic Tax Administration Advisory Committee (ETAAC) provided notice of a public meeting (TAXDAY, 2018/06/07, I.2).

FEMA Amendment. The Federal Emergency Management Agency (FEMA) amended a notice designating certain areas in Ohio as eligible for disaster relief, (TAXDAY, 2018/06/07, I.3).

Tax Payment Methods. The IRS reminded taxpayers of the wide array of payment methods they could use to pay taxes owed, (TAXDAY, 2018/06/07, I.4).

CCO. The IRS issued an updated version of the Chief Counsel telephone directory, dated June 4, 2018, (TAXDAY, 2018/06/06, I.1).

Disaster Relief. The Federal Emergency Management Agency (FEMA) announced that the president on May 11, 2018, determined that certain areas in Hawaii and Maine are eligible for assistance, (TAXDAY, 2018/06/06, I.2). In another notice, FEMA also announced that disaster relief will be available for another county in Hawaii, (TAXDAY, 2018/06/04, I.4).

Delegation Order. The IRS discussed approval procedures for Form 637, Application for Registration (for Certain Excise Tax Activities), (DO 1-23-7; TAXDAY, 2018/06/06, I.3).

TEFRA and More. The IRS released memos to address Tax Equity and Fiscal Responsibility Act (TEFRA) linkage collaboration and more (TAXDAY, 2018/06/06, I.4).

Scam Alert. The IRS alerted taxpayers of easy-to-spot signs related to common scams, (TAXDAY, 2018/06/06, I.5).

Tax Forums. The IRS reminded tax professionals that the “early bird” registration for its five 2018 Nationwide Tax Forums will end on June 15. The forums will focus on interactions with tax professionals and provide information on federal and state tax issues, TAXDAY, 2018/06/05, I.1).

Transition Tax. The IRS released three new FAQs covering the Code Sec. 965 transition tax provide welcome penalty and filing relief for taxpayers who make the election to pay the tax in eight annual installments, (IR-2018-131; TAXDAY, 2018/06/05, I.2).

Comments Requested. The IRS has requested comments regarding Form 4422, Application for Certificate Discharging Property Subject to Estate Tax Lien and Form 15056, Escrow Agreement for Estates, (TAXDAY, 2018/06/05, I.3).

Summertime Scams. The IRS reminded taxpayers to stay vigilant against scammers who get active especially during summertime (TAXDAY, 2018/06/05, I.4).

Obsolete Rulings. The IRS has identified Rev. Rul. 68-59, under the IRS’s review program as no longer being determinative because the ruling position is now specifically covered by a statute (Rev. Rul. 2018-14; TAXDAY, 2018/06/04, I.1). The IRS has also identified Rev. Rul. 74-487, Rev. Rul. 75-211, Rev. Rul. 77-115, Rev. Rul. 77-407, Rev. Rul. 80-113, under the IRS’s review program as no longer being determinative because the ruling positions are now specifically covered by a statute and are hereby declared obsolete, (Rev. Rul. 2018-15; TAXDAY, 2018/06/04, I.2).

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CCHTaxGroup

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