Weekly Report from Washington, D.C.

During the week of June 11, House appropriators approved a government spending bill that would increase IRS funding for fiscal year (FY) 2019. The IRS proposed regulations for arbitrage investment restrictions on tax-exempt and tax-advantaged bonds issued by state and local governments. TIGTA released its semiannual report to Congress, highlighting its audits, investigations, inspections and evaluations.

Congress

House appropriators have approved a government spending bill that would increase IRS funding for fiscal year (FY) 2019. The measure proposes a FY 2019 IRS budget of $11.6 billion. The proposed IRS budget is $186 million above current FY 2018 enacted levels, (TAXDAY, 2018/06/15, C.1).

A “phase two” tax reform outline could be unveiled by House GOP tax writers by August, (TAXDAY, 2018/06/15, C.2).

A bipartisan group of House and Senate lawmakers have introduced companion Historic Tax Credit (HTC) bills. The measure aims to strengthen the HTC by encouraging investment and minimizing administrative burdens, according to the lawmakers, (TAXDAY, 2018/06/15, C.3).

Treasury

The Treasury and the IRS announced the final round of Opportunity Zone designations, (TAXDAY, 2018/06/15, T.1).

The federal government released its semiannual regulatory agenda in accordance with the Regulatory Flexibility Act, which requires the publication of a semiannual agenda of regulations, (TAXDAY, 2018/06/11, T.1).

The Treasury Inspector General for Tax Administration (TIGTA) released a semiannual report to Congress, highlighting audits, investigations, inspections and evaluations, (TAXDAY, 2018/06/11, T.2).

IRS

The IRS reminded taxpayers to renew their Individual Taxpayer Identification Numbers (ITINs), which are set to expire by the end of 2018, to avoid refund delays for next year, (IR-2018-137; TAXDAY, 2018/06/15, I.1).

For pension plan years beginning in June 2018, the IRS released the 30-year Treasury bond weighted average interest rate, the unadjusted segment rates, the adjusted rates and the minimum present value segment rates, (Notice 2018-56; TAXDAY, 2018/06/15, I.2).

The IRS reminded certain taxpayers that a second estimated tax payment may be due Friday, June 15, 2018, (IR-2018-138; TAXDAY, 2018/06/15, I.3).

The IRS warned taxpayers against disaster-related scams that tend to surface during the hurricane season, (TAXDAY, 2018/06/15, I.5).

The IRS Chief Counsel provided guidance to chief counsel attorneys on how to address compliance with Code Sec. 6751(b) when handling penalties in litigation, (CC-2018-006; TAXDAY, 2018/06/14, I.1).

A one-year extension has been granted for applying the Code Sec. 987 final and related temporary regulations covering foreign branch transactions of U.S. corporations, (Notice 2018-57; TAXDAY, 2018/06/14, I.2).

The IRS spotlighted resources taxpayers could use throughout the year for tax-related help, (TAXDAY, 2018/06/14, I.3).

Federal Emergency Management Agency (FEMA) announced that a notice where the president determined that certain areas in Kentucky were eligible for assistance from the federal government under the Disaster Relief and Emergency Assistance Act (42 USC 5121), has been amended, (TAXDAY, 2018/06/13, I.1).

The IRS shared key pointers taxpayers could keep in mind for addressing queries about their tax return copies or transcripts, (TAXDAY, 2018/06/13, I.2).

The Taxpayer Advocacy Panel Joint Committee meeting that was originally scheduled for Wednesday, June 27, 2018, has been changed to Thursday, June 28, 2018, (TAXDAY, 2018/06/12, I.1).

The IRS proposed regulations for arbitrage investment restrictions on tax-exempt and tax-advantaged bonds issued by state and local governments, (NPRM REG-106977-18; TAXDAY, 2018/06/12, I.2).

The IRS could issue guidance on the new Code Sec. 199A passthrough deduction in a “couple of weeks,” Acting IRS Commissioner David Kautter has reportedly said.

The IRS reminded taxpayers that Form 990-N (e-Postcard) is to be submitted electronically; Urban Institute no longer accepts Form 990-N, (TAXDAY, 2018/06/12, I.4).

The IRS requested comments on various forms, procedures and regulations, (TAXDAY, 2018/06/12, I.5).

Tax professionals were reminded of the fast approaching June 15 deadline for IRS Tax Forums early bird registration, (TAXDAY, 2018/06/12, I.6).

The IRS corrected the calendar year mentioned in Notice 2018-40, (Ann. 2018-9; TAXDAY, 2018/06/11, I.1).

The IRS announced its intention to issue proposed regulations that clarify the calculation of net investment income for purposes of Code Sec. 4968, and provided guidance on which taxpayers may rely until such proposed regulations are issued, (Notice 2018-55; TAXDAY, 2018/06/11, I.3).

The IRS has reminded taxpayers living abroad that they must file their 2017 income tax return by June 15, 2018, (IR-2018-135; TAXDAY, 2018/06/11, I.4).

The IRS announced that interest rates remained for the calendar quarter beginning July 1, 2018, remained unchanged, (IR-2018-136; Rev. Rul. 2018-18, TAXDAY, 2018/06/11, I.5).

A notice of a new computer matching program was issued, (TAXDAY, 2018/06/11, I.6).

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CCHTaxGroup

All stories by: CCHTaxGroup