Weekly Report from Washington, D.C.

During the week of August 13, Senate Finance Committee (SFC) Republicans clarified congressional intent of certain tax reform provisions. The IRS has provided the 2018 monthly national average premium for qualified health plans that have a bronze level of coverage for taxpayers to use in determining their maximum individual shared responsibility payment under Code Sec. 5000A(c)(1)(B).

Congress

SFC Republicans clarified congressional intent of certain tax reform provisions. GOP Senate tax writers, in an August 16 letter, called on Treasury and the IRS to issue tax reform guidance consistent with the clarifications, (TAXDAY, 2018/08/17, C.1).

The IRS’s proposed pass-through deduction regulations released last week has generated mixed reactions on Capitol Hill, (TAXDAY, 2018/08/09, I.3). The 184-page proposed regulations, REG-107892-18, aim to clarify certain complexities of the new, yet temporary, Code Sec. 199A deduction of up to 20 percent of income for pass-through entities, (TAXDAY, 2018/08/14, C.1).

IRS

National Average Premium. The IRS provided the 2018 monthly national average premium for qualified health plans that have a bronze level of coverage for taxpayers to use in determining their maximum individual shared responsibility payment under Code Sec. 5000A(c)(1)(B), (Rev. Proc. 2018-43; TAXDAY, 2018/08/17, I.1).

Tax Withholding. The IRS urged taxpayers with children and other dependents to perform a “paycheck checkup” using the Withholding Calculator, (IR-2018-167; TAXDAY, 2018/08/17, I.2).

Public Hearing. The IRS cancelled a public hearing on proposed regulations concerning how partnership liabilities are allocated for disguised sale purposes, (NPRM REG-131186-17; TAXDAY, 2018/08/17, I.3).

Tax Withholding. The IRS advised taxpayers who support dependents who cannot be claimed for the Child Tax Credit to do a “paycheck checkup” soon, (IR-2018-166;TAXDAY, 2018/08/16, I.1).

Opinion Letters. The IRS extended the deadline for submitting on-cycle applications for opinion letters for pre-approved defined contribution plans for the third six-year remedial amendment cycle to December 31, 2018, (Rev. Proc. 2018-42; TAXDAY, 2018/08/16, I.2).

Cybercriminals. The IRS and the Security Summit partners warned tax professionals against cybercriminals targeting IRS-issued identification numbers to impersonate practitioners as well as taxpayers, (IR-2018-164; TAXDAY, 2018/08/15, I.1).

Tax Withholding. The IRS urged high-income taxpayers and those with complex tax returns to check their withholding to avoid an unexpected tax bill or penalty while filing their 2018 tax return, (IR-2018-165; TAXDAY, 2018/08/15, I.2).

Regulation. The IRS released proposed regulations governing the centralized partnership audit regime, (REG-136118-15, REG-119337-17; REG-118067-17; REG-120232-17 and REG 120233-17; TAXDAY, 2018/08/14, I.1).

Withholding Calculator. The IRS advised taxpayers who received tax refunds earlier this year to use the Withholding Calculator to check if they could receive more money from their paychecks, (IR-2018-163; TAXDAY, 2018/08/14, I.2).

Renting Property. The IRS urged taxpayers, especially those renting out residential property, to be aware of the different tax rules that could apply to them, (FS-2018-14; TAXDAY, 2018/08/14, I.3).

Notice. The IRS announced that a report summarizing closed meetings held by the Art Advisory Panel in 2017 had been filed with the Treasury Assistant Secretary for Management and is available for public inspection, (TAXDAY, 2018/08/13, I.1).

Notice. For pension plan years beginning in August 2018, the IRS has 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 2018-65; TAXDAY, 2018/08/13, I.2).

Miscellaneous

CONUS. The General Services Administration (GSA) has announced its fiscal year (FY) 2019 Continental U.S. (CONUS) per diem reimbursement rates, (TAXDAY, 2018/08/16, M.2).

Guidance. Taxpayers and practitioners need clarity on certain S corporation issues by next tax filing season, the American Institute of CPAs (AICPA) has said. In an August 13 letter sent to Treasury and the IRS, the AICPA requested immediate guidance on certain S corporation provisions under the Tax Cuts and Jobs Act (TCJA) (P.L. 115-97), (TAXDAY, 2018/08/15, M.2).

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CCHTaxGroup

All stories by: CCHTaxGroup