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Brady Unveils Tax Reform 2.0 Framework

The House’s top tax writer has unveiled Republicans’ “Tax Reform 2.0” framework. The framework outlines three key focus areas: making permanent the individual and small business tax cuts enacted under the Tax Cuts and Jobs Act (TCJA); promoting family savings by streamlining retirement savings accounts and creating…

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Senate Approves IRS Funding Bill; Congress Departs for August Recess

The Senate has approved a fiscal year (FY) 2019 budget for the IRS. The Senate’s approved IRS budget provides less funding than a House-approved proposal. The Senate appropriations package, which includes the Financial Services and General Government appropriations bill (HR 6147), cleared the Senate by a 92-to-6…

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FAQs Provide Penalty and Filing Relief for Taxpayers Subject to Code Sec. 965 Transition Tax

Three new FAQs covering the Code Sec. 965 transition tax provide welcome penalty and filing relief for taxpayers who make the election to pay the tax in eight annual installments. The transition tax on accumulated foreign earnings is a tax imposed on the untaxed foreign earnings of…

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IRS Warns Taxpayers Against Impersonation Scams

The IRS has warned taxpayers to remain vigilant against phishing emails and telephone scams especially at a time when those who had recently filed returns could be waiting for a response from the Service. The IRS also urged taxpayers to be alert against year-round tax scams, which…

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Mnuchin, Kautter Testify Before Senate Committee on Outdated IRS Technology

IRS Budget Hearing Testimony The IRS’s “Achilles’ heel” is using outdated software originating from the 1960s, Acting IRS Commissioner David Kautter told Senate lawmakers. Kautter and Treasury Secretary Steven Mnuchin testified in a May 22 Senate Appropriations Financial Services and General Government Subcommittee hearing. System Shut Down…

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Section 199A Passthrough Guidance Expected in July, Kautter Says

The IRS expects to issue guidance on the Code Sec. 199A passthrough deduction in July, Acting IRS Commissioner David Kautter has said. Kautter outlined the timeline of various guidance proposals at the American Bar Association (ABA) Section of Taxation May Meeting in Washington, D.C. Proposed Guidance More…

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Neal Asks Treasury, IRS for Pass-through Deduction Guidance

House Ways and Means Committee ranking member Richard Neal, D-Mass., has asked the Treasury and the IRS for guidance on the tax code’s new pass-through deduction. In a May 1 letter, Neal asked Treasury Secretary Steven Mnuchin. and Acting IRS Commissioner David Kautter, for clarifying guidance on…

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Brady Talks “Phase Two” of Tax Reform

President Donald Trump and the House’s top tax writer think Congress and the president should work to make the tax code better every year. House Ways and Means Committee Chairman Kevin Brady, R-Tex., said in an interview that he and the president share this goal and are…

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Customer Contract Revenue Recognition Accounting Method Change Provided

The IRS has provided an automatic consent procedure for taxpayers to change to an accounting method that uses new standards issued by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) for recognizing revenue from customer contracts. Revenue Recognition Accounting Method Change On…

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IRS Outlines Guidance on Business Interest Deduction

The IRS has announced initial guidance for computing the business interest expense deduction under Code Sec. 163(j) effective for tax years beginning after 2017, and aspects that will be covered in future regulations. The deduction is generally limited to the taxpayer’s business interest income plus 30 percent…

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