Proposed Regulations on Contribution Limits for ABLE Act Anticipated
Posted on Aug 6, 2018
According to recently released Notice 2018-62, the IRS and the Treasury will issue proposed regulations to clarify the new rules regarding the Achieving a Better Life Experience (ABLE) Act. The ABLE program provides tax-advantaged savings accounts for individuals with disabilities. The TCJA increased the contribution limit to ABLE accounts under certain circumstances. The proposed regulations reportedly will clarify the increased contribution limits; confirm that the employed designated beneficiary is solely responsible for ensuring that requirements are met; and provide transition relief...
Continue Reading
Proposed Full Expensing Regulations Released
Posted on Aug 3, 2018
The IRS has released regulations on the full expensing provisions under section 168(k), as amended by the Tax Cuts and Jobs Act. That section allows businesses to fully expense certain business assets. Read more: REG-104397-18.
Continue Reading
Proposed Transition Tax Regulations Released
Posted on Aug 1, 2018
The IRS has released proposed regulations on section 965, a provision created by the 2017 TCJA, which imposes a one-time transition tax on accumulated earnings of foreign subsidiaries of U.S. multinationals. Read more: IRS Floats Rules On Transition Tax On Foreign Earnings; REG-104226-18
Continue Reading
Full Expensing Regulations Ready for Publication
Posted on Jul 31, 2018
On July 30, 2018, the Office of Management and Budget (“OMB”) waived its review of the Internal Revenue Service’s (“IRS”) proposed regulations that implement the full expensing provisions of the 2017 tax act. The full expensing provisions allow temporary 100% expensing for certain business assets. With the OMB review complete, the IRS may publish the proposed regulations in the Federal Register. Read more: OMB Waives Review of Treasury’s ‘Full Expensing’ Tax Regulations
Continue Reading
Tax Reform 2.0 Outline Released with Three Main Themes
Posted on Jul 25, 2018
House Ways and Means Committee Chairman Kevin Brady recently released an outline of the planned tax reform 2.0 legislation. The tax package will focus on making the individual and small business tax cuts permanent; promoting family savings through retirement and section 529 education savings programs; and encouraging the creation and development of new businesses. The legislation will take the form of three individual bills based on each of the three topics. The outline itself contains few details and no cost estimates, and also does not contain technical corrections related to the Tax Cuts...
Continue Reading
OMB’s Review of 199A Regulations to Be Completed in Ten days
Posted on Jul 25, 2018
Last week, the Office of Management and Budget’s Office of Information and Regulatory Affairs (OIRA) received draft proposed computational section 199A regulations from Treasury. OIRA’s expedited deadline for this review is ten business days after receipt of all necessary information, subject to extension as agreed with Treasury. Guidance sent to OIRA is generally subject to a 45-day review period. Read more: OMB Review of Passthrough Deduction Regs is Underway
Continue Reading
Nunes’s Proposed Legislation Would Consider Inflation in Determining Capital Gains Tax
Posted on Jul 23, 2018
Devin Nunes, a Republican member of the House Ways and Means Committee, has introduced legislation to index capital gains for inflation. Under Nunes’s legislation, the tax basis of a capital asset for purposes of calculating capital gains would be adjusted for inflation. Republican Senator Ted Cruz has introduced similar legislation in the Senate, and Congressional Republicans are contemplating whether to include the provision in the “phase 2” tax reform legislation. Read more: GOP Tax Writer Introduces Bill to Reduce Capital Gains Taxes
Continue Reading
The Tax Cuts and Jobs Act Could Impact Intangible Valuation
Posted on Jul 20, 2018
Thomas Amendolari, a senior economist at the Treasury Department, recently stated that many of the fundamental aspects of determining the discount rate, for purposes of valuing intangible transfers under the section 482 regulations, may be affected by the 2017 TCJA. While the economic effects of the TCJA may increase discount rates, Amendolari noted that it is not yet certain and further noted that rising discount rates do not necessarily mean the overall valuation for intangibles should be lowered, because pre-tax cash flows may also be affected. Read more: TCJA’s Impact on...
