The IRS has released a second quarter update to its 2017-18 Priority Guidance Plan. These plans are issued each year to identify tax issues they believe should be addressed through regulations, revenue rulings, revenue procedures, notices and other administrative guidance.
The second quarter plan contains projects the IRS intends to complete by June 30, 2018. The revision adds 29 new projects to the list, with 18 designated as “near term priorities” as a result of the Tax Cuts and Jobs Act.
The full list of priority tax guidance to implement as a result of the Tax Cuts and Jobs Act is as follows:
- Guidance on certain issues related to the business credit under section 45S with respect to wages paid to qualifying employees during family and medical leave.
- Guidance under sections 101 and 1016 and new section 6050Y regarding reportable policy sales of life insurance contracts.
- Guidance under section 162(m) regarding the application of the effective date provisions to the elimination of the exceptions for commissions and performance-based compensation from the definition of compensation subject to the deduction limit.
- Guidance under section 162(f) and new section 6050X.
- Computational, definitional and other guidance under new section 163(j).
- Guidance on new section 168(k).
- Computational, definitional, and anti-avoidance guidance under new section 199A.
- Guidance adopting new small business accounting method changes under sections 263A, 448, 460, and 471.
- Definitional and other guidance under new section 451(b) and (c).
- Guidance on computation of unrelated business taxable income for separate trades or businesses under new section 512(a)(6).
- Guidance implementing changes to section 529.
- Guidance implementing new section 965 and other international sections of the new tax law (Notice 2018-07, released December 29, 2017).
- Guidance implementing changes to section 1361 regarding electing small business trusts.
- Guidance regarding Opportunity Zones under sections 1400Z–1 and 1400Z–2.
- Guidance under new section 1446(f) for dispositions of certain partnership interests (Notice 2018-08, released December 29, 2017).
- Guidance on computation of estate and gift taxes to reflect changes in the basic exclusion amount.
- Guidance regarding withholding under sections 3402 and 3405 and optional flat rate withholding.
- Guidance on certain issues relating to the excise tax on excess remuneration paid by “applicable tax-exempt organizations” under section 4960.
A link to the plan, along with past quarter updates, can be found on the IRS website accessed here.
So, stay tuned. We know you have a lot of questions and we intend on offering you the answers you’re looking for. In the meantime, check out some of our articles about what we do know about the TCJA and how it will be implemented. You are also sure to find some helpful information in our Tax Reform Research Center.
By Christopher Axene, CPA (Dublin office)