Weekly Report from Washington, D.C.

During the week of September 10, 2018, House Republican tax writers advanced a “Tax Reform 2.0” legislative package. The Treasury Inspector General for Tax Administration (TIGTA) noted that the IRS could better protect taxpayers’ rights when issuing levies. The IRS released guidance to clarify that foreign income inclusions, including inclusions under the new tax on global intangible low-taxed income, are qualifying income for purposes of the 95 percent gross income qualification test applying to real estate investment trusts (REITs).

Congress

House Republican tax writers advanced a “Tax Reform 2.0” legislative package, (TAXDAY, 2018/09/14, C.1).

The Joint Committee on Taxation issued reports on Family and Small Business Tax Cuts and other acts, (TAXDAY, 2018/09/13, C.1).

Charles P. “Chuck” Rettig was confirmed as the new IRS Commissioner on September 12, (TAXDAY, 2018/09/13, C.2).

The Joint Committee on Taxation issued a report on the estimated budget effects of the Save American Workers Act of 2018, (TAXDAY, 2018/09/12, C.1).

House Republicans unveiled the much anticipated “Tax Reform 2.0” legislative package on September 10, (TAXDAY, 2018/09/11, C.1).

Treasury

The Treasury Inspector General for Tax Administration (TIGTA) noted that the IRS could better protect taxpayers’ rights when issuing levies, (Ref. No. 2018-30-068; TAXDAY, 2018/09/12, T.1).

The Financial Crimes Enforcement Network (FinCEN) requested comments on anti-money laundering programs, customer identification programs and report of transportation of currency or monetary instruments, (TAXDAY, 2018/09/11, T.1).

TIGTA noted that the IRS’s private tax debt collection (PDC) program implemented to collect inactive tax receivables could be improved, (Ref. No. 2018-30-052; TAXDAY, 2018/09/11, T.2).

TIGTA noted that the IRS continued to experience difficulties in handling Collection Due Process cases, (Ref. No. 2018-10-054; TAXDAY, 2018/09/11, T.3).

The FinCEN provided permanent exceptive relief to certain covered financial institutions, (TAXDAY, 2018/09/10, T.1).

Internal Revenue Service

Qualifying Income. The IRS released guidance to clarify that foreign income inclusions, including inclusions under the new tax on global intangible low-taxed income, are qualifying income for purposes of the 95 percent gross income qualification test applying to real estate investment trusts (REITs), (Rev. Proc. 2018-48; TAXDAY, 2018/09/14, I.1).

GILTI. Much-anticipated proposed regulations were released to provide guidance for U.S. shareholders determining the amount of global intangible low-taxed income (GILTI) to include in gross income, (NPRM REG-104390-18; IR-2018-186; TAXDAY, 2018/09/14, I.2).

Tax Withholding. The IRS urged retirees to check their tax withholding, (TAXDAY, 2018/09/14, I.3).

Practice Unit. IRS Large Business and International (LB&I) issued a new Practice Unit on treaty residency issues, (TAXDAY, 2018/09/13, I.1).

Tax Payments. The IRS provided tips on withholding, estimated and additional tax payments, (TAXDAY, 2018/09/13, I.2).

Estimated Tax Payments. The IRS reminded taxpayers who pay their taxes quarterly that the third estimated tax payment for 2018 is due on Monday, September 17, 2018, (IR-2018-184; TAXDAY, 2018/09/12, I.1).

Data Theft. The IRS and the Security Summit partners urged tax professionals to report data theft immediately and follow an established process to protect their clients, (IR-2018-185; TAXDAY, 2018/09/12, I.2).

FEMA. The Federal Emergency Management Agency (FEMA) announced that the president on August 10, 2018, determined that certain areas in Wisconsin are eligible for assistance from the federal government, (TAXDAY, 2018/09/12, I.3).

Tax Obligations. The IRS reminded small business and self-employed taxpayers of meeting their tax obligations, including making quarterly estimated tax payments, (IR-2018-182; TAXDAY, 2018/09/11, I.1).

Emergency Preparedness. The IRS reminded taxpayers to create or update their emergency preparedness plan in the event of a natural disaster, (IR-2018-183; TAXDAY, 2018/09/11, I.2).

Corrections. The IRS issued corrections to final regulations related to guidance concerning substantiation and reporting requirements for cash and noncash charitable contributions, (TAXDAY, 2018/09/11, I.3).

FAQ. The IRS addressed a frequently asked question (FAQ) regarding whether the proposed regulation, governing contributions in exchange for state and local tax credits, affected the ability of a business to deduct a payment made under such a program as ordinary and necessary business expense, (TAXDAY, 2018/09/11, I.4).

Comment Requests. The IRS requested comments on various forms, notices and regulations, (TAXDAY, 2018/09/11, I.5).

Meetings. Taxpayer Advocacy Panels (TAPs) scheduled open meetings, (TAXDAY, 2018/09/11, I.6).

Withholding Calculator. The IRS urged retirees to perform a “paycheck checkup” using the Withholding Calculator to verify that they were having the right amount of tax withheld from their pensions and annuity checks, (IR-2018-180; TAXDAY, 2018/09/10, I.1.

Interest Rates. The IRS provided overpayment and underpayment interest rates for the fourth quarter 2018, (Rev. Rul. 2018-25; IR-2018-181; TAXDAY, 2018/09/10, I.2).

PMTAs. PMTAs were issued on math error authority and recapture interest computation, (TAXDAY, 2018/09/10, I.3).

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CCHTaxGroup

All stories by: CCHTaxGroup