Below please find daily updates pertaining to the latest in financial, business, and tax news:
The Senate Finance Committee (SFC) held its second hearing on February 14, which examined President Trump’s fiscal year (FY) 2019 budget request for the IRS. Acting IRS Commissioner David Kautter testified. Additional cuts to IRS funding, as proposed in Trump’s FY 2019 budget, would be a mistake, SFC Chairman Orrin G. Hatch, R-Utah, said during […] The post Hatch, Wyden Caution Against IR...Thu, Feb 15, 2018
The government does not intend to allow a new “loophole” to the carried-interest provision under the Tax Cuts and Jobs Act of 2017 (P.L. 115-97) enacted in December 2017, Treasury Secretary Steven Mnuchin told lawmakers on February 14. Mnuchin testified on the matter at a February 14 Senate Finance Committee (SFC) hearing, scheduled to examine […] The post IRS Guidance on Carr...Wed, Feb 14, 2018
The IRS is unprepared to answer taxpayer questions about the Tax Cuts and Jobs Act (P.L. 115-97), National Taxpayer Advocate Nina Olson predicted on her blog. The IRS has already witnessed taxpayer confusion about withholding changes, the deductibility of prepaid property taxes, and more, according to Olson. Questions Since 2014, the IRS has limited the […] The post IRS Unprepared for Que...Wed, Feb 14, 2018
The Treasury Department has proposed repealing 298 regulations. According to the Treasury, the targeted rules are unnecessary, duplicative or obsolete. In addition, the Treasury proposes to amend another 79 regulations to reflect the repeal. Background The Treasury began reviewing IRS regulations in response to two Executive Orders (EO) issued in 2017. The first EO directed […] The post T...Tue, Feb 13, 2018
The Financial Accounting Standards Board (FASB) is expected to complete guidance on the Tax Cuts and Jobs Act (P.L. 115-97) by February 16. FASB previously proposed an Accounting Standards Update (ASU) to help entities reclassify certain stranded income tax effects in accumulated other comprehensive income resulting from the overhaul of the tax code. Proposed ASU […] The post FASB Nears C...Tue, Feb 13, 2018
The Trump administration on February 12 released its much anticipated fiscal year (FY) 2019 budget request, entitled “Efficient, Effective, Accountable An American Budget.” The administration’s proposal calls for $15 billion in IRS funding. “By investing in the modernization of Internal Revenue Service (IRS) systems, the Budget would help make the implementation of tax reform ...Mon, Feb 12, 2018
Congress passed and the president signed the Bipartisan Budget Act of 2018 (P.L. 115-123), which, in addition of extending government spending, included extenders and other tax provisions. The White House nominated Charles P. Rettig for IRS commissioner. The Treasury updated its Guidance Plan for the Tax Cuts and Jobs Act (P.L. 115-97); while the IRS […] The post Weekly Report from Washin...Mon, Feb 12, 2018
President Trump on February 9 signed the Bipartisan Budget Act (P.L. 115-123) into law after a brief government shutdown occurred overnight. The House approved the legislation, which contains a continuing resolution to fund the government and federal agencies through March 23, in the early morning hours of February 9, by a 240-to-186 vote. The Senate […] The post Trump Signs Bipartisan Bu...Fri, Feb 09, 2018
The IRS has provided procedures for designating population census tracts as Qualified Opportunity Zones for purposes of Code Secs. 1400Z-1 and 1400Z-2, as added by the Tax Cuts and Jobs Act of 2017 (P.L. 115-97). Qualified Opportunity Zones Under the new provision, certain realized gains may be temporarily deferred. However, the corresponding amounts must be […] The post IRS Provides Qua...
The IRS has provided guidance that will allow domestic organizations exempt under Code Sec. 501(c) to change their form or state of organization without reapplying for exempt status. Eight examples are provided for added clarity. Material Change of Facts Rev. Proc. 2018-5 describes the requirements for obtaining an exempt status determination. In Section 11.02 states […] The post Certain ...