Weekly Report from Washington, D.C.

During the week of October 22, President Donald Trump signed bipartisan legislation, which expands a religious exemption for the Patient Protection and Affordable Care Act’s (ACA) (P.L. 111-148) individual mandate. The Treasury Inspector General for Tax Administration (TIGTA) noted that the IRS’s offer in compromise (OIC) public inspection files were incomplete and continue to put sensitive taxpayer information at risk. The IRS issued guidelines and general requirements for the development, printing, and approval of the 2018 substitute tax forms.

White House

President Donald Trump signed bipartisan legislation, which expands a religious exemption for the Patient Protection and Affordable Care Act’s (ACA) (P.L. 111-148) individual mandate, (TAXDAY, 2018/10/26, W.1).

President Donald Trump said that a 10 percent middle-income tax cut resolution could be unveiled as early as this week, (TAXDAY, 2018/10/26, W.2).

A new tax cut plan for middle-income taxpayers was expected to surface by November, President Donald Trump said, (TAXDAY, 2018/10/23, W.1).

Congress

The Trump administration and congressional Republicans were working together on crafting a new, 10 percent middle-income tax cut. The House’s top tax writer said that a new 10 percent tax cut measure will be advanced in the coming weeks, (TAXDAY, 2018/10/24, C.1).

Treasury

The IRS’s offer in compromise (OIC) public inspection files were incomplete and continue to put sensitive taxpayer information at risk, according to a report by the Treasury Inspector General for Tax Administration (TIGTA), (Ref. No. 2019-IE-R001; TAXDAY, 2018/10/26, T.1).

The IRS’s Taxpayer Protection Program (TPP) implemented procedures that were generally effective in reducing the burden for taxpayers whose returns were identified as potential identity theft, according to a report by the Treasury Inspector General for Tax Administration (TIGTA), (Ref. No. 2019-40-004; TAXDAY, 2018/10/23, T.1).

The Human Capital Office administered the drug testing of employees in testing designated positions in accordance with established guidelines, according to the Treasury Inspector General for Tax Administration (TIGTA), (Ref. No. 2019-10-003; TAXDAY, 2018/10/23, T.2).

IRS

Delegation Order. The IRS commissioner issued a delegation order delegating authorities regarding policy and guidance for conference approval, planning and reporting, (TAXDAY, 2018/10/26, I.1).

Revenue Procedure. The IRS issued guidelines and general requirements for the development, printing, and approval of the 2018 substitute tax forms, (Rev. Proc. 2018-51; TAXDAY, 2018/10/26, I.2).

I.R.B. The IRS released I.R.B. 2018-44, dated October 29, 2018, (TAXDAY, 2018/10/26, I.3).

Memos. Several memos were released addressing issues including referral threshold, initial taxpayer contact and unmasked transcripts, (TAXDAY, 2018/10/26, I.4).

Tax Tip. The IRS announced that certain taxpayers were eligible for a business income deduction, (TAXDAY, 2018/10/26, I.5).

FEMA Notice. An October 14, 2018 notice in which the Federal Emergency Management Agency (FEMA) announced that the president determined that certain areas in North Carolina were eligible for assistance from the federal government, was amended, (TAXDAY, 2018/10/26, I.6).

Comment Request. The IRS requested comments on various regulations and multiemployer plans notice and procedure, (TAXDAY, 2018/10/26, I.7).

IRPAC Committee. The IRS’s Information Reporting Program Advisory Committee (IRPAC) issued its annual report for 2018 including numerous recommendations to the Service on new and continuing issues in tax administration, (IR-2018-208; TAXDAY, 2018/10/25, I.1).

Tax Tip. The IRS provided guidance to taxpayers on reconstructing records after a disaster, (TAXDAY, 2018/10/25, I.2).

NPRM Regulation. The Trump Administration proposed a new set of rules enabling employers to use health reimbursement arrangements to reimburse employees for the purchase individual insurance coverage, including coverage on an Affordable Care Act Exchange, (NPRM REG-136724-17; TAXDAY, 2018/10/24, I.1).

PTINs. The IRS reminded return preparers that they must renew their preparer tax identification numbers (PTINs) for 2019 as all current PTINs are set to expire on December 31, 2018, (IR-2018-207; TAXDAY, 2018/10/24, I.2).

Procedural Update. The IRS updated its procedures on privacy, governmental liaison and disclosure information, (TAXDAY, 2018/10/24, I.3).

FEMA Notice. The Federal Emergency Management Agency (FEMA) announced that the president on October 11, 2018, determined that certain areas in Florida were eligible for assistance as a result of Hurricane Michael, (TAXDAY, 2018/10/24, I.4).

Tax Tip. The IRS provided guidance to taxpayers on using the withholding calculator, (TAXDAY, 2018/10/24, I.5).

Notice. The TAP Notices and Correspondence Project Committee meeting’s point of contact information was changed, (TAXDAY, 2018/10/23, I.1).

Field Attorney Advice. A closing agreement qualified as a determination; therefore, mitigation provisions applied on entering into a closing agreement in connection with carrying back a net operating loss (NOL) deduction to closed tax years, (TAXDAY, 2018/10/23, I.2).

GAO. The Government Accountability Office (GAO) reviewed the administrative appeal process within the IRS and found that the Service did not always monitor the timeliness of transfers of all incoming appeal requests, (TAXDAY, 2018/10/23, I.3).

Comment Request. The IRS requested comments on various forms and procedures related to accounting periods and methods, (TAXDAY, 2018/10/23, I.4).

Tax Tip. The IRS announced offering a series of webinars discussing a new tax law, (TAXDAY, 2018/10/23, I.5).

Qualified Opportunity Fund. The IRS issued proposed regulations relating to the deferral of gain under Code Sec. 1400Z-2 for investments in a qualified opportunity fund, (NPRM REG-115420-18; Rev. Rul. 2018-29; IR-2018-206; TAXDAY, 2018/10/22, I.1).

Disaster Notice. The IRS granted tax relief to Wisconsin victims of severe storms, tornadoes, straight-line winds, flooding, and landslides, (TAXDAY, 2018/10/22, I.2).

Miscellaneous

MACRS. Components of a nonresidential real property or residential rental property that qualify as tangible personal property may be separately depreciated as personal property under the Modified Accelerated Cost Recovery System (MACRS), (TAXDAY, 2018/10/24, M.1).

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CCHTaxGroup

All stories by: CCHTaxGroup