Weekly Report from Washington, D.C.

During the week of July 30, The Senate approved a fiscal year (FY) 2019 budget for the IRS. The Senate’s approved IRS budget provides less funding than the House-approved proposal. The IRS issued guidance in connection with the definition of short-term, limited-duration individual health insurance coverage.

Congress

The Senate appropriations package, which included the Financial Services and General Government appropriations bill (HR 6147), cleared the Senate by a 92-to-6 vote on August 1, (TAXDAY, 2018/08/03, C.1).

The Senate Finance Committee approved President Trump’s nominees for top IRS and Treasury positions, (TAXDAY, 2018/08/02, C.1).

The Senate Finance Committee (SFC) scheduled an August 1 nominations markup for top IRS and Treasury positions, (TAXDAY, 2018/08/01, C.1).

Recent IRS guidance that decreased certain donor disclosure requirements was the focus during a July 26 Senate Finance Committee hearing. The nomination hearing was scheduled to consider President Trump’s nominees for top positions at Treasury and the IRS, (TAXDAY, 2018/07/30, C.1).

Treasury

Criminal Investigation. The Criminal Investigation’s (CI) firearms training and qualification oversight required improvement, according to a report by the Treasury Inspector General for Tax Administration (TIGTA), (Ref. No. 2018-30-046; TAXDAY, 2018/08/03, T.1).

PCA. Data protection measures of participating Private Collection Agencies (PCAs) mandated improvement, according to a report by the Treasury Inspector General for Tax Administration (TIGTA), (Ref. No. 2018-20-039; TAXDAY, 2018/08/03, T.2).

Charge Card Act. The IRS largely implemented and complied with the requirements of the Government Charge Card Abuse Prevention Act of 2012 (Charge Card Act), according to a report by the Treasury Inspector General for Tax Administration (TIGTA), (Ref. No. 2018-10-057; TAXDAY, 2018/08/01, T.1).

Enterprise Case Management. The IRS did not search for a software product that would enable its Enterprise Case Management (ECM) program to meet the Service’s enterprise-wide requirements, according to a report by the Treasury Inspector General for Tax Administration (TIGTA), (Ref. No. 2018-20-043; TAXDAY, 2018/08/01, T.2).

FITARA. The IRS did not search for a software product that would enable its Enterprise Case Management (ECM) program to meet the Service’s enterprise-wide requirements, according to a report by the Treasury Inspector General for Tax Administration (TIGTA), (Ref. No. 2018-20-045; TAXDAY, 2018/08/01, T.3).

Tax preparers. The IRS was required to address tax preparer noncompliance for identifying incompetent and unscrupulous preparers, according to a report by the Treasury Inspector General for Tax Administration (TIGTA), (Ref. No. 2018-30-042; TAXDAY, 2018/07/31, T.1).

Joint filers. The Treasury Inspector General for Tax Administration (TIGTA) released a report on the IRS’s processes to address compliance with provisions related to the disclosure of collection activities against joint filers, (Ref. No. 2018-30-053; TAXDAY, 2018/07/31, T.2).

IRS

IRB. The IRS has released I.R.B. 2018-32, dated August 6, 2018, (TAXDAY, 2018/08/03, I.1).

FEMA. The Federal Emergency Management Agency (FEMA) provided tax relief for certain areas in West Virginia under the Disaster Relief and Emergency Assistance Act (42 USC 5121), (TAXDAY, 2018/08/03, I.2).

Tax Tip. Business owners were provided tips about tax reform, (TAXDAY, 2018/08/03, I.3).

Regulation. The Departments Health and Human Services, Labor and the Treasury have amended the definition of short-term, limited-duration individual health insurance coverage by allowing such coverage to last up to 364 days rather than up to 3 months, (T.D. 9837; TAXDAY, 2018/08/02, I.1).

NPRM. Proposed regulations were provided for determining the Code Sec. 965 inclusion amount of a U.S. shareholder of a foreign corporation with deferred foreign income, (NPRM REG-104226-18; IR-2018-158; TDNR SM-0452; TAXDAY, 2018/08/02, I.2).

Regulation. The IRS has finalized rules for filing Forms W-2 and Forms 1099-Misc. with box 7 filled in. The final rules accelerate the time for filing these forms and modify extension requests, (T.D. 9838; TAXDAY, 2018/08/02, I.3).

Tax Tip. Taxpayers were provided tips on filing amended tax returns, (TAXDAY, 2018/08/02, I.4).

Expatriation Notice. The IRS released a list of individuals who lost their U.S. citizenship within the meaning of Code Sec. 6039G during the quarter that ended on June 30, 2018, (Quarterly Publication of Individuals Who Have Chosen to Expatriate; TAXDAY, 2018/08/01, I.1).

Phishing Scam. The IRS and its Security Summit partners alerted tax professionals of a phishing scam, which remains the most common way for data thieves to enter a tax practitioner’s digital networks and steal client information, (IR-2018-157; TAXDAY, 2018/08/01, I.2).

Tax Tip. Information about tax credits was provided to taxpayers paying for higher education, (TAXDAY, 2018/08/01, I.4).

529 plans. he IRS and the Treasury issued guidance announcing that they intend to issue regulations clarifying three recent tax law changes affecting 529 education savings plans, (Notice 2018-58; IR-2018-156; TAXDAY, 2018/07/31, I.1).

Student Loans. The IRS has provided relief to taxpayers who took out private student loans to finance attendance at a school owned by Corinthian College, Inc. (CCI) or American Career Institutes, Inc. (ACI). Under this guidance, a taxpayer will be able to exclude from gross income the discharged amount of a private student loan taken out to finance attendance at ACI or CCI., (Rev. Proc. 2018-39; TAXDAY, 2018/07/31, I.2).

Tax Tip. IRS highlighted “Tax Security 101”, (TAXDAY, 2018/07/31, I.3).

Regulation.. The IRS issued final regulations relating to the substantiation and reporting of charitable contribution deductions under Code Sec. 170 for income tax purposes, (T.D. 9836; TAXDAY, 2018/07/30, I.1).

IRB. The IRS released I.R.B. 2018-31, dated July 30, 2018, (TAXDAY, 2018/07/30, I.2).

Comment Request. The IRS requested comments regarding Rev. Proc. 2008-60, (TAXDAY, 2018/07/30, I.3).

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CCHTaxGroup

All stories by: CCHTaxGroup