Continue Reading
Tax Law Discourages U.S. Investment and Leaves Taxpayers in the Dark, According to New Report from Senate Finance Democrats
Posted on Jul 19, 2018
A recent report released by the Senate Finance Committee ranking member Ron Wyden asserts that the new tax legislation has resulted in “more complexity, loopholes and incentives to ship jobs overseas.” According to the report, the global intangible low taxed income (“GILTI”) provisions create a new web of complexity and leave taxpayers in the dark regarding future investment decisions. Additionally, instead of discouraging foreign investment, the new provisions reportedly have the opposite effect. With GILTI’s exemption for a routine return on depreciable assets outside of the U.S.,...
Continue Reading
David Kautter Announces that Guidance on the Section 199A Pass-through Deduction will be Released in Weeks
Posted on Jul 18, 2018
On July 17, 2018, David Kautter, the acting Commissioner of the Internal Revenue Service (“IRS”), announced that the Treasury Department is currently reviewing guidance under section 199A and anticipates the guidance to be released within weeks. Kautter further stated that the IRS is treating the section 199A deduction, the section 59A base erosion and anti-abuse tax (“BEAT”), and the section 951A global intangible low-taxed income (“GILTI”) guidance as integrated projects. While Kautter does not expect guidance on the provisions to be released together, he predicts that guidance on the BEAT...
Continue Reading
Brady Announces that the Outline of Phase 2 of Tax Reform will be Released Next Week
Posted on Jul 18, 2018
Kevin Brady, Chairman of the House Ways and Means Committee, announced on July 18, 2018 that an outline of the “phase 2” tax reform legislation will be released during the week of July 23rd. Brady also stated that the phase 2 legislation will not include any technical corrections or refinements to the 2017 tax act and that the focus of the legislation will be to make permanent the individual tax cuts of the 2017 tax act. Read more: Phase 2 Tax Bill Outline Coming Next Week
Continue Reading
The Office of Management and Budget Received Draft Transition Tax Regulations
Posted on Jul 17, 2018
On July 13, the Office of Management and Budget’s Office of Information and Regulatory Affairs (OIRA) acknowledged receipt on its website of proposed rules under section 965. The rules are currently under review, but OIRA has indicated that they are not economically significant, and therefore the normal 45-day review timeline (subject to extension) applies. Read more: Transition Tax Regs Nearing Finish Line
Continue Reading
Tax Reform 2.0 Not Expected to Address International Provisions
Posted on Jul 16, 2018
According to Republican Congressman Carlos Curbelo, tax reform 2.0 will not address international tax provisions, such as BEAT or GILTI. Instead, the next round of tax legislation is projected to focus on making the individual provisions permanent. The excluded provisions are expected to be addressed in a future, separate technical corrections bill. Curbelo also noted that the draft tax reform 2.0 legislation will likely be released after Congress returns from its August recess. Read more here: New Tax Overhaul Won’t Address GILTI, Congressman Says ...
Continue Reading
Vote on Technical Corrections Bill Not Expected Until After Midterm Elections
Posted on Jul 13, 2018
While House Republicans are in the process of drafting a technical corrections bill, House Republican leaders do not expect vote a on the bill until after the midterm elections in November. The technical corrections bill would be separate from the “phase 2” tax legislation that would make the individual tax cuts implemented by the 2017 tax act permanent. Kevin Brady, chairman of the House Ways and Means Committee, has stated that House Republicans would see the phase 2 bill in July, while a legislative outline may be released in August. Read more: Tax Technical Corrections Vote Expected...
Continue Reading
European Commission Discussing Implementation of the TCJA with U.S. Officials
Posted on Jul 13, 2018
According to Valdis Dombrovskis, a European Commissioner, the European Commission is speaking with U.S. officials about the Commission’s concerns with the 2017 tax act. European finance ministers have claimed that some provisions of the act violate international norms and double taxation treaties, especially the Base Erosion and Anti-Abuse Tax (or BEAT), which some commentators claim violates the World Trade Organization’s discrimination rules. The European Commission’s discussions focus on how implementation of the act by U.S. authorities can lessen the Commission’s concerns. Read more: EU...
Continue Reading