Document summaries for the week of Dec. 31, 2018

EMPLOYEE BENEFITS

IRS provides interim guidance on Sec. 4960

The IRS issued interim guidance on the provisions of Sec. 4960, which was added by the law known as the Tax Cuts and Jobs Act, P.L. 115-97, and announced its intention to issue proposed regulations. In the interim guidance, the IRS defines (1) “applicable tax-exempt organization,” (2) “excess remuneration,” (3) “covered employee,” and (4) “excess parachute payment” and instructs taxpayers on how to report and pay the excise tax under Sec. 4960. Notice 2019-09 (12/31/18).

Revised procedures issued for exempt organization employee plan determination letters

The IRS provided revised procedures for determination letters and letter rulings issued by the Tax Exempt Agreements Office. Rev. Proc. 2019-4 (1/2/19).

 

EXEMPT ORGANIZATIONS

Revised procedures issued for EO determination letters

The IRS set forth procedures for issuing determination letters on issues under the jurisdiction of the director, Exempt Organizations (EO) Rulings and Agreements. Specifically, it explains the procedures for issuing determination letters on exempt status, private foundation status, and other determinations related to exempt organizations. The revenue procedure also provides guidance on applicable user fees for requesting determination letters. Rev. Proc. 2019-5 (1/2/19).

 

INTERNATIONAL

IRS issues annual international no-rulings list

The IRS updated the list of areas of the Code under the jurisdiction of the associate chief counsel (International) on which the IRS will not issue letter rulings or determination letters. Rev. Proc. 2019-7 (1/2/19).

 

IRS PROCEDURE

IRS revises letter ruling and information letter procedures

The IRS issued revised procedures for letter rulings and information letters issued by these Associate Chief Counsel offices: Corporate; Financial Institutions and Products; Income Tax and Accounting; International; Passthroughs and Special Industries; Procedure and Administration; and Employee Benefits, Exempt Organizations, and Employment Taxes. This procedure also revises how determination letters are issued by the Large Business and International, Small Business/Self Employed, Wage and Investment, and Tax Exempt and Government Entities divisions. Rev. Proc. 2019-1 (1/2/19).

TAM procedures updated

The IRS explained when and how an Associate Chief Counsel office provides a technical advice memorandum (TAM). It also explained a taxpayer’s rights when a field office requests a TAM. Rev. Proc. 2019-2 (1/2/19).

IRS revises domestic no-rulings list

The IRS provided a revised list of areas of the Code under the jurisdiction of these Associate Chief Counsel offices on which the Service will not issue letter rulings or determination letters: Corporate; Financial Institutions and Products; Income Tax and Accounting; Passthroughs and Special Industries; Procedure and Administration; and Employee Benefits, Exempt Organizations, and Employment Taxes. Rev. Proc. 2019-3 (1/2/19).

Tax Court releases no opinions

The U.S. Tax Court remains closed due to the partial government shutdown and did not release any opinions for the week of Dec. 31, 2018.

IRS issues no determination letters

The IRS issued no private letter rulings, technical advice memoranda, or Chief Counsel advice for the week of Dec. 31, 2018.

Newsletter Articles

TAX REFORM

Traps for the unwary: Tax Cuts and Jobs Act changes

By now many of us are familiar with the various provisions of the law known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97. Here is a list of changes together with (perhaps) unexpected nuances.

DEDUCTIONS

Qualified business income deduction regs. and other guidance issued

The package includes final regulations, guidance on how to calculate W-2 wages, a safe-harbor rule for rental real estate businesses, and new proposed rules on the treatment of previously suspended losses.