The initial due date for the first year of tax returns affected by the Tax Cuts and Jobs Act is in the rear view mirror. Additional IRS-issued guidance for the changes created by the law still lies ahead.
According to a May 2019 report by the Treasury Inspector General for Tax Administration, the IRS has issued 83 guidance products and has plans to issue another 90. Those include final and proposed regulations, revenue rulings, and revenue procedures.
The law contained 119 provisions that affected federal income taxes. The IRS determined that 72 of the provisions required new guidance while 47 did not.
The IRS does not plan to publish guidance on the suspension of the overall limitation on itemized deductions. True or false?
Of the 72 provisions requiring new guidance, the IRS concluded the ten highest priority were
- The deduction for qualified business income,
- The 21% corporate tax rate,
- The limitation on deduction for interest,
- The denial of deduction for certain fines, penalties, and other amounts,
- The employer credit for paid family and medical leave,
- The treatment of gain or loss of foreign persons from sale or exchange of interests in partnerships engaged in trade or business within the US,
- Opportunity zones,
- The treatment of deferred foreign income upon transition to participation exemption system of taxation,
- The current year inclusion of global intangible low-taxed income US shareholders, and
- The base erosion and anti-abuse tax.
The IRS has completed issuing guidance for the ten highest priority provisions. Remaining guidance will focus solely on the other 62 items requiring guidance. True or false?
For a list of guidance yet to come, read the full report from the Treasury Inspector General.
Note: Taxing Lessons provides a summarized version of sometimes lengthy court decisions and IRS documents. The full documentation may include facts and issues not presented here. Please use the link provided in the post to read the entire document.
This information should not be considered legal, investment, or tax advice. Taxing Lessons and Top Drawer Ink Corp. do not provide legal, investment, or tax advice. Always consult your legal, investment, and/or tax advisor regarding your personal situation.