Weekly Report from Washington, D.C.

During the week of September 3, President Trump expressed his thoughts about indexing capital gains to inflation and House Republicans had a closed-door listening session on the next round of tax reform. TIGTA noted that the IRS could be more effective in addressing noncompliance by better using and controlling the Fed/State Program. The IRS released guidance that provides excise tax relief for certain regulated investment companies (RICs) for amounts a RIC would need to include in gross income under Code Sec. 951(a)(1).

House

President Donald Trump has been thinking “very strongly” about indexing capital gains to inflation (TAXDAY, 2018/09/04, W.1).

Congress

House Republicans met on September 6 for a closed-door listening session on the next round of tax reform (TAXDAY, 2018/09/07, C.1).

The House expected to vote on a “Tax Reform 2.0” measure this month, House Speaker Paul Ryan, R-Wis., told reporters on September 5, (TAXDAY, 2018/09/06, C.1).

Treasury

The Treasury Inspector General for Tax Administration (TIGTA) noted that the IRS could be more effective in addressing noncompliance by better using and controlling the Fed/State Program (Ref. No. 2018-30-060; TAXDAY, 2018/09/05, T.1).

Per Diems. The U.S. State Department released a listing of maximum travel per diem allowances for travel in foreign areas (TAXDAY, 2018/09/07, I.2).

IRS

Underpayment of Taxes. The IRS advised taxpayers to plan ahead and understand their options in order avoid a penalty for underpayment of tax when they file early in 2019 (IR-2018-179; TAXDAY, 2018/09/07, I.1)

Excise Tax Relief. The IRS released guidance that provides excise tax relief for certain regulated investment companies (RICs) for amounts a RIC would need to include in gross income under Code Sec. 951(a)(1) for the excise tax year ended on December 31, 2017 (a 2017 inclusion) (Rev. Proc. 2018-47; TAXDAY, 2018/09/07, I.3).

I.R.B. The IRS released I.R.B. 2018-37, dated September 10, 2018 (TAXDAY, 2018/09/07, I.4).

Tax Tools. Taxpayers were provided tips on using the Service’s tax tools (TAXDAY, 2018/09/07, I.5).

Tax Credit Programs. The IRS announced that business taxpayers who make business-related payments to charities or government entities for which they receive state or local tax credits could generally deduct these payments as business expenses (IR-2018-178; TAXDAY, 2018/09/06, I.1).

Chief Counsel Telephone Directory. The IRS issued an updated version of the Chief Counsel telephone directory dated September 4, 2018 (TAXDAY, 2018/09/06, I.2).

Estimated Taxes. The IRS announced that it will be launching a campaign on estimated taxes on September 6, 2018 (TAXDAY, 2018/09/06, I.3).

Comment Requests. The IRS requested comments regarding on Form 5884, Work Opportunity Credit (TAXDAY, 2018/09/06, I.4).

Tax-Exempt Status. Charitable organizations were provided tips on applying for tax-exempt status (TAXDAY, 2018/09/06, I.5).

OVDP. The IRS announced that the Offshore Voluntary Compliance Program (OVDP) will end on September 28, 2018 (IR-2018-176; TAXDAY, 2018/09/05, I.1).

Data Theft. The IRS and the Security Summit partners urged tax professionals to beware of the subtle signs of client data theft, as cases continue to be reported of professionals being oblivious to the fact that they have fallen victims to theft (IR-2018-177; TAXDAY, 2018/09/05, I.2).

OIC Appeals. Guidance on perfection of appeals related to offers-in-compromise (OIC) was reissued (TAXDAY, 2018/09/05, I.3).

Phishing Emails. Tax professionals were warned against scams related to spear phishing emails (TAXDAY, 2018/09/05, I.4).

Agreements Updated. The IRS supplemented the list of countries with which the U.S. has an agreement relating to the exchange of tax information (Rev. Proc. 2018-36; TAXDAY, 2018/09/04, I.1).

Comment Requests. The IRS requested comments on Notice 2018-23, I.R.B. 2018-15, 474 and Form 1098-F, Transitional Guidance Under Sections 162(f) and 6050X with Respect to Certain Fines, Penalties, and Other Amounts (TAXDAY, 2018/09/04, I.2).

Login to read more tax news on CCH® AnswerConnect or CCH® Intelliconnect®.

Not a subscriber? Sign up for a free trial or contact us for a representative.

AUTHOR

CCHTaxGroup

All stories by: CCHTaxGroup